Comment: Despite all the efforts of

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Despite all the efforts of

Despite all the efforts of governments to substitute irredeemable paper, they have failed to demonetize gold even though it is not used as legal tender, it still is recognized as money. That is a strange fact considering the immense pressure that has been placed on society by governments to erase the monetary value from gold. In the most widest analysis, and indeed in the last analysis, neither men nor governments for that matter, will actually trust anything other than gold as a hedge against economic collapse.

Unlike Fiat Money, notes issued by government, gold needs no endorsements or coercion to be used as money and valued in exchange. Fiat money of any kind always must be forced upon the population, introduced by stealth into circulation by governments who desire to manipulate the power of monetary economics and eventually siphon off the wealth of the productive population. Unlike Fiat Dollars, gold money does not even have to have a government stamp upon it, it does not require legal tender laws or to lay taxation to enforce its use. Gold money does not require the full faith and credit of a government to make it money or to influence the use of it in an economy, there is therefore no compulsion required when gold money is in circulation, it is a desired commodity, whether it is in the form of money or any other form.

Unlike gold money, fiat money is accepted as money as long as there is faith in the government of issue and in the stability of the purchase value of the fiat money itself, the problem, of course, is that eventually the depreciation becomes evident through price inflation, people see their hard labors wasted on a form of money that no longer holds the same value as it did just a few years prior. Additionally, fiat money must rest upon the expectation that the promises made by the government of issue will be kept, once that expectation dwindles through the various foibles of a government that abuses the power of fiat monetary creation, such as the massive deficit spending that usually accompanies all fiat currency regimes, then the currency suffers and people search out other forms of value, particularly gold. History has proven this fact time and time again since at least 20 B.C., fiat monetary economies always end the same way, collapse.

It is indeed a very strange psychological occurrence among peoples and governments who are subjected to long established fiat regimes, it tends to make them unwilling to view their irredeemable fiat paper money as anything other than what that fiat paper money really is, nothing more than dishonored promissory notes that can never actually be redeemed because the promises of the issuing government always become far too extended for such a redemption. It is strange that people seem to think that government authority and laws can create something out of nothing and call it money, it is this undeserved faith, this belief system that allows fiat money to sustain a degree of value as money, but that too ends when the inflated supply of the fiat regime depreciates the purchase value of the currency and such faith is destroyed.

The degree and depth of faith necessary in government issued fiat money is comparable to the faith necessary in religion, for what else could account for the fact that when people see a piece of paper with the numerals $100 printed on it, that they view it as more valuable as the same piece of paper that simply has $1 printed on it. The ruse is complete, the deception is extensive and the faith that has been built around the fiat monetary system must be of the utmost dedication. The Fiat God commands total faith and allegiance! Talk about idolatry, gold makes no such commands of faith, it is its own promise of payment, it requires no government seal of approval or legal tender laws to enforce or coerce its usage as money.

Unlike fiat money, the issuance of gold is simply a utility for government, a Constitutional responsibility. The government is taken out of the equation of both the supply and the manipulation of the value. All the government need do is mint the coinage and release it into circulation and get out of the way, the market will do the rest.

Read Madison's Notes on the Debates.

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun