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Reader Post | By TIGER
- There was a 50% gold backing of the US Note.
This claim has no real logic behind it. If you take a note to the bank and all you can get for it is 50% of face value, that note is devalued by 50%. If something else of value is backing the other 50%, then you should be able to trade that value for gold. The only scenario in which you could try to implement this is if gold coins were not in circulation, that is, they called in all the existing gold coins — and also the silver coins, because those would be used as a replacement of a currency The People had no confidence in. If that occurs, it will be a travesty of government control over the economy and the freedom of commerce. The idea that a USN is “gold backed” would be no more than a very present, everyday example of a LIE and a SCHEME. It would be a daily irritation similar to the chemtrails we see that block our sunshine and ruin our blue skies and lay a nefarious ode of suspicion over America.
Actually, having a 50% gold backing mandates you exchange for 50% of face value, so the idea just stated that you could recall all the gold and silver coins is impossible — you would claim 50% redemption but then forbid The People to have the coins.
There is ABSOLUTELY no need to use this “50%” scheme, as by live test we have seen citizens prefer paper money or credit cards so long as they have confidence in their value. That confidence is very simple to achieve by making the USN fully exchangeable for gold or silver at any bank. When the US printed $1 Silver Certificates the only place silver dollars were widely used was Las Vegas. 100% redemption is fully possible and IMO required. Moreover, IMO, banks should be required to buy silver and gold coins of any nation with a small charge for redemption. The Constitution in Article I, section 10 reads “No state shall…coin money, emit bills of credit, make any thing but gold and silver a tender in payment of debts…” Gold and silver are “lawful money”. When you have a debt, the Constitution FORBIDS laws that require satisfying it in other ways. You CANNOT interpret this away, this requirement was never changed in any amendment. Gold and silver ARE legal money, any substitute is an option but CANNOT be made mandatory.
Any currency derives its value from representing lawful money, and fully, NOT in some literally half-a***d way.
TIGER
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