Gold: The Key To Financial Freedom And Security

1. The state controls education. It is compulsory. It teaches what the state mandates (whether delivered by public or private schools). It is a means of ensuring all citizens grow up with the right mindset – i.e. predisposed towards the very idea of big government, Gold: The Key To Financial Freedom And Security Articles social welfare, taxation, war. In other words the ‘Big Brother’ mindset.

2. The state issues the money. This is called fiat money – money with no inherent value other than the fact the state declares it legal for all debts and financial obligations. The state then enforces a monopoly on the issue of this fiat money – ensuring it can manipulate it to its advantage.

I could wax lyrical about what I think should happen to state education, but right now I want to discuss government fiat money, and how it is a tool of enslavement. And I want to identify one possible way out of this slavery. But first I should define the term “fiat”. From dictionary.com comes the following definition:

1. An arbitrary order or decree

2. Authorisation or sanction: government fiat

So fiat money is money that is declared to be money by the arbitrary order or decree of government.

Government fiat money is the end result of an evolution of money as we know it. And it can be summarised briefly as follows:

Historically, various commodities have functioned as money – that is, as a means of exchange. Some of these commodities have included unique items of special value to certain cultures and conditions, like salt or tobacco. However, historically, only two commodities stand out as having passed the test of time – gold and silver. The reason is quite simple. Both of these metals have intrinsic value and cannot be counterfeited or manufactured at will.

Throughout history both gold and silver have functioned as money. As commerce became more sophisticated, various means of dealing with gold came into being. One such way was to pass on gold receipts as negotiable financial instruments. The process was simple. You stored your gold with a goldsmith who issued you with a receipt for the same. Now you could pass on that receipt to another – and pass on the claim to your gold. In this way gold became the backing for such receipts – allowing for the easy carrying and transferring of value. Of course gold coins were also common – like the cash of today.

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This process of privately issuing gold receipts became the basis for what is known today as banking. A bank became a repository for gold and issued bank notes which were redeemable in gold. And in the “good old days” a bank note was a promise to pay – a promise to pay a certain amount of gold (or silver) on demand.

Today we still have bank notes – but they are mostly issued by the state (not by private banks), and they have no redeemable value other than in exchange for another, similar, bank note. The link between gold and bank notes was broken with the abolition of the gold standard. The USA abolished it in 1933 and Great Britain abolished it in 1931. The paper money we have today is a ghost of its former self. If you walk into a bank now and ask to exchange it for something other than another note, I’m sure you’ll get a very strange look!

The value of the notes you use every day is arbitrarily determined by the state, and by its capacity to disallow any monetary competition. It is this monopoly on the issuance of what we use as money, and the state’s ability to determine the value of it, which is at the heart of the state’s power. With this power, the state can literally manipulate the money supply for its own ends. It can “cook the books” in a way that a private company could never do. It can use this power to ensure it stays in power. And it can even steal the money you have saved by inflating the currency – i.e. by lowering its value over time.