There was one particular book studied intensively by the eminent representatives of the thirteen original States, formerly British colonies, who, in 1776, formed the First Continental Congress, in order to establish an economic foundation for the establishment of a new nation, the United States of America. That book was Adam Smith’s The Wealth of Nations, which emphasized two very basic economic principles:
- That a free sovereign trading market unfettered by government regulation should be maintained by a nation, and
- The money of a viable national economy should be comprised of gold and silver and underscored by a gold/silver standard, especially when paper money is used as a circulated medium of exchange as legal tender.
As such, the Continental Congress of 1787 again used Adam Smith’s great book to lay the financial rules for the American republic in the U.S. Constitution and placed Congress, or the Legislative branch, in Article 1, Section 8, exclusively in charge of coining money and determining its value. This was a nontransferable duty placed only upon Congress.
In the beginning of the republic’s finances, the money coined by Congress included five, ten, twenty, and fifty, etc., dollar units (gold and silver coins, and silver certificates), pennies, nickels, dimes, quarters, and half-dollars. In 1820, a single penny could buy a large candle, a large piece of candy, or a large biscuit.
Because of President Andrew Jackson’s eradication of central banking in 1831, the Hamiltonian Second Bank of the United States and the demise of the National Banking Act, American money—paper and coin—underscored by the gold standard, was fully stabilized and experienced no political inflation from 1840 until 1960.
A penny in the year 1890 was actually worth much more than it was in 1820 and could buy goods like newspapers, a hot cup of coffee in a cafe, a small chocolate bar, a loaf of bread, or a single postage stamp or a postcard. In 1912, the value of a penny had not changed from its value in 1890 and could buy more of the same things.
Now in 1915, with the creation of the Federal Reserve cartel in 1913, the value of the penny was reduced around 30 percent due to an inexorable political inflation that had not existed before the conspiratorial legislation of the unconstitutional 1913 Federal Reserve Act.
Yet, even with the Great Depression’s scarcity of money ravaging the economy in 1929, with the gold standard still working effectively, a penny still had the value of buying a cup of coffee and bread, or a large piece of hard candy or bubble gum. Even from 1932 through 1939 during the Depression years, a couple of pennies could buy a pound of boiled potatoes and a cup of hot coffee. Amazing, huh? And it was all because of the gold standard!
Extrapolating, therefore, the foregoing economic facts and figures to the other denominations of American money and their continuing value, and to the cost of all other consumer products and items sold wholesale and retail, the reasonable person can see that the gold standard was in and of itself responsible for the maintenance of very low, if not zero, political inflation from 1840 until 1960.
In 1950, a penny could buy a meal of potatoes and bread, and for five pennies—a nickel—one could purchase a very large candy bar, much larger than those priced at two dollars in 2025, or a 12-ounce bottle of soda pop. In 1955, silver certificates, coined by Congress, were still in circulation and by law could be traded by consumers in local American banks for their value in silver coins—dimes, quarters, half-dollars, and silver dollars. Formerly, gold certificates of varying amounts could be traded for their value in gold coins.
So, what has egregiously happened between 1913 and the present day to have caused the sore cancerous mutation of the republic’s economy and finances into what they are now in the 21st Century?
It all began with the unconstitutional conspiratorial creation of the Federal Reserve cartel, which later precipitated the effects of the Great Depression for the sinister purpose of FDR’s socialist plan of redistributing the wealth of the republic through the nonsensical doctrines of a socialist British economist, John Maynard Keynes.
Keynes was FDR’s very good buddy and had secretly planned for Roosevelt the severe unemployment that had been caused by the scarcity of American money, not its basic value. This Keynesian effect led to FDR’s unconstitutional NRA, which was actually declared unconstitutional by the SCOTUS three times.
Many eminent historians have concurred since 1941 that FDR conspiratorially engineered the surprise Japanese attack at Pearl Harbor to facilitate U.S. entry into WWII.
The wartime economy that prevailed under the Federal Reserve for five years resulted in a continuation of FDR’s socialist Keynesian schemes with the secret 1944 Bretton Woods conference in New Hampshire, which sorely altered sovereign American trade for inane international benefit and created an unconstitutional International Monetary Exchange (IMF). It also illegally and unconstitutionally converted the sovereign American dollar into a world reserve currency. All of this was done in scurrilous secrecy without the electorate knowing what was going on behind closed doors.
What happened after 1955 in an almost total federal vacuum was the inexorable continuation of the socialist Federal Reserve conspiracy commenced in 1913 and propelled by FDR and his minion Harry Truman. Congress all during this time-frame had relinquished its Constitutional duty and control over federal finance to the Federal Reserve.
Then, after 1960, the Federal Reserve ORDERED a de-circulation of silver certificates and began coining its own money—Federal Reserve notes—and removing silver coinage from circulation. Subsequently, a short time later, the gold standard was dissolved unilaterally by Richard Nixon, who declared himself a devoted Keynesian.
Hence, a tragic cancerous infection has mutated federal finance into a condition of egregious political inflation, and valueless FED money is sure proof that the Federal Reserve is the vile root cause of that awful condition.
