The Gold System: how did it fail?

The thing is, taking a que from greenbacks, paper money never needed to be backed by gold to maintain it's value. What has gone wrong with the value of the dollar since the end of the gold standard of course needs a look, but one topic at a time. The value of a paper dollar, or digital dollar, for that matter, is ultimately backed by taxes, but not in the way you are thinking.

You are thinking quantitatively backed: that taxes were removing dollars from circulation so as to prevent the quantity of paper dollars from overwhelming the government's capacity to redeem them in gold (Again, even that idea is different from the currently prevalent idea that taxes "pay for" spending: if the purpose of the tax is to cut the ratio of dollars in the economy to government gold reserves, it's not a means of "paying for" fiscal spending, but some means of preserving this dollar-to-gold ratio).

I am thinking, qualitatively backed: that taxes create a base demand for the currency, a base demand upon which the normal usage of the currency builds.

So what did backing dollar issuance with the purchase of gold for gold reserves achieve if not supporting the value of the dollar? It "achieved" simply this--and this is my logical reasoning, not backed up by research--driving-up the price of the gold the government was purchasing with the idea that it needed enough of it to be able to redeem paper dollars. With the price of gold going up--not the price of dollars falling--the classic gold era, the nineteen hundreds was always, except during the high inflation period of the Civil War, mildly deflationary--with the price of gold going up, the ability to obtain the bullion the government thought it needed was made more difficult. But my guess is what drives the price of gold up: it's the purchase of gold bullion by the government under a policy of matching dollar issuance with gold bullion purchases as a fixed percent of the amount of dollar issuance. But as I pointed out, dollar issuance doesn't need to be backed by any material reserves, as each coin and bill has an internal value created by the artificial demand for the currency that taxes provide to it. You would probably add, that the (gold certificate version of) dollar has pretty good value by being backed by the ability for it to be redeemed in gold! By that, you would mean, the gold certificate dollar was backed by the ability for it to be redeemed, not by some huge mountain of gold sitting inert--aside from actively driving up gold's market price, or availability, in so far as the government fixes that price to the dollar--in Treasury vaults in West Point, Colorado and Kentucky. But please stick with my narrative--the greenback effect, yes? I mean, just so we can follow my line of discussion to the end of this essay, and then you can go back to your idea--which, I might say, is not so different--this discussion's endpoint can be reached either way.

Yet, mostly, the system worked in the nineteenth century. I guess gold mining provided a steady supply--the California gold rush topped it up, followed by the Alaskan gold rush--when exactly were those? So, with mining providing long term steady supply, and stored-up private gold holdings smoothing short term market fluctuations, despite the hoarding by the government of gold bullion, the system kind of worked. Now, research alert--really as to numbers--dates, details, all is lacking in this post.

When Roosevelt formally went off the gold standard, he did a strange thing: the government started buying up all the loose-gold. I think that artificial scarcity is the source of the huge variations of price and ever steeply upward long term trend that is the present status-quo of gold. Note: gold could never work as a currency with an ever-increasing scarcity, as where would the money supply come from? But look at the huge gold holdings of the Treasury Department from Roosevelt in was it 1934--frozen in 1971--until now. Correct me, maybe it's just a drop in the bucket--but might not that be the artificial scarcity that creates the modern gold market scarcity that never existed in the nineteenth century? If the price of gold was always going up and up in the nineteenth century, the gold standard would have ended then, not in 1934, or with the re-started Bretton Woods system in 1971.

The Lord Who Heals
AUGUST 17, 2023

O Lord my God, I cried out to You, and You healed me.
Psalm 30:2

Recommended Reading: Psalm 41:1-3
God revealed Himself to His people Israel by a series of covenant names, one of which was Jehovah Rophe—“the Lord who heals.” Having redeemed His people from Egypt, God told them if they would walk in His statutes they would be spared from the diseases He brought on the Egyptians—“For I am the Lord who heals you” (Exodus 15:26).

Conversely, if Israel failed to walk in obedience to God, they would suffer the diseases of Egypt and more (Deuteronomy 28:60-61). Part of the covenant expectations that Israel had of God was that He would forgive all their sins and heal all their diseases (Psalm 103:2-3). The coming Messiah would be “bruised for our iniquities” and we would be “healed” by His “stripes” (Isaiah 53:5; 1 Peter 2:24). Healing, or salvation, was considered to be inclusive of both body and soul. So it is no surprise that we find the psalmist David praying for healing in Psalm 30. And it should likewise be no surprise that God answered his prayer (verse 2).

From your head to your toes, if you are in need of wholeness and good health, ask the Lord who heals you.

Any sinner may be healed if he will only come to Christ.
J. C. Ryle

George Selgin, March 15, 2021
Ron Paul and Our Big, Fat Fed
https://www.cato.org/blog/ron-paul-our-big-fat-fed

Selgin writes:
By the time the Great Recession ended, the Fed’s balance sheet was more than four times as large as it was in mid‐2008. And now...it has doubled in size yet again, to just shy of $7.6 trillion.

And Ron Paul is partly responsible for it.

Every dollar the Treasury puts into the TGA reduces the banks’ combined reserve balances by one dollar. It follows that, whatever level of reserve balances the Fed considers necessary to keep its “abundant reserve” or floor system functioning smoothly and otherwise achieve its macroeconomic objectives, preserving that level requires a Fed balance sheet that’s X dollars bigger for every X dollars in the TGA account. So, when the Treasury stuffed $1.8 trillion into that account, the Fed had to compensate by arranging to add $1.8 trillion more to its portfolio than it might have added otherwise.

[Talking about old Eccles, long ago:]
Eccles went on to explain that the direct‐purchase authority was “in effect, merely an overdraft privilege with the Reserve banks—a line of available credit for use if needed,” without which “the Treasury would feel obliged to carry much larger cash balances.”

As The New York Times explained on March 31, 1979, a temporary debt ceiling of $798 billion was scheduled to revert, after midnight, to what had been its “permanent” level of just $400 billion. As part of its effort to avoid breaching the ceiling before Congress could raise the ceiling again, the Treasury took advantage of the Fed’s direct purchase authority to borrow $3 billion from the Fed. To do so, it

"first redeemed $3 billion of securities from the Exchange Stabilization Fund, which is utilized to buy foreign currencies to bolster the dollar. This lowered the national debt by that amount, enabling the Treasury to arrange a loan from the Federal Reserve. Such loans are included under the $798 billion ceiling."

One of the hawks who severely disapproved of this maneuver was Ron Paul...
[The "overdraft" expired for good two years later.]

Not Paul’s Fault
What Paul couldn’t have anticipated was the Fed’s October 2008 decision to begin paying interest on bank reserves. That decision once again made it profitable for the Treasury to favor TGA balances over TT&L balances.
[
My (Mac's) comments:
Selgin gives this, rather mercenary, reason for the Treasury stopping storing its money in private banks and banking once again primarily with the Fed. I had presumed the real reason was as a sort of balance to the Fed's excess reserves post 2008 system, or just as a result of that system that it didn't matter much and so they just did it that way, but either way, the result is as Selgin discusses it. But the withdrawal of the (in the scheme of things, small) "overdraft" direct purchase authority meant the Treasury was keeping extra ready cash--and due to the interest on reserves (the Treasury gets paid interest by the Fed?!?!!), Selgin claims, that extra cash went out of the economy and into to the traditional anti-bank account of the Federal Reserve System, the TGA. Now that the TGA acts as an anti-account, withdrawing, not adding money supply to the economy, it forces the interest rate obsessed Fed to do Open Market Ops, hoovering up Treasury Bonds (Selgin calls Treasury Bonds held by the Fed, "the Fed’s balance sheet.")in exchange for the plentiful reserves it was adding to the banking system.

(Now, the Treasury doesn't use it's Federal Reserve System so-called "account" the way the other account holders do. The other account holders loan their money out on the interbank lending market. The Treasury abstains from this, when "banking" with the Fed--so any money that goes into the Treasury General Account is money the banks no longer have access to until it is spent fiscally. So not just the Fed, but the Treasury, when so-called "banking" with the Fed acts as an "anti-bank.")
]

Additional National Trust Frauds
By Anna Von Reitz


Information provided to H.E. Cardinal Mamberti and the Vatican Chancery Court regarding our Claim March 6 2005, January 19 2023 in seq:

We have already detailed some of the ways in which National Trusts and Individual Public Trusts have been created without authority, and subsequently abused without justification as infant decedent estates, waived estates, or as foreign trusts substituted for our estate interests, both as a country and as individual people.

So much confusion and so much secrecy has been exercised concerning the creation, use, abuse, and assets of these various trusts that a brief discussion of both valid and invalid Public and National Trust Interests is merited.

Americans are owed American Common Law at the State and County levels of our government, and very limited Federal Law published in the Congressional Record concerning people engaged in federally regulated activities, some of which is also codified in the original Unrevised United States Statutes at Large published by the American Federal Subcontractor operating under The Constitution for the united States of America from 1787 to 1860.

We have our own legislative assemblies, our own courts, and our own law forms and are specifically exempted from knowing or practicing foreign law.

We are also owed the guarantees and limitations of the Preamble Trust and Bill of Rights underscoring it, which was added as a protective and injunctive measure to all three of the Federal Constitutions, to clarify the limited nature of the delegations of power provided by the Constitution contracts.

The Preamble Trust makes it clear that the intent of the Donors of the specific Enumerated and Delegated Powers did not expect or allow the Delegated Powers to be exercised against them by their Federal Subcontractors. The Federal Subcontractors, that is, the Municipal Corporations housed in the District of Columbia, by accepting and using the Delegated Powers undertake to exercise them in good faith and cannot, for example, use them to wage war or commit crimes against their employers without being in Gross Breach of Trust and Service Contract.

The Donors of the Delegated Powers were likewise not allowing any fanciful interpretation of these contracts to suppose that they were giving any derivative empowerments impacting non-enumerated powers, rights, and guarantees. They added The Bill of Rights to further clarify the non-enumerated rights, powers, and guarantees they were retaining--- among other such empowerments not delegated and retained under the Tenth Amendment by the people and the States.

This Preamble Trust concerning the Enumerated and Delegated Powers is owed to each of our States of the Union and it presents as both a service contract and a treaty trust, because the Federal Constitutions are the implementation of the Treaties ending The War of Independence.

This is the only form of national trust that Americans have and the only one that our States have ever agreed to. It is also the only such trust that we need as it guarantees our safety, our freedom, and our sovereignty against infringement or claim by our Federal Subcontractors. It strictly limits the Enumerated Powers.

Except in the sense that we are Inheritors and Receivers of all assets held in the United States Trust, that is, the residuals owed to our erstwhile Federal Republic and the members of the original Confederation of States, it is not a National Trust in the same sense that our other Federal Subcontractors have National Trusts and great care must be exercised in identifying which "Nation" and which "National Trust" we are talking about at any given time.

The Preamble Trust is a Testamentary Express Trust.

The United States Trust is an asset trust belonging to a "dead" instrumentality of our government known as the Confederation of States and the American Federal Subcontractor known as the Federal Republic that is supposed to be operating under The Constitution for the united States of America --- both of which are in Stasis, awaiting Reconstruction or other Disposition by our States of the Union.

Dissolving the United States Trust in favor of the member States or conveying the assets of the United States Trust via assignment to reconstructed business entities is part of the work now facing us.

We are the Inheritors and Receivers of the United States Trust because we are the Delegators and Donors of all Delegated Powers and assets
that ever belonged to the Confederation of States or the United States Federal Republic, and upon their "death" or inability to perform, those powers and other assets naturally return to the Delegators by Operation of Law.

In addition to the Preamble Trust and the United States Trust, there are two other "National Trusts" that have nothing whatsoever to do with rank and file Americans, and which refer to the two separate "nations" that make up the citizenry of the British Territorial United States and the Municipal United States.

When Franklin Delano Roosevelt announced that "the United States of America is bankrupt" to the Conference of Governors on May 6, 1933, he was talking about the United States of America, Incorporated, the British Territorial Municipal Corporation housed in the District of Columbia.

We know this for sure, because sovereign and unincorporated entities are not eligible for bankruptcy protection, thus he could not be referring to our Federation of States doing business as The United States of America.

When Franklin Delano Roosevelt received an affirmation of support from the Conference of Governors pledging the citizenry and assets of their "States", they weren't talking about the American States, they were talking about the British Territorial States-of-States franchises acting in support of their parent Municipal Corporation.

They were talking about their "Nation" composed of British Territorial U.S. Citizens in the same way that they talk about their "National Security" and their British Territorial "National Trust" and about the "57 States" that are part of their overall hegemony --- all of which are "Confederate States", meaning "States of States" --- operated as Municipal Corporation franchises.

None of this history of bankruptcies and foreign corporations has anything substantive to do with our States and people, even though it has often been misconstrued and dishonest men have misconstrued it -- liberally, as they have latched onto our assets under color of law and under False Pretenses to pay the debts actually owed by these profligate Municipal Corporations.

We wish for a complete and full public disclosure of the facts, including the fact that our country and our states/States, are not and never have been bankrupt, and are not incorporated entities.

When Franklin Delano Roosevelt issued his First Inaugural Address as President of the United States (Municipal Government) and spoke of "sacrifices" and "consecrations" and "clearinghouse certificates" he was talking about the sale of the Municipal citizenry as slaves, literally, as chattel used to pay debts owed by the Municipal United States Government and its Municipal Corporation.

Their only national trust is in Heaven. They hope things will be better after they die, because their lives on Earth have been deprived and impoverished to slake the greed and lust of depraved, evil, and selfish men, liars and thieves and hypocrites who have always abused the innocent.

Under Ecclesiastical Law, the Municipal citizens of the United States are owed their due from these corporations and their Principals right now, as they should never have been impersonated and victimized unlawfully in the first place. No undisclosed citizenship obligations should have ever been conferred on them by any unlawful Act of the Territorial Congress.

Public slave ownership should have been abolished as well as private slave ownership and that should have been honored under the Thirteenth Amendment, not prevaricated for the purpose of unjust enrichment and collection of odious debts.

The Universal Law of Free Will should have been honored continuously throughout all of this span of history, and wasn't.

We wish for all the Municipal citizens of the United States to be set free and for their assets to be returned to them, so that they can never be considered public chattel or abused for any such purpose again.

In addition to all of this, there are more than 5,000 so-called Historical and millions of so-called Legacy Trusts that have been created or rolled over and misrepresented as "unclaimed" or abandoned assets left to public administration by Municipal Corporation employees---- most of which obviously belong to people who have died and therefore belong to their heirs, or belong to people who are still alive, or belong to private trustees who have been ignored and considered "dead" as a result of all the impersonation crimes and false registrations and false claims in commerce that have been used to enslave and entrap them.

We wish for all the various birth certificates to be returned at the expense of the Perpetrators to the heirs and owners, all assets redeemed and set aside, including all Historic and Legacy Trusts.

We note that although the Perpetrators of these unlawful schemes can always locate people for the purpose of misaddressing false claims in commerce, that is, court charges against them, and against the various foreign corporations being operated in their names, these same Perpetrators claim that they can't find the "missing" Americans who just happen to be at the same in care of address.

The entire circumstance reeks of long-term, consistent, self-interested fraud and personage crimes--- and it's time for all of this criminality to end.

We wish for the British Territorial U.S. Citizens to be set free and absent specific unreported knowledge, for them to be held harmless for the crimes they unknowingly committed. We wish for their property assets to be returned to them and placed under their control and for everyone concerned to know the truth about what went on in this country and elsewhere in the world ---- not some funky narrative created in Hollywood seeking to blame some and glorify others, but the actual truth, so that everyone can see that we have all been the victims in an artificially constructed legal (but unlawful) matrix of lies, false claims, false pretenses, and false suppositions.

We have truly lived in the kingdom of the Father of All Lies, but now we know its lessons and are ready to dispense with it, and with the spirit of falsehood perpetuating these crimes.

The sins of the corporations are due and set upon them, and upon the men responsible for misdirecting them and for using them for unlawful purposes.

Issued by: Anna Maria Riezinger, Fiduciary
The United States of America
In care of: Box 520994
Big Lake, Alaska 99652

June 18th 2023

Rev. Stephen Newton, C.S.C.

Jesus, we look at our world and we weep. We experience the pain of those who suffer and the emptiness of those who have no hope. But then we remember, and we see you again. We see the world redeemed and saved from separation and, seeing anew, share our vision through our prayer and action. May our weeping be turned to joy as we enter into your own divine life and know you are present in all of creation. May we join you in preparing our world for its life with the Father. Amen.