Shocking-The Greatest Currency Scam of All Time!

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Did we always have paper dollars? Why are they worth so little today compared to 1933? The answer is really quite shocking. 

Back in 1933, you could buy a first class, tailor-made suit of clothes with a U.S. $20 gold coin or a $20 bill. Today, that $20 gold coin, worth about $1,500, will still buy a fine designer suit. The $20 bill, however, won’t even buy a necktie.

How and why did this happen to our money, and where are we headed in the future?

Clearly the paper $20 bill did not retain its value. Therefore, paper is disqualified as money. Paper will never fulfill its function as a stable store of value. During the Great Depression, cash was king because cash was backed by gold. It is the story of the greatest currency scam of all time. 

The once mighty, gold-backed U.S. Dollar has been replaced with nothing but a piece of paper. Because the transition took place over an extended period of time,

The U.S. Dollar would never have been accepted in America’s infancy if it had been merely a fiat or paper currency. No one in their right mind would have been willing to exchange valuable resources in the form of products, services, raw materials, or capital assets for a piece of paper. 

Our founding fathers knew the importance of having sound money. They had witnessed the abuses of other governments and were determined to place monetary restraints on ours. The U.S. Constitution, therefore, required that all U.S. coins be minted out of gold and silver, thus guaranteeing their value and receptivity in the market place. 

The U.S. Dollar built an impeccable and irreproachable reputation in the world’s marketplace, because it was “as good as gold”. It was “as good as gold” because it was backed by and redeemable for a set amount of gold.The first paper dollars were more like warehouse receipts. They were issued as a convenience to simplify commerce and trade. They were certainly simpler to use than carrying around a bag of coins.
 

U.S. citizens could no longer redeem their paper dollars for gold in 1933. Then in 1971, the Dollar lost its gold backing internationally. Foreign countries could no longer redeem U.S. Dollars for gold. What we have left is a piece of paper. 

The only reason the Dollar isn’t laughed out of the world’s economic community is the fact that all the other industrialized nations did the same thing! How does any of this make sense? Our parents taught us that it was never okay to do what all your friends were doing if it was immoral or unsafe. Taking currencies off the gold standard was both immoral and unsafe.

There is nowhere near the amount of gold in existence that most people believe.  Most people equate the number of paper ounces of gold traded (contracts, options, etc.) with the amount of physical ounces available for purchase. Unfortunately, it’s going to be a life altering event when the general public discovers that there is less than 1% of that much gold.

There is a secret that the bullion banks don’t want you to know: they have been leasing out their gold. link This is where 100-150 ounces of paper gold are traded for each ounce of physical gold that is traded. China has done more to expose this critical issue than anyone else over the past 24 months. China has simply “changed the rules” when it comes to purchasing gold.

For decades the gold exchanges were “buying” and “selling” huge amounts of gold on a regular basis, but it was all done on paper. No one ever took delivery of any significant amount of physical gold. That all changed when China started taking delivery of all its gold orders. They took some 2200 physical tons off the market through Hong Kong and Shanghai over the past 12 months! 

The exchanges and warehouses are in trouble. They don’t have the physical ounces to keep up with current physical demand.The lack of physical gold was made evident in the recent story surrounding The Bundesbank (The Central Bank of Germany).  link  The bank requested that the Federal Reserve Bank of New York return its 700 tons of gold that it had on deposit there. The FED announced it would take 7 years to return all of Germany’s gold! (Keep in mind that China took delivery of 2200 tons in one year!) 

It became painfully clear that the physical gold simply wasn’t there. Had it been “leased out” or sold? This past year, the Federal Reserve Bank of New York delivered only 37 ½ tons (not even the negotiated 100 tons they had promised). Of particular interest were the bars themselves. They were all newly cast bars. Where are all the old bars that Germany deposited there? It should also be noted that Germany made a similar request of France. This past year they received zero ounces of gold from France. 

If all the industrialized nations of the world were on the gold standard until 1933, how did inflation and even hyperinflation actually take place during that time? The answer is simple.

The instability and eventual collapse of a currency occurred only when a nation suspended their gold standard. The Weimar hyperinflation in Ger-many occurred because they went off the gold standard. Once removed from the discipline of gold, Germany proceeded to print an endless ocean of German Marks. 

They removed the legal requirement to maintain adequate gold reserves to back the Mark. This allowed the German politicians to keep printing more and more paper Marks until the Mark became worthless. Sound familiar? 

Without the discipline of backing the U.S. Dollar with gold, our politicians continue to print an ever growing ocean of paper Dollars, guaranteeing its eventual collapse. Every currency that has ever gone off the gold standard has ultimately become worthless. Stated another way, the value of the U.S. Dollar is headed to zero. 

Regrettably, our dollar will not be the first exception to this rule. So why would a country ever debase its currency like this? Again the answer is only too simple. The desire to spend more money than it has. Historically, this occurred during times of war. A government, faced with the need to build, equip, and maintain an army, suspended their gold standard and simply printed whatever amount of currency they needed to achieve their goal.

The dilution of the currency, however, inevitably created raging inflation. The inflation effectively served to “tax” the populace by raising the money through devaluation rather than through conventional tax assessment. Knowing that citizens tend to complain less about devaluation than straight taxation, governments have purposely resorted to the deceptive taxation of inflation.
 

In more recent years, a new motivation for printing money has arisen: The Welfare State. Since WWII the U.S. government has embarked on an unparalleled redistribution of wealth, both through increased taxation, as well as deficit spending. 

Our national debt has grown to the reckless and absurd level of over $17 trillion dollars. We are spending a trillion dollars more each year than we collect in revenues! (That’s $1,000,000,000,000 per year and growing!) Let us be perfectly clear. 

The only news that you ever hear concerning “spending cuts” is merely on the rate of deficit spending. (That’s like slowing your car down to 100 miles per hour from 110 miles per hour as you drive off a cliff.)

The interest alone on the National Debt is already more than we can afford – and interest rates are at historic lows. Imagine what will soon happen when interest rates begin to creep up. And don’t think our manufacturing and productivity will “bail us out”. 

Like the child who finally spoke up and declared that the emperor had no clothes on, there is a trigger point in our near future that is certain to cause sudden and significant chaos. Make no mistake, paper money is a trap!

We believe that you are now at a crossroads. You have two distinct choices. You can choose to ignore the obvious and hope that the collective wisdom in Washington (the same collective wisdom that got us into this mess) will postpone the inevitable for the foreseeable future, or you can embrace the difficult and unpopular truth and do something about it.

Will you buy some gold and protect the money you have?

If you can’t afford to buy gold at over $1,000 per ounce, consider buying it by the gram. I sell it through a Germany company with a solid production line. It’s affordable, and a good way to get started.