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Yes, WRS, and thus began the slippery slope...
Rasputin - Sun, Sep 13, 2009 - 05:50 PM
...into the abyss in which we find ourselves today.
We went from the U.S. Constitution--in Article One, Section Ten, calling for NOTHING BUT gold or silver being used as money--to then the Federal Reserve being inserted into the process and the Federal Reserve Notes being FRACTIONALLY backed by gold.
Then, when the gold was confiscated and the notes defaulted upon in 1933 domestically, Uncle Sugar allowed U.S. Treasuries to back the fiatsco.
Which is interesting that they used debt to back the notes, which themselves are debt.
In any event, after the Bretton Woods Agreement was put into place in 1944, the U.S. was obligated to cash in the FRNs at 35-to-1 for an ounce of gold, but only to foreigners. The U.S. citizens, in this supposedly "free" country, with a constitution calling ONLY for gold and silver to be money, could not cash in their FRNs for gold.
Of course, we all know how THAT ended...in 1971, with Nixon slamming shut the "Gold Window" on the fingers of our foreign FRN note holders.
However, up until the last couple of years the Fed STILL only pretty much accepted U.S. Treasuries as "collateral" for FRNs.
Until they totally blew the doors off of any semblance of prudence and now literally have accepted such toxic trash as:
Cabela's Credit Card Master Trust (which is a sporting goods store, so theoretically the U.S. fiatsco could be backed by nightcrawler bait!)
Harley Hog loans to aging Boomers
...and other gunk so horrid that not even the Fed will admit to what it is (although, I know what it is: worthless MBS/CDOs/Squareds/Cubeds).
The bottom line is that this country has gone all the way to complete farce when it comes to "backing" of our currency.
And people wonder why the rest of the world is fleeing to gold, silver, and anything BUT U.S. fiatscos?
There should be no mystery here.
[ Post Last Edited By Rasputin on Sun, Sep 13, 2009 - 05:52 PM ]
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Yes, WRS, and thus began the slippery slope...
Rasputin - Sun, Sep 13, 2009 - 05:50 PM
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