Today we continue with SR 10 – the 10th in our series of 4075 Still Reports and
over 400 other reports for a total of 4500 YouTube videos over the course of 18
years. This is the second part of an examination of what can effectively serve a
sovereign nation as money. As we will see, this is a big problem which sovereign
nations have tried to deal with over many centuries.
The bottom line is who controls the quantity of money, not what backs it.
The recent proposal by the State of Texas to issue gold backed money only
works because we trust Texas to not issue more of its gold-backed money than it
has gold in its vaults to back it up. But that will only work as long as the politicians
overseeing the amount of gold are honest.
If dishonest politicians get in control of such a monetary system – as they have in
the Federal Reserve System – then the backing for the money will gradually
become degraded. In other words, the politicians will start issuing more pieces of
gold-backed money, then they have gold held in their vaults. This is, unfortunately
inevitable because the glitter of gold bullion is the ultimate temptation for sinful
But what about gold or silver coinage? They are absolutely secure as long as the
purity of the gold or silver content is verified. However, can you see the problem
in using only coin for the exchange of goods. Can you go to the grocery store and
expect the store to assay the gold content of a tiny gold coin before verifying
every purchase? Very impractical!
Can the blockchain be used for gold-backed purchases? Maybe, but with the
rapid onset of artificial intelligence, could we guarantee that hackers will never be
able to break the blockchain? I wouldn’t bet on it. Besides, what percentage of
the population even understands how to use blockchain at this point? A very low
percent – like 1% at present.
So, what’s the answer for humanity? What can we use to pay for things without
being cheated? The answer is monetary reform. This is THE most basic, yet
unattended human problem! We must fix our money in order to maintain
civilization. Otherwise, a totally corrupt politician will ascend to power and use
that power to enrich his family and friends, and then, political supporters, and by
essentially bribing that constituency, be able to attain an unbreakable plutocracy
– rule by the very rich. This is just the opposite of what our founders set up with
the U.S. Constitution set out to achieve, but there is one giant weakness in that
Constitution which has allowed for its gradual destruction.
The ability for the federal government to borrow!
Today the United States Constitution is, for the first time in our history, being
ignored by a small group of kleptocrats whom have seized control of our entire
administrative branch of government. Our precious Constitution has become a
Today, we the people anxiously await a courageous Congress or Supreme Court
to step up and right the ship of state. But no change will be effective in the long
run without monetary reform – withdrawing from the government, the ability to
borrow. If left unattended, enduring freedom will not be the legacy of this great
experiment in representative self-governance; only a cruel plutocracy – or
kleptocracy – awaits our children and grandchildren as their political inheritance.