Gold, Money, and the Parable of the Three Little Pigs
Recently by Charles Goyette: Mad Cows, Meat Inspection, and Regulation
The end of America’s current monetary system is certain, and it is approaching fast. The only question is what will replace it?
The restoration of the American dream demands sound money, so to avoid being victimized by yet another monetary flim-flam when the dollar reserve standard collapses, it is very important that the people understand our monetary history.
In my new book, Red and Blue and Broke All Over: Restoring America’s Free Economy, I told the story of our monetary system in a way that even those who would otherwise never think about the nature of money can remember, and can use it to tell others. Our monetary history – and perhaps its future – can be told in the tale of the three little pigs. Except that this version of the story is in reverse and it comes with a warning…
Once upon a time – and for a very long time – Americans lived in a solid gold monetary system. They owned gold and used it for money. The dollar was literally as good as gold. It was a monetary system so solid that it was like a house of bricks. And then, in 1933, the state decided it wanted all that gold for itself, and it demanded all the gold bricks from the monetary house. It even threatened the people with 10 years in jail if they didn’t turn over all the gold, brick by brick.
So the people were forced from their brick house and moved into something called the gold exchange system. This was a monetary system that pretended to be built of gold. It represented that the dollar was still exchangeable for gold. But it really wasn’t, at least for the people who lived in it. In fact, most gold ownership remained a crime. It was a monetary system so flimsy that you could say it was built like a house of sticks. Of course, it couldn’t hold up long. It collapsed in 1971.
When the house of sticks collapsed, the people were told that they must now move into a monetary house made of straw – the dollar reserve standard. This, they were told by the state, was even better than a house of bricks or sticks. But, of course, it wasn’t. And now the winds of economic reckoning have begun to blow. And as the straws of today’s dollar reserve system begin to be scattered to the four winds, the people must look for a new monetary home.
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- Ron Paul fans will love Charles Goyette’s Red and Blue and Broke All Over (dailypaul.com)
- The international monetary system needs the euro (eurointelligence.com)