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Click here to see what we use to call money-vs-What we call money today

Why $2,000/oz. gold is logical By David Bradshaw, Editor RMP
Mar 23, 2007

This is a chart of the U.S. dollar between 1915 and today.

Do you still feel good about having your life savings all denominated in dollars? I hope not.

Between 1989 and 2007, the dollar has shrunk to just 3 cents! Could it fall to just one penny in the next 5-10 years? Read on and judge for yourself.

Historically a U.S. "dollar" was defined by content, not by image, or symbolism alone. Truth is, today's "dollar" is really nothing more than a popular symbol for the tangible substances which it once proudly represented: Gold and Silver.

Substance vs. Symbolism
 A real U.S. dollar is defined as 1/20 ounce of gold, or about an ounce of silver.
But starting in 1913, the U.S. Treasury and Federal Reserve began a slow process of redefining the "dollar" -- from representing a weight measurement of pure precious metals -- to representing public confidence in the U.S. government.
The result: today's "dollar" retains a mere 3 cents of its original buying power in relation to gold. Three pennies! Stated in reverse, 1/20 of an ounce of gold (at $650/oz.) will cost you $32.50 today, instead of just $1, as it did 75 years ago. Sad, but true.
Yes, the buck's buying power has shrunken by over 30%, just in the last five years, but the ongoing decline of our gold-less U.S. "dollar" now spans over four generations as the chart above illustrates.
The true value of a paper "dollar" is now being defined by the world's waning confidence in America's ability to repay our deficits, debt and public entitlement obligations.

A Wake Up Call!
America's own head accountant David Walker is now traveling the nation with his "Wake Up Call" tour warning Americans that we're facing, "a growing fiscal cancer, a tsunami of spending." Walker hopes to gain public support in order to force politicians to do something now, rather than just kicking the can down the road, because "our present system is unsustainable."
 Virtually every nation on earth is slowly dumping dollars in favor of more stable, healthy currencies, like gold.
Unhealthy U.S. dollars are even being shunned by central bankers, because they know what happens to all confidence-based currencies when that confidence fails. In financial terms it is called a panic.
Given today's increasingly transparent financial world, I ask you; does the monetary symbolism of today's paper "dollar" stand a chance of triumphing over the substance of gold and silver?
If you think so, stick with your paper "dollars", but don't complain when a loaf of bread costs $10 or $20 one day.
If you think not, we recommend converting a good portion of your paper dollars into gold, pronto.

"Over the last century the U.S. dollar has been transformed from an 'IOU gold' into an 'IOU Nothing,'" according to John Exter, former Fed economist. If you can remain optimistic about the dollar's future, I congratulate you. Your faith in the tinkering of men with "IOU nothing" money far surpasses mine, which is limited to faith in God up above... and faith in real money, gold and silver, here below. -db
  Click here to read: BILLIONS FOR BANKERS DEBT FOR YOU!