HERBERT G PETERS
Andrew Jackson Democrat
Candidate for US Senate, California
34 US Senate Candidates on the Ballot.
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find the name of the candidate you choose.
Genesis 13:2 And Abram
(Abraham) was very rich in cattle, in silver, and in gold.
Examples of commodity
Deuteronomy 25:15 But thou shalt have a perfect and just weight, a perfect and just
measure shalt thou have: that thy days may be
lengthened in the land which the LORD thy God giveth
We started with a precisely
defined dollar; the dollar was defined by Congress in the 1792 coinage act
as 24.1 grams of pure silver or 27.0 grams of standard silver. Section
19 of the Act established a penalty of death for debasing the gold or silver
coins authorized by the Act.
But; from our beginning, the
banks were allowed to create money in the loan making process – and we had
inflation from the beginning. With inflation each dollar lost value and a few
bank runs resulted; and because of bank runs, about 90% of that bank’s
customers lost their entire deposits. A likely serious blow to those victims.
The Congress “fix” (more of
a bandage – they did not fix the real problem – inflation) “the fix” was the
“Federal Deposit Insurance Corporation” FDIC which is a promise that the
government will cover your losses – up to their artificial limit.
The real fix; the Congress
would deny the banks privilege to create money in the loan process. This
method would be best for almost everyone; and it would give us very rewarding
interest rates for money savers. Under this method a person can easily
outperform the “Social Security” system.
Gain/Inflation the longer the term the bigger the tax. Example, grandpa, at
age 20 buys property for $30,000; 60 years later he sells the property for 90
times what he paid for it. The capital gain; $2.7 million minus costs. If
grandpa had made no improvements the gain would be $2.4 million. ALL of the gain in this example was from
ALL of the gain in this example was from inflation.
pays 15% capital gain tax of $360,000. If we had zero inflation grandpa would
pay zero tax.
is a made up example of how people suffer at our current tax system.
people are mostly better off with no inflation, although it is comforting
when every year you count your blessings and you look at your house and say
my house is now “Worth” double what I paid for it.
sold, some may be subject to the capital gain tax and the money left over is
about half the value of the money was worth when the house was purchased. The
primary thought is to understand why some entities love inflation – because
of their gain from your inflation.
idea is that we are better off with no inflation. I will work for zero
What Is Money?
Money is an article of
“value” (or promise of value) that can be easily and precisely traded for
other valuable materials. Money can be made of paper, or junk metal, or can
be a number on a signed check (each of the three representing a promise of
value), or precious metal which has intrinsic value. If there is integrity;
the substance does not matter.
To prepare for the
revolutionary war the Continental Congress borrowed what they could, were
subsidized by France and printed paper “Continentals”
as needed. The Continental had a Promise statement on the note that is was redeemable in gold or silver (dollar for dollar).
The expediency of the war
needs inflated the supply of the “Continental” and partly accountable to the
lack of understanding of the Congress of the “Continental” instrument, it
became virtually worthless
at the end of the war. The silver and gold coins existing then maintained
value because they have value in themselves. (Commodity Money)
During our many years before
about 1965 we mostly used precious metal coins and silver certificates and
checks; and the people endured the inflation; and as time moved we developed
faith in the silver certificates and the idea that our money was backed by
The shift to fiat money
In 1965 the government
ended circulation of the silver certificates and in 1968 it terminated
redemption of silver certificates for silver and silver certificates are treated
as federal reserve notes. Since 1970 all coins minted for circulation as
currency are clad coins with no silver content.
Since the termination of
precious metal backing of our money we have possibly completed the circle and
are coming close to repeating the “Continental” which people lost faith in
and it lost almost all of its value.
The government, between
1981 and 2016 has inflated
the M2 money supply, from $1.8 trillion in 1981 to $12.4 trillion in 2016.
That is approximately a 19% per year increase in the money supply. With these
huge increases in currency it moves a person to think of Weimar, Republic, now known as Germany and the possibility of hyper inflation here.
There nothing intrinsic about gold or silver that makes
one form of money more preferable over the other. The real issue is the control of how many dollars exist
and the integrity of the government. Our Congress has failed the integrity
test; therefore, I am for restoring precious metals to our currency; and
fixing the supply of money.