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What will the new "price" of gold be? ..........221
Since all the "money" units of the world no longer are claim checks on wealth (redeemable in a commodity) their "exchange values" have been falling rapidly. Their parities to all commodities have been increasing at an accelerating rate. The "price'' of gold bullion (the parities of currencies in relation to it) is set twice daily by a group of men in London but does not reflect the true value or worth of gold. The parity of gold itself in relation to other commodities is still as stable as ever in its' only free market-where gold coins are legally sold to the public. Five "dollars" was the monetary reference to ¼ ounce of gold (roughly 14 of a 20 "dollar" gold coin) in 1933 and that would exchange for 100 lbs. of bread. Today that same coin sells for 200 "dollars" and IN of that (50 "dollars") will still buy 100 tbs. of bread.
The gold coin exchanged for the - dollars" will still exchange for the same amount of bread as in 1933. But where bullion is concerned-because its real worth is concealed by artificially declared parities to currencies-4 ounce of gold exchanged for "dollars" will only buy 50 lbs. of bread. Someone will say "Oh yes!" "but that is because the 20 "dollar" gold coin has numismatic value, over and above its bullion content.- Agreed, but, isn't the exchange value determined in a free market, the real parity Granted that a coin will always bring a premium over bullion, in this case if the bullion "price" was not being artificially depressed, it would be being used as a common commodity medium of exchange and as coin 1.4 ounce would exchange for 1,00 lbs. of bread and the "old coin'' would be bigger than that because of its numismatic value. The only way that gold can be used by the public today is in ,he "old coin" form and with the bullion "price" artificially depressed the only real parities we have are established by the "old" gold coins.
But what will the "price" of gold be after the official collapse of the world monetary system? What will the gold parity in relation to commodities be then? Just think what it would be like without any minimum wage laws, unions (as we know them now), social security, unemployment insurance, or welfare. If everyone had to work to eat or live off charity from those that are working. If charity were the only alternative to working for a living how hard and how long would a man offer to work for enough food to feed himself and his family. Food is essential and if you could not eat unless you worked, how long would you- work for a meal? If a man had to work a full day for a farmer to receive a place to sleeping three meals, but, a half a day effort at gold mining would exchange for the same thing he might decide to mine gold instead. Natural market forces would eventually establish a whole new set of realistic parities between gold and all other commodities.
In 1933-233.30 grains of copper (54:) bought a loaf of manually produced bread. Technological progress since that time allows the making of bread to be completely automated. In the absence of inflation-realistically a loaf of bread would now bring (1 c) or 46.66 grains of copper. When the monetary system finally collapses officially all inflation will be wiped out by one bold stroke of deflation. That could trigger a "world wide" return to realism which could return the evaluation of certain metals to the public directly and cause a return to 233.30 grains of copper exchanging for 1 lb. of manually produced bread. Maybe a return to realism with some retention of technical skill and a 46.66 grains of copper (I old U.S. cent) exchanging for I lb. of bread. Think about what a weeks salary would look like if bread sold at 1c a loaf.
What would the new "price-of gold be?
In "dollars," I oz. .999 Gold = $ 1 followed by all the, zeros you can put.
In bread, I oz. .999 Gold 400 loaves or thereabouts.
In apples, I oz. .999 Gold 1200 or thereabouts.
222 is missing !
What will the new "price" of gold be? ..........223
turing cost (commodity value) is to accept the 1oss of wealth equal to the excess (the differential between 'face' value and commodity value called 'seigniorage'). The excess value attributed to the coin and accepted can only be accepted by the acceptor in imagination. The value is not there in any tangible form of metal content and workmanship, so it must be Imagined. The workmanship In the fabrication of the coins did add some exchange value to the coin over the value of its pure bullion content. This fact must be understood, it is self-evident. The standardization of the coinage whereby the official mints did guarantee the weight and fineness of the metal contained in the coin did make that amount of bullion worth more and more readily acceptable in exchange; this value was the commodity value of the coin.
Exchanged at their commodity 'parity' with all other commodities no matter how much that parity may vary from one exchange to another could never involve the expropriation of wealth.
"Parities are determined by competitive bidding with respect to return on labor, variations in time, location and circumstance."
(Jenkins Economic Truth #40)
DETERMINED IN THAT WAY PARITIES ARE AS FREE OF IMAGINATION AS IS POSSIBLE.
"Freely competitive exchanges determine true parities."
(Jenkins Economic Truth #41)
It is possible that an assigned 'face' value fixed upon a coin by political edict may at some time and place coincide with its true parity determined by a freely competitive exchange. This is true quite often in coin collecting, numismatic circles.
What is important Is to understand that under normal circumstances, in response to the forces of natural law, parities between commodities vary with respect to return on labor, variations in time, location and circumstance. It would not be realistic to expect the parity of a California grown commodity to have the same parity with other things in New York, as it has in California. Transportation alone would increase its exchange value in New York. The same is true of a New York commodity shipped to California. This is not meant to convey the idea that the parity between two commodities, from two widely separated places might not have the same parity relationship in both places. One California orange may be worth one New York apple in New York and one New York apple may be worth one California orange in California, because relative charges of harvest labor and transportation might well coincide. However, in Cleveland, Ohio their respective parities might be quite different since Ohio is closer to New York than to California and apples would have a lower parity than oranges were all other factors equal.
This 'freely competitively determined parities', truth, must be fully understood to facilitate the comprehension of the economic truth that natural economic law cannot be deviated from without the accompanying expropriation of wealth, which negates its being a free market. When a coin is fabricated and assigned a 'face' value in excess of its 'commodity' value a parity I inequity' 'is locked up within it' and cannot escape until all legal tender laws are repealed. That the people do not understand this is evidenced by the facts of history. To this day there are people who believe that there are several kinds of "money" such as commodity "money," credit "money," and fiat "money." They believe:
Commodity "money" is "money" with a value nearly equal to the material contained in it. Credit "money" is paper "money" backed by promises by the issuer, to pay in 'standard coinage.
Fiat "money" is paper "money" without any promise of redemption and with value fixed
by government edict.
"Money" The Greatest Hoax On Earth ..........224
They are totally unaware of the error that has been perpetuated for these many centuries. Gold and silver coins are wealth! Whether they were aware or unaware, calling 'wealth, money' was an error! Wealth: All material things produced by human exertion having exchange value. Jenkins
All commodities are wealth and not "money". "Money" was a name applied to wealth in error and necessitated the addition of words like 'credit' and 'fiat' to distinguish the, imagination containing units' from their invention 'commodity' money, which was in reality just simply wealth fashioned into a most convenient and recognizable medium for exchanges-'coinage.'
The expropriating power of "money" (imaginary medium of exchange) was understood, by some people, others thought it was only necessary for the people to have confidence in money" for it to have value. This deviation, from the dictates of natural law, that caused the eventual collapse of all 'fiat' ever experimented with, was never fully understood. They attributed the collapses to the people's loss of confidence in the government's fiat. In our own colonial America the 'behavior' of "money" economics was known.
"This currency, as we manage it, Is a wonderful machine. It performs its office when we issue it; it pays and clothes troops, and provides victuals and ammunition; and when we are obliged to issue a quantity excessive, it pays itself off by depreciation.'' . . .Benjamin Franklin April 1779
"The attitude of the average member of congress was: "Why should I vote to burden my constituents with taxes when it is simpler to have our printer turn out a wagonload of money, one quire or-which will pay for the whole?" . . .Page 664 Colonial America by Barch-Lefler
The behavior of money was known but the natural laws that behavior were not known. The 'continentals' were issued with redemp6on promised in Spanish milled dollars, at a future date. The effort was honorable but not quite equitable. The 'continentals' were issued redeemable in Spanish milled dollars that were not in reserve for the redemption. The acceptance of the 'continental' was acceptance of imagination as a medium of exchange, they were 'Inflation' per se and was understood as 'Inflation.'
"Maryland did not allow her printing presses to run overtime and it was said that she had -solved the problem of paper currency" . . . yet in areas of unregulated emissions, there did develop strife between creditors who wanted sound money, and debtors, who desired inflation. . . . English merchants appealed to their government against colonial paper, especially that which was declared legal tender ... on the other hand, Benjamin Franklin defended inflation at this time. He said that it was a means of keeping plenty of currency in circulation, attracting artisans to the colonies, raising prices, and lowering interest rates. . . . . Page 375-376 Colonial America by Barck-Leffler
They knew what money (inflation) caused but did not understand why: . . "All the perplexities, confusions and distresses in America arise, not from defects in the constitution or confederation, not from want of honor or virtue, as much as from downright ignorance of the nature of coin, credit, and circulation. . John Adams in a letter to Thomas Jefferson and I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity, on a large scale." . Thomas Jefferson in a letter to John Adams
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"Money" expropriates wealth! ..........225
They may not have known why it behaved the way it did, but they did know it was wrong and did write into the constitution. Article I Section 8,
The congress shall have power: 5. To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures. 6. to provide for the punishment of counterfeiting the securities and current coin of the United States.
There Isn't any mention here of 'legal tender' such as the 'continentals'. 'Regulate the value thereof does not mean for congress to set a parity for 'token coins'. It definitely
meant congress was to authorize and supervise the fabrication of gold and silver into standard coinage and regulate the metal content of the coinage to be compatible with foreign coinage so as to be easily and readily exchangeable in international trade. In paragraph 6. they specified punishment for counterfeiting per se not for 'Illegal' counterfeiting. They were to fashion silver and gold into coins with accurate weight and fineness and in units comparable to foreign coinage to facilitate Interchangeability. To make absolutely certain that the intention could not be misunderstood they follow it up in section 10 paragraph I with:
" No state shall…make anything but gold and silver coin a tender in payment of debts. . . ."
It is hardly likely that the signers of the constitution meant It to be misleading. They did not understand the natural laws of economics but they did know what happens when 'fiat' money and I credit' money, that cannot be redeemed is used. They were trying to eliminate their 'bad' experiences with fiat, from reoccurring. That the experiences with fiat were costly is summed up in another quote:
"Dame experience keeps a dear school, but fools will learn in no other." . . .Benjamin Franklin
That the instructions were not followed is history.
Money is cheap to the issuers but then - money- can only be cheap to the issuer. I f the issuer gets it at no cost and can exchange it for commodities, in as large amounts as could be gotten with gold and silver coins the currency would be cheap to the -issuer; but to those who gave up the commodities for the "money" it would appear no cheaper than the coins would have been. Anyone who issues "money" takes a corresponding amount of wealth out of the economy, which is there or would be there if the "money" had not expropriated it.
In 1796 John Adams wrote to his wife, in view of his approaching accession to the presidency, that the paper money of the country was the worst evil he saw. The fluctuations of our circulating medium have committed greater depredations upon the property of honest men than all the French piracies. To what greater lengths this evil may be carried I know not ... credit cannot be solid when a man is liable to be paid a debt, contracted to any, by one-half the value a year hence." John Adams 1799
In the U.S. today we no longer have any 'commodity' money or 'credit' money and are completely committed to 'fiat' "money". Our monetary system has collapsed and teams of people are working to fashion another from the ruins, before the public finds out. Most of the volume of our fiat is destined to be declared worthless and be repudiated. The fact that we are on total fiat (imagination) there is no longer anyway to continue in that direction. There must be a return to the use of wealth in the form of coinage.
The word "money" was applied to wealth in error, so far back in time that today the words 'money' and 'wealth' are still considered to be the same entity, when in fact one is intangible and the other tangible. Until the difference is generally recognized and understood the basic fact that: "Money" expropriates wealth (Jenkins economic truth #52) will not be accepted. That the exact workings of the natural laws that govern can be explained and proven will not be believed. Meanwhile why not return to the original instructions:
"No state shall . . . make anything but gold and silver coin a tender in the payment of debts . . ." I Article I Section 10 Paragraph I of the constitution.
"Money" The Greatest Hoax On Earth ..........226
Chapter LXXI
IT IS'WHAT' NOT 'WHO'!
Many voices in our land today are raised against the Federal Reserve System. The big effort by almost all is to have the Federal Reserve System owned and operated by government through the congress of the United States instead of the present arrangement whereby the "Fed" and the "money'' creating facilities (the commercial banks) are privately owned and operated for- a profit.
No one seems to remember their history well enough to remember that in the beginning it was the congress that had the "money" creating power and that the unit of currency they put out (the continental) also failed miserably just as the "dollar'' is doing today.
Sooner or later the REAL EVIL must be brought to the attention of those people with enough voting power to abolish the legal tender laws and all the diabolical. thievery they facilitate. It is with that goal in mind that the effort will be made here to expose that evil with enough clarity to be easily understood.
IT IS NOT WHO IS PERPETRATING THE EVIL THAT MATTERS-WHAT REALLY MATTERS IS THE ABOLISHMENT OF THE EVIL, SO THAT IT IS NOT BEING PERPETRATED'
It is "what'-not 'who'!.......... 227
In the accompanying diagram the entire circle represents the entire population divided into only two sectors-one labeled the elite sector (people "A") and the other labeled the public sector (people "B"). It is the intention here to show chat people "A" exploit to the fullest and have as their virtual slaves people "B". For the people "B" in the public sector to know that it is being done and the means by which it is accomplished is in itself the beginning of the cure for the situation. In no way does this infer that the people "A" in the elite sector themselves know and understand the terrible consequences of their unwitting acts. In reality the evil has been being perpetrated on and off in this world of ours for so long that the earliest known attempt at wage and price controls failed about 2500 B.C.
Economics is the science that investigates the conditions and laws affecting the production, distribution and consumption of wealth, or the material means of satisfying human desires.
Science: 5 specif., accumulated knowledge systematized and formulated with reference to the discovery of general truths or the operation of general laws. 6 esp., such knowledge when it relates to the physical world.
This science deals with the distribution of the resources of the earth converted to wealth by the human exertion of people. Before we can understand a science we must investigate the premise upon which it is based. The basic premise: (man must labor to produce wealth or perform a service in exchange for wealth produced by another) is the means by which all human desires are satisfied. To understand any science we must have a series of key words and their meanings well established and available. To be of any use at all these key words must be noncorruptable. In science a word must have a precise meaning 'one' and only one', and all things must have one descriptive term 'one' and only 'one'. The key words we will be concerned with are: RESOURCES, WEALTH, CAPITAL, RENT, SUPPLY, DEMAND, SERVICES, BARTER, AND THE TERM: MEDIUM OF EXCHANGE, AND some fictitious words like: "MONEY", "INTEREST" AND "DOLLAR".
RESOURCES: All material things except man and his products.
WEALTH: All material things produced by human exertion having exchange value, CAPITAL: Wealth used in the production of more wealth.
RENT: Wealth charge for borrowing wealth.
SUPPLY: Wealth received in lieu of a service in an exchange.
DEMAND: Wealth given in lieu of a service in an exchange.
SERVICE: Performance of labor not resulting in the creation of a product. BARTER: Wealth given for wealth desired.
MEDIUM OF EXCHANGE: Wealth accepted in lieu of wealth desired. "MONEY": Imaginary demand.
"INTEREST": "Money" charge for borrowing "money".
"DOLLAR": The make-believe monetary unit of the United States-paper and ink
records of numbers preceded by a mystical sign ($) in bookkeeping entries, accepted by the public as imaginary mediums of exchange whose volume increases daily with official and individual conjurings; are totally intangible, cannot be sighted, heard, smelled, tasted, or touched-are psychologically created in the human mind and are shifted about by check, credit card, and -token to 'settle' by imagination 100% of all transactions. THE "LAW" OF -SUPPLY AND DEMAND" WAS INVENTED TO EXPLAIN THE PHENOMENON OF IMAGINARY DEMAND.
ALL PHYSICAL THINGS ARE EITHER RESOURCES OR WEALTH.
ALL CAPITAL IS WEALTH-but-ALL WEALTH IS NOT CAPITAL.
"MONEY" IS A PSYCHOLOGICAL CREATION OF THE HUMAN MIND,
"MONEY" EXPROPRIATES WEALTH!
"Money" expropriates wealth by replacing wealth as "demand" during transactions thereby acting as an "imaginary medium of exchange" and cheating the other party to the exchange out of the wealth he is due. Passing the "Imaginary demand" from person to person during subsequent transactions perpetuates the fraud. What makes the situation so unbelievable is that the license to create "money" is legally held by a sector of the population as their exclusive license to steal!
"Money" The Greatest Hoax On Earth ..........228
The method and mechanics of the operation is known as the Fractional Reserve System practiced by the Monetary Authority and the commercial banks of the United States which are owned and operated by that sector of the population labeled in the diagram as the elite.
To understand the operation full we will have to start by understanding the system before the advent of the legalized fractional reserve. Before the "Fed" the public was allowed to have and hold gold in any form and to make and settle contracts in gold or any other commodity. People sold their services and production for gold coins and accumulated wealth. Wealth in excess of daily needs was stored in banks and receipts for those deposits were issued to the depositors. A depositor received one claim check (receipt) for each unit of wealth deposited. The claim check was called a banknote and was redeemable at the bank for the wealth deposited on demand! 100% redeemable-only one claim check (banknote) was issued for one unit of wealth deposited.
With the advent of the Federal Reserve System a 40% "reserve" requirement was stipulated, which meant that for every unit of wealth deposited by the public in a commercial bank-the bank could issue two and one half claim checks-one claim check to the depositor of the wealth, and one and one half the bank to use in its lending operations. The producer of the wealth gets I claim check for the wealth deposited and the custodians of that wealth issue themselves 1112 claim checks in addition for the same wealth. The sector of the population who own and operate the Monetary Authority and the commercial banks of the United States get 1112 claim checks on the production of the public for no expenditure of effort beyond the writing of the numbers in their books. No matter how unbelievable this may seem it is nevertheless true. That sector of the population labeled the elite get almost all their purchasing power in the market place for doing nothing while the sector labeled public must slave to produce all the wealth. The elite sector of the population has purchased the entire nation from the public on the open market using "dollars" they created out of nothing.
When the elite finally gained title to all the gold on deposit they stopped issuing gold redeemable certificates and discontinued giving gold coins for "dollars" tendered for redemption.
Later the reserve requirement was lowered to 25% and from then on the elite gave themselves 3 claim checks on each unit of wealth produced and deposited and only one claim check to the producer of that wealth-with only silver coin as the wealth obtainable at the bank for silver certificates tendered in return to the bank. When the elite finally gained title to all the silver on deposit they stopped *issuing silver certificates and discontinued giving silver coins for "dollars" tendered for redemption.
THIS WAS ACCOMPLISHED IN 1965 WITH THE PASSAGE OF THE COINAGE ACT WHICH SPECIFIES THAT THE SECRETARY OF THE TREASURY MAY TAKE 97% SEIGNIORAGE.
SEIGNIORAGE: The prerogative to take from the people the difference between the face value of a coin and the cost of the material and the fabrication.
This meant that the "dollars" tendered for redemption at the banks could be redeemed by the banks with coinage consisting of only 3% of the wealth the "dollars'' formerly would have been redeemed for in gold and or silver coin, therefore the claim-check- ratio had increased to 33-33 to 1-33-33 claim checks for the elite against I for the public producing the wealth.
Unfortunately this reasoning although accurate does not tell the whole story. Coinage in the United States today is such a small portion of the volume of monetary units in use that it represents considerably less than 1% of the "dollars'' in use. All ''dollars'' created by the facilities owned by the elite are loaned into circulation and at the moment there is a total well in excess of six trillion.
Six trillion "dollars" loaned at an arbitrary 6% "interest" means that 360 billion "dollars" of wealth is extracted from our I trillion GNP each year as a tribute paid by the public to the elite for the privilege of being allowed to use their created "dollars''.
It is "what'-not 'who'!" ..........229
Since the "dollars" created are not redeemable for coins their possession does not in any way give us title to anything-but-to get the "dollars" we had to pledge our wealth and those pledges give the elite title to all the wealth we temporarily have the use of.
THE ELITE THROUGH THE COMMERCIAL BANKS THEY OWN AND CONTROL CAN FORECLOSE ON THE PUBLIC AT ANY TIME!
With all the corruption that "money" can buy our nation was 'taken' from us and is being ruined by the elite. The public must insist that the elected officials representing them in congress introduce and vote for bills to rescind the legal tender laws and force the elite to accept "dollars" from the public in return for their ill-gotten wealth still remaining-the public could get something back 'on the "dollar" '. A return to 100% redeemability of banknotes issued by public banks, strict enforcement of counterfeiting laws and a system of free coinage our nation could rapidly resume its travel on the path to greatness.
For those who believe that congress should create the "money" and set the value thereof it must be asked by what means would this be carried out. How would the "money" units get into the hands of the public? What method would be used to determine the distribution?
Originally when we had ‘free coinage" any producer depositing wealth was given a paper receipt acknowledging his ownership of the wealth deposited. By means of the receipt the wealth was immediately reclaimable by its owner on demand. The receipt was usable as a medium of exchange because it acted by proxy in the market place as the wealth it was a claim check' for.
When bankers created excess receipts and loaned them into the economy they were accepted as 'claim checks' on wealth-because no one knew that there wasn't any wealth on deposit to facilitate their redemption.
When congress created the 'Continentals' during colonial times they were claims on silver coin to be made available in the future for their redemption and so they were accepted in the market place as proxy representatives of silver.
When Lincoln created the green backs they were in reality 1. 0. U.'s which were to be honored by the government at a future date as 'prepaid tax receipts'.
If congress was to repeal the Federal Reserve Act and take over the issuance of an interest-free "money" HOW would it be distributed?
The people who make-up the PUBLIC labor to produce the wealth of the nation-if anyone should 'have' the "money" to purchase that production it should be the people who produced it! If government agencies require "money" with which to purchase their necessities it should be obtained from the people by means of taxation. If the government who produces nothing can create all the purchasing power and purchase all of production directly then where is the need for taxation-and where do the producers get their necessities except at the benevolence of government?
If government were to only produce enough "money" for their necessities then where would the people get the "money" they need to use in exchanges to facilitate the division of labor.
If government was to lend producers all the "money" they need upon the pledge of wealth, then title to wealth equal to the entire "money" volume would be vested in government without the formality of taxation.
If the government was to lend producers all the "money" they need without the pledge of wealth then who would work to get "money"?
AS LONG AS IT TAKES HUMAN LABOR TO PRODUCE THE WEALTH NO ONE THAT DOES NOT LABOR SHOULD HAVE THE RIGHT TO CREATE "MONEY" WITH WHICH THAT WEALTH MAY BE PURCHASED!
Note: Free coinage is a system where the government -operated mint is limited to only guarantying the weight and purity of the precious metal they coin; the quantity produced is dependent upon the amount of precious metal submitted by the people for coining.
"Money" The Greatest Hoax On Earth ..........230
Chapter LXXII
PRESERVING ONE'S ASSETS---LIQUID ITY
Asset : any item of value owned. Webster
Liquidity: State or quality of being liquid. Webster.
Liquid: such as are cash, or can be promptly converted into cash, as, liquid assets. Webster.
Cash: Syn. coin, specie, currency. Webster.
The important meaning to attach to the word liquidity is that it means the ability to have one's assets in a "form" that will be readily acceptable in exchange anytime, any place. It is exactly that quality present in one's wealth (assets), that makes them 'liquid' and hence the term 'liquid assets'. In the history of the world, to date, the most liquid asset anyone could ever have was, gold coin. Throughout history the very freedom and independence of people was almost proportional to the amount of liquidity they controlled.
Gold is necessary to assure individual liberty. Adolph Hitler came to the conclusion that individually held gold was an enemy of the 'Super State', and from beginning to end of the Nazi regime the Nazi conducted a ceaseless campaign against gold. Another great dictatorship, the Soviet Union feels exactly as Hitler did towards gold. It is a "crime against the state" to hold gold in Russia and in the United States.
The reason is that gold is wealth and unlike "money", it is created by the people and cannot be regulated like "money." Privately produced and held, gold is a refuge of citizens, it allows them to make financial transactions in areas beyond the reach of the state, which hates to permit liberty and declares private ownership a crime. Gold would have value, if for no other reason than, that it enables a citizen to fashion his financial escape from the state.
"Gold is for those who do not trust the financial management of their government.' . . John McFalls 1968
"Gold in its natural state as recovered from natural sources, that has not been melted, smelted or refined, by any process, may be mined, held, purchased, sold and transported without a U.S. Treasury department license regardless of the amount." Arizona Dept. of Mineral Resources-Mining journal June 20, 1973
Gold in any other form is subject to regulations and restrictions that are complex and can best be summed up by the following:
IN THE UNITED STATES TODAY, UNDER PRESENT LAW, AMERICANS MAY BUY GOLD, FOR INDUSTRIAL PURPOSES, OR THEY MAY OWN GOLD JEWELRY, FABRICATED GOLD, OR RARE GOLD COINS. *HOWEVER, THEY ARE PROHIBITED FROM ACQUIRING GOLD FOR SPECULATIVE OR INVESTMENT PURPOSES. By Executive Proclamation #6102 Pres. Roosevelt April 5, 1933
Speculate: . to buy or sell with the expectation of profiting by fluctuations in price. Webster.
Investment: The investing of money or capital for income or profit. Webster,
It is generally accepted, by some of the public, that the specification above allows coin collectors (numismatists) to acquire rare gold coins as collectors, To avoid the prohibition however, it is necessary to be extremely careful that no profit is derived from being a collector. if a profit to a collector should develop out of an exchange involving gold coins it would put the collector in the position of having broken the law. It would appear that if you can always arrange to take a loss, then you are fairly safe from prosecution. That is not quite true, though, since the word 'speculation', as used, means acquiring gold coins if you just think you might make a profit. How the authorities would prove what you were thinking is an interesting thought. But how you would prove what you were not thinking is even more interesting.
Preserving one's assets-liquidity ..........231
The whole thing is contrary to the 'constitution' and the 'bill of rights' as well as being totally ridiculous for an American Citizen, in the land of the "free" to be denied the right to own and trade in gold. Until the laws are changed there is always the possibility that 'gold coins' held privately could be declared contraband. The only coins that are safe are the ones you own outright and have in your possession as a coin collector. The law prohibits the use of gold coins directly as mediums of exchange, but the fact that at any time anyone might liquidate his collection for the current currency is what makes them perfect liquidity.
Gold is so stable in value that almost all currencies were valued in terms of gold. It is the increasing ratio of paper "money" units in relation to the gold that causes the paper I. money" units to suffer a 'failing parity' in terms of gold. If it were not prohibited to use gold as a medium of exchange all intelligent people would choose to use gold and no one would use "money." It is for this reason that the use of gold is prohibited.
There were restrictions on silver for many years also, until the way was found to suppress its spot "Price" by short selling silver in the commodity futures market. Today all restrictions on the ownership and use of silver have been removed. Except for considerations of weight and bulk our old silver dimes, quarters and halves, dated 1964 and before, are excellent if not the most preeminent forms of liquidity. It is the consideration of liquidity that all Americans should be concerned with at this time. The "dollar" is sinking fast and the preservation of accumulated savings should be begun as soon as possible. All savings that are in any way 'figured in dollars' are vulnerable. All paper instruments that pay-off in "dollars" are subject to severe losses. The object is to divest oneself of all currency and get into material things that are figured in weight and fineness. 'It is a must that everyone learns what the "new" terminology is. There is Avoirdupois weight (ordinary commodities); Troy weight (precious metals, jewels etc.); and Apothecaries weight (drugs etc.).
It is not necessary to learn them all. Everyone is familiar with the ordinary commodity system (Avoirdupois weight) which is the weight system the stores use and the public uses around the home. It is only necessary to learn the 'troy weight' for use with precious metals, jewels etc. and its relationship to avoirdupois. It is easy to convert one to the other if we learn about the common unit the 'grain'.
In Avoirdupois: 1 ounce = 437.5 grains.
In Troy: 1 ounce = 480 grains.
In Avoirdupois 1 pound = 7000 grains, = 16 ounces.
In Troy 1 pound = 5760 grains, = 12 ounces.
Although all gold and silver coins are weighed with troy weight they are not marked in grains, which is the common unit, they are very often marked in grams. Grams can be converted to grains easily by just dividing grams by 0.0648 (grams per grain) or by multiplying the grams by the factor 15.4323 (grains per gram). It is easy to find the troy ounce weight of a coin by dividing its weight in grains by 480 (grains per troy ounce) or if multiplication is easier multiply the weight in grains by 0.002083 to find troy ounces.
All coins are not pure gold or pure silver, most will be alloys and the purity of the metal contained in a coin is shown decimally as .899 or .999 etc. .999 means there is only I part in a thousand impurities or that it is 999/ 1000ths pure. .9999 would mean 9999/ 10,000ths pure or only 1 part in 10,000 impurities. In gold jewelry they specify carats, 24 carat gold is pure gold or (.999). 22 carat gold means 22/ 24ths purity or 22 parts gold 2 parts impurity; 18 carat = 18 parts gold and 6 parts impurity; 14 carat = 14 parts gold and 10 parts impurity etc.
"Money" The Greatest Hoax On Earth .............232
Some practical examples:
The British sovereign is 22 carat gold, it has a purity of 0.9166 and weighs approximately 123.17 grains each. To find the pure gold content we would multiply 123.17 grains by 0.9166 and arrive at 113 grains .999 fine or 113 grains of 24 carat gold contained in a British sovereign that weighs 123.17 grains total at 22 carat gold. By dividing 480 by 113 we would find it takes 4.247 British sovereigns to equal I ounce of gold .999 (24 carat) fine. When $20.67 would buy one ounce of gold $20.67 divided by 4.247 = $4.86 would buy a British sovereign-now it takes $40.00 to buy one British sovereign, which shows how far the "dollar" has fallen in parity to gold. .$40.00 X 4.247 (no of sovereigns per ounce of gold) = $169.88 required to buy an ounce of gold in "Our" world-, the real world; the world that the public has to live in. This figure $169.88 (on the minute) for an ounce of gold is in the form of British sovereigns-the gold coins that are probably the most liquid form of wealth in the world today.
The so called free market "dollar" cost of gold is around $105.00. The $105.'00 is for bullion in the form of bars, which Americans are not allowed to own, invest or speculate in. The public's cost of the gold form they are permitted to own is $169.88 (example above) on the minute, but of that 30 percent is an accepted figure for the fact that it is in coin form and recognizable as gold in certain quantity, because it is an officially minted coin. Allowing for the added commodity value of gold coins of 30 percent premium above the bullion content value. Multiplying the free market "dollar" cost of gold bullion $105.00 by 130 percent = $136.50, The difference between that and the $169.88 the public must actually pay is $33.38 and that is the 'panic' premium or whatever you would like to name it. It is the increasing amount of "dollars" being bid as increased amounts of people become aware of the situation and competitively bid for the gold coins. As late as mid-year 1971 the panic premium on British sovereigns was less than two "dollars" per coin, now it is over eight "dollars" per coin. There just isn't too much more time to spare.
Another good gold coin is the Colombian '5 peso' it is plainly marked G-7, 988 -Ley0.916 2/3 which if we work it out, is the same as the British sovereign. G-7,988 is the grams of weight multiplied by 15.4323 (our factor to convert to grains) = 123,2732 grains multiplied by the purity factor (0-91666) = 112.9999 or 113 grains of .999 purity which is exactly the same as the British sovereign. Although it is the same it can sometimes be bought a little more economically than the British sovereign. It is not quite as well known and therefore has less liquidity value. The whole purpose here is to explain, that it isn't how much gold you can acquire at how little cost; because it is not just the metal, but how easily it can be exchanged later, that is the most important factor.
Gold bars would be great, except that, you would need papers attesting its authenticity as gold before you could sell it. Coins are recognized for themselves and are readily saleable anywhere anytime.
The United States gold coins cost more "dollars" than most others today, per unit of gold contained, because their numismatic value premium is higher, (over 66 percent of those originally minted were remelted by government and are no longer available). They are a 'good' buy in a continuing *falling dollar parity' (inflationary effect) condition; but when the 'correction' comes and we are in a 'depression' the volume of 'coin collectors I is expected to drop. The 'market' will be smaller during the coming depression and the numismatic value of coins will not mean as much. The more common the gold coin the lower will be its premium value over bullion value and since it is liquidity that is or should be the main concern the effort should not be to collect "uncirculated" coins. Circulated coins are far less likely of ever being counterfeit and if one buys from reputable coin dealers there is little to worry about from this area.
Silver coins are as good as gold coins in many ways and it is much easier to invest in them. There are several reasons why silver is easier. Silver is completely legal, anyone can do anything they wish with the silver coins; buy, sell, melt and sell, hoard, convert to jewelry etc. in any quantity. The silver coins are more plentiful and worth much less per coin, than gold. For lower exchange values silver coins have greater liquidity than gold. The silver coins to seek are the ones referred to a 'junk silver' (no apparent numismatic value). The silver coins that were in circulation for over a century in America. The dimes, quarter and halves up to date * 1964' were .899 fine silver and are excellent liquidity. The silver dollars are not included for the reason that when investing in coin it is very important to remember that getting the liquidity at the most economical cost is the uppermost 'human' desire. Silver dollars have been bringing a very large (several hundred percent) premium for quite some time and are considered collector's items almost exclusively. The dimes, quarters, and halves can be bought in bulk in bags of $1000-00 'face' value which means 10,000 dimes; 4,000 quarters or 2,000 halves or a composite mixture and here again it is extremely important to think of it only as buying liquidity. The liquidity is in the value of the metal contained and the fact that the 'container' is recognizable as having the content. To figure the amount of silver .999 fine in a bag, it is only necessary to weigh it on an ordinary scale. A bag containing $1,000-00 'face' value of 1964 or before U.S. old silver coins in mixed or individual denominations should weigh about 54.93 lbs. (54 lbs. 15 ounces) multiplied by 16 (ounces in a LB avoirdupois) =, 878-88 ounces multiplied by 437.5 (grains in an avoirdupois ounce) = 384,5 10 grains, divided by 480 (grains in a troy ounce) = 801.06 ounces troy, multiplied by .899 (purity of coin 1964 and before) 720.152 ounces silver .999 fine.
Preserving one's assets-liquidity ..........233
There are other shorter factors that can be used, but this one, being in detail, may be more understandable for those who want to figure small quantities starting perhaps with ounces. All that has to be remembered is that dealers, selling bags of junk silver coin of $1000 'face' value, guarantee that the bag will contain 720 ounces troy of silver .999 fine. with all the impurities and wear having been considered. Knowing the bag contains 720 ounces troy of silver .999 pure you can multiply that by the spot "price" of silver and know the value in "dollars" of the silver metal in the bag with all allowance for wear and .899 purity 'taken into account' automatically. By subtracting that figure from the "price" being
asked for the bag you can find the premium you are being asked to pay. It can be figured on the 'per ounce' basis also example: One bag purchased at $2, 100.00 with spot "price" at $2.80 on that day. (spot "prices" of commodities are reported daily in some newspapers). The bag contains 720 ounces therefore $2,100.00 divided by 720 = $2.916 per ounce. $2.916 less $2.80 (spot price) = $0.116 or 11.61: per ounce premium or expressed as a percentage, the premium of 1-1.6C in relation to $2.80 = 4.1%. Only between 4 and 5% premium for perfect liquidity; silver coins of 90% purity.
Silver bars, medallions, plates and coins are being fashioned and sold in great quantities, as a good hedge, against the "dollar" failing. Most of these items are being fabricated of silver with a .999 purity. These are silver, it is pure silver and silver is going to hold its value when the "dollar" fails, however, these forms of silver are not repeat not good liquidity. There are two reasons above all others; one is that these forms are more in the nature of collector's items and do not have as big a market as the coins and the other reason is their "dollar" cost in relation to coins. The bars, medallions, plates and coins being fabricated by private mints are being sold at "prices" ranging from $4.25 an ounce to over $10.00 an ounce of .999 fine silver metal content.
At just $4.25 an ounce for a coin from a private mint, in relation to the cost per ounce of the old U.S. silver coinage at $2.916-$4.25 less $2.916 = $1.334 per ounce premium or expressed as a percentage it equals.45% which is considerably higher than the 4 to 5% for the old U. S. coinage which is excellent liquidity.
The contention, expressed by the sellers of the 'private mint', items, that the old U.S. coins are only .900 fine and that the charge for refining them into .999 silver would offset the difference in cost, is not valid. Nobody seriously expects to ever see these junk silver coins melted by the public. They are such excellent liquidity, as they are, that their premium will continue to rise as more people bid higher premiums to own them.
Note: During 1965, 66, 67, 68, and 69 U.S. half dollar coins containing 40% silver content (.400 fine) were minted and are still in "circulation." Obtaining these 401Y0 halves at par value (50C) is buying silver at $3.45 an ounce .999 fine.
"Money" The Greatest Hoax On Earth ..........234
To sum up:
Gold coins dated 1933 and before and U.S. silver coins dated 1964 and before are preeminently excellent forms of liquidity.
Liquidity considerations are extremely more important than numismatic value in efforts to preserve one's wealth.
Coins are for superior for the liquidity purpose than any other form of precious metal, stones, art objects etc.
For quick 'in and out' protection gold coins are better than silver coins, at this time, for they are closer to reality.
Gold coins are better for the protection of larger sums; they have less weight and bulk per unit of relative parity.
Silver coins are very heavy and bulky per unit of relative parity with gold at this time, but could offer more 'profit' in the long run (when control attempts have collapsed) as an initial effort, liquidity should be sought in silver, and followed by gold as individual decisions indicate.
Silver first, because of smaller more viable units and gold for larger amounts.
In all considerations it must be remembered that the monetary authorities could at any time instigate the passage of regulations governing all coinage and restricting the accumulation and ownership. Individual decisions concerning the maintenance of one's liquidity must be determined with the following factors in mind: Bulk, weight, ability to liquidate in emergency, ease with which it can be stored to assure security.
"There should be no war upon property, or the owners of property. Property is the fruit of labor; property is desirable; is a positive good in the world. That some should be rich shows that others may become rich, and hence, is just encouragement to industry and enterprise." . . .Abe Lincoln 1864
"No other rights are safe where property is not safe." . . . . Daniel Webster
"WHEREVER "MONEY" IS ACCEPTED AS A MEDIUM OF EXCHANGE WEALTH AND FREEDOM ARE FORFEITED." . . . . Jenkins
Chapter LXXIII
WHY HASN'T MONETARY COLLAPSE HAPPENED
YET?
Many times I am faced by people who say: "You have been saying the monetary system will collapse and it has not as yet happened!" The only reply that can be made is:
IT HAS!
On August 15th 1971 President Nixon said it collapsed when he 'closed the gold window'.
On August 17th 1971 President Nixon said it collapsed when he declared the United States in a state of national emergency.
The monetary system has collapsed. The officials of many nations know it and are frantically trying to set up a new system to perpetuate the expropriation of wealth that has been going on for so many years. One has only to listen and hear the words.
…tangible progress towards a new and more realistic monetary system remains an essential against further market upheavals." . . . . . . Mr. Anthony Barber Chancellor of the exchequer U.K. F/T July 30, 1973
. . . . the prospects brightened today for a compromise agreement on reform of the world monetary system, when the French financial minister unexpectedly proposed a system of triple sanctions against countries which run chronic balance of payments surpluses in the future."
Why hasn't monetary collapse happened yet? ..........235
M. Valery Giscard D'estaing F/T July 30, 1973 . . .''Washington, August 22 - secretary of the treasury George P. Schultz today named three former treasury secretaries and eleven other men, mainly bankers, to a new advisory committee on reform of the international monetary system." Edwin L. Dale Jr. N.Y. Times August 23, 1973
Why do the financial ministers, of the numerous countries know the monetary system has collapsed, but the 'public' (all those not a monetary authority) do not? There must be something 'they' understand that the public does not!
.... public is any person or institution other than a monetary authority or a commercial bank , Fed'
The extreme concern of the 'officials' and the lack of concern of the 'public' can only be explained by approaching the subject with a great deal more respect for definitive terms; a more objective examination of basic facts instead of accepting too readily the 'explanations', for conditions, offered by officialdom. Let us consider only the "dollar" and try to understand why it is still in use even though it is worthless. Obviously we are going to have to resolve that because one can make you believe it is worthless when you can still exchange it at the jewelers for gold.
President Nixon closed the gold window on August 15, 1971 and said the U.S. would no longer redeem "dollars" for gold, for anyone, unless it was in the interest of the U.S. to do so. O.K. then, how come, foreigners and everyone else can still use "dollars" to buy gold in American jewelry stores? Well! you guessed it! Because it isn't the monetary authorities giving up gold for "dollars", it is some member of the U.S. 'public'. What's the difference, you say? Well, there is a lot of difference and it has to do with the words used above; WORTHLESS, EXCHANGE, AND REDEEM; 'PUBLIC' we already understand (it was Defined above by the 'Fed').
Worthless: Destitute of worth; useless; waste. Webster.
For the purpose of this exercise it will not be necessary to go into the 'Imaginary nature' of we can do this one accepting momentarily, your belief, that the paper token labeled 'dollar' that we carry about and exchange, is a dollar, and not just a physical representation of an imaginary object of thought. Let us consider the physical substance you hold. It is a piece of paper with 'printing' on it and it is called a dollar. Worth is dependent on ability to be used; let us consider the uses to which the substance you hold can be put.
1 . Stripped of its printing its uses may be many.
A. It could be used to support a written message.
B. It could be used to safely discard chewing gum.
C. It might be folded several times and used as a wedge to remove the wobble from a short-legged table.
D. It might be rolled up tightly, ignited and used as a taper to light a fire.
E. It could be wrapping paper for extremely small article etc.
2. With its printing undisturbed it might still be used for some of the purposes set forth above, but it is not likely. With its printing intact it has a greater use value in exchange.
Exchange: Act of giving or taking one thing in return for another as an equivalent; trade; specif, barter. Webster.
The printed substance you hold called a 'dollar' is useful in exchange because someone will give you something in return for it. As long as someone will give you something in return for a dollar, the dollar is usable in exchange. The dollar only has worth as long as any member of the 'public' will still exchange things for dollars. The individuals that make-up the public still has to do something or give up something to get dollars and so dollars appear to have worth and so are used in exchanges and therefore have "worth''. But we have one more word to go 'redeem'.
"Money" The Greatest Hoax On Earth ..........236
Redeem: To regain possession of by repurchase, or esp, payment of amount due as on a pledge or mortgage. ---Webster.
The monetary authorities and the, treasury of the United States have now gone on record by refusing to exchange ''dollars.' for the gold they have. They will not exchange gold for "dollars" and to be minus exchange- value is to be minus use value therefore to be minus use value in exchange reduces the -do4lar" to its gum wrapping, fire lighting, table wobble removing duties outlined above. it is our officials who have declared the dollar virtually worthless but not the public as yet.
The American public had the redeemability of the dollar for gold removed in 1934 by executive order of President Roosevelt. The redeemability of the dollar for silver was removed entirely in 1970 by the coinage act of 1965. We now have extremely slight redeemability for dollars in copper-nickel "coins" and paper tokens by the monetary authorities. The American public has been operating with a non redeemable dollar for so long that they do not see why it cannot go on forever. The American public has confidence in the dollar and cannot see why confidence alone is not enough.
With the redemption of dollars by the issuer no longer practiced each new issue adds to the exchangeable at some future time in return for something of value, but at the rate the dollars are accumulating the value of what you can get in exchange for dollars is dropping very rapidly. It is only a matter of time before the public will refuse to take dollars in exchange; they also will 'Join the ranks of those that know the dollar is worthless.
The reason the American public has been able to keep the dollar going so long is because we have not had the experience that other nations have had. We do not realize what the conditions we see in our economy today lead to. The individuals, of our public, reason that since they give up things to get dollars, and others take dollars and give up things, all is well. They never consider who had the dollar - first - and what did he or she give up to get it. The treasury orders them printed at the Bureau of Printing and Engraving. The paper and the ink and also the labor is all "paid for" with the product 'paper dollars.' just the same as any other counterfeiting operation only this one is legal! The 'bank notes' evolved from 'deposit receipts' that were proof of ownership' and were redeemable on demand whenever anyone wanted to reclaim his deposit. The very nature of it being a claim on wealth deposited guaranteed that - MORE - Could not be issued than there was wealth stored to redeem, or there would be dire results; bank failures, monetary crisis etc. By removing the redemption requirement the public lost contact with the amount being created and at this time the world has hundreds of billions of dollars for which we do not have the gold to redeem. The U.S. is bankrupt the officials have declared it, but the public refuses to believe it. When the day of settling 'so much on the dollar' arrives all those holding dollars at that time will suddenly become very well educated on matters concerning money.
An economy using a non-redeemable dollar as an exchange medium, is somewhat like a ball game played without the ball. It is by observation of the ball that the umpire calls the strikes' and 'balls'. It is by observation of the spheroid that the umpire can tell whether the runner or the ball reached the base first. Without the ball to observe the pitcher would claim he struck the 'batter' out. The 'batter' would claim he hit a 'homer'. The outfielder would say he caught a fly ball. The baseman would say he stopped a hot grounder etc. Sounds silly doesn't it. But let us assume for the moment that the ball teams were the monetary officials and the fans were the public.
With a little planning and staging the pitcher could go through the motions of throwing the ball, the batter could swing, all heads could appear to follow a fly, the outfielder could appear to catch, drop, pick-up and throw to first base, the umpire could call the play. For years you would be able to find fans who witnessed the game divided on whether or not there had actually been a ball. If you told them it was a hoax, some fans would swear they had seen the ball, others would agree there wasn't any.
Why hasn't monetary collapse happened yet? ....... 237
Commodities usually remain quite stable in their relationships to each other and since time began one of the most stable of all commodities is gold. When dollars were redeemable for gold the exchange value of the dollar was readily determinable. It was only necessary to see how much gold you could get for the dollar. When it began to fall rapidly the officials cancelled redeemability and began to refer to inflation as RISING PRICES rather than the FALLING VALUE of the dollar. When the dollar was redeemable in gold and gold being the most stable of all commodities (it still is) It was permissible to speak of some other thing as having a I price I in dollars. The dollar was redeemable in gold and had the stability of that commodity. At this time with the dollar no longer redeemable in gold and it's exchange value dropping in relation to all other commodities it is ridiculous to speak of prices. It is absolutely idiotic to speak of prices.
When we refer to the 'price' of anything we automatically, without realizing it, accept the totally unrealistic concept that the dollar is stable and the commodities are rising in relation to it. When we speak of prices we are accepting the totally unrealistic concept that the dollar is still as stable as gold if we think it is. Since the unredeemable for gold dollar' is connected to value only through its continued acceptance in exchange by the public-it appears to be 'worth' what the public thinks it is 'worth', but the "true value" is dropping rapidly, as can be seen by checking its present value in units of its old redemption commodity. Gold is not rising, the dollar is falling but as in our 'ball game' without the ball, some see it one way and some see it the other way. However, it is the truth that will prevail and some time soon the dollar will no longer 'exchange', and all will agree It is worthless.
Chapter LXXIV
HOW TO HELP YOURSELF
Friends insist, I must include some words on how to help ourselves under the present conditions.
If Swiss francs or D. Marks were recommended here as a hedge and our international relations were to break down you would lose. If buying gold and silver stocks were recommended and government nationalized the mines you would lose. If buying foreign stocks were recommended and government increased the penalties (interest equalization taxes) you may lose. If you invest in silver bullion and government confiscates silver you are again out your investment. If you buy precious metal futures and government takes over to close the commodity exchange, you are out again. That leaves only certain forms of the precious metals themselves.
Investing in the precious metals has to be considered with respect to many and varied aspects. The first consideration is to determine for certain exactly what the investment is to accomplish. Are you investing in gold and silver for the metal itself or for the liquidity it represents. If you are in the business of melting the metals and fabricating them into other art forms, it Is proper to obtain the metal at the most economical outlay. Gold is only legal for the United States citizen under very strict conditions.
''Under present law, Americans may buy gold, for industrial purposes, or they may own jewelry, fabricated gold, or rare coins. However, they are prohibited from acquiring gold for speculative or investment purposes."
The belief that U.S. citizens may own all the gold coins they wish is not correct if they are held for speculative or investment purposes. This executive order, taken as It is written, conflicts with any license issued to allow trading in gold. It would be unlikely that any coin dealer would trade or traffic in gold, strictly for the pleasure of it, if he makes a profit, or takes a loss it would have to be concluded that he had speculated or invested either wisely or unwisely.
"Money" The Greatest Hoax On Earth ..........238
Therefore the executive order, now considered law, outlaws any U.S. citizen engaging in the business of handling any gold at all for speculative or investment purposes, no matter how acquired. Gold acquired for speculative or investment purposes best obtained In coin form. Realistically acquiring gold for investment purposes makes it imperative that it be held in as highly "liquid" a form as is possible to obtain. (off record as well). In this sense we are obtaining gold as a hedge against the possible collapse of non-redeemable paper. Should the collapse come or if a deflationary exchange takes place, and we are provided with new "heavy currency .1 (new redeemable certificates) it might become desirable to change our gold back into the new currency at some time. It is the smoothness and ease of exchangeability of an asset into the current medium of exchange that is referred to as having ''liquidity" in the event of a prolonged depression it might be necessary to exchange some gold for the accepted medium of exchange of the time period. It is the degree of ease with which this can be accomplished that determines the degree of liquidity.At the time of this writing the three gold coins most popular are the British gold sovereign, the Colombian five peso gold coin and in some coin shops the Mexican fifty peso gold coin. They are obtainable at different prices per unit of gold content. The sovereigns and the Colombians are exactly the same with gold content but are usually sold with a price differential of one to two dollars, the Colombians being the most inexpensive. The explanation for the price differential is the fact that the sovereign is more abundant, more easily recognizable and more readily saleable, that is why the sovereign commands a higher premium as a coin over its gold content than the Colombian over the exact same gold content.
The most inexpensive way to buy gold in coin form, of these three, is the Mexican fifty peso coin and again it is because it occupies lower level of liquidity. It is certain that if this quality of liquidity is used to explain the "price" differential between coins at the time of purchase it will certainly be used again at the time of sale and therefore if liquidity is what is being sought, liquidity is what should be purchased. in the interest of most clarity, although gold bars may not be acquired by U.S. citizens, and for the benefit of the non U.S. citizen reader, it should be pointed out that the gold in any other form beside coinage would of course have less liquidity since it would take papers, records, hall marks or knowledge of testing techniques to ascertain validity of assessed purity during an exchange.Silver may be owned by U.S. citizens without restriction as to quantity or form. Silver coins may be melted and the metal sold as bullion or fashioned into any desired shape and held or disposed of in any way that is desired. Silver is being acquired by many citizens as a hedge against the coming dollar failure. There are so many selling, agents for silver that a variety of stories has evolved as to which form is the best to have. Again it must be decided first for what purpose the silver is being purchased is it silver or liquidity that is being sought?
There are those people who are earning fortunes selling silver and some of them are not telling the whole truth, in their efforts to induce the purchase of their particular form of silver. Perhaps it is wrong to think that in this time of crisis all people with knowledge should be trying to impart that knowledge to all others, for the sake of the survival of all to the best of their ability. There has not been, nor will there be, in this book, any condemnation of anyone making a profit from the use of capital and labor whether it be individual endeavor, or cooperative endeavor. Salesmanship is an honorable skill and should be applied honorably. To honestly believe that one's product is the best and to sell its properties to a prospective buyer is proper. To freely compare one's product with others is fair, most desirable, but it must be done honestly. Errors in judgment, or just plain lack of knowledge can be excused in anyone, but when a professed expert makes statements that are provably untrue or so close to the truth that by stopping short of telling the whole truth it causes a predictable assumption of error on the part of the prospective buyer, it is less than honorable.
How to help yourself .............239
New independent mints are being established throughout the United States and they are selling silver of .999 purity in many forms. Private mints are turning out plates, medallions,bars, coins etc. for sale. They are alerting the people to the coming ''dollar" failure by means of seminars, lectures and speeches at all levels of society. Their arguments for owning silver are good, but it must be remembered that they are in the business of selling silver to make a profit, and they will lean their arguments so as to favor that endeavor. One speech that has been taped and is being distributed actually tells the listeners that our old Junk silver coins are not the thing to invest in. That the cost of converting the .899 silver coins to .999 was so prohibitive that something like thirty five per cent of the investment would be lost when the coins were sold. There are several errors here and it may be that the speaker is just not knowledgeable on those points or that he just arrives at different conclusions from the facts.At this writing .999 silver is pure and is a desirable commodity. However, .999 silver newly smelted and fashioned into the new mint forms is selling at fairly good premiums, between four and five dollars an ounce. junk silver coins bought in bags of one thousand dollars face value per bag are selling for considerably less dollars per ounce of silver .999. Taking the facts of the case a one thousand dollar bag of old silver coins, U.S. coins, dimes, quarters, and halves minted 1964 or before (silver dollars are traded separately) contains 720 ounces of silver .999. This figure takes into account the wear and the fact of the alloy of the coins as .899 silver with copper. If the coins were ever to be melted it is fair to allow a few cents per ounce plus the copper for smelting. Buying a bag of junk silver coins at $ 1, 980.00 is buying "silver 999" at $2.75 an ounce ($1,980.00 divided by 720) allowing five percent for smelting, if smelting were desired would add 14C per ounce to that. $2.75 plus 14c $2.89 an ounce .999 is still considerably less than $4.00. Silver acquired as silver desired is most inexpensively acquired as old junk silver coin.
The U.S. half dollar coin minted 1965 through 1969 contain 40% silver which figures out to be silver at $3.45 an ounce .999, also a considerable saving over $4.00.When liquidity is considered it is again apparent that the coins are the best form in which to have silver. The coins are so easy to recognize for what they are. Our old silver coinage .899 fine will be the easiest silver form to exchange into whatever is the accepted medium of exchange at the time you desire it.
Granted that the newly minted plates, bars, coins etc. will have their collector values but those values will be spread over a very much smaller group of people willing to accept those items during a depression or its immediate aftermath. All forms of collector items lose value during a depression. The desire for liquidity will be high and the highest bids will go to the silver forms having the highest liquidity.
It is extremely doubtful that the junk silver coins already saved once, from the smelter's furnace will ever see the smelter's furnace again, but will be kept as silver coins because of their excellent value as liquidity. The private mints today are faced with some. hard facts, they are expanding rapidly and their stock in trade is silver. There is a shortfall in silver, it is being used faster than it is being produced, the melting of the old junk silver coins had been the material filling the gap. It would be nice for the private mints if their efforts were rewarded with a twofold return.
If by discouraging the purchase of junk silver coinage at the same time they encourage the purchase of .999 products they can, help to lower the price of their raw material and increase its availability, they would have the maximum benefit. It is a very significant observation and deserves to be considered, when deciding for one's self who is telling the whole truth.
After the decision is made as to what is desired, the precious metal itself or its liquidity, another decision must be reached. Is the investment as a hedge against the future "dollar" failure or is It an investment aimed at future profit as well. If the "dollars" being exchanged at this time may be needed shortly to meet some obligation, then an investment in gold should be considered because it has been moving upwards in "price" right along as the "dollar" sinks.
"Money" The Greatest Hoax On Earth ......240
Should it be necessary to change back into "dollars" in the near future, for any reason, there is a good chance it would be at a profit. Silver is a longer term investment (profitwise) since it has yet to make its big "price" advancement. Silver may offer the best potential for profit of all in the long run. many points concerning its abundance support that belief. Another consideration that must not be overlooked is the bulk of the material investment. A thousand dollar (face value) bag of junk silver coins occupies a space just a little less than a gallon jug. A five thousand dollar (face value) assortment of our old dimes, quarters, and halves minted prior to 1965 would occupy a space of about one cubic foot and weight around two hundred seventy five pounds. A thirty thousand dollar investment in gold coin (at today's "prices") would fit into a one pound candy box. It is necessary to consider the volume and the weight of the investment and the ease with which it can be moved about. Everyone should consider having some old silver coinage.
There is another area that should be mentioned here. Deflation and the present cupronickel tokens, along with the pennies and nickels we are so familiar with. The constitution stipulated that only gold and silver coins were to be offered as a tender in the payment of debt. The pennies and nickels were "legal tender" only for purposes of making change and could not be used exclusively to settle a debt of any large amount. There is a possibility that the cupro-nickel dimes, and quarters presently in use may be allowed to continue to circulate in that capacity also after a "dollar" failure or a declared deflationary exchange of paper tokens.
When the government decided to go from silver to cupro-nickel dimes and quarters the people took the silver coins they found still in circulation, out of circulation, in accordance with Gresham's Law and the fact that they were silver. Government took and melted the largest amount because it had advanced knowledge and the machinery to sort silver from cupro-nickel automatically at a rate of 2,000 coins/tokens per minute. If government were to recall the cupro-nickel dimes and quarters during a deflationary exchange At say ten cupro-nickel "old" quarters for one new silver quarter it is doubtful if they would get many back from the people directly. There are 124,000 coins/tokens per minute inserted in vending machines in the United States, and with billions of perfect government issue "slugs" available it is likely a great many of those cupro-nickel dimes and quarters would be passed through the vending machines before going in for exchange. This would cause the vending machine industry to suffer the loss for the millions of people holding cupro-nickel tokens to exchange.
It would be most sensible to issue a new silver or gold coin of specified weight and fineness to "back" the new redeemable currency and let the "old" cupro-nickel tokens continue as change making "coinage" for the new "heavy currency 11 (new redeemable certificates).
On the basis that this premise may actually come to pass it would be wise to favor all metal tokens over paper tokens at all times when it appears likely a deflationary exchange may be near at hand. In an effort to express extreme clarity on this point let us assume that one held 40 cupro-nickel quarters (1 roll) at the time a 1 new for 10 old deflationary exchange of paper tokens only was declared. The 40 cupro-nickel quarters would be exchangeable for ten old paper dollars before and ten new paper dollars after the deflationary exchange. If one had been holding a ten dollar bill (old one) it would be exchanged for one (new one) and "It" could only exchange for 4 cupro-nickel quarters to show a loss of 36 cupro-nickel quarters as a result of holding paper in lieu of the metal tokens themselves; only if the "old" cupro-nickel dimes and quarters were retained unchanged and the deflationary exchange limited to the paper tokens being exchanged ten old for one new. The cupro-nickel halves and dollar tokens may be recalled and exchanged or restamped with a lower value, since there are very few vending machines that could use those "slugs" and there would be a good chance that the people would turn them in for exchange, especially if there was a counterfeiting penalty for their unauthorized use.
How to help yourself ..........241
To plan for what is coming involves studying this book, its disclosures can help you to know the truth and to choose the wisest path. You should conclude from its study that having the tools of one's trade and the skill to use them is of the highest priority. Wealth with as much resistance to time, temperature and corrosion as possible stored in as safe a private place as can be devised, fully owned and with as little outside knowledge of same as is possible.
"Those who do not produce food directly will have to produce wealth, or perform service with which to exchange for it." Jenkins economic truth no. 21"Armed with the sword of truth the people are invincible." M.M.E.J./M.R.The entire book is a guide as to how to provide for you and your family's security.
How to help others: "Influence them to study this book."
HOW IT IS NOW!
How does the public get dollars? Work and receive dollars as wages. Produce something and exchange it for dollars. Pledge wealth and borrow dollars at interest.
How does a Savings & Loan get dollars?
It borrows them from the public at interest.
It lends them to the public at greater interest.
It supports itself on the NET interest earned.
How does the commercial bank get dollars?
It borrows the reserve requirement from the "Fed" and creates
them.
It lends them to the public at interest.
It benefits from the interest earned less the discount rate.
It borrows dollars back from the public at interest.
It lends them back to the public at greater interest.
It benefits from the net interest earned.
It creates dollars in proportion to the public's deposits.
It lends those dollars to the public at interest.
It benefits from all the interest earned on those created
dollars.
All the dollars created are loaned against the wealth of the
nation as collateral.
The KEY people who own the 14,000 banks in the United States own
the United States.
If any member of the public obtains dollars without working for them or borrowing them it is STEALING.If government obtains dollars without working for them or borrowing them it is
TAXATION.
When the Monetary Authority and the commercial banks create dollars on their books and lend them into use as "currency" it is legal monetization of imaginary debt.
The Monetary Authority or commercial banks do not produce a product or give up anything to create dollars, therefore any obligation to repay the created "dollars" has to be imagined!
U.S. currency (paper and metal tokens) are FIAT (not redeemable in specie) (gold or Silver coin), therefore are COUNTERFEIT.
When the Treasury prints paper tokens to represent units of monetized imaginary debt it is legal counterfeiting.
When the Treasury mints metal tokens to represent units of monetized imaginary debt it legal counterfeiting.
If anyone besides the Treasury prints or mints. "dollar" tokens it is ILLEGAL counterfeiting and is punishable by law.
"Money" The Greatest Hoax On Earth ........242
Any member of the public exchanging a "dollar" token for goods or services is passing counterfeit.
Any member of the public accepting a "dollar" for their goods or service-is giving up wealth or labor for FIAT "currency" (any idea of redeemability has to be imagined) and is UNAWARE that if the World wakes up and repudiates "dollars" before they get to pass them on' they will suffer the loss of all they gave up to get dollars.
THE JENKINS SOLUTION: "A WAY OUT!"
Our entire economy is operating solely on monetized debt as a medium of exchange. Any attempt to shut off the created dollars without first introducing something to take their place would spell instant disaster.
The American public must have their right of contract restored (by the removal of the legal tender laws) and allow a gradual and orderly removal of the created dollars as the new wealth currency takes over.
The introduction of a new 100% redeemable currency into the economy would force out the created dollars by the discount that would naturally develop between the two currencies.
The Gresham's law very often sighted that: "Bad money drives out good" does not specify that it only happens if the "bad money" is made the legal tender. Take away the legal tender specification on created dollars and a wealth currency ("good money") will drive out the bad money!
Any licensed Public bank should be allowed to issue the 100% redeemable currency (certificates of deposit) just as it now issues cashier's checks and there should be strict government and local law enforcement against counterfeiting. Certificates of deposit should only be allowed to be issued in one to one relationship with the units of wealth on deposit. The certificates of deposit should be specified as to the number of coins of specified weight and fineness of their precious metal content.
Value is a human conception! Parity is the value of one thing expressed in terms of another. Since all humans create their own sense of values. Nothing has intrinsic value, and nothing has a constant parity.
Precious metal 'backed' currency would bear the parity of the precious metal It is a claim for, therefore man should not attempt to fix the parity of any currency in relation to any other currency either domestic or foreign.
Natural law regulates values in a free market and all commodities exchange at freely arrived-at parities.
Parity changes inspire increased or decreased production of various commodities which assures adequate volume available except at times of shortages due to natural causes.
Adherance to the natural laws of a free market would allow complete compatibility to multi-metal currency systems.
A free market is one in which the public is able to exchange production or services by competitive bidding, open to all, in the absence of government restriction against any commodity that is not directly restricted by the public themselves in open referendum.
A free market is only possible with a free coinage system where the government operated mint is limited to guarantying the weight and purity of the precious metal they coin; The quantity produced is dependent upon the amount of precious metal submitted by the public for coining: which guarantees adequate volume at all times.
How to help yourself ..............243
Argument against Jenkins: . . . . "There isn't enough gold!"
There are those who say we cannot return to 100% redeemability in gold because there would not be enough gold.
There is enough gold-what has happened is that too many claim checks on gold have been issued.
Proof:
In 1934 1/4 oz of gold would exchange for $5 and $5 would purchase 100 lbs of bread.
In 1974 1/4 oz of gold would exchange for $40 and $40 would purchase 100 lbs of bread.
Gold has regained it correct parity relationships with all other tangible goods in spite of all the years during which its correct parity was suppressed by the manipulations of the money creators.
No matter how much gold there is at any time it will be enough if care is taken not to issue more than one claim check for one unit of gold.
All existing claim checks on gold, In excess of the gold to back them, should be returned to the issuer for settlement, at so much on the dollar, just as any 'bad checks' would be handled.
IF CONGRESS CREATED DOLLARS:
How would congress know what volume to maintain?
How would congress distribute them?
How would congress reduce the volume when it became necessary?
How would congress increase the volume when it became necessary?
if congress spent dollars into the economy why would we need any form of taxation?
if they are loaned without a pledge of wealth who would work for dollars?
When production falls and the G.N.P. is decreased how would congress decide who should give back their dollars so they would not be used?
How does congress justify that the Treasury prints the present "Fed" note apparently in collusion with congress?How does congress justify that it created the "Fed" in the first place?
What the "Fed" is doing is wrong-why should it be right if congress did it directly?
'Rent' is the FEE for borrowing anything tangible-why do people fail to see that without created -out-of-thin-air "dollars" there could be no "INTEREST"?
All personal checks must be 100% backed-why shouldn't all currency be 100% backed? If an unredeemable check is a BAD check-why isn't unredeemable "dollars" BAD currency?