We could also note that there is no nation in the world today that is using quantities of measurable substance for their money either -- but our focus will be on what we must do as Americans. How do I prove to you that there is no dollar? We will try history and logic and definitions of meanings of words.
History: The coinage act of 1792 defined the dollar as 416 grains of standard silver . This definition covers the 3 essential elements of definition. We see this illustrated in first mention of a money purchase in the text of the Bible.
Abraham paid 400 shekels of silver for a piece of real estate for a burial ground.
Substance: silver ("standard" meant 90/10 proportion of silver to copper)
Measure : shekel (? grains - "According to the Merchant" or "commercial standard" in the translation refers to this measure)
Quantity : 400 (416)
1785 US begins to standardize on Spanish milled dollar
1792 coinage act sets dollar definition as silver, names fixed ratio to gold
1853 modified wgt of dollar/sub coins to adjust to gold
1873-1878 silver blocked, treasury specifies gold, only accepts gold for taxes
1878 -1900 Treasury again works with silver, begins paper silver certificates
did not change dollar definition, but govt switched to paying taxes in gold
1900-1933 Officially on Gold standard, dollar defined as qty of gold, then outlawed for American citizens to hold
1933 -1971 Only bankers hold gold, illegal for citizens, but still honored for other countries until Nixon reneged on redemption Aug 15 1971. Now, USD is undefined.
1965 token coin silver no longer minted by Treasury, replaced with Cupra-nickel coins.
1968 Banks reneged on promise to redeem silver certificates with silver dollars.
1973 ownership of gold made legal again
Corollaries
There is no debt.
There is no way to pay.
There is no way for the bank to pay you what you have "deposited" with them.
There is no way you can pay anything towards what you owe the banks or anyone else.
The "owing" can only be re-assigned or cancelled, but cannot be paid.
There are numbers, like 16 trillion, but what are they counting and what is owed? How would it be paid? cancelling one accounting entry by another one is not the same as paying something owed.
In Supply and Demand setting price it is good to remember that it is always a trade of one thing for another, even though one side of the trade might be what we call money.
If the trade is going to make sense, we have to know what it is we are giving, and what it is we are receiving. We associate the " what " with the word: Substance .
"Price" is going to be the relationship between the two substances in terms of Quantity times a Measure.
We can look at the history and see how this started and how we have progressed to this point.
Now what do we have to look forward to?
July 2013, my bank is offering to loan me $140,000 @ 1.5% interest for 5 months, then it floats according to the prevailing rates.
The interest would amount to $175/mo.
Question is, how can the bank make a profit when annual inflation is running at 9% annually (That's $1,050/mo).
Unless you can answer this question, you have no business borrowing money from a bank.
When you borrow from a bank, they reckon the dollars into "existence". When you pay them back they disappear back in to that black hole of nothingness they emerged from when they were borrowed. If you admit this is moral, permissable, or good -- you are also saying, by your actions: the men who do this share that attribute with the Christian Trinity called Creation - OR - you are saying that those who do this own all the dollars of the earth. That is only a step away from saying they own the life of all those men. Both these things only belong to the triune God of the Christian Bible.
Whoever issues money, profits from the perceived wealth of the money more than anyone else.
Early users of the additional money profit from it more than the last users.
The reason for this, is that it takes time for Sellers (this includes employees as those who "sell" their labor) to catch on to the new supply of money.
Some people pay the old prices with new money. The people last in line are paying the new prices with old money that used to buy more at the pre-inflation prices.
Some businesses will boom, anticipating rightly the corridors of the new demands with the new money, and delivering early in the need demand.
Others (perhaps the same business later) will suffer the bust because of anticipating demand, when the demands slacks off by the leveling off- or contracting of money quantities. They will have paid the higher prices of labor and materials, but will be selling in an environment where customers have lost purchasing power.
Perhaps you have noticed, if you are a student of American history like me, that Bankers have been in virtual control of our national government at least since FDR (or Wilson, or Lincoln, or Washington/Hamilton - depending on how far back you are able to "see"). You have seen the efforts of Ron Paul and his enthusiastic supporters stonewalled by the Establishment "Republicans".
