SHORT COURSE IN ECONOMICS
I graduated from Engineering School in 1964. In February or March of 1964 LBJ came out and said that the government was going to replace the "silver certificates" in circulation with "Federal Reserve Notes" in order to INCREASE THE LIQUIDITY. I will never forget that phrase. After all I was a 20 year old kid at that time and had absolutely no idea what was going on in the world. The 90% silver dimes, quarters, halves and silver dollars that were in circulation at that time disappeared in about a month. No economics professor is going to tell you that as they probably were not alive at that time and would not recognize the importance of that incident. The bottom line is that an economic earthquake had occurred and even Ph.D. professors in economics had absolutely no idea what was taking place right in front of their eyes and certainly could not teach what they did not know or understand themselves.
Because we were all engineers, the economics tests required a knowledge of Differential and Integral calculus. This created the illusion that the teaching was very sophisticated and that we were really knowledgeable about the subject. The bottom line is that we really learned only the most elementary elements of economics, i.e. supply and demand, marginal utility theory etc. We were never told what a "dollar" is or was, that the Federal Reserve was not "federal" but privately owned and had no reserve, that the Fed was privately owned by 9 European jewish banks and that using Fractional Reserve Banking that "money" could be created from thin air.
The currency act of 1791 defined a "dollar" as 412.5 grains of Silver 90% fine. Today we have only fiat currency. Meaning a "dollar" is what they say it is. We even send "dollars" though a wire or through fiber optics, calling it funds transfer, and send these funds around the world. "Dollars" have become nothing but a series of electrons in a copper wire. In "Modern Physics" class we were asked the question of what is the approximate velocity of electrons in a copper wire. Without reciting a lot of formulas etc. the fact of the matter is that copper has a large number of "free electrons" and typically electrons travel at about 30 feet per second in a wire. The electrons coming out are NOT the same ones that went in.
Does anyone really believe that we can send "money" or wealth through a wire. Apparently so. It called CREDIT. Credit comes from the Latin word "credere", meaning to believe.
We were never taught Gresham's Law. Simply stated, "Bad money drives out the good, all other things being equal". For coinage, gold and silver have been replaced with iron, copper and zinc and paper. Currently in 2016 we have copper covered zinc pennies as copper is too expensive to use in pennies. I understand that there are even laws prohibiting the melting of copper pennies and selling them for more "money" on the open market. Australia and New Zealand have taken Gresham's law to new levels. There is no penny in circulation in either country. All amounts are rounded to the nearest 5 cents.
My father and uncle were alive in 1933 when FDR called in the gold, they knew exactly in 1964 what was happening. They had not been disadvantaged by going to college. My father was 20 in 1934 and I am sure had no idea of the perfidy of FDR. My father only realized what had happened in 1934 in his later years as he was 50 in 1964.
FDR had to be aware of the scam also. I will not go into the compelled redemption (1934) for $20.67 and later revalued at $35 but that is exactly what FDR did and the privately owned Fed was 69% richer on other's gold that they were coerced with criminal charges to turn in. The real criminals were FDR and the FED. So much for a free country.
My uncle owned several retail stores and had access to silver coinage. My daddy had been a coin collector all of his life. They both tried to collect all available silver coinage in 1964 as they knew what was going to take place. For a time, I don't remember exactly, it was possible to still redeem the silver certificates for real money, real silver as per the Promise on the Silver Certificates. The Promise was substantially as follows.
This certifies that there is on deposit One Dollar in lawful money available payable to the bearer on demand
Promise to pay the Bearer in lawful money etc. as even this was an admission that the Silver Certificate was not lawful money. Well the "lawful money" was silver metal dust that you could trade your certificate for at a Federal Reserve Bank. I believe that the Fed redeemed the silver certificates for about a year after LBJ's announcement. The new Federal Reserve notes had no promise and were only redeemable for other paper. What a surprise!
This is a long subject and the best, and I mean best, book on this subject is "Pieces of Eight", by Edwin Vieira, Jr. published in 1983.
We are headed towards an economic collapse and the ultimate case will be that Fractional Reserve Banking, where money can be made from thin air and one thin air unit can be loaned out 6-7 times or more at interest has created the greatest house of cards in the world. Lets watch it collapse.