Why Do You Think They Call It Fiat Money, Anyway? by Edgar J. Steele

October 12, 2008

Latest Nickel Rants:
10/6/08 – Never Choose Evil
mp3 audio
9/23/08 – Night of the Living Debt mp3 audio
9/12/08 – Let’s Pretend mp3 audio
8/9/08 – War Alert!!! mp3 audio
Latest Columns:
10/12/08 –
Why Do You Think They Call it Fiat Money, Anyway?
8/5/08 –
Bush Must Go!!! mp3 audio

“The millions of working families of America are now indebted to a few thousand banking families for twice the assessed value of the entire United States.  And those banking families obtained that debt against us for the cost of paper, ink and bookkeeping.”

Sheldon Emory, Billions for the Bankers bring War, Taxes and Debts to the People (The Real Story Of The Money-Control Over America) (Pamphlet, The Lord’s Covenant Church, 2008)

I’m getting a lot of emails from list members wanting market updates; wanting to know what to do in the face of the momentous events now taking place internationally.

At the risk of sounding trite, I’ve said it all before:  get out of dollar-denominated assets and into physical silver and gold.  Preferably silver, because I foresee the government confiscating gold once again.

Yes, the spot prices of silver and gold – especially silver – have been hammered in the past month.  That is why you buy and hold the physical metal for the long haul.  There now has been a complete separation of the prices of physical precious metals and the paper gambling markers reported by COMEX.

Physical gold and silver are entering their Black Market days, from which it will be many years before they emerge.  Go on line to our most prominent Black market – eBay – and price out completed sales of bullion coins and bars.  You will find that silver is going for a premium of between $4 and $8 per ounce, not counting shipping.  Similar premiums are being charged by the few dealers who actually have any stock available for sale.  Keep that in mind when you get depressed by the reported spot prices, folks.

Spot prices are for phony paper silver and gold, not the real thing.  The real thing has kept its value much better than you might think and it will do far better in the months and years to come.

Sure it is tough to shell out $16 today for a one-ounce silver Eagle when silver’s spot price is ten-something.  But that simply reflects the difference in real value.  The spread will only get larger, as our government keeps “injecting liquidity” into the banking system.  In the not-too-distant future, paper metal will be worth no more than the paper upon which it is printed – less than toilet paper, in fact, as in today’s Zimbabwe.

I wrote Defensive Racism over four years ago, when things were still a-go-go.  Many laughed and called me nuts at my economic and social predictions, particularly those concerning worldwide economic depression, World War III and America’s coming race wars.  Nobody is laughing anymore, except at my race war predictions.  That, too, shall pass.

I have decided to do a series of list messages that excerpt salient economic passages from my book for those who have not read it.  Today’s excerpt discusses fiat money:

The Coming Economic Pandemic

Touted by the one worlders as the natural evolution of humanity, a world without borders is a world with no economic safety net.  Previously, when one or more countries fell under sway of serious economic recessions or depressions, borders tended to confine the damage.  With today’s retrenchment and redistribution of industry, no safety net is possible.  When any significant country catches a cold, the rest of the world will sneeze.  God forbid a fatal economic disease should rise up anywhere.

Fact is, however, that fatal disease already exists and has swept the globe.  It is called fiat money.  Simply put, fiat money is any money, the value of which changes based upon actions of the government responsible for it, not due to economic underpinnings.  The American dollar is the perfect example, with our government running the printing presses nonstop, just to keep the doors open.

Unlike what many people call “real money,” such as gold and silver, all down through history fiat money always has been watered, diluted and abused by its issuing government, until it soared into hyperinflation and became worthless.  In times past, even real money was weakened as the result of people and government shaving off the edges, leading to the grooved edges which now are minted into coins to discourage shaving.

There are only limited quantities of gold and silver available and only limited amounts that can be mined each year, with each year seeing decreasing quantities of ore hauled from less productive mines all the time.  The rarity of precious metals is what keeps them from being abused when used in commerce.  That is why governments hate to use gold and silver as money.  They cannot steal from the population through inflation merely by printing more.

Those of a more conspiratorial bent of mind believe the current decline in the value of all fiat currencies throughout the world is intentional.  How better to implement a single currency for use throughout the world than by making all currencies fail at once?  And governments get a huge bonanza in the process by paying off their debts with ever-more-worthless currencies that they simply print for pennies on the dollar.  How better to pave the way for a single world central bank?  Of course, those of us without printing presses get left holding the bag, as always.

New America.  An idea whose time has come.

-ed Copyright © 2008 Edgar J. Steele. Forward as you wish.  Permission is granted to circulate both the written version of this Notice among private individuals and groups, post on all Internet sites and publish in full in all not-for-profit publications. Contact author for all other rights, which are reserved.

On-Line link to this rant in HTML format: http://www.conspiracypenpal.com/columns/fiat.htm

Subscribe: Click here
Change your email address or other list data:  Click here

Unsubscribe:  Click here

Note:  One or both of the following buttons may not work with your email program.  If so, then please visit www.DefensiveRacism.com and make use of the order buttons there, which should work with your browser…Buy copies of Defensive Racism – An Unapologetic Examination of Racial Differences, which extensively addresses the problems confronting America, now is available through www.Amazon.com (please consider going there and posting a review if you already have read it), though you can get a $5 discount by ordering directly from the publisher. Additional significant quantity discounts will be applied during the order process. Visit www.DefensiveRacism.com for more information and on-line ordering information or simply click below (for an autographed copy, simply write in “Sign mine” in the comments section of the on-line order blank):


Make a difference by contributing to the support of my writing, lecturing, lobbying, activism and pro-bono legal defense efforts: Your donation will gratefully be applied to my extensive efforts in support of our mutual cause, rest assured.  You will be able to use a credit card in making this donation on line. Enter Donation Amount $

Donations to help with the cost of our efforts may also be mailed to Edgar Steele, PO Box 1255, Sagle, ID 83860. Until the politically incorrect begin to get a fair shake in America, and because of unfairly-applied income tax regulations, I regret that your donation cannot legally be deducted on your tax return.  I must also make the following statement, to ensure that I need not declare it as income and pay tax on it and to avoid being charged with misuse of funds, for which some patriot leaders falsely have been charged and imprisoned:  your donation is a gift to me, personally.

Complete archive of past articles, essays, rants, interviews and speeches, including sound files, maintained at: www.ConspiracyPenPal.com


About Gunny G

GnySgt USMC (Ret.) 1952--'72 PC: History, Poly-Tiks, Military, Stories, Controversial, Unusual, Humorous, etc.... "Simplify...y'know!"
This entry was posted in Uncategorized. Bookmark the permalink.

One Response to Why Do You Think They Call It Fiat Money, Anyway? by Edgar J. Steele

  1. Pingback: Why Do You Think They Call It Fiat Money, Anyway? by Edgar J. Steele | Ron Paul War Room

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.