What does it mean to have sound money? How is wealth created?
Wealth is created by the organization of society to produce and share in abundance – Where did all this stuff come from? 200 years ago, there were no cars, planes, cell phones; we organized, specialized in trade, then used the abundance of nature to generate wealth and wellbeing.
In order for prosperity to propagate we must have good organization and sound money. We also need to understand our reality; we must use physical labor and intelligence to produce. Here’s a thought experiment, let’s say we’re cavepeople and around the world there is no money, material possessions, or wealth. One day, someone decides to cut down a tree and make a table, while someone else mines silver in a cave and smelts a roundish coin; the two then exchange the coin for the table – they created wealth. Here’s the rub, they are wealthier but the rest of the cavepeople are poorer. This is capitalism at its essence; it seems unfair until you are participating in the production of wealth and can realize the American Dream – work hard and you’ll make it.
The American Dream is dead because we don’t have a sound monetary system.
We’ve had three central banks in US history, the first two were dismantled to great jubilation. The current Federal Reserve – which is a PRIVATE bank – was created in secret in 1913. Since then, the value of the dollar has dropped 99% - 1 ounce of gold in 1913 cost $20, now 1 ounce is $2,300. Indeed, the rate of printing since the Fed’s inception was so rapid that Nixon had to close the gold window (The US would convert US dollars into gold) after France sent warships to New York harbor to collect its reserves in 1971.
Without a gold standard, the US was free to print and enforce its debased currency to the world via oil contracts and military supremacy. For instance, when Gaddafi attempted to institute an African wide gold backed currency, he was killed by Obama and Clinton. The US currency is so debased that the Federal Reserve will NOT allow a full audit – nor has a public showing of the gold in Fort Knox been had for 50 years.
The origins of banking include the scandal of reserve ratios; banks were accused of shaving coins and lending beyond their reserves. Banks would overleverage and go bust, leaving depositors penniless and the bank owners “sorry” but rich. Reserve ratios were implemented to ensure banks had both liquidity for borrowers and reserves for depositors. With a reserve ratio, money could be multiplied through lending at a stable rate, but nonetheless the process was debasement thus inflationary.
Here's the kicker – The reserve ratio was once 1:5, meaning a bank could loan half its deposits and the Fed would insure money on hand to cover depositor withdrawals. When debt increased and liquidity dropped, so did the reserve ratio; 1:6, 1:7, 1:8, then 1:9 – meaning that a bank had to have just $10 on hand to loan out $100.
For those that don’t know, the dollar is essentially fake, let me explain. Let’s say you have a credit card with a $1000 limit – where is that money? Does the Bank have it in an account for you? NO! The money is created when you use the card! It comes into existence when you buy something – it is new money spent into the economy that requires interest to repay. This process, creating money through debt, creates a vicious downward spiral of debt slavery that always ends in the termination of the monetary system and its empire.
The 1:9 ratio was seen as a serious departure from sound money.
Guess what the ratio is today?
The Fed changed it during Covid with very little media attention. Do you think this has an impact on inflation?
The federal deficit is 34 trillion, with unfunded liabilities calculated at 153 trillion, a whopping $995,000 owed per taxpayer. How is this possible? Our US dollar is created when the Fed buys government bonds with cash – The government basically gives the Fed an IOU with interest, expounding inflation and debt spending.
In order to sell war bonds, you need a willing public, but not so with the Fed. Who needs war bonds when you have a printing press? Who needs public support for wars when lobbyists pay politicians with monopoly Fed money.
We need to end the Fed and oust its controllers.
In the meantime – stack sound money.
Bitcoin is cool tech. Intangible, fungible, instant, safe(?). What if it’s hacked? Outlawed? Grid failure?
Stack metal.
If you’ve had a $100 in savings since 2021, that $100 has about $70 worth of purchasing power today due to inflation. If, however, you had $100 worth of gold in 2021 it would now be worth $125 and have greater purchasing power.
While gold is at historic highs, silver is only halfway there with plenty of space to move.
Our dollar is doomed, the federal deficit will kill our sovereignty as a nation – don’t be trapped.
Buy precious metals, gold and silver, and maybe a little lead, too.
Oust the Fed.
We want Truth and we want PEACE.
T Gunnar Balstad, Esq. & Mark Bishofsky