The State of Gold
The State of the State
Douglas V. Gnazzo
Dec 8, 2005
"Gold would have
value if for no other reason than that
it enables a citizen to fashion his financial escape from the
state." [1]
Abstract
There are basically two types
of government: 1) government that is the expression of the rights
and freedoms of the individual, not the State; 2) government
that is the expression of the rights of the State - over and
above whatever rights it chooses to allow its individual subjects
to have.
Government is that which governs
- the people, within the boundaries of the State. When the people
choose to create the government, the people are free.
When the elite rulers choose
to place themselves and their families as the government, the
people are not free - they are subjects, subject to the whims
of the rulers - of State.
The colonists of America fought
the Revolutionary War against the King of England, and the State
thereof, to win their freedom and liberty from the tyranny of
the King of State.
The Declaration
of Independence and the UNITED
STATES CONSTITUTION are written forms of expression
of the rights of the individual over and above the rights of
the State.
The people created the government
in order to secure their individual rights as being sovereign
to the State. The individual comes first, the State second.
"We hold
these truths to be self-evident, that all men are created equal,
that they are endowed by their Creator with certain unalienable
Rights, that among these are Life, Liberty and the pursuit of
Happiness. --That to secure these rights, Governments are instituted
among Men, deriving their just powers from the consent of the
governed...." [2]
The Constitution is a trust
between the people and the government created thereby. Within
the document a contract was also made, between the people and
the government.
The Constitution is both a
trust, and a contract. Hence the difference of words: The Constitution
of the United States, and The Constitution For the United States
of America.
"We
the People
of the United States, in Order to form a more perfect Union,
establish Justice, insure domestic Tranquility, provide for the
common defense, promote the general Welfare, and secure the Blessings
of Liberty to ourselves and our Posterity, do ordain and establish
this Constitution for the United States of America." [3]
Silver And Gold
The Constitution delegated
certain powers to Congress. One of these powers is the power
to coin money - not to print it, but to coin it.
"To coin
Money, regulate the Value thereof, and of foreign Coin, and fix
the Standard of Weights and Measures..." [4]
Furthermore, it declared that:
"No State
shall enter into any Treaty, Alliance, or Confederation; grant
Letters of Marque and Reprisal; coin Money; emit Bills of Credit;
make any Thing but gold and silver Coin a Tender in Payment of
Debts..."
THE COINAGE
ACT OF 1792 expounded on both the ability to coin money,
as well as the disability to make any Thing but gold and silver
Coin a Tender in Payment of Debts, by clearly defining what a
dollar is:
"DOLLARS
OR UNITS -each to be of the value of a Spanish milled dollar
as the same is now current, and to contain three hundred and
seventy-one grains and four sixteenth parts of a grain of pure,
or four hundred and sixteen grains of standard silver."
"And be
if further enacted, That the money of account of the United States
shall be expressed in dollars, or units, dimes or tenths, cents
or hundredths, and the milles or thousandths, a dime being the
tenth part of a dollar, a cent the hundredth part of a dollar,
a mille the thousandth part of a dollar, and that all accounts
in the public offices and all proceedings in the courts of the
United States shall be kept and had in conformity to this regulation."
[5]
The Money Power
Congress was granted the power
to coin silver and gold coin. What silver and gold? The silver
and gold that individuals would bring to the mint for coining
- that was the only precious metal so coined. All such silver
and gold was private property, not State property.
"And be
it further enacted, that it shall be lawful for any person or
persons to bring to the said mint gold and silver bullion in
order to their being coined; and that the bullion so brought
shall be there assayed and coined as speedily as may be after
the receipt thereof, and free of expense to the person or persons
by whom the same shall have been brought. And as soon as the
said bullion shall have been coined, the person or persons by
whom the same shall have been delivered, shall upon demand receive
in lieu thereof coins of the same species of bullion which shall
have been so delivered, weight for weight, of the pure gold or
pure silver therein contained..." [6]
Congress was
also granted the power to borrow money in Article 1 Section 8
Clause 2:
"To borrow
money on the credit of the United States" [7]
The power to coin money is
not the power to create, or to issue money. The power to borrow
money would not be needed if the power to create and issue money
had been granted to Congress. Why would one need the power to
borrow if one had the power to create money?
Separation Of Money And State
The money power was not granted
to Congress, only the power to coin already existing private
specie property, and the power to borrow money. The money power
resides with the people.
"The powers
not delegated to the United States by the Constitution, nor prohibited
by it to the States, are reserved to the States respectively,
or to the people." [8]
But that was then, and now
is now. The state of the State is far different from that first
envisioned, at least as seen through the eyes of those whose
ideals and principles allowed for such forethought - as there
were others even then that had a different end in sight.
Together
the State and The Federal Reserve have control of the money power,
although they answer the elite's beck and call. Bottom line -
the money power is not in the hands of the people where it belongs.
It has been usurped away by illusion and delusion, like a thief
who comes hiding in the shadows of night.
The money power needs to be
taken back by the people. This is one of our most basic rights
and freedoms. Even the power of the military-industrial war machine,
which can annihilate the enter Earth, is dependent upon the money
power. Money is indeed the sinews of war, as war is the sinews
of dishonest money.
A return to Honest Money of
honest weights and measures of silver and gold according to the
Constitution and the Coinage Act of 1792 would return the money
power to the people.
Wars would not be fought except
in defense of the homeland, as there would not be any proliferation
of dishonest fiat debt-money to finance the war machine of the
merchants of death.
"It is
important to remember that government interference always means
either violent action or the threat of such action...taxes are
paid because the taxpayers are afraid of offering resistance
to the tax gatherers. They know that any disobedience or resistance
is hopeless. As long as this is the state of affairs, the government
is able to collect the money that it wants to spend. Government
is in the last resort the employer of armed men, of policemen,
gendarmes, soldiers, prison guards, and hangmen. The essential
feature of government is the enforcement of its decrees by beating,
killing, and imprisoning. Those who are asking for more government
interference are asking ultimately for more compulsion and less
freedom." [9]
The People created the government
to protect its rights and freedoms. One of the most basic rights
and freedoms is the right and freedom of the money power - the
power to issue the common medium of exchange - money.
The government was never vested
with the authority to issue money, only to borrow and coin it.
The State was never delegated the power to create money - it
took it. It should return that which it took.
"Deficit
spending is simply a scheme for the 'hidden' confiscation of
wealth. Gold stands in the way of this insidious process. It
stands as a protector of property rights." [10]
The State of gold is the same
as in the past. It is the State of the State that has changed,
not gold. Gold remains the bastion of private property - of freedom
and liberty for all.
"Gold
is the soul of all civil life, that can resolve all things into
itself, and turn itself into all things." [11]
Coming Soon - Open Letter To
Congress
Seeking Redress For The Return To Honest Money
Endnotes
[1] William
F. Rickenbacker
[2] Declaration
of Independence
[3] U.S.
CONSTITUTION
[4] U.S.
CONSTITUTION
[5] THE
COINAGE ACT OF 1792
[6] THE
COINAGE ACT OF 1792
[7] U.S.
CONSTITUTION
[8] The
Bill of Rights Amendment 10
[9] Ludwig
von Mises
[10] Alan
Greenspan, Gold and Economic
Freedom
[11] Samuel Butler
Douglas V. Gnazzo
All Rights Reserved
©2005 Douglas
V. Gnazzo. All rights reserved.
All other views
and comments are invited.
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