Something of Value

Barbara Hagenbaugh, USA TODAY, wrote an article, “Feds Lower Boom on Alternative Money” (linked via title bar), which I got from the AOL Money and Finance website. Most folks are unaware that the money issued by the United States Mint has no real value, it having nothing to back up the printed denominations or coinage. There are no huge piles of gold or silver sitting in the national coffers equal in value to the amount of money being printed around the clock by special presses on special paper. The Gold Standard and Silver Certificates became a part of history years ago. Most of us are familiar with the saying, “It’s not worth the paper it’s printed on”; well, some folks are trying to remedy that situation.

At the heart of the issue is the government's claim that money is only what the government says it is, as opposed to the idea that bartering objects of value, whether those items are precious metals or chickens may be determined by those involved in such a trade of items. I was counseled to invest a portion of my assets in precious metals as a means of protecting a segment of my income. I began purchasing 1 ounce gold coins; their price determined by the going rate at the time of purchase. The point being that regardless of the set price, the actual value would be equal to 1 ounce of gold, something which has remained a constant since man began to exchange money.

A group of individuals got together and decided that they would create a hedge against our current valueless monetary system, one that would guarantee true economic value regardless of inflation because each unit of measure would be matched by precious metals such as gold or silver. I’ve included a link which explains much better than I could, how and why money should have actual value rather than the fiat system now in place.

http://www.libertydollar.org/

Quoting from Barbara Hagenbaugh’s piece:

“The Justice Department has determined that use of Liberty Dollars, which come in varying denominations, "is a crime," according to the Mint, which issued a rare public warning Thursday.”

"The United States Mint is the only entity that can produce coins," Bailey says.
{. . .}

"Reed Runk, part-owner of Kendall Funk & Bismark Jewelers in Chambersburg, Pa., says the store has been accepting Liberty Dollars for about a year and has sold a few as well. Runk says the store will continue to accept and sell the coins."

"We just feel that they are something that educates people as to what the monetary systems are like in the world, that they are a fiat system, that if people lose faith in them, they will collapse," he says. Besides, "They are a good-looking coin."

My own opinion is that the Fed is jealous of something much better than their own currency, something that has value. Don’t get me wrong, if I saw a dollar bill on the ground I’d still pick it up and spend it just as if I’d earned that through my labors.

When I began buying gold coins I had to decide which coins to purchase, Kruggerands, Philharmonics, Maple Leafs and so on; each having its price determined by the gold content and quality of artwork on the actual coin. I happened to chose American Eagles because they hold up to wear better than those coins made out of a more pure version of gold. Here’s a link to a website where the fluctuation in the price of precious metals is updated every few minutes.

http://www.ajpm.com/htbin/gold.cgi

I never liked the fiat system of money; Lucy and I owned a Fiat, one of the worst cars I ever had the privilege to drive, always in the shop for some kind of repair, the parts were never on hand and you get the idea. The Saturday Night Live crew had a character, Rosana Rosana, who would go on for a few minutes and then realize the difference between a fiat and a Fiat, turn to the camera, smile awkwardly and then say, “Never mind.”

I could go a step further and point out to Mr. Bailey, the only “crime”, as that was the term he used when pointing his finger at the Liberty Dollar, is our government’s taking our labor efforts and trading those efforts for a piece of paper that very soon won’t be fit to use as wall paper in the bathroom.

Maybe we could do something a little different; change the base monetary unit from gold or silver to something everyone can understand, a gallon of 89 octane gasoline. Instead of “In God We Trust” being printed on the front there could be, “Put a Tiger in Your Wallet”. A single dollar bill would be worth half a gallon and so on. Instead of putting pictures of “dead presidents” we could have famous oil entrepreneurs; maybe have Getty on the Hundred Gallon Bill, I mean, the Hundred Dollar Bill.

I’ve linked with TMH Bacon Bits as they have an open link invitation most every Friday, a neat way to view other blogger’s articles.

http://www.tmhbaconbits.net/2006/09/15/bbop-128/