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Constitutional vs. Confidence Game Fiscal System

Americans today do not enjoy the benefits of constitutional, economically sound money—they now have the opportunity to change that.

Last Updated on October 3, 2021 by Constitutional Militia

Historically, silver and gold have always proven to be the best commodities to use as money, because they are uniquely suited to perform the three functions of media of exchange: namely,

(i) as units of value—for silver and gold coins and ingots are composed of known, fixed, and reproducible weights of elemental metals;

(ii) as measures of value—for the free market can always determine rates of exchange between every nonmonetary good and service and either silver (under a monometallic “silver standard”), or gold (under a monometallic “gold standard”), or both (under a duometallic system in which one metal is the “standard” and the other metal takes its value in terms of the “standard” from the free-market rate of exchange between the two); and

(iii) as stores of value—for over great expanses of time, throughout the world, silver and gold have always held their purchasing powers better than any other media of exchange.[1]

This is why the Constitution designates the (silver) “dollar” as America’s standard of monetary value;[2] delegates to Congress the powers “[t]o coin Money, regulate the Value thereof, and of foreign Coin”;[3] declares that “[n]o State shall * * * coin Money”;[4] prohibits every State from “mak[ing] any Thing but gold and silver Coin a Tender in Payment of Debts”;[5] grants no authority to Congress to emit “bills of credit” (the Founders’ term for paper currency), with or without the character of “legal tender”;[6] and absolutely prohibits every State from “emit[ting] Bills of Credit” of any description whatsoever.[7] Constitutional money is to be economically sound money, the only form of money that can promote economic “homeland security”.[8]

Unfortunately, Americans today do not enjoy the benefits of constitutional, economically sound money. Rather, this country’s present monetary and banking systems are based upon the shaky foundation of Federal Reserve Notes and bank-deposits payable therein. Although Federal Reserve Notes are “obligations of the United States” which “shall be redeemed in lawful money”, they are redeemable in neither silver nor gold.[9] And the supply of those notes is determined, not by the free market, but by the secretive decisions and for the recondite purposes of a corporative-state banking cartel.[10] Moreover, the entire arrangement is thoroughly unconstitutional.[11] And its continuation endangers not only America’s economic “homeland security” but also her security as “a free State” and even as an independent sovereign nation.[12]

Footnotes:

1.) As a store of value, silver has often seemed more volatile than gold in American experience. But that is because, although in principle the Constitution requires it, in practice America has never enjoyed a proper duometallic system in which: (i) both of the precious metals were treated as legally equivalent media of exchange; but (ii) the free market (rather than some governmental body) determined the fluctuating market value of one based upon the fixed legal value of the other. See, e.g., E. Vieira, Jr., Pieces of Eight: The Monetary Powers and Disabilities of the United States Constitution (Chicago, Illinois: R R Donnelley & Sons, Inc., GoldMoney Foundation Special Edition [2011] of the Second Revised Edition of 2002), Volume 1, at 119-126.

2.) See U.S. Const. art. I, § 9, cl. 1 and amend. VII.

3.) U.S. Const. art. I, § 8, cl. 5

4.) U.S. Const. art. I, § 10, cl. 1.

5.) U.S. Const. art. I, § 10, cl. 1.

6.) Contrast U.S. Const. art. I, § 8, cl. 2 with Arts. of Confed’n art. IX, ¶ 5.

7.) U.S. Const. art. I, § 10, cl. 1.

8.) See generally E. Vieira, Jr., Pieces of Eight: The Monetary Powers and Disabilities of the United States Constitution (Chicago, Illinois: R R Donnelley & Sons, Inc., GoldMoney Foundation Special Edition [2011] of the Second Revised Edition of 2002), Volume 1, at 25-177.

9.) Compare and contrast 12 U.S.C. § 411 with 31 U.S.C. § 5118(b) and (c).

10.) E. Vieira, Jr., Pieces of Eight: The Monetary Powers and Disabilities of the United States Constitution (Chicago, Illinois: R R Donnelley & Sons, Inc., GoldMoney Foundation Special Edition [2011] of the Second Revised Edition of 2002), Volume 1, at 689-866.

11.) Id., Volume 2, at 1401-1524.

12.) See generally id., Volume 2, at 1588-1600, and Edwin Vieira, Jr., “The Purse and the Sword: Imminent Dangers of U.S. Economic and Homeland Security Policies” (Metamora, Michigan: DVD produced by the Heritage Research Institute, 2010).

Constitutional Fiscal System vs. Confidence Game Fiscal System

Constitutional Fiscal System: Prohibited the States From Using Anything But Silver and Gold in all Governmental Fiscal Transactions and Court Decisions

The Constitution expressly denied the States the power to make anything but silver and gold a tender in payment of debts. States are required to use silver and gold only in all governmental fiscal transactions and court decisions based on the constitutional monetary standard, the “dollar”

The declaration—“No State shall…make any Thing but gold and silver Coin a Tender” reinforced with the declaration, “No State shall…emit Bills of Credit“, which was a term of art for “paper money”, excludes all pretension that paper money is constitutional whether redeemable in some other commodity or not.

Under a Constitutional Fiscal System “We the People”  as the free market control the money supply, which is constitutionally mandated in the free coinage provision. This prevents inflationary episodes and creates a stable means of exchange and a stable economy overall.

CONFIDENCE GAME FISCAL SYSTEM: Congress, in Collusion with the Banks, has Formed a Cartel Structure over the United States Money Supply

The Federal Reserve is a “Confidence-Game Fiscal System”, because unlike the Constitutional Fiscal System, it doesn’t depend on “confidence” because there is a physical asset—each piece of money is a piece of gold and silver. One doesn’t need to have “confidence” in that, that’s what it is. What has been introduced between the governmental structure and the private economy is the “Federal Reserve System”. Congress and the Banks have removed “We the People”—the free market—and they control the money supply and thereby the entire economy.

Congress, in collusion with the banks, has formed a cartel structure over the United States money supply by “emitting bills of credit”, which is expressly forbidden by the Constitution. This “Confidence Game” Fiscal System is a scheme between Congress and the banks to loot Americans and redistribute wealth by way of a counterfeiting scheme that the average person does not understand.

John Maynard Keynes, the famous economist who fathered our present economic system, confesses (or boasts) in his book “The Economic Consequences of the Peace”, 1920: “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

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