http://lewrockwell.com/orig10/galland37.1.html
A Brief Timeline of US Monetary System Failures
Here’s a brief history of past disruptions here in the United States. Importantly, with the US dollar now the de facto reserve currency of the world, this time around it’s global.
1862 – Congress passes the Legal Tender Act and authorizes the issuance of non-redeemable "Greenback" currency. Convertibility into gold and silver is suspended for all US currency.
1863 – National Banking Act authorizes the chartering of banks by the federal government. [And this was the real object for the north going to war and the largely Southern Jeffersonian opposition to federal chartering of banks which became the spur toward Jefferson's expositing his nullification ideas which eventually grew into Southern Secession the fight of the 1860s between the sections was over the banking system not slavery although they are connected and much more was involved]... more inserted below
>> the below inserted comments can be found toward the end of the document linked below
So why did the north invade? Why was there a war? There was a war because the north
invaded. Let me say that again. There was a war because the north invaded. Let me say that
yet again. There was a war because the north invaded – not because the South seceded. There
was no war in the Soviet Union. Wouldn’t it have been nice if we’d had the Communist Party
under Gorbachev and shouldn’t they thank God they did not have the Republican Party under
Lincoln. Well let me give you an answer as to why the north invaded. There was a time early
after the war in which the north was very honest about this. In 1877, Charles Bancroft
distinguished northern historian gave the correct explanation in his book, The Footprints of Time:
A Complete Analysis of our American System of Government. It’s what Thomas Dilorenzo has
called mercantilism – that’s our American System of government. He’s telling you what our
American System of government is and why there was a war. “While so gigantic a war was an
immense evil, to allow the right of peaceable secession would have been the ruin of the
enterprise and thrift of the industrious laborer and the keen eyed business man of the north. It
would have been the greatest calamity of the age. War was less to be feared.”
…. But an invasion by the north merely to maintain a territorial monopoly on coercion governed
by northern commercial interests was and is morally reprehensible. Americans should be deeply
ashamed of it. But of course they are not. If that war were fought today with today’s population
that war would have yielded over 5 million battle deaths – not to mention wounded and missing.
But to acknowledge the stark immorality of the north’s invasion would be to throw into question
the legitimacy of the vast centralized regime built upon it. --- {Today’s America in other words).
– Dr. Donald Livingston, excerpt of a speech to the SD Lee Institute, Arlington, Virginia April 2007
1865 – A 10% tax is levied on the issuance of bank notes by state-chartered banks, effectively ending that practice.
1879 – The US Treasury resumes redeeming dollars for gold and silver.
1900 – Passage of the Gold Standard Act, adopting the gold standard by the United States and demonetizing silver.
Specifically, the act provided for "...the dollar consisting of twenty-five and eight-tenths grains (1.67 g) of gold nine-tenths fine, as established by section thirty-five hundred and eleven of the Revised Statutes of the United States, shall be the standard unit of value, and all forms of money issued or coined by the United States shall be maintained at a parity of value with this standard..."
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But 33 years later, to gain the power to inflate the currency and collect the profit from doing so…
1933 – By executive order, Franklin Roosevelt prohibits the private ownership of gold. Congress passes the Gold Reserve Act, which enacts Roosevelt's executive order, abrogates all gold clauses in all contracts public or private, past or future (which cancels the convertibility of Federal Reserve notes into gold), though it confirms the convertibility of US Treasury notes held by foreigners into gold. Eleven years later, the US government takes its show on the road…
1944 – Bretton Woods system adopted with signature countries agreeing to tie the exchange rates of their currencies to the US dollar, which itself is linked to a fixed price of gold. Foreign trading partners retained the right to swap dollars for gold, imposing a de facto restraint on printing more dollars. For all intents and purposes, the US dollar becomes the world’s reserve currency. But 27 years later…
1971 – Nixon abruptly closes the “gold window,” unilaterally reneging on the Treasury's promise to allow foreign governments to redeem dollars for gold. Bretton Woods collapses. With no remaining tie to a tangible, the dollar is reduced to a paper token. The transition to a global fiat monetary system is complete.
Until 40 years go by and the inevitable consequences of giving politicians free rein over money creation become untenable…
Present day – Sovereign debt crisis. Desperate, debt-laden governments around the globe – the bulk of their reserves composed of fiat US dollars and euros at risk of going up in smoke – turn to the only thing they know, printing more money and issuing yet more debt. The global monetary system cracks and heads toward failure with no workable alternative on the horizon.
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