Money-Stable Currency | Eastern North Carolina Now

Money-Stable Currency

BY: HOOD RICHARDSON

I have been told by several people that money is not important, to learn that everything they wanted cost money. I suppose these people were in a denial that they would ever be able to make enough money to achieve happiness.

There is no question that some of us require a lot more money than others. Some want it to possess, and others want it to spend. Either way there is a certain amount of money that everyone requires to exist, or to be happy or comfortable, or whatever adjective you want to use to describe your level of survival.

Most of us do not want to earn money and see it taxed away or have its purchasing power depleted. Both methods of destroying wealth come from governments. Taxation is more easily understood because we get the bill, write the check, have it deducted from our paycheck or pay the sales tax. Purchasing power depletion is more sinister, subtle and unseen. It comes from people far away making decisions about borrowing money to fund government programs, forcing interest rates to be at certain levels, and the creation of money with no material security backing. Those are the President of the United States, the Federal Reserve and the congress of the United States. These are our fiduciary policemen. Some are thieves, some are incompetent, some are uncaring and some deliberately destroy value.

Several things have removed checks and balances that were intended to protect our (as individuals) financial security. The decoupling of the dollar from gold and silver by President Nixon, the deficit spending by congress, and the deceptive watering down of methods of calculating true inflation rates by the Federal Reserve are the major causes for the devalued dollar and the present inflated economic economy. Accepting any rate of inflation as normal is bad monetary policy.

A system of stable currency stops overspending, protects the value of currency and stabilizes prices. We can have a stable currency by simply deciding we want it. Some say things have gone too far but the very things they use to deny a stable currency are the things that provide success.

Return to the gold and silver standard to back our dollar. Some experts say we would need to fix the dollar at $5,000 per ounce of gold and silver at around $100 per ounce (at present gold is around $3500 and silver is around $40.00 per ounce). We do not have to stick with gold and silver. As in the past we could use other metals. We have already used zinc, steel and nickel. We could use platinum and palladium for coins. We could easily have small change as well as 5, 10-, 20-, 50- and 100-dollar coins.

I already feel the push back from the computer, online, credit card company and internet payment crowd. However, there are several reality checks one has to consider. The present electronic payment and money handling system is new and has not experienced a crisis. If there were a war, the internet and the satellite that make it successful would be shut down for national defense. Every cell phone is a missile target as long as the telecommunications system is operating. How does one do business with it shut down? The same thing happens if there were to be a coordinated terror attack aimed at making the telecommunications system unusable. Having currency that is not on the internet is necessary for our national security.

I admit that our system of financial inflationary incompetence has been a major contributor to our industry, commerce, government and standard of living success. However, none of the economic bubbles in history has lasted forever. This one has us 37 trillion in debt. None of the conditions that has led to inflation and debt have changed. We know the debt cannot go on forever. Fix it before it destroys us.

President Trump has a plan that is very different from the one I have described. I hope he is successful in making it work. As I understand the plan, we will pay down the debt by bringing manufacturing back to America. We will remove those who are parasites on us by putting them to work. This will generate taxes and symbiotic commerce that will further contribute to our success in paying down our debt. This is a classic way to pay back debt with inflated dollars.

This system does not address stable currency. A system of stable currency (currency backed by real assets) protects citizens’ money and property by requiring congress to vote to increase metals inventory to back up currency it is issuing. The present system has zero back up.

When economic systems fail there is always a time of distress among all citizens. The communist party became prominent and active during the great depression that began in 1929. Within the past several years communism has reared its ugly head within the Democrat party. Should we have financial distress the Democrat party will become very prominent. Our way of life is at great risk.