One Nation Under Gold, James Ledbetter! Just Published!

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James Ledbetter and his new book, One Nation Under Gold!

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Today’s Wall Street Journal had a great article by James Grant on the above recently published book (June 13, 2017). James Ledbetter has written this book and I have reviewed it briefly. Basically, James does a great job in providing the history and the intrigue which has surrounded this metal called gold for Americans. His timeline is partial but mostly valid and his stories are mostly excellent. The history which he reveals gives the reader a full understanding of why gold and silver have played such an important role in America’s prosperity and political success. America’s manifest destiny emerged from this money item and its political intrigue which followed.

 

James Grant’s review in the W.S.J. (page C10) provides a great overview of the message which gold has played for Americans. James says “It is no work at all to make modern money. Since the start of 2008 financial crisis, the world’s central bankers have materialized the equivalent of $12.25 trillion. Just tap, tap, tap, tap on a computer keypad.” He then says “the value of all the gold that has ever been mined, according to the World Gold Council, is a mere $7.4 trillion.” 

 

Jim then compares the two basic models of monetary economics that have existed over American history. The gold standard model and the Ph.D standard. This Ph.D standard is what emerged after Nixon closed the gold window in 1971. This standard was the ‘naked’ symbol system ($1.00) which emerged as our basic dollar reserve currency in 1973 and after. Both Jim Grant and James Ledbetter do a disservice to the reader, however, by not providing the ‘starting point’ history for our money system. James Ledbetter starts his history in 1788 (with our Constitution, Article I, Section 10) and continues from this starting point. This seems confusing to me.

 

Let me provide you with a better timeline which starts prior to 1788 and ends with today. I think you will discern that the message of money, gold, silver, paper, digits, will take on additional meaning as you read the above book. My history or timeline is as follows:

 

  1. 1620: The Pilgrims started the first economic experiment (in America) with a form of communal living and then abandoned this experiment as they discovered the dire consequences. They then instituted the concept of private property and individualism (private production) which emerged into the philosophy called Capitalism. This starting point is essential to comprehend as America adopted Capitalism as their model for economics after this experience of 1620 (and after).
  2. 1775: During the American Revolution, the colonies became independent states; freed from British monetary regulations, they issued paper money to pay for military expenses. The Continental Congress also issued paper money during the Revolution, known as Continental currency, to fund the war effort. Both state and Continental currency depreciated rapidly, becoming practically worthless by the end of the war.
  3. 1785: Our most knowledgeable founding father on money issues, Thomas Jefferson, chose the ‘naked’ monetary symbol $1.00 and the ‘name’ dollar’ as the basic accounting unit and value unit for America’s new monetary system. He then, with Hamilton, promoted legislation for a new American monetary system.
  4. 1792: Our first American Congress (after debate) passed legislation called the Coinage Act of 1792 which spelled out the mathematical definitions of our American dollar (and all the subsidiary coinage). The words in our Constitution concerning ‘Value’ read, “to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”. The initial standard was $1.00 = 371.25 grains of Ag which means $1.29 = 1 ounce of Ag.
  5. 1834: The ratio of silver to gold changed from the initial ratio of 15:1 to 16:1. This led to gold being chosen as the basic definition of our $1.00. The definition was 24.75 grains of Au in the Coinage Act of 1792. It became 23.22 grains of Au after 1834.
  6. 1913: The Federal Reserve Act was passed by Woodrow Wilson (a conspiracy of elites created the premise for this private institution) leading to our third Central Bank (which many patriots viewed as unconstitutional). Our Constitution does not mention any support for a Central Bank. Also, the idea of a Central Bank was debunked after 1836 with the election of Andrew Jackson who said “Mischief springs from the power which the moneyed interest derives from a paper currency which they are able to control, from the multitude of corporations with exclusive privileges…which are employed altogether for their benefit.”
  7. 1933-34: The great depression of 1929 resulted in FDR being elected president in 1932. FDR summarily called in gold holdings from Americans and then made owning gold illegal for Americans. He then redefined our $1.00 as 13.71 grains of Au which means $35 = one ounce of Au. Foreign holders, however,  could exchange their dollars for our gold at the $1.00 = 13.71 grains of Au definition. The consequence was that our Treasury purchased hoards of Au from foreigners (after 1934) giving America some 740 million ounces by the end of WWII (some 70% of the world’s official supply).
  8. 1971-73: America’s hoard of Au (gold) gradually diminished from 740 million ounces to 274 million ounces in 1971. America’s policy of inflation and their negative balance of payments situation created demand for our gold from foreigners (especially France). The result led Nixon to close the gold window to foreigners on August 15, 1971. This led to the ‘floating’ symbol $1.00 (a ‘naked’ symbol with no ‘tie’ to any commodity or to physical reality).
  9. 1974-75: Nixon and Kissinger concocted a deal with the Saudi regime to ‘price’ all their oil (including all OPEC oil) in the U.S. ‘naked’ symbol $1.00. This led to what traders called the Petro $1.00 (an imaginary currency unit at the core but viewed/visualized as ‘tied’ to oil). The result was some stability and confidence in America’s ‘naked’ symbol $1.00 in the mind’s of traders and investors. Inflation, however, emerged with a vengeance within the U.S.A. and global commerce. America’s balance of payments situation became negative and it has remained negative ever since 1975.
  10. 1980-2017: A new computerized technology emerged globally which allowed our Central Banks to eliminate all paper currencies (gradually) and replace these currencies with a ‘virtual’ and/or a ‘digital’ $1.00 (living within our computer screens). This ‘naked’ virtual/digital $1.00 (with no tie to material reality) was then circulated within a new ‘inner’ space called ‘cyberspace’ (often called the cloud). To most, this cyber environment appears as similar to space/time reality!
  11. 2017-2018: Today, we witness some 90+% of all global currencies circulating within this new cyberspace environment. Cyber money has emerged for the entire planet and Central Banks have emerged as the new Central Planning Institutions. Crypto-currencies are also emerging to challenge the legacy of our Central Bank currencies going forward. Gold and silver are being artificially suppressed (within our electronic futures markets via naked-short strategies) so as to crash sentiment in these historical monies and promote the new world of ‘virtual’ cyber currencies (called money by our elites). This is viewed as necessary to further the new United Nations program called Agenda 2030 (official as of 2016). The plan is to create a global socialized/communistic economy for the entire planet.

 

The above timeline should help everyone reading the new book by James Ledbetter, called One Nation Under Gold, to fully comprehend what has happened to our money and to global economics. Commerce is now mostly being done within this new ‘inner’ space called cyberspace and online transactions are growing by the day. Amazon just purchased Whole Foods and the big corporate elites are ruling our markets. Technically, we do not have any real Capitalism today. Our markets are pumped up with cyber digits (mostly by our Central Banks) and these imaginary digits rule over all commerce. The rich are prospering and growing ultra wealthy while the masses are getting poorer by the day. The entire System is so corrupt that select politicians and the Deep State now rule our planet (surreptitiously).

 

Take the time to purchase the above new book by James Ledbetter. It will really help you understand our prior monetary history. It will also help you comprehend why a commodity such as gold and silver were necessary as a ‘tie’ to any naked symbol currency system (for a money system is to have relevance). Soon we will experience the most dire financial crash/collapse within all human history. It is all because of our money system, the corruption within finance, our deceived Ph.D. economists (who falsely interpret reality on money), and the centralized monstrosity called our Global Central Bank System. Get yourself educated ASAP as you will benefit from this knowledge going forward! Enjoy! I am: https://kingdomecon.wordpress.com.

Some additional images for your consideration:

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A book everyone should consider reading for its history about America and Money!

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An interview with James Ledbetter on Kitco News!

Comments

John G Added Jun 18, 2017 - 3:38am
You must think that unemployment, poverty and starvation are good, moral things.
Thomas Napers Added Jun 18, 2017 - 4:20am
Way before Nixon’s executive order, the gold standard had begun to unravel.  International traders eventually discovered they could make money by converting currency reserves into gold and selling the metal in the gold markets at higher rates.  As a result our gold supply was severely diminished. Then West Germany abandoned the Bretton Woods accords and their support for the dollar.  Following West Germany’s decision other countries did the same. As a result, America experienced extremely high inflation and had no choice but to abolish the direct convertibility of the United States dollar into gold.  Regardless, following 1933 we were never really on the gold standard, at best it could be called a quasi gold standard.  
Donald Swenson Added Jun 18, 2017 - 3:14pm
1933 is when FDR made gold ownership for Americans illegal. 1971 is when Nixon closed the gold window to foreign Banks. 1974 is when Kissinger concocted the petro dollar with Saudi Arabia. 1975 is when Americans were allowed to start owning gold again. 1980 is when the virtual dollar started. Today, all is starting to unravel. D
Jeff Jackson Added Jun 18, 2017 - 5:50pm
Consider that our economies are based on things that are way past gold. Electronics, the internet, the cloud, servers, cell phones and the like are not based on gold, they are based on things that human capital can create. Remember, that gold comes from the ground, and if it becomes valuable enough we, and everyone else that can, will dig for more of it.
Our economies are based (hopefully) on something more than a metal that has limited commercial uses, and more on the things that human capital can create. The real fight now is for the heavy metals that have revolutionized our devices. I have two magnets that I show students, one is iron, the other is a heavy metal magnet that makes the iron magnet look like  quaint antique. The heavy metals are how we have innovated and miniaturized things like headphones and the like.
The nations that could produce gold, such as those in South America in the 15th and 16th centuries, as well as the gold producers today are, in terms of economic power, not high on the list. The power lies in human capital and the ability to innovate and produce. Japan, Singapore, and others cannot produce gold, yet they are wealthy. The gold standard is a relic of the medieval economy.
Donald Swenson Added Jun 18, 2017 - 7:14pm
Jeff, what you say has merit but the issue of money relates to trade between nation's. Trade involves valuation of goods. Valuation demands a measurement of comparative​ values. The tool we use is money. Money needs to be viewed as objective (like a scale) which is fair to everyone. Today's cyber money is a joke. The units are created from the mind of bankers...and given mostly to the Uber wealthy. There is no objective distribution of the units. Our Constitution calls for a tie of all currencies to silver or gold. Did you know​ this? D
Jeff Jackson Added Jun 18, 2017 - 8:44pm
Donald, please give me the section on the constitution that states that all currencies must be gold or silver.
target="_blank">"Article I, Section 8 of the Constitution grants Congress the power “To coin Money,” but nowhere is the word “money” defined in the Constitution."
"First, the constitution grants the Congress the right to coin money and to regulate its value.  It is not clear from the constitution or the Federalist Papers what the authors meant by the term 'value.'  Traditionally, it has meant the weight and metallic content of the coin.  No one challenges this interpretation.  On the other hand, the only relevant meaning of 'value' in the context of money is its value in trade, also known as its purchasing power.  This a government cannot regulate merely by an act of Congress.  The government's only tool for regulating this latter value is altering the money supply."
Donald Swenson Added Jun 18, 2017 - 9:01pm
James Madison probably wrote these 'words' and the word COIN means what it says (namely to mint a 'coin' at the Philadelphia mint). The 'words' regulate the 'value' would mean (change the 'definition' of the coin if so desired by Congress). The definition of a dollar was 371.25 grains of silver and/or 24.75 grains of gold. This was spelled out in the legislation called the Coinage Act of 1792. 
 
Jeff: Article I, Section 10, reveals that States can not make anything but silver or gold a payment for debts. This implies that silver and gold are legal tender for the payment of debts. It implies that our 'money' was viewed as silver and gold (not wampum). 
 
Keep in mind, Jeff, that our Constitution and our first Congress interpreted the words in this document (called our Constitution) based on their recent experiences in the colonial markets and the thinking of the founders. Thomas Jefferson was mostly responsible for our definitions for our coins (dollar, half dollar, quarter, dime, nickel, etc.). Alexander Hamilton and Thomas Jefferson were the minds behind all the monetary issues (mostly) and the Coinage Act of 1792 was most likely their thinking. The 'value' of our dollar was set at 371.25 grains due to an assay of a similar coin (used in the colonial marketplace called the Spanish Peso or Piece of Eight). D
Donald Swenson Added Jun 18, 2017 - 9:04pm
Jeff: Our first Secretary of the Treasury was Alexander Hamilton and our first Secretary of State was Thomas Jefferson. These two individuals were the minds behind our monetary system. We abandoned the British system and established an American system (based upon the precious metals called silver and gold). Paper money was rejected because of the experiences with the Continental and State paper currencies. Most of these became mostly worthless as there was no backing or tie to a physical commodity. D
Patrick Writes Added Jun 18, 2017 - 9:09pm
The First Bank of the United States (a bank in which the federal government owned 51% share) allowed the federal government to assume the (Revolutionary) war debt of each of the states and to pay it off over time, establishing the credit-worthiness of the nation. 

The same system was used just over a decade later to finance the Louisiana Purchase. By the time of Jackson, my understanding is that it was no longer really necessary. 
 
In my opinion, a discussion like this has merit because people need to have confidence in the (financial) system for it to work. That's why there still is hard currency or cash. The government could easily say it's no longer issuing hard currency but having cash helps people to have confidence in the system. That is good. 
 
Having a currency backed by a precious metal helps people to have confidence as well. 
 
There are benefits and drawbacks to having purely electronic currency. It's easier to catch criminals and terrorists. But it can be abused by the government to spy on people. 
 
If enough people lose confidence in the system, it can all begin to unravel though, that's very true. Then wheelbarrows of cash or bartering could take over (like in Venezuela or Zimbabwe for a time). 
Donald Swenson Added Jun 18, 2017 - 10:09pm
Patrick: What is currently happening over in Venezuela is representative of what might happen here and everywhere. Digital money is pumping up their STOCK market but the people are suffering from lack. The paper currency is also being inflated and this creates 800% inflation in Venezuela as of today. If currencies are 'tied' to a physical commodity which derives from the land (mining) this could not happen to this degree.
 
The problem with virtual currencies is that they are subjective and derive from our consciousness (thinking). They have NO physical existence. D
Jeff Jackson Added Jun 18, 2017 - 11:04pm
Donald, I'm afraid that is a limited interpretation: "No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility."
Bear in mind the clause is referring to states and not the federal government, and debts, not currency.
 
The "any Thing but gold and silver Coin a Tender in Payment of Debts" does not, however, dictate that all currency (federal) will be made of silver or gold, now does it? It indicates the states shall not pay debts with anything other than gold or silver. In the case of the debts it was referring to the payments that were to be made to the federal government.
 
Historically, under the Articles of Confederation, the states were allowed to print, or coin their own currency. One of the reasons for the U.S. Constitution was because the states owed the federal government money, and many of them refused to pay. The federal government under the Articles of Confederation was very weak, and the states were very strong, and the federal government was in debt (because of the Revolutionary War) with the states telling them they would not pay. It appears that the federal government knew that the states could print paper money, pay their debts to the federal government and if the paper money turned out worthless, then it would be the problem of the federal government, and the states could just say "too bad."
 
While I can understand your position, paying debts was the reason for the constitution in the first place, and the federal government didn't want anything other than gold or silver, since paper money could result in the aforementioned problem. This, however, does not reference currency, only the debts be paid, and there are no specific instructions or intent as to the composition of currency. Perhaps you see it, I certainly do not. What I see is specifically directed to states, and not the federal government at all.
 
The Coinage Act of 1792 might be law, but that is not our constitution, that is a law, and laws can be repealed as well as have "sunset clauses." I hope you understand the distinction.
I still see nothing specific in the constitution that indicates the composition of currency, and your example does not support the position that currency must be gold or silver, only the debts paid as such, and that was an issue of the historical context, which is not followed today, as you do not see states paying the federal government in gold or silver, nor do you see them paying in coinage or currency backed by gold or silver. Sorry, you have not made your case. The purpose of the constitution was to get the states to pay back their debts, which should be historically understood as such.
 
 
Donald Swenson Added Jun 18, 2017 - 11:36pm
Jeff: Your history is not accurate. The issue of paying the States debts did not arise until AFTER the constitution was signed and George Washington was President. It was a policy issue between mostly Jefferson and Hamilton. Hamilton wanted the States debt to be assumed by the Federal Government as he wanted a big government and a Central Bank. Jefferson did not want the Bank and he referenced the Constitution as his source. He said that our Constitution made NO reference to establishing a Central Bank or a Bank to hold the States Debt. Jefferson would have wanted the States to default on their debt as it was mostly worthless by the end of the War anyway. The market value of this debt was peanuts compared to the face value. 
 
The "any Thing but gold and silver Coin a Tender in Payment of Debts" does not, however, dictate that all currency (federal) will be made of silver or gold, now does it? Jeff: Article I, Section 8, reveals that Congress shall 'coin' money and regulate the 'value' thereof via a definition. A dollar coin, Jeff, is a currency and also money. The money item in the coin was silver and the word 'dollar' was the currency. A currency is metaphysical, Jeff. The name, Dollar, was chosen as our currency by Thomas Jefferson in 1784-85 and he then chose silver as the money item to represent 'value'. There are TWO concepts for you to comprehend (money item and currency name). 
 
The Coinage Act of 1792 might be law, but that is not our constitution, that is a law, and laws can be repealed as well as have "sunset clauses."  Jeff: The Coinage Act was derived from the words in the Constitution. This makes it representative of our Constitution. The Constitution is our law and that which is derived from our Constitution becomes law as a result. I don't see why you desire to separate the two. Yes, any law of Congress can be changed, etc. but any change must still comply with the law (our Constitution). It all gets back to our Constitution as the source for all laws. We agreed to a Constitutional Republic. 
 
States were prohibited from creating their own currency/money as the problems prior to our Constitution were that our 13 States created paper currencies and then didn't honor the backing which they engraved on the notes. The backing was usually silver or its equivalent. This is how the States got the people to accept the paper notes. Even Ben Franklin engraved words on the Continental implying that these notes could be redeemed in silver or the equivalent. American was founded upon a bi-metalic monetary system with no Central Bank. The arguments started after the Constitution was signed and became effective. Hamilton was shot and killed by Burr (Jefferson's Vice President) over issues like we are discussing. Money was central to how America started and we adopted a 'dollar' (this name) as our currency and we adopted silver and gold (these metals) as our 'money'. D
Donald Swenson Added Jun 18, 2017 - 11:44pm
Jeff: Here is another report on the above issue: 
Hamilton's "Report on the National Credit of 1790" stunned everyone, including President name="PEHST002264">George Washington. Hamilton advised paying off the entire national debt at full face value and assuming all existing state debt. To do otherwise, he argued, would cause citizens to lose faith in the credit and integrity of the struggling government and sabotage the new Constitution. The Revolution had been fought for the benefit of all states, and the unity of all states would be critical to the survival of the new nation.
To pay for his proposals, Hamilton called for an excise tax on whiskey and a tariff on imported goods. Since most manufactured goods at that time were imported, most consumers opposed the tariff. Western farmers who used whiskey as a pseudo-currency were opposed to the excise tax. In fact, in 1794 Hamilton and Henry Lee led an army into western Pennsylvania to defeat the Whiskey Rebellion.
Despite this inauspicious start, Congress approved all of Hamilton's controversial proposals, and the U.S. began a long road to pay off the national debt and move to long-lasting prosperity.
John G Added Jun 19, 2017 - 2:40am
LOLz Capitalist economies are based on sales. Money has never been a commodity.
Who cares what the founders thought even if Swenson is correct?
They didn't have established institutions to collect taxes, a necessary condition to establish demand for state currency.
Maybe Swenson is telling porkies like he tells about Marx anyway.
 
John G Added Jun 19, 2017 - 3:03am
BTW the gold standard was a constant failure. Every time the elites wanted to spend on their own projects like wars they just went off it.
In the meantime they refused social spending on the false premise that they didn't have the money.
It's a scam.
Jeff Jackson Added Jun 19, 2017 - 8:55am
Yes, Donald and my inaccurate view includes the positions of
Elbridge Gerry, Oliver Ellsworth,  Roger Sherman, and  Edmund Randolph, who, apparently didn't actually address the debt before the constitution was signed. "The Constitutional Convention first addressed the debt issue during its debates on the proposed powers of Congress." I didn't realize how inaccurate that historical fact was. My bad.
Donald Swenson Added Jun 19, 2017 - 1:04pm
Yes, John, gold standard did not work during war periods. But our current Ph.D standard is also destined for collapse. So be it.
 
My vision is the return of all ownership back to our Creator. Give the planet back to our real owner and Source. D
John G Added Jun 19, 2017 - 2:37pm
Swenson, why would a modern society artificially limit its ability to grow and prosper on the basis of the continued discovery and extraction of a shiny metal?
And I don't care for your sky pixie shit.
Donald Swenson Added Jun 19, 2017 - 4:40pm
John: My sky pixie shit is not my vision. There is no God up in the SKY!
 
I perceive that I am a spiritual being (inside). I would suggest that you are also. There is no sky creator or God...but there is one 'inside' our consciousness. But, you, John have not done your 'inner' work so you can not discern this! Socrates said: an unexamined life is not worth living. Have you examined your 'inner' being, John? Try to get 'inside' yourself and discover who gives you LIFE!!! D
Bill Kamps Added Jun 19, 2017 - 5:16pm
Gold has little more intrinsic value than tulips did in the 1600s.  It has value because people give it value, the same as the tulips.  It has the benefit over tulips that it doesnt rot and is difficult to create more.  But the Bitcoin could replace it, and gold could plummet in value.  Its just a matter of preference for which store of wealth to use.
 
People like Jim Grant have been predicting gold at many thousands of dollars an ounce since the run  up in gold in 1980, but strangely the price came down.  He failed to predict the fall of gold in 1981.   Why was that? did we stop inflating the  currency? isnt currency inflation more now than in 1980? with the massive currency inflation over the past five years, why has the price of gold drifted down instead of sky rocketing? manipulations?  but if paper currency is truly worthless how can gold be manipulated down?
 
Its called supply and demand, and the price of gold is not immune from it any more than the supply and demand of dollars, oil, Bitcoins, paintings or diamonds.  If you can predict any of these you can make millions in a week, but we cant. 
George N Romey Added Jun 19, 2017 - 6:07pm
The gold bugs are all over YouTube.  Gold has not risen to this mythical level.  Some theorize market manipulation.  Remember you can buy a gold certificate that is suppose to represent actual gold, sitting somewhere.....  
Donald Swenson Added Jun 20, 2017 - 12:10am
Bill: Gold and silver prices have gone down (mostly) since 2011 because of electronic trading. Our Central Banks have a policy to suppress gold and silver prices via 'naked' shorts on the Futures Exchanges. You can go to Kitco gold and watch a real-time algorithm as it slams silver/gold prices on a regular basis. Central Banks do not want high silver/gold prices as this would create a positive 'sentiment' for these precious metals and hurt their attempt to enslave the planet with their 'mark of the beast' virtual currencies. There is NO supply/demand model for silver and gold markets today. The model today is controlled prices at the key computer trading facilities which are under the control of our Treasury and the Central Banks. The Exchange Stabilization Fund is one entity which monitors silver/gold prices and uses HFT and algorithms to trade so that these prices are suppressed. This is policy, Bill, and our corrupt Keynesian economists approve of this manipulation. Capitalism is soon over as a result of these gimmicks and shinanigans. D
Donald Swenson Added Jun 20, 2017 - 12:13am
I have been following the silver/gold markets for 45 years. There used to be legitimate reasons for not suppressing the prices of these metals. Gold would go up to let the markets know that conditions were unfavorable. Gold also should help with warning people about Geo-political events. Today, however, gold and silver are manipulated daily by the ESF and the NY Fed and the BIS. D
John G Added Jun 20, 2017 - 4:08am
You demonstrate your ignorance yet again with 
"our corrupt Keynesian economists "
the Keynesian demand management model was overthrown when your Austrian and monetarist fruit cakes took over .
You're just a pathetic liar Swenson.

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