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First, we should all recognize that the monetary use of gold is not without its

flaws, no system can possibly be considered perfect due to the interactions of

human beings and the unforeseen consequences of their actions. However, the
primary flaw with all fiat monetary systems is that they always fall into
mismanagement and abuse by those who manage the system due to the nature of the
system itself. Every attempt at stabilizing fiat money is usually short-lived,
because by its very nature the entire system must rely upon a consistent expansion
of the money supply to continue economic growth. This major flaw, combined with
mismanagement, will always end in the destruction of the monetary system, there
are no exceptions.

Now equally, a gold specie system, administered by a central bank or under the
heavy control of the government is not much more successful than a fiat system
because of the simple reason that it can easily be abandoned by a stroke of the
pen. The most successful monetary system would be one in which individual banks of
issue not only had the fiduciary responsibility of good business practices, but
also they would not have the ability to renege on the promises and demands of that
responsibility to their depositors. Not only would this provide a much longer
stability of prices, but also, as witnessed in history, a much more stable

It has empirically been shown that the tendency of inflation usually persist under
all fiat monetary systems, but not under what could be considered a classical gold
monetary system where, through private banking, the promises of redemption are
enforced by the sheer demand of the public. In order for the public to have
confidence in such a system, it would, as always, have to have a credible
commitment from the banks to maintain gold redemption of any bills of issue, and
that any breach of this contract would not simply be dismissed as it appears under
our current fiat monetary system. Now, this does not preclude the fact that banks
are businesses, and mismanaged businesses do fail and should always be allowed to
fail. That being said, such businesses should always provide for independent
audits and publication of the findings of such audits to the public, especially to
the depositors.

While I personally defend the use of gold as a monetary necessity, I do not defend
it on purely ideological [i.e. Constitutional] grounds, but also on rational
grounds as well. It is a very rational monetary system; it requires absolute
responsibility on all parties, especially the government. Unlike fiat money, gold
is not, nor can it ever be an inherent liability; by its very nature it is an

Today, we are accustom to and therefore inclined to think of gold in terms of fiat
evaluation. We look at the fiat price of gold and therefore assume that it is the
actual value of gold when it fact it is merely the fait price that reflects the
inflated, therefore debased purchase value of our fiat currency. Likewise, our
entire economy is calculated in fiat terms, logically because at this time that is
all we have, however, it is important to realize that the entire economy is based
upon a debased evaluation. In other words, the evaluation of our economy should be
recognized in highly inflated terms, therefore the real economy minus this
inflation is substantially less than it appears in the numbers. I realize that is
difficult for some to wrap their minds around, but if you view the economy in
terms of a 1913 100 cent Dollar you will get the real economic evaluation. The
reason for this is that since our money has lost the majority of its economic
purchase power over the last 95 years, the economic evaluation is based upon far
less purchasing power per dollar of value.

Take, for instance, $1Million Dollars in today's fiat evaluation, under a 1913,
100 cent Dollar evaluation that $1Million Dollars would equate to only $45,007.36
[*using government CPI figures]. As you can see, that is a massive denigration of
the purchase value of our money over the last 95 years. Real economic activity is
distorted through the consistent long-term depreciation of the monetary system. It
should also be apparent, that under this long-term depreciation of the monetary
standard, all economic contracts are also suffer from distortion, even future
business projections suffer under the weigh of this distortion, thereby skewing
any real possibility of accurate business models, especially when it comes to
inventories, capital improvements, as well as profits and losses.

Now apply that same principle to the fiat price of gold which, at the moment is
trading around $823.00 per ounce, in a 1913 100 cent Dollar, the price is $41.77.
Once again, if we abandon the rose colored fiat glasses we see the truth behind
the fiat system of serfdom, we are laboring for pennies. The illusion of wealth is
strong, especially in this country, but that is exactly what is provided by a fiat
monetary system: an illusion.

As we have seen over the last several years, those who manage the fiat monetary
system [i.e. The Federal Reserve] have succumbed to political pressures, even
though the charter forbids such collusion. The Federal Reserve Act never really
stopped the Fed from doing what they wanted anyway; by 1922 the Fed began to
monetize debt by forming what we now know as the Open Market Committee to purchase
U.S. Treasuries though it was expressly forbidden to do so by the 1913 Act. The
political pressure to inflate, therefore to mismanage the system, has increased as
politicians forget that there is no such thing as a free ride, even under the
pennies from heaven system of fiat money. The "Piper" will be paid!

Of course, as we have readily seen over the years, the average person is
bombarded, via the media and the politicians, with the ideal that the problems
associated with inflation are due to natural price increases. It is far easier for
them to place the blame on things outside of their immediate control then to
confess that the real culprit is the monetary system imposed upon the People.

From the 1890's, there was a major push to substitute gold-bullion, and thus gold-
exchange standards for the traditional gold coin standards which were far too
restrictive on the government and the increasingly powerful bankers in this
country. It was extremely beneficial to both government and the bankers to extend
and stretch their available gold reserves by any means possible. The real push, of
course, was to eliminate the restrictions that the old gold coin standards placed
upon them, they wanted a free hand, and of course, as we know, they got exactly
what they wanted at the expense of the People and the future welfare of this

As we know, by the late 1920s, the entire substrate that had been formed in the
previous decades by the government and the inter-central banks, with their
reckless issue of credit came crashing to the ground. While there have always been
those who blamed gold for the problems, the real issue behind the crash was how
the banks economized the gold system and issued, with little restraint, easy
credit policies.

It should be relatively obvious that when you have a managed fiat monetary system,
and therefore a managed economy, the political forces will always pull or push
monetary policy toward the interests with the strongest political connections,
thus distorting the system even more. These pressures, always politically
motivated, will add a particular bias to all governmental monetary decisions made
within the economy; in doing so, the ideals of a representative government are
effectively circumvented by the power of monetary policy and the consequences of
that policy.
I believe it was Irving Fisher who stated: "illusionary and tantamount to open
approval of the government's power to manipulate purchasing power according to the
appetites of powerful pressure groups", nothing could be more factual than that
statement. There is absolutely no doubt in my mind that the creation of the fiat
economic system was purely politically motivated to induce a social outcome
through the transformation of economic life in this country. The system was
created to solely benefit those who created it and control it, for it provides no
real benefits to the People themselves. The system is, at its very heart, an
attempt to defraud the People of this country of their Right to Private Property
and their ability to gain wealth through honest means.

There was a time in our country when our money was our property. It was more than
just a medium of exchange or an economic instrument; it was, in a very real sense,
property. When a man labored he received compensation in value equal to his work,
his produce or his creativity; the money he earned was his property, just as
anything else he owned. He could be assured that his money was a store of real
value, he could spend it as he pleased, he could store in a bank, stuff it in his
mattress or bury it in a mason jar in his back yard and it was no ones business
but his own. He could be confident in the value of his money, that he could dig
that Mason jar from the ground years later and still have money that kept an
equivalent value as when he buried it, it was real money, sound money and it was
his private property. He could be assured that his government could not confiscate
it, track it or regulate it once it was in his hands; it was real property, his
property. He need not worry about whether he carried a suitcase full of it from
city to city, state to state or country to country because it was, without any
equivocation, his property to do with what he wanted.

That all changed in 1933, when FDR issued the Executive Order No. 6102 that
proclaimed the hoarding of gold and silver by the People [he called them subjects
of the United States] "posed a threat to the peace, equal justice, and well-being
of the United States; and that appropriate measures must be taken immediately to
protect the interests of our people. Therefore, pursuant to the above authority, I
hereby proclaim that such old and silver holdings are prohibited, and that all
such coin, bullion or other possessions of gold and silver be tendered within
fourteen days to agents of the Government of the United States for compensation at
the official price, in the legal tender of the Government. All safe deposit boxes
in the banks or financial institutions have been sealed, pending action in the due
course of the law. All sales or purchases or movements of such gold and silver
within the borders of the United States and its territories, and all foreign
exchange transactions or movements of such metals across the border are herby
prohibited. Your possession of these proscribed metals and/or your maintenance of
a safe-deposit box to store them is known to the Government from bank and
insurance records. Therefore, be advised that your vault box must remain sealed,
and may only be opened in the presence of an agent of The Internal Revenue
By lawful Order given this day,
The President of the United States."

What an amazing decree, it totally and completely destroyed the Constitutional

Rights of the People concerning private property, as well as protection against
search and seizure. Of course, following that un-Constitutional and criminal act,
the official currency was devalued by 40% and the official price of gold was then
revalued upward. Thus the enslavement of the American People that was planned in
1913, had effective been implemented by 1933. The People had no choice in the
matter, no redress whatsoever, they were required, by "law" to exchange their real
money for a devalued sum of paper money whether they like it or not.

Now, it should not be surprising to anyone that if the government is powerful

enough to take one penny from you they can take absolutely everything from you.
Dr. Paul stated that: "If it gets bad enough, they'll declare a national economic
emergency. They'll take over the banks, all business and industry. They may even
try to confiscate our gold
The power to confiscate gold is still on the books as the law of the land. I urged
the full commission to recommend Congress repeal the power to confiscate gold in
an economic emergency. We pushed it to a vote and I was the only one that voted to
recommend to Congress that we never again contemplate taking the gold of the
American People. The fifteen other members voted it down. The power is still there
on the books, and they can do it anytime they wish."

In our Constitutional Republic, the Founders were well aware of the potential
dangers involving the nation's currency and with that knowledge they gave us with
some extremely strong admonitions concerning the value of money as property. They
had experienced the results of unsound money and knew that monetary instability
would not only threaten the nation's economic freedom, but all freedoms and
liberties enjoyed by the people.

In the preliminary draft of our Constitution the following words were considered:
"To borrow money and emit bills [fiat currency] on the credit of the United
States." The wording however, was struck from the final document and for good
reason. Due to the Founders knowledge of history and even their experience with
the "Continentals", they knew the danger that emitting such bills posed to the
nation and the value of the monetary property of the People. Indeed, it was more
than just the monetary property Rights, but all Rights of the People that
concerned the Founders; for they were aware that if the monetary system was ever
corrupted that the entire system could be corrupted.

In fact, there were some in the Constitutional Convention that believed that it
would be better to discard the entire Constitution instead of allowing "and emit
bills" to remain. The passion concerning the ability of Congress to "emit bills"
was so powerful because the Founders knew that such ability had the potential to
undermine the Republic.

The cardinal rule of money as real property is essential for a Free People; absent
that cardinal rule the government assumes powers that will always infringe upon
the Rights of the People. As we have seen, when money is little more than an
impotent instrument of exchange, monopolized and regulated by the government then
the government is; apparently, free to treat it as such. The government can debase
it, confiscate it, control it, track it and basically manipulate it to benefit any
agenda it pleases.

Is it any wonder why the Founders were so concerned about taxation without
representation? Such taxation allowed the King's government to tax the fruit of
the people's labor indiscriminately. It totally ignored their property rights and
amounted to open robbery of the people's private property. Today, we have the
semblance of representation, but in reality those we elect rarely consider our
consent when crafting legislation. Perhaps if we actually considered what has
taken place over the last century we would once again raise our arms in revolution
and cast out those who should be considered nothing more than common criminals
acting for their own benefit instead of that of the people.

Through the years our financial privacy has been invaded through a system that has
completely eliminated not only the property rights of our money, but also the
value of our money and indeed the essence of our money itself has been
detrimentally altered. Today, our money has been transformed, by certain factions
in both the banking cartel and government, as an instrument of a government. A
government that no longer places value upon the Rights of the People to keep their
property and to use that property in ways that should be considered private and
inviolate is a government operating outside the Consent of the People and the Law
of the Land. Along with the Central Bankers, such a government seeks to use
unsound money for purposes other than the real benefit of the People.

This government began to follow the path toward unsound money the moment it bowed
down to the power of the bankers by passing the Federal Reserve Act in 1913. Since
that time we have witnessed some of the most heinous acts against the People and
their property in the history of this nation. Under the watch of the Federal
Reserve, this country and its people suffered numerous depressions and recessions,
including the Great Depression. These financial crises served the bankers and the
government well, it provided opportunities to both bankers and the government
unparallel in our nations history. The scope and power of the government was
immensely expanded in the wake of the Great Depression and although the Federal
Reserve was intended to avert such economic panics, it was the major contributor
to that economic catastrophe and, indeed, as it turns out, a prime beneficiary of
the economic disaster. During the Great Depression there was a tremendous amount
of wealth that was transferred into the hands of not only the Central Bankers, but
into the coffers of the government itself.

The Great Depression provided the government with an opportunity never before seen
in this country's history; the Crash of 29 and the ensuing depression followed the
natural progression of monetary debasement and control. It also proved to be the
impetus for the destruction of the property rights associated with money. It gave
the government "claim" over the people's money, making it nearly impossible for a
man to control or maintain his money as private property. FDR's confiscation of
gold and the government's decision to renege on its promise to redeem its Liberty
Bonds and other government obligations marked the beginning of the end of private
money property in this country; it also marked the end of the full faith of the
United States government.

By 1971, the goal of destroying private money, and the rights associated with it,
was completed when the government quietly achieved a total fiat currency coup
d'etat and their banking partners, the Federal Reserve now had free-reign to
control the monetary interests of this nation through a complete monopoly. This
effectively ended all property rights the people retained in their money. Since
that time, we have witnessed a drastic confiscation of the wealth of this nation
by the government and its banking cartel. This confiscation is hidden from the
masses of people and takes the form of inflation, draining away the purchasing
power of the nation's money and the ability of the majority of the people to
maintain a stable livelihood.

Alan Greenspan once said: "In the absence of the gold standard, there is no way to
protect savings from confiscation through inflation." He should know, for under
his tenure at the Federal Reserve, the people of this country have been victimized
and seen their wealth robbed through that insidious form of theft called
inflation. We have seen our standard of living stolen from us and with the
complicity of our own government we have witnessed the demise of our property
rights, and indeed all our rights. The fruit of our labors are being siphoned off
by those who are no longer worthy of being called our Representative Government,
they have long ago abandoned good government for abusive powers and what amounts
to little more than blatant highway robbery. They have replaced our Liberty and
Rights with something that is totally contingent upon our compliance under the
illusion of freedom. They have transformed this nation from one of producers,
manufacturers and good labor into a debt-dependent serfdom created to increase
their own real wealth and powers while reducing the actual standard of living for
millions of hard-working Americans.
How many times did our Founders clearly warn us of the potential for deceit and
corruption associated with the unsound money, but through trickery and overt
deception this nation was lead down a path that will, ultimately, prove its
undoing? The Father of the Constitution, James Madison stated that unsound fiat
money would destroy the necessary confidence between man and man, in public
councils, industry, the moral standing of the people and the complete character of
the republican government.

The last century saw a progressive disregard for the Constitution and authority,
in many cases it is simply ignored by government. Such disregard should not be
considered anything less than criminal, a breach of contract between the
government and those who have consented to be governed under that agreement.

The people must come to understand that one of their fundamental rights is that of
money property and the only way to have money property is for money to be a sound
store of value, untouchable by government, separated from the influences of a
monopolistic Central Bank, free of the threat of confiscation or undue taxation
without appropriate Constitutional Representation. It is a Right that must be
restored to the People, without such restoration there is little hope of us
maintaining the few vestiges of freedom left to this People.

We stand at a time when this nation will face a great turmoil; the next few years
will determine the future of our nation.

The Right of Money Property is a revolutionary right; it stands as a bulwark

against those who would assume authority over us and our future. The Right to
produce, to labor in exchange of just and sound compensation without the
interference of government or the overt monopolistic control of the Central
Bankers is essential for a good and prosperous future. We must repudiate all extra
and un-Constitutional usurpations and hold those within government accountable for
such crimes.

The People must once again take an offensive stance against all those within and
without the government who continue to seek to overthrow the remaining remnants of
our Constitutional Republic. Our call to sacrifice is no less vital as that of our
Founders, our call to defend this Constitutional Republic is no less essential for
the survival of this nation.

I leave you with these words:

"When in the Course of human events, it becomes necessary for one people to
dissolve the political bands which have connected them with another, and to assume
among the powers of the earth, the separate and equal station to which the Laws of
Nature and of Nature's God entitle them, a decent respect to the opinions of
mankind requires that they should declare the causes which impel them to the

We hold these truths to be self-evident, that all men are created equal, that they
are endowed by their Creator with certain unalienable Rights, that among these are
Life, Liberty and the pursuit of Happiness. --That to secure these rights,
Governments are instituted among Men, deriving their just powers from the consent
of the governed, --That whenever any Form of Government becomes destructive of
these ends, it is the Right of the People to alter or to abolish it, and to
institute new Government, laying its foundation on such principles and organizing
its powers in such form, as to them shall seem most likely to effect their Safety
and Happiness. Prudence, indeed, will dictate that Governments long established
should not be changed for light and transient causes; and accordingly all
experience hath shewn, that mankind are more disposed to suffer, while evils are
sufferable, than to right themselves by abolishing the forms to which they are
accustomed. But when a long train of abuses and usurpations, pursuing invariably
the same Object evinces a design to reduce them under absolute Despotism, it is
their right, it is their duty, to throw off such Government, and to provide new
Guards for their future security."

In Liberty and Eternal Vigilance,