“The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit.” — Alan Greenspan
Ah, the coin of the Realm … t’was a time when our specie was fashioned of precious metals — silver, gold even — back before America’s elected larcenists decided to mint money from materials with the same intrinsic worth as a Tijuana bus token. Debasing the currency, of course, is an ancient racket, engaged in by official chiselers from Nero to Nixon. The only thing that ever changes is the names of the thieves. To wit:
111th Congress 2009- 2010
To provide research and development authority for alternative coinage materials to the Secretary of the Treasury, increase congressional oversight over coin production, and ensure the continuity of certain numismatic items. Status: Signed by the President
Even such a staunch Keynesian as Keynes himself said, “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency.” Adulterating our mintage, however, is small potatoes compared to the abuse perpetrated upon the once sound dollar by the charlatans entrusted with its stewardship. The venerable greenback has lost 96% of its value since the creation of the so-called Federal Reserve system (a consortium of banks which are not federal and have no reserves). A wise saver would have been better served over the years by hoarding tuna fish. The modern dollar, stripped of its convertibility, is nothing more than a political promissory note, one which we are ordered by law to accept, despite the fact that the promises of politicians are never worth even the cheap paper on which they’re printed.
Our “legal tender” has been a convenient illusion since 1971, a bit of showy legerdemain, like the mangy rabbit a carnival magician pulls from a previously empty hat. The primary difference is that when times get tough, you can always eat the rabbit.