Friday, May 8, 2009

This "Cash 4 Gold" thing

If you watch syndicated TV at all then you've probably seen commercials for either "Cash 4 Gold" or "dollars for Gold" with promises of "cash for your broken or unwanted jewelery." Well sure that sounds good, who wouldn't want money for things they no longer use?

Speaking of money; here's a bit of a history lesson for people who wonder about the paper and electronic cards we use for currency. Not so long ago a country's wealth was solely determined by the gold in circulation, however, gold is rather heavy and to carry it in large quantities is difficult so the dollar bill was born. These new pieces of paper were a representation of the gold in a country and so were redeemable in gold, one should note that these carried no inflation due to being back by gold. They even had it printed on them. then some folks who chaired some large name banks decided it was time for the banks to control the world. the federal reserve system was enacted after a series of bank closures due to outflows of cash. This new system required the banks to be in control of the gold supply of a country so that they controlled the entire money supply.

With the Fed. Reserve in place the banks loan money to the country in question and that's where each country gets the funds to buy and trade with others. Wait for one second and think "if the bank loans money to the country where do they get the money to pay off the loan?" If all other countries have to borrow money in this fashion then the money to pay off the loan interest can only come from the banks.

Now with this cash and dollars for gold they're out to tie up loose ends it seems. They advertise that "your gold goes straight to the refinery" and after that it's headed to a reserve because the supply must be controlled to maintain control over the people through these little notes that simply say "legal tender" which is really another way of saying "completely worthless."

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