Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Bitcoin Black Swan - GOOGLE! - 24th Jul 21
Stock Market Stalling Signs? Taking a Look Under the Hood of US Equities - 24th Jul 21
Biden’s Dangerous Inflation Denials - 24th Jul 21
How does CFD trading work - 24th Jul 21
Junior Gold Miners: New Yearly Lows! Will We See a Further Drop? - 23rd Jul 21
Best Forex Strategy for Consistent Profits - 23rd Jul 21
Popular Forex Brokers That You Might Want to Check Out - 22nd Jul 21
Bitcoin Black Swan - Will Crypto Currencies Get Banned? - 22nd Jul 21
Bitcoin Price Enters Stage #4 Excess Phase Peak Breakdown – Where To Next? - 22nd Jul 21
Powell Gave Congress Dovish Signs. Will It Help Gold Price? - 22nd Jul 21
What’s Next For Gold Is Always About The US Dollar - 22nd Jul 21
URGENT! ALL Windows 10 Users Must Do this NOW! Windows Image Backup Before it is Too Late! - 22nd Jul 21
Bitcoin Price CRASH, How to SELL BTC at $40k! Real Analysis vs Shill Coin Pumper's and Clueless Newbs - 21st Jul 21
Emotional Stock Traders React To Recent Market Rotation – Are You Ready For What’s Next? - 21st Jul 21
Killing Driveway Weeds FAST with a Pressure Washer - 8 months Later - Did it work?- Block Paving Weeds - 21st Jul 21
Post-Covid Stimulus Payouts & The US Fed Push Global Investors Deeper Into US Value Bubble - 21st Jul 21
What is Social Trading - 21st Jul 21
Would Transparency Help Crypto? - 21st Jul 21
AI Predicts US Tech Stocks Price Valuations Three Years Ahead (ASVF) - 20th Jul 21
Gold Asks: Has Inflation Already Peaked? - 20th Jul 21
FREE PASS to Analysis and Trend forecasts of 50+ Global Markets by Elliott Wave International - 20th Jul 21
Nissan to Create 1000s of jobs with electric vehicle investment in UK - 20th Jul 21
Bitcoin Halvings Price Forecast and Stock to Flow Analysis - 18th Jul 21
Dell S3220DGF Unboxing and Stand Assembly - 32 Inch 165hz Curved Gaming Monitor Amazon Discount - 18th Jul 21
What Does The Fed Mean By “Transitory Inflation” And Why Is It Important To Understand? - 18th Jul 21
Will the US stock market’s worsening breadth matter? - 18th Jul 21
Bitcoin Halving's Price Projection Forecasts Trend Trajectory - 18th Jul 21
Dell S3220DGF Price CRASH to £305! 32 Inch 165hz Curved Gaming Monitor Amazon Bargain - 16th Jul 21
Google, Amazon and Netflix are Scrambling For This Rare Gas - 16th Jul 21
Sheffield Millhouses Park New Children's Play Area July 2021 Vs Old Play Area - Better or Worse? - 16th Jul 21
Inflation Soars, Powell Remains Unmoved. What about Gold? - 16th Jul 21
Goldrunner: Gold Could Jump To $1,900-$2,100 In Next 30 days – Here’s Why - 15th Jul 21
Tips For Finding The Right Influencers - 15th Jul 21
ECB Changed Monetary Strategy. Will It Alter Gold’s Course? - 15th Jul 21
NASA And Big Tech Are Facing Off Over This Rare Gas - 15th Jul 21
Will the U.S. Dollar Lose Momentum In the Second Half of 2021? - 15th Jul 21
Bitcoin Stock to Flow Model Forecasts Infinity and Beyond! - 14th Jul 21
Proteomics: The Next Truly Massive Investing Opportunity - 14th Jul 21
Massive Solar Storm to Hit Earth 2025, Coronal Mass Ejection (CME) Danger and Protection Solutions - 14th Jul 21
Is This The Best Way To Play The Coming Helium Boom? - 14th Jul 21
Meet SuperMania and its Ever-Present Sidekick, SuperMeltdown - 14th Jul 21
How NFTs Are Shaking Up Arts Trading - 14th Jul 21
Gold: High Time to Move Out of the Penthouse - 13th Jul 21
Climb Aboard! Silver Should Run Up To $38 In Next 30 Days - 13th Jul 21
How Will Remote Work Impact the U.K. economy? - 13th Jul 21
Why Helium Stocks Are Set To Soar in 2021 - 13th Jul 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How the Government and the Fed are Looting Your Accumulated Wealth

News_Letter / US Debt May 24, 2014 - 09:07 AM GMT

By: NewsLetter

News_Letter The Market Oracle Newsletter
May 14th , 2014 Issue # 11 Vol. 8


The Market Oracle Newsletter
May 14th , 2014            Issue # 11 Vol. 8

Commodities Currencies Economics Housing Market Interest Rates Education Personal Finance Stocks / Financials Real Gems

How the Government and the Fed are Looting Your Accumulated Wealth

Greetings,

We have just obtained an engaging -- and perhaps even an enraging -- new report that chronicles 200 years of ineptitude, 100 years of theft and failure, and 50 years of economic regression by the Fed and the U.S. government -- committed against YOU.

The government and the quasi-governmental bank, the U.S. Federal Reserve, do not want you to read this report we are about to share with you, because it uncovers the devastating impact they have had on the nation's money (YOUR money), as well as the U.S. economy and financial markets.

Operating under a government mandate and a carefully maintained perception of transparency, the Fed works with the government to actually "hide behind technicalities in cleverly crafted laws, which shroud the effect of their acts." "The reality ... is that the government, while claiming to do good works, has conspired with the Fed to loot the country," reveals Robert Prechter, author of the new report and founder of Elliott Wave International, the world's largest market forecasting firm.

As you know, threats are much less dangerous when you can prepare for them in advance. So, before you learn how to protect your accumulated wealth from this unprecedented threat, we want you to know these four things:

  1. Who is perpetrating the theft of your money
  2. How they are doing it so that you barely notice
  3. Why it matters to you and your portfolio right now
  4. How a market professional who's been around the block a few times expects it to play out in the immediate future -- so that you can protect yourself and even prosper now, as well as when the government's secret strategy ultimately crumbles and comes to light

Only the savvy traders, investors and entrepreneurs who understand how these threats will play out can hope to turn them into serious moneymaking opportunities.

Those who remain in the dark ... well, we don't like to think about what will happen to them and their money. It will not be pretty.

Don't be one of those who is in the dark. Read the 10-page report I just read from Robert Prechter. It's a quick read with dozens of insights we have not seen elsewhere.

If nothing else, you will come away with an expert-level understanding of the past 200 years of government intrusion into the U.S. money supply, economy and investment markets.

An excerpt from the 10-page report available for free download here :

Hidden Erosion of Corporate Worth Since the Government Abandoned Money

By Robert Prechter

For 173 years, the United States used money as a medium of exchange. In 1965, it switched to using a floating accounting unit. This change coincided with a dramatic yet hidden reversal in the net trend of worth for U.S. corporations.

The Money Era: 1792-1964

In 1792, Congress passed the U.S. Coinage Act, which defined a dollar as a coin containing 371.25 grains -- equal to 0.7734 Troy oz. -- of silver (plus some alloy). Congress did not say a dollar was worth that amount of metal; it was that amount of metal. Conversely, an ounce of silver was $1.293.

The same act declared that a new coin, the Eagle, would consist of 247.5 grains of gold (plus some alloy). It valued this coin at 10 dollars, meaning 3712.5 grains of silver, a value ratio of 15:1. This ratio valued gold at $19.39 per oz.

In 1834, Congress passed another coinage act, valuing gold at $20.69 per ounce, thus tweaking the gold/silver value ratio closer to 16:1. In 1837, another law edged the gold content of an Eagle to 232.2 grains, meaning gold was now valued at $20.67 per ounce. A dollar, however, was still 0.7734 oz. of pure silver.

The silver standard ended in 1873, when a new Coinage Act scrapped the definition of a dollar as a certain amount of silver and adopted a new definition based on gold, maintaining the formula of $1 = 1/20.67 ounce of gold. The Gold Standard Act of 1900 confirmed this definition.

In 1913, Congress passed the Federal Reserve Act. This act created a new banking corporation and gave it monopoly power to issue dollar-denominated banknotes and checking accounts backed by bonds issued by the Treasury. In other words, it gave the Fed the power to use government debt as backing to create spendable dollar-denominated credits to benefit the government.

The Fed issued its notes on dollars it never had. The Fed's activities diluted the supply of dollar-denominated credits, reducing their value relative to gold. The government decided it did not want to pay its creditors. In January 1934, Congress passed the Gold Reserve Act, under which the government seized Americans' gold, canceled all business contracts in gold, outlawed citizens' possession of gold and reduced the amount of gold that would define a dollar. President Franklin D. Roosevelt personally dreamed up a new value for the dollar, which he pronounced to be 1/35 of an ounce of gold, thus raising the "price" of gold to $35.00 per ounce. In one stroke, the government seized 41% of the value of everyone's dollars. Because the Act prohibited U.S. citizens from trading in gold, this new, lower value of a dollar was thereafter applied only to international transactions.

Incredibly, however, the U.S. remained on a money standard, because Congress simultaneously reinstated the silver standard for domestic transactions. It authorized the Treasury to issue paper dollar "certificates" redeemable in silver at the rate of $1.29/oz., the same statutory value the dollar had in 1792. With the silver price still low from the Great Depression, this was, briefly, a "fair" price. Congress passed the Silver Purchase Act of 1934 to allow the Treasury to acquire silver to back the notes.

This scheme failed to last even three decades. With the government's continued borrowing and the Fed's monetization of much of it, the government's bills soon outnumbered the dollars of silver backing them. Smart people began redeeming the bills for silver, and the Treasury's supply of silver began to dwindle. In 1961, it plummeted by 80% as redemptions ballooned. That year, President John F. Kennedy issued an Executive Order to halt the redemption of silver certificates and urged Congress to let the Fed take over the nation's currency. In 1963, Congress obliged by passing Public Law 88-36, which revoked the Silver Purchase Act and authorized the Federal Reserve to issue banknotes unbacked by money. For a time, however, an enterprising citizen could still trade the Treasury's paper notes for silver coins at par, and the U.S. mint continued to make silver coins through 1964 with what silver it had left.

The Watershed Year: 1965

By 1965, the Fed had issued enough Federal Reserve notes to replace the circulation of silver-backed U.S. Treasury notes. On July 23, Congress passed the Coinage Act of 1965, which declared that commonly used U.S. coins would henceforth be tokens containing no precious metal.

Through these maneuvers, Congress ceased exercising its Constitutional "power to coin money, and regulate [make regular] the value thereof." Instead it outlawed money and replaced it with an elastic, non-regular unit of account.

The year 1965, then, marked the official end of money usage in America. That's when the Fed's notes and the Treasury's tokens became the official currency, unredeemable in anything. The dollar became merely an accounting unit. The government was now fully free to extract value from its citizens' savings accounts through the process of issuing debt and having the Fed turn it into checking accounts.

The gold standard for foreigners lasted only another six years, during which time the Treasury shipped most of its gold overseas at $35 per ounce. Finally, in 1971, President Nixon issued Executive Order 11615, which reneged on the government's obligation to pay out gold to foreign creditors. From then on, the dollar was only an accounting unit internationally as well as domestically.

* * * * * *

You can get the whole story when you download Prechter's full 10-page report here.

As you know, threats are much less dangerous when you can prepare for them in advance. This report will help you prepare.

Sincerely,

EWI

About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world's largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.

Subscription

You're receiving this Email because you've registered with our website.

How to Subscribe

Click here to register and get our FREE Newsletter

To access the Newsletter archive this link

Forward a Message to Someone [FORWARD]

To update your preferences [PREFERENCES]

How to Unsubscribe - [UNSUBSCRIBE]

About: The Market Oracle Newsletter

The Market Oracle is a FREE Financial Markets Forecasting & Analysis Newsletter and online publication.
(c) 2005-2014 MarketOracle.co.uk (Market Oracle Ltd) - The Market Oracle asserts copyright on all articles authored by our editorial team. Any and all information provided within this newsletter is for general information purposes only and Market Oracle do not warrant the accuracy, timeliness or suitability of any information provided in this newsletter. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We recommend that independent professional advice is obtained before you make any investment or trading decisions. ( Market Oracle Ltd , Registered in England and Wales, Company no 6387055. Registered office: International House, 124 Cromwell Road, Kensington, London, SW7 4ET, UK )

Terms of Use | Privacy Policy

Copyright 2014 MarketOracle.co.uk

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in