Tuesday, June 28, 2005

The Real American Dollar

From Plan for Establishing Uniformity in the Coinage, Weights, and Measures of the United States COMMUNICATED TO THE HOUSE OF REPRESENTATIVES, JULY 13, 1790

"Let the money unit, or dollar, contain eleventh-twelfths of an ounce of pure silver. This will be 376 troy grains, (or more exactly, 375.989343 troy grains,) ....This, with the twelfth of alloy already established, will make the dollar or unit, of the weight of an ounce, or of a cubic inch of rain water, exactly."

The dollar was clearly a fixed amount of silver. Since this is no longer the case, saving and planning for the average American is difficult (and for some, undesirable). With each new Federal Reserve Note that is issued,the value of each existing note is decreased. In this manner the power holders take wealth from those that earned it and funnel it somewhere where it can serve their purpose.

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