Published On: Sun, Mar 7th, 2010

Governments and Money: How the citizens get ripped off

Kings and governments throughout history have used the monopoly of money, legal tender laws and inflation to start large domestic programs, go to war recklessly and rip off their citizens of their wealth.

First governments had figured out centuries ago that they could issue a decree saying that only coins and money issued by the government can be used. By putting a king’s face on a coin not only took away from the legal option of competing currencies, but now he had full power to debase it at his will.

How were the kings and emperors of old able to debase the currency? He would periodically call on the citizens to return all their coins. He would then melt all the coins of gold and silver and re-mint them. However, instead of pure gold or silver, a cheap base metal would be added and Walla, he now had more coins than he previously had. Sound familiar?

This is exactly what happens now with the printing press. Print more and more paper money and distribute it.

Unfortunately people then and now, accepted the government money at face value when the government or king first spent them not knowing any better.

Unfortunately, for citizens of centuries ago or today, we are charged the “hidden” tax of inflation. How does this work? The one who gets the money first (kings and governments), and know about it, profits from it at the expense of those who get it last. Throughout history, kings and governments would do this to finance wars.

The worst thing about this is the people don’t know they are being taxed. But we are. As more and more money is created and becomes more plentiful, its value is diminished. For money to have value, it must remain scarce.

Legal tender laws are another method that governments use to control the money even as its value is diminished. Here they make it illegal to use anything except its fraudulent (in current times) paper money. We have already seen small pockets of areas in the United States trying to create their own currency for exchange.

Now the United States currency is based solely on fiat money. Unfortunately in this country, Richard Nixon completely severed the tie between paper money and gold backing in 1971. Now paper money is based on the “full faith and credit” of the government.  Instead of dollars being redeemable for a certain amount of gold, it is an IOU for nothing at all.

We have been being ripped off horribly ever since.

photo: TaxRebate.org.uk

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About the Author

- Writer, Co-Founder and Executive Editor of The Global Dispatch. Robert has been covering news in the areas of health, world news and politics for a variety of online news sources. He is also the Editor-in-Chief of the website, Outbreak News Today and hosts the podcast, Outbreak News Interviews on iTunes, Stitcher and Spotify Robert is politically Independent and a born again Christian Follow @bactiman63

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