YOU PERSONALLY CAN BE ON THE GOLD STANDARD. HERE’S HOW.
If you can afford it, buy a US \$20 gold coin, as shown in the picture below. It’s expensive, currently about \$1350, because it physically contains an ounce of gold.
If you can’t afford it, at least remember the picture, particularly the fact that it represents an ounce of gold and is stamped “United States of America Twenty Dollars.”
Keep that stamp—those words—in mind.
Take this coin, at least every so often, as your vantage point, and decide that THIS is what YOU mean by Twenty Dollars.
As I mentioned, the current price of an ounce of gold is \$1350. The Dow Jones Average closed today (June 18, 2019) at a little below \$27,000. How many \$20 gold pieces at \$1350 is that? I make it out to be just 20. For \$1350 goes into \$27,000 just 20 times.
So, stated in gold dollars, the highly touted \$27,000 Dow Jones Average is just \$400! At the stock market’s peak in 1929, it was \$300!
Apply this procedure to the price of your house, your car, your annual earnings, the price of anything—a loaf of bread, a ticket to the movies, whatever. Apply it to the billions of all the billionaires.
Hopefully, you’ll soon realize that the high prices we’re paying, and the increasing number of billionaires, are the result of a falling price of the paper dollar. From the founding of our republic down to 1933, the price of a paper dollar was 1 gold dollar.
Today, the price of a paper dollar in terms of gold is less than 1.5 gold CENTS. For 2000 gold cents (i.e., 20 gold dollars) buys \$1350 paper dollars. Divide 2000¢ by \$1350, and you get 1.48 gold cents per paper dollar.
We live in a world of ever cheapening paper money that distorts our perspective. We can correct for that by seeing the world through the perspective of gold money, the money enshrined in our Constitution, our Constitutional Currency.
Meanwhile trillions, tens of trillions of paper dollars of fictional capital gains have been created throughout the economic system, gains corresponding roughly to the difference between a Dow of \$27,000 and a Dow of \$400.
These multiple trillions have been subjected to capital gains taxes, which drain funds from business investment and thus choke off capital accumulation and the rise in the productivity of labor and real wages that capital accumulation brings.
Our abandonment of the gold standard has allowed the government to run a gigantic racket: it creates and spends new and additional money, allowing it to drain output from the economic system.
The new and additional money it spends creates both paper profits and capital gains, both of which it takes a substantial share of in taxes.
And now, today, as the result of the enactment of these, their very own policies, socialist/communist ignoramuses running for President complain about the stagnation of wages and the enrichment of billionaires.
I say again, we can help to start setting things right by seeing, and urging others to see, the economic and financial world through the perspective of our old Constitutional Currency, the gold dollar.
For more on gold, see Gold Versus Inflation, Chapter 19 of my Capitalism: A Treatise on Economics. available at amzn.to/2PM19ut.
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