The Government’s Greatest Con Job

How Uncle Sam Silently Fleeced the American People [The Daily Reckoning] May 20, 2023 [WEBSITE]( | [UNSUBSCRIBE]( The Government’s Greatest Con Job - The evolution of a government swindle, told in U.S. currency… - What exactly is lawful money?… - Two cheers for paper money… [Do NOT pay your May electric until you see this!]( If you live in one of these 43 states… [Click here for more...]( You must watch this urgent warning immeditaly. (You Need To Learn About AOC’s “Green New Scam” In Order To Opt-Out). To learn the single most important move you need to make to protect you and your family this summer… [Click Here Now]( Annapolis, Maryland Editor’s note: This past week we descended upon Jekyll Island, Georgia, where the plot to launch the Federal Reserve was hatched. We therefore deem it appropriate to end the week by illustrating the evolution of the great swindle the Federal Reserve and the United States government have perpetrated upon the American people (this article was published initially on March 10, 2021). [Brian Maher] BRIAN MAHER Dear Reader, Dollar: A paper money, silver or cupronickel coin, and monetary unit of the United States, equal to 100 cents. This, according to Mr. Webster and his famous dictionary. Yet a question immediately presents itself: If one dollar equals 100 cents… what then is a cent? The answer: One-hundredth of one dollar. And what — again — is one dollar? 100 cents. And so we embark upon an infinite chasing of the tail. One dollar equals one cent multiplied 100 times. One cent equals one dollar divided 100 times. Do you perceive the central confusion? We seek clarity. We therefore train our attention upon the Coinage Act of 1792: The money of account of the United States shall be expressed in dollars or units … of the value [mass or weight] of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure … silver. That is, the dollar was defined by weight — 371 grains of pure silver, approximately. The Dollar Has Weight The Coinage Act of 1792 further authorized the production of $10 gold Eagles — “each to be of the value of ten dollars or units and to contain two hundred and forty-seven grains, and four eighths of a grain of pure … gold." One ounce of gold equaled roughly 15 ounces of silver. The Gold Standard Act of 1900 later defined the dollar this way: “Twenty-five and eight-tenths grains of gold nine-tenths fine” — or 0.05375 troy ounces. Here is the central lesson: Defined in silver, defined in gold… the dollar was nonetheless defined by metallic weight. Meantime, today’s dollar is defined in cents — which are themselves defined by the dollar. Thus the riddle. In today’s reckoning, we track the evolution of a mighty swindle... Good as Gold We begin with this $10 banknote, dated 1928: [image 1] Look carefully. The 1928 $10 note bears this inscription: “Redeemable in gold on demand at the United States Treasury, or in gold or lawful money at any Federal Reserve Bank.” Do you see it? In those antique days, a fellow could march into a bank. He could hand the clerk a banknote as illustrated above... And he could demand the denominated amount in gold coin — gold coin payable on the nail. The system imposed a reasonable discipline upon banks… and held inflation in checkmate. Federal Reserve banks were required to keep a 35% reserve of “gold or lawful money" on hand, lest they make a liar of the United States Treasury secretary — in this case, the Hon. Andrew William Mellon. In effect: The private citizen locked the banking system behind golden bars. [New “WiFi Crypto” Token is Going NUTS!]( Only a handful of crypto investors know about this… But there’s a tiny, affordable device… That’s paid investors real crypto – every day, with zero work… Just for having a working WiFi connection! It sounds crazy, but it’s true… And this 3:28 video explains everything… [Watch It Now]( Sorry, No Gold But one Great Depression, one New Deal and one world war later… we come now to a different $10 banknote, dated 1950: [image 2] This note is nearly a perfect twin to the 1928 model — with one infinitely telling exception. Can you sniff it out? Recall, the 1928 note claims it is: “Redeemable in gold on demand at the United States Treasury, or in gold or lawful money at any Federal Reserve Bank.” But here reads the 1950 version: “This note is legal tender for all debts, public and private, and is redeemable in lawful money at the United States Treasury, or at any Federal Reserve Bank.” The gold provision was stricken from the record. The bankers had broken free from their golden prison… and no longer could a private citizen bring them to honest account. Thus the fine print disguises a vast mischief: Yet what about “lawful money”? What is it? And how do you redeem it? ‘I Want My Lawful Money’ In 1947, a certain gentleman — A.F. Davis by name — dispatched the following note to the United States Treasury. It was accompanied by a $10 note: I am sending you herewith via registered mail one $10 Federal Reserve note. On this note is inscribed the following: "This note is legal tender for all debts, public and private, and is redeemable in lawful money at the United States Treasury, or at any Federal Reserve bank." In accordance with this statement, will you send me $10.00 in lawful money? The acting treasurer, M.E. Slindee, responded after this fashion: Dear Mr. Davis, Receipt is acknowledged of your letter of Dec. 9 with enclosure of one ten-dollar ($10.) Federal Reserve note. In compliance with your request, two five-dollar United States notes are transmitted herewith. And so Mr. Slindee began chasing his tail — in what the philosophical men call circular reasoning. The Government Gives Up In exchange for his $10 note, Mr. Davis received by mail two $5 bills bearing the identical pledge to redeem in lawful money. But this Davis fellow would not be so easily shooed off. He returned one of the $5 bills, once again demanding lawful money in exchange: Finally, Mr. Slindee threw up the sponge: Dear Mr. Davis: … You are advised that the term "lawful money" has not been defined in federal legislation. It first came to use prior to 1933 when some United States currency was not legal tender but could be held by national banking associations as lawful money reserves. Since the act of May 12, 1933, as amended by the Joint Resolution of June 5, 1933, makes all coins and currency of the United States legal tender and the Joint Resolution of Aug. 27, 1935, provides for the exchange of United States coin or currency for other types of such coin or currency, the term "lawful money" no longer has such special significance. The $5 United States note received with your letter of Dec. 23 is returned herewith. In 1963, all promises to redeem notes in lawful money were stricken from United States currency. [Over 62 And Collect Social Security? Take Action Immediately!]( [Click here for more...]( If you’re over the age of 62 and currently collect Social Security, you need to prepare now. Because Biden has given our country the worst inflation in decades – and many warn things will only get worse from here. Worse yet, the Social Security check you receive now may not keep pace with inflation… Which is why, if you don’t act now, you could fall behind in the months ahead. Is your retirement at immediate risk? [Click Here To Find Out]( The Evolution of a Swindle Here, in graphic detail, is the devolution of American money: [image 3] A Modest Defense of Paper Money Say what you will of paper money. We have held it in generally low regard… and for cause. Yet in one sense paper money is redeemable — if you’ll forgive the expression in the present context. Like gold and silver, paper money files a claim upon Earth’s resources. Its production likewise requires laborly input. It is woven from cotton and fashioned into linen. A paper dollar is tangible. A fellow can hold it in his hand, in his wallet, under his mattress. It cannot be erased at the stroke of a key. Meantime, the paper dollar is anonymous. Once out of your hands, it washes you out of its hair. It lacks all memory of you — and what you did with it. None of these happy virtues apply to digital money. Bound to Get Into Trouble Digital money removes all natural checks on monetary production. It has no tangible existence. It is limited only by the discretion of men. Wispy as fog and slippery as oil, it is conjured into existence… as if by the magician’s wand. Digital money is therefore the type of money bound to get itself into trouble. It is the ideal money for a government swollen to ghastly dimensions — its issue being unlimited in theory. And it gets around the world at electronic speeds, before the paper dollar can even get its pants on — to paraphrase Sir Churchill. Digital money can also disappear at a keystroke. The bank can freeze you out of it. Every transaction goes upon your permanent record. And if the electricity is out, if the power is ungridded… how do you purchase your essentials with digital money? You cannot. You are reduced to barter — if you and a trading partner can come to terms. Yet paper money can see you through... damn the electric grid. Two Cheers for Paper Money Thus we raise our half-throated defense of paper money. It maintains virtues of a cardinal nature. Since we cannot transact in dollars as originally defined — by gold and silver weight… And since we cannot transact in “lawful money,” as it lacks all definition… We will settle for paper money. That is, we will settle for a private and anonymous money… a money that does not snitch. That is, we will settle for a money that we can keep our hands on — and our eyes on… For it is a money that government cannot get its hands on — or its eyes on… Regards, [Brian Maher] Brian Maher Managing Editor, The Daily Reckoning [feedback@dailyreckoning.com.](mailto:feedback@dailyreckoning.com) Editor’s note: If you live in one of these 43 states… [click here for more...]( Do NOT pay your electric bill for May until you watch [this urgent warning from Jim Rickards.]( (You Need To Learn About AOC’s “Green New Scam” In Order To Opt-Out) [Click here]( or the play button below to learn the single most important move you need to make to protect you and your family this summer. [click here for more...]( --------------------------------------------------------------- Thank you for reading The Daily Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:feedback@dailyreckoning.com) [Brian Maher] [Brian Maher]( is the Daily Reckoning's Managing Editor. Before signing on to Agora Financial, he was an independent researcher and writer who covered economics, politics and international affairs. His work has appeared in the Asia Times and other news outlets around the world. He holds a Master's degree in Defense & Strategic Studies. [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your The Daily Reckoning e-mail subscription and associated external offers sent from The Daily Reckoning, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. 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