Bring Back the Gold Standard. Why Floating Dollar is Biggest Threat to Property Rights
With the world awash in trillions of dollars of new currency printed out of thin air by central banks across globe, and gold hitting $1443 per ounce, comes this MUST READ piece from Hillsdale College’s Imprimis (excerpts): The Floating Dollar as a Threat to Property Rights
Now, the record is clear in respect of how America’s founders viewed money. Many of them went into the Second United States Congress, where they established the value of the dollar at 371 ¼ grains of pure silver. The law through which they did that, the Coinage Act of 1792, noted that the amount of silver they were regulating for the dollar was the same as in a coin then in widespread use, known as the Spanish milled dollar. The law said a dollar could also be the free-market equivalent in gold. The Founders did not expect the value of the dollar to be changed any more than the persons who locked away that kilogram of platinum and iridium expected the cylinder to start losing mass. In fact, in this same 1792 law, they established the death penalty for debasing the dollar.
Today, members of the Federal Reserve Board don’t worry about how many grains of silver or gold are behind the dollar. They couldn’t care less. And this is what I believe is the most worrisome threat to property rights today. When the value of a dollar plunges at a dizzying rate—at one point in recent months it collapsed to less than 1/1,400 of an ounce of gold—Fed Chairman Ben Bernanke goes up to Capitol Hill and declares merely that he is “puzzled.” No “new urgency” to redefine the dollar for him. The fact is that we’ve long since ceased to define the dollar, and it can float not only against other currencies but even against 371 ¼ grains of pure silver.
It is no coincidence that since Richard Nixon ended the gold standard in 1971, thus unmooring government spending from any constraints, that our debt has skyrocketed. You don’t have to believe me, just take a gander at the chart below… its says it all! Every new dollar that the Fed creates, through their money printing QE initiatives, effectively steals value from the dollars you are holding in your bank account. It’s stealth taxation… it’s stealth confiscation of property, and it needs to end now!