Before we can come to an understanding of how our U.S. dollar has lost 95% of its value since the Federal Reserve Act of 1913, one must first understand the difference between real money and the fake money. Ever since 1933 when the U.S government under President Franklin Roosevelt confiscated the people’s gold we have been beholding to the Federal Reserve and gone deeper and deeper into debt. The National Debt is at $15 trillion and rising by the second. We are a debtor nation caused by the continued manipulation and debasement of our money courtesy of the Federal Reserve. That dollar bill in your purse or wallet is not worth the paper it’s printed on! How did this come to be? What happened to real money? Where did all those silver and gold coins go? What happened to that distinct sound and weight of real money jiggling in our forefathers pockets? Lost dollar value? How did that happen? The paper money that is issued by the Federal Reserve is fake. It doesn’t have any intrinsic value. Intrinsic value (IV) is an important concept to remember. This fake money is worth nothing. It’s created out of thin air with a stroke of a keyboard. The only reason that it’s used as an exchanged medium is that the Federal government requires merchants, employers, contractors etc to take it to satisfy a debt. If a small business refused to take my worthless dollars and instead wanted silver or gold coins (Real Money), that business owner could be fined or worse yet spend time in the locker. With that being said, the only real money we have in circulation today is the pocket change we carry. This money is at least worth the base metals that the U.S. Mint uses to produce it. Also, a little tid-bit: only 3% of our money is in Federal Reserve Notes, the rest exists as digits! How fake can that be!!
Conversely, silver and gold coins have intrinsic value (see above Spanish Silver Pillar Dollar). This money is real, based on the value of the precious metal, silver, contained within. For example, around the 1900 anyone could go to his/her local bank and offer up 5 silver $1 coins (Morgan Dollars) and receive in return a $5 dollar paper certificate (Indian Chief).
In other words, the paper-monied Indian Chief had an intrinsic value of 5 dollars worth of silver, certified and backed by the United States of America. The above Spanish Silver Dollar was used as legal tender (money) and circulated in the United States until the early 1850′s. This was an era in American history where money was worth something, based on its intrinsic value (silver or gold). That all changed in 1913 when the Federal Reserve Banking System came into being. Since then, through a maze of smoke and mirrors, manipulation and so-called “monetary policies”, the FED has made our money practically worthless and our national debt climb to astronomical proportions! Incidentally, try going to your regular bank and exchanging that $5 paper Lincoln in your wallet for silver; the bank clerk would laugh at you!!