25 Reasons why the Sound Money Bill Must Be Supported
Jason Hommel of goldismoney.com
July 8th, 2004
The state of Nevada considered minting and issuing
silver coins in 2003. They were thinking about minting once ounce
silver coins with a legal tender face value of $20.
But that creates a problem. That would not be
sound silver money, but rather, fraudulent silver money. It is
unjust to print $20 bills on $5-6 worth of silver! See: NEVADA
SILVER COIN BILL: SOUND SENTIMENT BUT BAD JUDGEMENT by Franklin
Sanders.
Today, the state of New Hampshire has a sound money
bill that is going to do it right. It will allow the State to use
gold and silver coins minted by the U.S., in transactions with the
public, at the current market value of the coins.
So, then, here are my 25 Reasons why the Sound Money Bill Must Be Supported!
1. People deserve a choice to be paid, or pay, in gold and silver.
2. Honest weights and measures, such as gold
and silver, deserve the honor of being an option to choose.
3. If the state ends up paying people of the
state in gold and silver, it will put real wealth into the hands of the
people, which will protect the people of the state against currency
devaluation and inflation by the Federal Government. The
wealthier the people of the state, the stronger and more fit will be
the state government.
4. If the state puts a significant amount of
gold and silver into the hands of the people of the state, and if, as a
result, the price of gold and silver move up, then the people of the
state stand to benefit the most. And again, the wealthier the
people, the better off will be the state government.
5. It will not cost the state any money at all
to put gold and silver into the hands of the people, in fact, it may be
able to do so at a small profit in the exchange, just as bullion
dealers make a profit.
6. If gold and silver move up in price in
response to the Sound Money Bill, it will not cost the state anything,
since the state will simply buy gold and silver at the higher price,
and sell it at the higher price.
7. If gold and silver move up in price in
response to the Sound Money Bill, it may help the state’s finances, if
the state were to wisely hold some of it’s own revenues in the form of
gold and silver, during the process.
8. The nations of the world are competing to
devalue or inflate their paper currencies. They purposefully
reduce the value of their fraudulent paper money in order to gain an
export advantage when considering trade with other nations. If
taken to the extreme and most logical conclusion, it is a race to
return to a gold standard, and the nation, or state, that gets there
first, wins. If you devalue the excess paper money that has been
created to excess, you have basically returned to a gold
standard. Thus, those nations and states who use gold as money
first, will ultimately be able to attract and earn the most real
wealth, gold and silver, while others are pursuing the false dreams of
fraudulent paper currencies as wealth.
9. A return to using gold and silver coins as
money will help to eliminate fraud in other areas of the economy, and
thus, help the economy to prosper.
10. A state that conducts trade in honest weights
and measures is honest, and thus, more secure and more trusted by the
people. A state that refuses honest weights and measures in trade
is dishonest, less trusted by the people, and more susceptible to being
overthrown, especially in hard economic times.
11. Gold and silver are the ultimate protection against hard economic times.
12. Gold and silver are the least risky form
of wealth, since they cannot go to zero value. Paper currency can
be devalued to zero. Bonds can be defaulted on, or be inflated
away to zero. And stocks can go to zero if companies go bankrupt.
13. The U.S. Dollar, (a Federal Reserve Note)
is overvalued by about 90 times more than it should be. One of
the best measures of the money supply, M3, says that there is $9.1
Trillion dollars in U.S. banks as of April, 2004. Yet the U.S.
government only has 261 million ounces of gold. Thus, there is
9,100,000 dollars for every 261 oz. of gold backing, and thus, $34,865
dollars for every one ounce of gold. Holding a federal paper
dollar is a danger to the people of the state.
The source for these numbers can be confirmed at the following links:
$9.1 trillion M3: www.federalreserve.gov/releases/h6/Current/
261 million oz. of U.S. gold: www.fms.treas.gov/gold/index.html
Both of those links are at Federal Government web sites!
Bonds are a competing asset class for gold, and are
often thought of as a key form of money. The U.S. bond market is
estimated in size to be $20 trillion. If you consider bonds as a
form of paper money, then there are over $110,000 dollars for every
ounce of gold held by the U.S. government.
14. Gold and silver, therefore, protect against
deflation caused by banks going bankrupt. Only gold and silver
are real money. Paper money is fraud, a false measure, and a
false weight.
15. Gold and silver also protect against inflation.
16. Gold and silver, as they go up in value
due to inflation, provide a serious rate of return. From 1971 to
1980, gold moved up from $35/oz. to $850/oz. That was an increase of
about 24 times, 2400%, which averages out to an annual increase of 34%
over ten years.
17. There is always enough gold and silver to
use as money. If gold and silver become scarce, and more in
demand, their value goes up. Thus, it increases the value
of all the gold and silver already in existence. This will
benefit the most those people who are already using gold and silver as
money, or those who return to using gold and silver as money
first. This nature of gold and silver, to become more valuable,
is the exact opposite of paper money, which can all become utterly
worthless at any time.
18. It is the job of the state to be a
leader. If the state returns to using gold and silver as money,
it will encourage businesses in the state to return to using gold and
silver as money.
19. A state that uses gold and silver as money
is more likely to attract people who own gold and silver. People
who own gold and silver will be more likely to move to the state and
start up businesses that will conduct trade in gold and silver. A
state with more wealthy people is a stronger and more secure state.
20. The U.S. of America was founded on using
gold and silver as money, and became a great nation by using gold and
silver as money.
21. Issuing gold and silver to the people as
money is vastly different to issuing paper money that is created when
someone borrows a dollar into existence from the Federal Reserve.
Debt based money, such as the dollar, puts people into debt and
bondage. Gold and silver are not created by debt. Gold and
silver can help eliminate the debt burden of society, and help create a
free society.
22. Today, there is no political issue more
important than gold and silver as money. Consider carefully the
following quotes, and who said them:
“Money is the most important subject intellectual
persons can investigate and reflect upon. It is so important that our
present civilization may collapse unless it is widely understood and
its defects remedied very soon.”
--Robert H. Hemphill, former credit manager, Federal Reserve Bank of Atlanta
“All the perplexities, confusion and distresses in
America arise not from defects in the constitution or confederation,
nor from want of honor or virtue, as much from downright ignorance of
the nature of coin, credit, and circulation.”
--John Adams, letter to Thomas Jefferson
“Lenin is certainly right. There is no subtler or
more severe means of overturning the existing basis of society (destroy
capitalism) than to debauch the currency. The process engages all the
hidden forces of economic law on the side of destruction, and it does
it in a manner which not one man in a million is able to diagnose.”
--John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
23. It is the job of the state to administer
justice, and to protect the people from theft and from fraud.
Using gold and silver as money accomplishes that. Paper money is
an injustice, a fraud, and inflation is a process that the Federal
Government uses to steal from the people of the states.
24. The Sound Money Bill, although it will not
require the state to use gold and silver as money in all transactions,
will allow the people to choose to be paid in gold or silver, and is
thus a good start.
25. The politicians who support the sound
money bill are most likely to be re-elected. They stand behind an
issue that is honest, and cannot have any reasonable political
objections.
For more information on the Sound Money Bill, see
www.goldmoneybill.org
Other essays by Jason Hommel:
25 Reasons To Support The Sound Money Bill - 08 July 2004
I'm Insanely Bullish On Silver - 19 June 2004
Silver Stock Evaluations - 22 May 2004
The Silver Bull Is Back - 04 May 2004
Late April Silver Update - 22 April 2004
Silver Juniors With Cash Flow - 04 March 2004
Major Frauds of the U.S. Monetary System - 26 February 2004
Market Perspective & Cabo Mining - 12 February 2004
Usury Enslaves - 19 January 2004
Sterling Mining - 29 December 2003
The U.S. Trade Advantage With China - 17 December 2003
Rising Gold Prices Will Help The Economy - 02 December 2003
Miners to Use Silver as Cash - 27 November 2003
Private Placements in Silver Companies - 20 November 2003
Is the Silver Market Too Small to Buy? - 13 November 2003
Inflation & Deflation During Hyperinflation - 06 November 2003
Silver Price Expectations of Silver Stock Investors - 30 October 2003
Buying & Tracking Canadian Silver Stocks - 29 October 2003
Canadian Zinc--Silver Potential - 23 October 2003
Silver Stocks--Comparative Valuations - 4 - 13 October 2003
Silver Stocks--Comparative Valuations - 3 - 06 October 2003
Silver Stocks--Comparative Valuations - 2 - 29 September 2003
Silver Stocks--Comparative Valuations - 1 - 22 September 2003
Silver and Cardero Resource - 08 February 2003
The Moral Failures of the Paper Longs - 22 January 2003
CFTC Response to Silver Problem - 14 January 2003
People Talking About $32,567/oz - 10 January 2003
Letter To Authorities of Silver Markets - 06 January 2003
Why no talk of $32,567/oz ? - 02 January 2003
Refuting Myths about Gold - 28 October 2002
Controlling Gold with Paper - 10 June 2002
Impending Gold Futures Default - 29 May 2002
Certain gold stocks are still cheap - 07 May 2002
A Few Supply and Demand Fundamentals of the Dollar and Gold - 06 May 2002
New DROOY Institutional Holdings - 21 February 2002
Hommels View of Gold - 23 March 2001
Gold Price Under Differing Scenarios - 24 June 2000
Goldismoney.com
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