You may not remember that forty years ago the United States left the gold standard in favor of a fiat currency whose value is based on simply the faith in and credit of the U.S. government. This defiant move that shook the world monetary and financial systems resulted from a little known secret that you are probably unaware of, as are most other people. In the paragraphs that follow, you will come to understand not only the dark secret that…[Continue Reading]
Undoubtedly you have experienced your share of curiosity and frustration over the last few years as you witnessed the world financial system nearly collapse and the economy melt down. What you may not have understood is how these events actually took place. The book “Extreme Money: Masters of the Universe and the Cult of Risk,” by Satyajit Das, attempts to explain what transpired and who is responsible for the destruction of your 401k, your retirement dreams, and possibly your job….[Continue Reading]
If you have ever looked into buying gold coins as investments before, then you are probably aware of the fact that there are two main divisions in gold coins. These are bullion gold coins, valued only for their precious metal content, and collectible gold coins, valued for gold content and presumably for rarity or historical factors. Many coin dealers will encourage you to buy the collectible gold coins because the government actually seized all gold bullion coins during the Great…[Continue Reading]
Anyone who is a student of liberty and fan of freedom will be interested in a theory called the Tytler Cycle. The Tytler Cycle describes the ways that a society departs from enslavement and finally arrives at the point of freedom and prosperity. The cycle works in a continuous circle, eventually leading back to enslavement. In the subsequent paragraphs, you will see why some Americans are suggesting that the US has neared the end of the prosperity and freedom part…[Continue Reading]
Numerous bubbles have risen and burst in just the last ten to twenty years. You may think that bubbles are a product of the recent post World War economy, but in fact they actually go back at least more than four hundred years to early modern Europe. The Dutch Tulip Bubble is an interesting case study of how bubbles can start from seemingly ridiculous things and go on to cause major economic catastrophes. Origins of the Dutch Tulip Bubble It…[Continue Reading]
If you are a student of history, then you know how far that money has come from its origins to the present. Money has continuously evolved from the earliest forms of barter to fiat money used around the world today. In the process it has gone through the stages of commodity money, coinage money, trade bills, backed bank bills, and finally to fiat paper money. Each of these had their day in the sun, along with upsides and downsides. How…[Continue Reading]
Thomas Jefferson was born into a prominent and wealthy Virginia family on April 13, 1743. He was a Renaissance man who spent his entire life championing the independence of a country and its people. Jefferson strongly opposed the “artificial aristocracy founded on wealth and birth, without either virtue or talents” and, instead, fought for state’s rights, limited federal government, and the people’s right to govern themselves. His strong views on the banking system can be summarized by the quote: “I…[Continue Reading]
The Origins of Fractional Banking The fundamental idea governing the fractional banking system dates back to medieval England. Between 1000 and 1100 A.D., money lenders, who were at that time referred to as goldsmiths, secured the people‚Äôs gold and silver in their vaults. With each deposit of gold or silver, the depositors were given a paper receipt designating the amount that they had entrusted to the goldsmiths. These receipts began to acquire a value of their own and function as…[Continue Reading]
