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Thread: Gold standard = fiat money in disguise

  1. #11
    Boom!!

    I knew I would find it

    Source: http://en.wikipedia.org/wiki/Currency_Act

    The Currency Act is the name of several Acts of the Parliament of Great Britain that regulated paper money issued by the colonies of British America. The Acts sought to protect British merchants and creditors from being paid in depreciated colonial currency. The policy created tension between the colonies and Great Britain, and was cited as a grievance by colonists early in the American Revolution.
    Act of 1751

    The first Act, the Currency Act of 1751 (24 Geo. II c. 53), restricted the emission of paper money by the colonies of New England. These colonies had issued paper fiat money known as "bills of credit" to help pay for military expenses during the French and Indian Wars. Because more paper money was issued than what was taxed out of circulation, the currency depreciated in relation to the British pound sterling. The resultant inflation was harmful to merchants in Great Britain, who were forced to accept the depreciated currency from colonists for payment of debts.

    The Act limited the future emission of bills of credit to certain circumstances. It allowed the existing bills to be used as legal tender for public debts (i.e. paying taxes), but disallowed their use for private debts (e.g. for paying merchants).

    ................
    The Currency Acts created tension between the colonies and the mother country, and were a contributing factor in the coming of the American Revolution. In all of the colonies except Delaware, the Acts were considered to be a "major grievance". When the First Continental Congress met in 1774, it issued a Declaration of Rights, which outlined colonial objections to certain Acts of Parliament. Congress called on Parliament to repeal the Currency Act of 1764, one of seven Acts labeled "subversive of American rights".

  2. #12
    stoneFree
    Guest
    Harvey Organ had this to say yesterday:
    Wow!! please read the following carefully. Early this morning it was announced that China has not added any new USA debt paper and actually it contracted from 1.3 trillion usa dollars to 1.15 usa trillion. Where did this money go? The answer is now been provided to us...China has bought massive amounts of physical gold. Last month they bought an astronomical 68 tonnes of gold imported through Hong Kong. In the last 6 months they have hoarded 383 tonnes of gold. The world produces ex China approximately 2,400 tonnes of gold per year. At this rate China will be accumulating approximately 31% of annual gold production.
    I will tell you that almost all of this gold is procured through England, the dominant physical supplier of gold.
    When the last ounce of gold leaves London, then the Comex and then GLD and then finally the Bank of England will default.

    (courtesy zero hedge..also very important)
    http://www.zerohedge.com/news/hoardi...-gold-reserves

  3. #13
    Quote Originally Posted by Harvey Organ Report
    The world produces ex China approximately 2,400 tonnes of gold per year. At this rate China will be accumulating approximately 31% of annual gold production.
    I will tell you that almost all of this gold is procured through England, the dominant physical supplier of gold.
    When the last ounce of gold leaves London, then the Comex and then GLD and then finally the Bank of England will default.
    Very interesting. I wasn't aware that China's gold buys were originating in England. Thirty-one percent of world production is quite scary (although not from the Chinese viewpoint) and telling. They've been working at creating a gold-backed currency for the past several months if not years. The recent precious metals company that they bought and moved to Shanghai (or wherever) to compete with London and Chicago (Comex) is part of their strategy. They want in on the Precious Metals market, and the big players are scrambling to keep them out.

    Makes you wonder whether it's really gold they are getting from London, or just gold plated tungsten. Wouldn't be the first time something like that happened.
    Last edited by KnowLaw; 08-16-12 at 11:54 PM.

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