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From the Editor
By: David Deschesne
Editor/Publisher, Fort Fairfield Journal,
July 9, 2014
If our Money Was Still Backed By Silver, What Would Prices Look Like?
Measured in U.S. Federal Reserve Note dollars, I don’t have much wealth. As a result, my wife and I have to be very frugal with what little purchasing power the paper money we trade with has left in it. For example, for entertainment we do not go to expensive movie theaters or buy newly released movies on DVD. Instead, we wait until the movie drops to $5.00 on DVD and then buy it. A recent movie we watched was The A-Team, which was based on the TV show by that name (that’s a four year-old movie, so it gives you an idea of how big a backlog of movies we have yet to go through). Toward the beginning of that movie, there was a line that caused me to have an epiphany. The team was at a forward operating base and being visited by a CIA agent regarding some stolen engraving plates from the U.S. mint. Apparently some thugs had seized what’s left of the Iraqi national mint and, with those stolen plates, were planning to, as the line in the movie says, “run off billions of dollars in unbacked American currency.”
I immediately said, “Hey, wait a minute, all American currency today is unbacked.” You see, there is nothing actually backing our money today so, it is in effect like the money in that movie: all counterfeit. Even the money printed by the U.S. bureau of engraving and printing is counterfeit and backed by nothing.
Many of the old timers I speak to today about money believe it is still backed by silver. Sorry, it isn’t. The Federal Reserve, which is a private consortium of international banks and businessmen—not a branch of the U.S. government—hi-jacked our money system in 1913, caused the Great Depression by tinkering with the money supply, called in all their loans that were payable in gold and caused the U.S government to functionally go bankrupt in 1933. They then forced us off the gold standard in that year for all paper Federal Reserve Notes being used domestically, they then removed the silver backing in 1964 and took the paper money off the gold standard internationally in 1971. Since then, the value of the U.S. dollar in the form of the Federal Reserve Note has plummeted to the bottom of the proverbial trash bin. Our money, which is now backed by bits and pieces of other people’s debt—their promise to pay a bank loan, rather than anything of tangible physical value—now only has a fraction of its original worth. This is the reason counterfeiting money was made illegal in the U.S. Constitution and why the U.S. Federal Reserve private counterfeiting ring should be abolished and all of their leaders imprisoned for counterfeiting for what they have done to the U.S. money supply.
Silver to dollar pricing comparison
In order to illustrate how far our money system has depreciated in value I will show here some commonly purchased items and what their price would be if our dollar was still—as the U.S. Constitution mandates—backed by silver. That means for every dollar in paper money there would have to be an ounce of silver on deposit at a bank and that paper dollar could be immediately converted into that ounce of silver.
A dollar in the U.S. used to signify an ounce of silver (actually, the silver dollars were 90% silver and 10% copper and zinc in order to make them more durable and wear longer).
Today’s silver dollar (above) is still minted by the U.S. mint but is .999% pure. It is a true dollar and vividly shows the depreciation the Federal Reserve Note dollar has undergone because it takes around 22 Federal Reserve Note paper dollars to evenly trade for just 1 U.S. silver dollar.
We’re used to seeing Canadian money discount rates of around 10 to 15 percent. If we advertised the discount rate of the Federal Reserve Note to the U.S. Silver dollar—which is still official U.S. money— that would be a discount rate of 95.4% at the current rate.
If Our Money was Backed by Silver, the prices would be...
If our money was still backed by silver, the following items would have the cost noted with them. Many older folks will remember back before 1964 that these prices are similar to what those items cost when they had silver for money instead of debt-backed counterfeit paper:
©2014 David R. Deschesne, All Rights Reserved