How to buy an ounce of gold for a quarter.

I guess this is cool, to all the people who fear that nationalizing our banks will lead to the doom of America. Sure, repeal all the regulations and let the private Federal Reserve do whatever it wants. It’s not like they are devaluating the coinage in some elaborate scheme meant to loot the citizenry.

Or is it?

http://www.inteldaily.com/?c=1…

“Gold was at $400 at the time, and the cost of production was $187 to the mining companies. By keeping the price reasonable, Red explained that it also kept the mining companies operating. Hearing the mumblings of disbelief in the audience, Red said, “Oh, you didn’t know that the Fed bought gold for 10 cents an ounce? Well, let me tell you how they do it.”

He then reminded them of something that everyone in that audience already knew: that the Fed printed paper bills-from $1 to $100 denominations. The price of ink and paper was the same-at a cost of 2.5 cents each. So four $100 bills were created at a cost to the Fed of 10 cents, and these could then be traded for one ounce of gold.”

I often try to remind people that the rich have various ways of ripping us off. One way is to transfer gold around at rock bottom prices. Of course when that gold is then transfered again, someone makes a hell of a return.

Last I checked, gold was around 925 USD. Each $100 costs the Fed about 2.5 cents to make. So we are looking about a quarter in printing costs. This has lead to a debasing of the coinage of the most absurd kind.

This gets into the realm of Lawful Money vs. Fiat Money.

Technically, every bill in your wallet is unlawful. At the bottom is “Legal Tender for All Debts, Public and Private”, our money is just bankers’ script. It is based on nothing but the whims of the ruling elite and their patsy the Federal Reserve, which isn’t federal and has no reserves. In fact, recently it has negative reserves. Which is why they will just print more money and buy more gold for a quarter. Of course, this will cause a further devaluation of our coinage and the cycle continues.

Now here is the kicker. The ruling elite has almost a monopoly on lawful money, any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes and Treasury bonds.

Now as they increase inflation, either through this ingenious gold buying technique to generate more bankers’ script or through a wholescale looting of the collective treasury of America, unlawful money’s value inflates as well.

Only the unlawful money based on fiat is affected by inflation. So as the people’s buying power goes down, the ruling elite’s buying power goes up.

It’s quite a system.

3 comments

    • pfiore8 on March 24, 2008 at 10:04 pm

    but i can’t think about it toooooo deeply. because. i. will. go. ballistic.

    and it seems to indicate there is no “government” but just a groupa guys and gals rolling until somebody decides to push the fuck back at them. but. really. i’m not gonna think about ths.

    so, instead, i’ve mailed srkpy about meeting this Thursday. now have to find Jay, and any others who might want to meet.

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