Gold & Silver Money Has Devolved Into Debt and Plastic
140 YEARS AGO: The $20 Gold Double Eagle Coin was globally recognized as money. It contained 0.9675 ounces of gold and its purchasing power was unquestioned.
137 YEARS AGO: The $1 Morgan Silver Dollar was universally appreciated and valued. The silver dollars contained 0.77 ounces of silver, were pretty, used in daily commerce, and minted by the millions in the U.S.
AND THEN CAME PAPER MONEY:
The U.S. government issued Gold Certificates and Silver Certificates that were officially exchangeable for gold and silver. These intrinsically worthless pieces of paper were valuable because they were considered “as good as gold” or silver.
Eventually the gold and silver certificates disappeared and Federal Reserve Notes replaced them. The Federal Reserve Notes looked similar to gold and silver certificates, but sadly, they were nothing more than a piece of paper that represented a loan from (hence the word “note”) or obligation of the United States, issued by the Federal Reserve. These Federal Reserve Notes passed as money because the government decreed they were legal tender, and they were backed by “the full faith and credit” (confidence) of the U.S. government.
Unfortunately the notes are not money, have no intrinsic value, and are not backed by assets. They are loans to the U.S. government backed by the debts of the United States and the future taxing power of the government.
