Redneck Review!
No. 229 - 9/16/2019
A good title for this review would be: "The Evolution of Money - Part III."  And add to that title:  "A final look (for the time being!) at this topic."
In Review 227, it was claimed that the money system of virtually every nation goes through an evolution similar to:  Barter->Primitive Money->Sophisticated Money->Certificate Substitution->Reduced Reserves->No Reserves->FIAT MONEY. Included in that claim was the argument that gold and silver were universally selected as the valuable units of exchange.  This was true simply because these two metals best have the properties required of a unit of exchange: They are portable, divisible, acceptable, scarce, durable, and stable. Certificate Substitution made sense and followed because of the convenience of carry, and was as GOOD AS GOLD OR SILVER, so long as the certificates were backed up with a 100% exchange guarantee!
Then in Review 228, it was noted that the U.S. dropped the gold guarantee for its citizens in 1933, even making it illegal to own gold (other than jewelry), and for the payment of foreign accounts in 1971. Silver was reduced in coins in coins in 1964, and totally eliminated in 1968, and the traditional silver certificate guaranteeing a 100% exchange for silver was replaced by the Federal Reserve Note, which looked like the certificate except the guarantee at the bottom suddenly disappeared in the same year, 1968.
So, harping back to our stress on COMMON SENSE, should it surprise you to observe what has happened in our country in the last 50 years or so since 1970?  It should not, because any government which can justify increased spending will immediately take advantage of having more money to spend to stay in power!  After all, it the citizens have any say, are you not forced to keep them happy in one way or the other?  Students of history know the Romans used "Bread and Circuses," to maintain power.  The "Bread" was the government program of giving food to the citizens who would take it, and the "Circuses" included the free chariot races, the death battle of gladiators and the slaughter of Christians by lions in the Colosseum arena! And the historical record tells us that one way the Romans increased their money supply was by "Clipping their coins!" Ingenious!  They would shave the metal to use in making new coins!
So what does the record show has happened in our U. S. since  our government and its bank, the FED (Federal Reserve) have had the power to print FIAT money? Should you be surprised, knowing that perhaps the number one goal of any government is to keep the people happy and thus to stay in power? And certainly to fund ALL programs by taxes is not going to achieve that goal!  So BORROWING becomes the method, and the record shows that our national debt has grown since 1970: 1970 - $371 billion,  1980 - $908 billion,  1990 - $3.4 trillion,   2000 - $5.6 trillion,   2010 - $13.6 trillion,   Today - 2019 - $22 trillion!  Do the math, and this means that every single U.S. citizen, 327 million we are told,  from 1 day old to death day, owes around $67,000 EACH!  For a real eye opener, use Google to see the U.S. National Debt Clock, and see a real time  picture of our debt, increasing by the second!  At the time of this printing, that debt stood at $22.567 trillion, and will go to $22.568 probably by the time you read this article! (Note: All debt figures above list the LOWER of research on Google and Apple SIRI!)
What does this tell us about a comment made by Right Side News: "In 5000 years of history, never has a paper currency survived longer than about 50 years?"   Or professor Alexander Tyler's claim that a "democracy cannot exist as a permanent form of government.  It can only exist until voters discover they can vote themselves largess out of the public treasury!"   Prof Tyler also claimed that democracies last only an average of 250 years! (How old is the U.S.A?)
Jake Wren

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