The gold standard was a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. The gold standard was the basis for the international monetary system from the 1870s to the early 1920s, and from the late 1920s to 1932 as well as from 1944 until 1971 when the United States unilaterally terminated convertibility of the US dollar to gold foreign central banks, effectively ending the Bretton Woods system under Richard Nixon. Many states nonetheless hold substantial gold reserves and some states have gold currency called Goldbacks.
However, the silver standard and bimetallism have been more common than the gold standard. Bimetallism is
is a monetary standard in which the value of the monetary unit is defined as equivalent to certain quantities of two metals, typically gold and silver, creating a fixed rate of exchange between them. The shift to an international monetary system
FDR takes United States off gold standard On June 5, 1933, the United States went off the gold standard, a monetary system in which currency is backed by gold, when Congress enacted a joint resolution nullifying the right of creditors to demand payment in gold.
Based on a gold standard came by accident. Great Britain accidentally adopted a de facto gold standard in 1717 when Sir Isaac Newton, then-master of the Royal Mint, set the exchange rate of silver to gold too low. This action caused silver coins to go out of circulation. As Great Britain became the world’s leading financial and commercial power in the 19th century, other states increasingly adopted Britain’s monetary system.
Two-Metal Monetary System
After the U.S. Constitution was ratified in 1788, the U.S. Congress was given the authority to create a currency for the country. The Coinage Act of 1792 established the U.S. Mint and fixed dollar values to 24.75 grains of gold and 371.25 grains of silver. The first currency was created in $10 Eagles, $5 Half Eagles, and $2.50 Eagles made of gold, along with silver currency in values of dollars, half dollars, and quarter dollars. Each coin was made up of it’s assigned weight and value in gold and silver at that time.
The Constitution of the United States of America is not a set of suggestions. So when the Constitution says, in Article I Section 10, “No state shall make anything but gold and silver Coin a Tender in Payment of Debts”, it means exactly that.
Gold certificates first appeared in 1865 and were used mostly by banks in settling inter bank accounts until 1933, when the U.S. government recalled them. Silver certificates were issued from 1878 to 1957 until a worldwide silver shortage in the early 1960s prompted their withdrawal and redemption. So what happened? First the Federal Reserve happened in 1913, then FDR takes United States off gold standard On June 5, 1933, the United States went off the gold standard when Congress enacted a joint resolution nullifying the right of creditors to demand payment in gold.
The gold standard officially ended in 1971 when President Nixon announced that the United States would no longer exchange gold for dollars. The dollar has been declining ever since then. Today, most countries do not use the gold standard, and paper money is no longer backed by gold.
Should we go back to a Gold Standard?
In my opinion I believe we should go back to the gold standard worldwide. Gold and silver is honest money disliked by dishonest people. With the Federal Reserve you have a printing press that can print up unlimited amount of so called money at no cost and charge the governments of the world interest on something they created not of thin air. If we do that it’s called counter fitting! The Federal Reserve isn’t federal and they have no reserves. It’s privately owned by a few families that I won’t get into now, but just know they have been blooding and sucking the resources of this planet dry for their own gain for a while. And to add insult to injury, so called money isn’t really paper, it’s 75% cotton. People we are literally getting paid in cotton. Jokes been on us for years, when will we the people wake up from this nightmare.
Cryptocurrency seems to be the wave of the future with some people right now. I happened to own some cryptocurrency and made money off of cryptocurrency. But I still don’t trust it 100%, It is said to be tied to stock market and fiat currency. So if stock market crash or the dollar or all fiat currency crash then what? Precious metals have never lost it’s value. It’s has stood the test of time for centuries. It’s also a physical asset which you can hold and trade. You can’t touch cryptocurrency, it’s a bunch of number on a computer, digital money. If you power grinds shut down what’s happens then? I’m still trying to understand cryptocurrency so I really don’t know these answers, but I do know gold and silver will hold it’s value no matter what. In Venezuela, when their economy crashed, an ounce of silver got you 3 months of groceries and an ounce of gold could get you a house. It’s just something to think about during these economic hard times.
How do we start? Well it starts with us. Some states have already started coming out with fractional gold notes called Goldbacks . Start saving a potion of your earnings in gold and silver. Trust me when I say grams then into ounces and ounces then into kilos. As the old saying goes,” How to you eat an elephant? One bite at a time”. Same thing with wealth, you acquire wealth over a period of time. You can get rich slow or go broke fast. Money is a poor master but a great slave, make money work for you. Real money is weighed, not counted. In the mean time get your weight up. If we can get enough people to start acquiring precious metals we can start trading among ourselves and cut out the middle man which is the Federal Reserve and our government. Its time that we the people return to the gold standard and start controlling our lives again.