The essential shift happened in 1913. With the Federal Reserve Act, the door was open for private money. Ever since that time, the Fed has owned the power over the monetary system we live in today. Although according to the Constitution of the United States, only gold and silver were supposed to be lawful money, a cartel of private bankers dominated by the Rothschilds and Rockefellers had created a privately controlled central bank with the right to print money – initially guaranteed by the U.S. Government. After World War I, the Federal Reserve Bank bought all gold reserves from other nations, which resulted in deflation and the first global economic crises because many countries could not maintain their gold standard.
By the end of World War II, Bretton Woods reintroduced the “Gold-Dollar-Standard” in 1944. During the war, the USA made other nations pay for the arms they bought with gold. By doing so, the USA accumulated more than 30,000 tons of gold, which represented more than the rest of the world possessed put together! This gold served as backup for the dollar. Most of the dollars were a reserve asset of other central banks, and that is how and where the dollar dominance throughout the world started. And all commodities had to be paid in dollars.
In 1971 President Nixon cancelled the gold standard. Ever since, the dollar has been backed by nothing, issued and controlled by a private bank. And now no legal tender around the world has any link to any gold reserve at all!
By the statutes of the International Monetary Fund it is even forbidden for any member country with a central bank to back up their currency with gold. That is why Switzerland had to sell off their gold reserves from 40% down to 20%.
This system requires a lot of trust in printed paper notes and a limitation of the total volume in circulation in order to sustain trust in it. The problem is that during the past 30 years the volume of goods only quadrupled, but the money supply multiplied 10 times as much as the volume of goods.
Most dictatorships of the underdeveloped countries and the private Federal Reserve System prefer a free quantity currency, which is a currency in which the abuse by the policy owner or by the private central bank is not limited by law. Quantity currency has always allowed for the ability to abuse the currency, which has never worked long term.
“A private central bank that prints the money is more dangerous to the freedom of the people than a standing army” (Thomas Jefferson, 3rd president of the USA 1801-1809).
The private “monopoly” Federal Reserve Dollar dominates the world’s money supply already. More than 75% of the global monetary base is in dollars.
Corporate America has even forced the commodities markets to only trade their products in dollars. Anyone who attempts to trade their oil in Euros, for example, is called a terrorist (Saddam Hussein).
The currencies of the “satellite countries” are backed by the dollar, and its value is getting more and more devaluated. All are on board the same fiat-currency Titanic, including the creator of this fiat-currency-backed monetary base and the followers within the central banks of countries around the world. With this set-up, the United States can determine for themselves which country they will rob and betray “legally” with their privately controlled legal tender.
However there is hope. The first states, such as Utah, are introducing silver and gold coins as parallel “legal tender/currency”. See House Bill 317.
I’m impssreed. You’ve really raised the bar with that.