THE AMERO vs. THE DOLLAR

Jason Kirby

There has been some discussion in the media lately about a North American Union to replace the USA. www.humaneventsonline.com/article.php?id=14965

Or you can google “North American Union.”

Associated with such an alleged agenda is the plan to replace the Dollar with the ‘Amero.’

www.humaneventsonline.com/article.php?id=15017

Google “The Amero.”

Predictably, certain individuals are alarmed by the prospect of replacing the Dollar with another currency called the Amero.

www.nationalledger.com/artman/publish/article_27266405.shtml

As a line in the above National Ledger article reads, “Our currency will be replaced with the “Amero.” And, we’ll be one giant step closer to the U.N.’s perverse dream of a one-world government.”

Whether or not there is any truth that some individuals or groups would like to economically or politically unify Canada, Mexico, and the United States, the peripheral alarm regarding the replacement of the Dollar with a currency named the “Amero” is worth exploring.

The first thing that jumps out at me is the expression, “Our currency….” That is an interesting choice of words. This phrase implies that the currency of the Federal Reserve System is ours, yet, somehow the Amero currency of the North American Union would not be ours and therefore be objectionable.

The second thing that jumps out at me is the expression, “…will be replaced…;” My choice of words would have been, “has been replaced.”

Let’s hypothesize that Federal Reserve System currency is already not ours.

Let’s hypothesize that our currency has long since been replaced.

Here is how it was done.

THIS WAS OUR CURRENCY. Figure 1 is a picture of what certainly used to be our currency, our current coin, before it was switched with Federal Reserve debt. Below is ONE DOLLAR of silver.

Figure 1.

The coin pictured above is exactly what the U.S. Constitution mandates we citizens of the United States of America use as money. The laws, and the code, of the United States of America at that time sustained the circulation and use of this piece and others like it as money. Does anyone bother to respect the Constitution anymore? Our money was not debt. It was wealth. It was born of nature and worked by the National mint into what it is. It was an asset which was not simultaneously someone else’s liability. Debt freedom, once achieved, was much closer to absolute under such a money system. It bore no interest except when its owner consented to lend it to a borrower for a rate of return. When it was spent, it was considered at common law that a debt was paid. And it respected the tradition from time immemorial that in exchange, value would be exchanged for value; it was equitable. When it was saved, instead of spent, it preserved the wealth of the saver, who could reasonably expect prices to be within reasonable range of what they were when the coin was saved.

“As banker Vince Rossiter has pointed out, ‘from 1814 to 1913, the U.S. fought four wars, enjoyed greater increases in population than any other nation in the world, suffered significant short-term inflation and deflation at intervals, and still it was possible to buy substantially the same basket of food in 1913 for approximately the same price that it cost in 1814, 100 years earlier.’ ” (1.)

Try and do that now, with the base year of 1974, for example. You’ll find it takes multiples the money to buy the same item.

Our currency enjoyed the protection of the law and counterfeiters faced capital punishment. Coin clipping, shaving, sweating, mixing with base metals, all being ways in which kings and princes cheated the public, even our own government was prohibited from such activities.

And Figure 2 is another picture of what used to be our currency, our current coin. Below is one dollar of gold.

Figure 2.

Paper money was in use and that was acceptable as long at the paper promised to pay gold or silver coin on demand. If the paper circulated, then the coin it represented was on deposit; if the coin was circulating, then the paper was not circulating. The silver and gold certificate was a token, but a lawful claim on the real coin. See Figures 3 and 4.

Figure 3.

It is not easy to see but it reads, “This Certifies That There Has Been Deposited In The Treasury Of The United States Of America Payable To The Bearer On Demand One Silver Dollar.” This was our money. And so was the following. It is accurate enough to call this a “promise to pay” because it does indeed promise to pay something, dollars in coin. It was an evidence of debt only in the sense that the Treasury owed the bearer the specified coin, on demand. See Figure 3.

Figure 4.

Again, it is not easy to see but it reads, “This Certifies That There Has Been Deposited In The Treasury Of The United States Of America Payable To The Bearer On Demand Twenty Dollars In Gold Coin.” This was our money. It is indeed a promise to pay. Spending a silver or gold certificate was acceptable because, although it was a money substitute, it was a reliable and dependable proxy for coin. See Figure 4.

By law, the SUBSTANCE of OUR money was gold and silver bullion, and the LAWS of money in the United States made gold and silver coin LAWFUL MONEY.

Where do you find such specimens of money today? In coin shops and personal collections.

What we had then (gold, silver coin) was replaced with what is today in your pocket and your bank account. Today, we use THEIR money. You cannot tell me that Federal Reserve Notes are our money. The Constitution does not contemplate them. The First Money Act of April 2, 1792 does not contemplate them. The code of the United States for most of our history does not contemplate them. It is not our money. It doesn’t matter that it has been around since granddad was a young man. Crime has been around for a long time too. The long lived perpetration of a wrong does not lend it legitimacy. It is alien to the Constitution, and our money is effectively in exile. Their money resembles ours, more or less, if you need glasses or don’t read; there are pictures of our dead Presidents on it. Many Americans simply believe it is our currency because that is the way it has been since their birth, and they don’t know what they are looking at. Or they do and do not distinguish between real value and debt. We, including those of us who know better, begrudgingly use it mainly because our own government refuses to follow the Constitution on the money issue. And we must use something so we use this. Our government has long since bought into central banking with debt-based irredeemable paper. If you want to read why, look up Alan Greenspan’s essay, “Gold and Economic Freedom,” which gives as good an explanation as any: it is the easiest way to set up and maintain a socialist welfare state.

There is no SUBSTANCE associated with their money. It may read X Dollars on the face, but dollars of what? Above you saw a dollar of gold and a dollar of silver. Above you saw gold and silver certificates that promised on demand to pay a dollar of silver or ten dollars of gold. A Dollar was a unit of value that related precious metal to a weight measured in grains.

“The central idea of the American money system is the ‘dollar.’ What is a dollar? This question has been the subject of volumes of discussion. The answer to the question has become involved in a wilderness of theory—lost in a maze of abstractions—as a result of which the reader is led to believe that there is great difficulty in understanding just what a dollar is. Fortunately, we do not have to read all this literature and wrestle with all the hypothetical problems propounded. The whole matter is settled by one section of the United States statutes. The Act of February 12, 1873 (Sec. 14), establishes “25.8 grains of gold” 900/1000 fine (or 23.22 grains of fine gold), which bears the required stamp and impress. The statute says that this is a dollar—not that it resembles a dollar, or that, for the purposes of discussion, it may be considered a dollar, but that it is a dollar. Furthermore, the statute again cuts off all controversy regarding the worth of a dollar; for it says that the dollar (the printed piece of gold containing 25.8 grains of gold 900/1000 fine) ’shall be the unit of value’ in our money system.” (2.) This is our money.

But a Federal Reserve Note is not that which was just described; it doesn’t even come close. It is not a dollar. It is not any number of dollars. It is a mere slip of paper signifying nothing more than a way by which to discharge your tax liabilities, with the right to spend your surplus slips of paper on other things as if they were lawful money of gold and silver. So the One Dollar Federal Reserve Note, for example, is not one dollar, but claims to be on its face. Is that a lie? In my world it is. Thou shall not bear false witness. Even if the Act of February 12, 1873 wasn’t perfect, and needed revising or fine tuning, who can imagine how we in this nation went from a dollar of the above description, to throwing it all out and then adopting the current fiat paper dollar of no legal description other than the vague, “it is an obligation of the United States,” as the new central idea in the American money system?

The Federal Reserve Note, which is their money is not even a promise to pay. It makes no promise at all. Read any bill, you will not find any promise. What is in your pocket or your bank account is debt. As a nation, we have borrowed our own tax coupons and in commerce we accept and use them as if they were money. You do not own your currency free and clear. Borrowed first by the national government, it automatically arrives to the American people with interest due. It is a fiduciary asset which is absolutely simultaneously someone else’s interest-bearing liability. It bears interest for the benefit of its issuer and creator, the central banks and their stockholders, the instant it goes into circulation. The central bank, which supplanted the existing system—which was unique and American—was modeled after the Bank of England. “The Creature From Jekyll Island,” by E. G. Griffin, explains how that happened. Does that sound like our system? Yet when you lend your own money today, as a private lender, you are lending someone else’s debt. And when you spend it, you are discharging your immediate debt. When you accept it someone else’s immediate debt to you is discharged. But our collective perpetual debt remains. All debts become relative with our government being a first-level debtor, and we citizens being second-level; third-level debtors depending on how our borrowing is structured. The game we play is to cleverly move debts around until we have what we want and hopefully don’t find ourselves insolvent at some point. Even if you are technically debt free, all mortgages paid off and car loans too, you are responsible, in the eyes of the government, for your share of the national debt. Your debt freedom is relative, not absolute. How do you know they won’t come to you at any time to call for the principal, or principal and remaining interest? Do you have that guarantee? And being on the hook for a share of the national debt; and knowing that your children will also be so burdened; and knowing that all the currency that we use is borrowed, how could anyone refer to the currency we use today as our currency?

You may not be directly paying interest on the national debt, but you are, now, indirectly paying interest on our unpayable perpetual national debt to our creditors by way of your taxes. And you will continue to pay, to an even greater degree, to the one world government if and when it gets here. One final observation about their money, it has the tendency to lose its purchasing power relatively fast. Not as fast as some inflations, to be fair. However, nickel’s worth of American money in 1913 could buy approximately what a paper fiat dollar buys today. And next year, the inflation calculators on the internet will have even worse to report about the purchasing power of their money. Savers who save in terms of their dollars lose more wealth over time. This loss of wealth to savers is a continuation, as of 1913, of the tradition of coin clipping and shaving.

“….Henry VIII debased the coins. In those days they didn’t have computers, so the rascal prince simply shaved the coins when he wanted to cheat the public. Nowadays we punch a few figures into a giant computer at Culpepper, Virginia and create federal notes, bills, and bonds, and float these out into the financial community so reserves can follow a certain formula, and money can be created via the creation of loans. When you create money this way you inflate to the extent this money isn’t answered by earned income. This is our modern method of shaving coins.” (3.)

It is difficult to imagine the level of intrigue that must have gone on as they, the early central bankers, the financiers to the world, persuaded our government to incrementally dismantle the Constitutional monetary system that was working as it should have, and replace it with a system entirely based on debt.

What we have today (their money) is exactly what the Amero would be except it would have different printing on the paper and it would be intended to circulate among three nations, or substates, whereas the paper of the Federal Reserve System is more or less designed for the United States. The printing, “The United States of America,” the portraits of the dead presidents, at worst makes Mexicans and Canadians who handle US Dollars feel they are handling another nation’s or central bank’s currency, and they are. Yet, changing the name to the “Amero” and putting other faces than our dead presidents or, emulating the Euro, no face at all on the bills would only allow our neighbors to believe the currency is of their nation, or Union if that is what is coming. Nothing will have changed in the nature of the money. It will still signify a debt to the central bank monopoly. And, should such a Union succeed, you might imagine that it would be even harder to repair the damage done and return to a Constitutional money system, if such a thing were not already impossible.

In the final analysis, no one should be worried about our money being replaced with the Amero, because (A) the coin money of the Constitution as already been replaced and we have been using their irredeemable debt-based money for a long, long time. We are using exactly the money that the bankers, not the founding fathers, would have us use. The move from the above shown coin money of the Constitution, to that of the Federal Reserve System was unimaginably VAST in terms of its legal, financial, and sovereignty implications. And (B) we are not really being threatened with a second replacement, but only a cosmetic alteration to make it psychologically acceptable to this so-called “Union.”

To rephrase substantially the line in the National Register article that started all this inquiry: The plan to replace gold and silver coin with central bank debt was the necessary giant step closer to socialism’s perverse dream of a one-world government. Socialism is not new. It goes back to the mid 1800’s. They’ve had since their beginning, their agenda for the supremacy of the state and the limitation of individual property rights and individual liberties. A depreciated paper currency and State control of credit has always been part of their agenda. It is pointless to be alarmed about the Amero today with no way to go back to the gold and silver coin of the U.S. Constitution as the national money. It is as insignificant as changing the designs that appear on our copper quarters.

Jason Kirby

Amero, North American Union

Debut of the ‘amero’

By Judi McLeod

Thursday, December 14, 2006

The People’s Republic of China, long lauded by America’s enemies as the world’s next economic power, will be the country that will force the creation of the `North American Union’ (NAU).

Kofi Annan’s former pointman, Canadian Maurice Strong, has been boasting from Chinese soil that China soon would be replacing America as economic king, using the jingo that’s the official language at Turtle Bay.

The billions of dollars China has invested in the flagging American economy will be worthless. They will have to negotiate the exchange rate to the new amero. This will then force the creation of the North American Union.

The cloak of the NAU, fashioned in secrecy, will be thrown over an unsuspecting public, erasing the borders of three countries. Mexico, which already has legions of its citizens living and working inside America, is, in effect already inside the NAU. Their governments will inform the American and Canadian people that there is no option but the bread line.

Unfortunately, the plan, which has been in place for some time, now, has been all but ignored by the mainstream media.

One of the signs that the NAU is on its way is the collapse of the American greenback dollar paving the way for the debut of the ‘amero’.

“Two analysts who have reconstructed money supply data after the Fed stopped publishing it argue a coming dollar collapse will set the stage for creating the amero as a North American currency to replace the dollar,” (WorldNetDaily, Dec. 13, 2006).

The euro followed the same blueprint of

Feb 25 2008 11:41AM

An Overview of Gold’s Supply & Demand

During the fourth quarter of 2007, the gold price rose a healthy 12.4% from US$742.80 to $834.90. Obviously there was strong demand for gold during the quarter for it to achieve this gain. So I was somewhat bemused when I read a recent headline on Mineweb.com announcing that “Gold demand falls 17 percent in fourth quarter”. How is it possible that demand fell when gold’s price rose 12.4%?

Price is of course a function of supply and demand, but the supply of gold didn’t drop during the quarter and make gold more scarce. Its supply actually rose by approximately 620 tonnes, which is the amount of newly mined gold added to its aboveground stock. It is therefore self-evident that for gold’s price to rise during the quarter, demand rose too.

I therefore ‘clicked’ the article to read Mineweb’s analysis to see how it reached its erroneous conclusion about demand. It turns out that Mineweb was just reporting information from a press release of the World Gold Council.

Gold is one of the world’s most misunderstood asset classes. This press release by the World Gold Council no doubt added to that confusion, which arises because so many people – including many people within the gold industry – refuse to acknowledge that gold is money. They attempt to analyze gold as if it was a mere commodity with some jewelry fabrication and unimportant industrial application instead of what it really is – money.

Any good, service or commodity has value if it is useful. Gold’s value derives from its usefulness as money. In other words, gold’s value arises from its usefulness in economic calculation. This point is self-evident from the following chart, which presents a Base-100 analysis of the price of crude oil in terms of US dollars and goldgrams.

When viewed in terms of gold, the price of crude oil is essentially unchanged throughout the six decades presented in this chart. It is the dollar that is volatile, not gold. Economic calculation becomes sensible when prices are viewed in terms of gold, which provides a stable purchasing power over long periods of time.

So what makes gold money? In a nutshell, we do. Each and everyone one of us who recognize gold’s usefulness in economic calculation makes it money. We therefore hoard gold. It is accumulated, in contrast to all other commodities as these are consumed. But gold doesn’t disappear. All the gold mined throughout history still exists in its aboveground stock, except the minute amount lost along the way in shipwrecks, coin abrasion and the inconsequential weight of gold used in industrial applications which is not recycled. Gold’s supply is therefore its aboveground stock because newly mined gold is indistinguishable from gold mined hundreds or even thousands of years ago.

On the other side the equation, the demand for gold comes from each and everyone of us who hold it because of its usefulness. That usefulness arises – as shown in the above chart – from gold being money.

Given the above, there is only one way to determine gold’s price. It requires analyzing four forces. These are the aboveground stock of gold, the stock of national currency, and the respective demands for gold or currency. The interaction of these four forces determines the price of gold, or to be precise, gold’s rate of exchange to a national currency.

Gold is free-market money, which stands in marked contrast to national currencies which circulate by force of legal tender laws and similar heavy-handed government edicts. It isn’t governments that make gold become money – we do that. Collectively we give gold its value, and given its rising price, we know that the demand for national currencies is falling while the demand for gold is rising. I expect that relationship to continue, which means that rising demand for gold will continue to drive its price higher in the months and years ahead.

*****

by James Turk
Copyright © 2007 by James Turk. All rights reserved.

Top resource ideas: Gold and silver from the Aden sisters

Posted Nov 10th 2007 4:10PM by Steven Halpern
Filed under: Newsletters, Silver Wheaton (SLW), Silver Standard Resources (SSRI), Commodities, Stocks to Buy

This article is part of a 20 article special report on “Metals, miners and money“.

“Gold’s recent move to a new highs clearly reinforces that the metal’s six year bull market is alive and well,” say leading resources experts Mary Anne and Pamela Aden.

In The Aden Forecast, the sisters — who have accurately forecast the bull market since its start in 2001 — explain why they believe this upmove is part of a mega-trend that will last for many years to come.

“As the dollar falls further, gold will continue to head higher. And the unprecedented trade deficit nearly guarantees that the dollar will continue to slide. Lower U.S. interest rates reinforce this as well, and again that’ll be good for gold.

“Meanwhile, U.S. dependence on foreign oil and the record high oil price means the trade deficit is going to stay huge. It’ll also contribute to inflation by keeping upward pressure on consumer prices.

“So in a way, it’s a vicious circle that goes something like this: high oil = large trade deficits = a weak dollar and high inflation. Spending and money creation = inflation, which all = higher gold.

“Not to be pessimistic here (remember we’re just giving you the reasons why gold is rising and the dollar’s falling), it doesn’t help that 70% of the top oil producing countries are either tense or unfriendly toward the U.S.

“This makes the entire oil picture a wild card. In other words, growing tensions, talk of war, and ultimatums will push the oil price up and it’ll keep upward pressure on gold too.

“China’s growth and its booming economy is another huge factor that will continue to drive all commodities higher in the years ahead, as demand for everything keeps soaring. The same is true of India. This all amounts to a once every century or so development and it’s changing the global picture as we know it.

“When gold first turned bullish in August 2001, we identified steps for the new bull market. The steps began to develop as the 1999 and 1990-96 prior peaks were surpassed. The big moment for the bull market was when gold broke above the $500 level in December 2005.

“This took gold into the fourth and final step, which is where it’s been trading since then. This reinforced that the bull market was solid. With gold now at levels last seen in 1980, gold is on its way to completing this step.

“Once it rises above $850, the fourth step will be complete and that’ll be the next big milestone. Gold will be at a record high and it will then enter a new super strong bull market phase.

“From there, it could eventually move up to $2,000+, which is near the top of its mega trading channel that began in the late 1960s. While that may sound extreme, that level is about the same as $850 was in 1980 in inflation-adjusted dollar terms.

“We now advise increasing your gold position to 40% of your portfolio. We think silver is ready to catch up to gold and is a good buy now.”

Continuing the series:

The discussion picks up now about modern day truths regarding the central banks.

Buying Gold Bars

The following article is an original from the Superior Gold Group, you can contact us for all of your precious metals investment needs.

Since gold is one of the purest forms of wealth, those wanting to diversify an investment portfolio may look to buying gold bars. The value of gold bars has increased over the years making it an excellent and solid choice as an investment purchase.  In fact over the past seven years the cost has almost tripled.  Considering the price of gold and the value of gold is based on buy sell tactics, gold bars are an excellent asset to an investment portfolio. It is important however to determine what the long term investment goals are as well as expectations prior to investing in precious metals. 

Gold bars are priced according to weight. All gold bars must be.999 pure gold. In addition authentic gold bars have a government mint or a brand approved by Comex. Examples of approved brands include Credit Suisse, Degussa, and Engelhard to name a few. Research the completed list of approved brands prior to purchasing. Do not hesitate to ask the investment firm about the brand. A well informed investor is a wise investor.  Generally the brand of gold bar you may receive may be based on the inventory available.  

Therefore the brand of gold bar you receive in your depository may be different from what you think you are investing in. Again ask the representative with which business is being transacted.  There are brands of gold bars which are more recognizable than others even for beginning investors. For example the world famous Credit Suisse brand gold bars are generally sold in one ounce size bars. The 24-Karat Credit Suisse gold bar is .9999 pure gold and is stamped with the official logo as well as the weight of the gold bar.

The Royal Canadian Mint gold bar is another brand easily recognizable by expert and novice investors. Like the Credit Suisse brand gold bar, the Royal Canadian Mint gold bar is also .9999 pure gold and is recognizable by the Royal Canadian Mint hallmarks which it bears.  This particular brand of gold bar is guaranteed by the Canadian government. It is prudent to become familiar with the different brands of gold bars prior to investment

Though one will want to research the different investment firms with which business will be conducted, the actual process of purchasing gold is a fairly simple one. Gold buillion bars can be purchased directly from a mint, a dealer, or an investment firm. 

Once the decision has been made to invest in gold bars, and the designated investment firm has been selected, the next step is to request the necessary forms. Once the forms are completed and returned to the firm, the selection of the acquisition will be made. Some firms offer the complete service of acquisition, delivery, and storage to a designated depository.

There are many sites that allow investors to bid on gold bars. It is advisable for new investors to invest wisely by working with a reputable firm or mint. By working directly with an established dealer, investment firm or representative of a mint, investors can acquire information and obtain a bit of education regarding a precious metal investment.

Gold stocks are not an investment in gold. They are stocks first and gold second. This is an important distinction in gold coin investments for investors to recognize; because, once it is understood, justifying gold stock ownership as a substitute for gold coin investing alone becomes very difficult.

Physical Gold IRA vs Traditional IRA

With today’s economy and the state of the nation, the consideration of Physical Gold IRA’s compared to Traditional IRA’s are something to be considered. Where Traditional IRA’s are tied into the value of other papers and funds, this is not the case with a Physical Gold. The value and price of gold is based on the buying and selling of the investors.

Traditional IRA’s are tied into the value of stocks, bonds, and other papers that by theory offer a return on the value. Physical Gold IRA’s on the other hand is considered a store of value.  Gold is said to be the perfect investment