|
TRUE UNIT O F ACCOUNT ONE OUNCE OF SILVER
To have a unit of account based upon anything but gold of silver is a self deception. Goods and services must be calculated upon a stable unit of account that does not change with either time or space.
We cannot trade apples for oranges or cheese or cotton if our trading partner doesn't want any of them. We have to have a commodity that is mutually accepted by all that acts exactly like the lowest common denominator when adding fractions. The commodity should be a store of value that can be used at a later date for a different good or service.
1 crate of apples, 1 lb of cheese, 2 yards of cloth, 1 hour of labor, 10 FRNs, 1 once of silver. 1 crate of apples, 1 lb of cheese, 2 yards of cloth, 1 hour of labor, 15 FRNs, 1 once of silver. 1 crate of apples, 1 lb of cheese, 2 yards of cloth, 1 hour of labor, 20 FRNs, 1 once of silver. 1 crate of apples, 1 lb of cheese, 2 yards of cloth, 1 hour of labor, 25 FRNs, 1 once of silver. 1 crate of apples, 1 lb of cheese, 2 yards of cloth, 1 hour of labor, 30 FRNs, 1 once of silver. 1 crate of apples, 1 lb of cheese, 2 yards of cloth, 1 hour of labor, 35 FRNs, 1 once of silver.
Inflation is the increase of the money supply in relationship to the goods and services available.
As long as the FRN Note is the Unit of Account and the price of goods and services is based upon it, inflation and debt are inevitable.
If we are going to have stability in the market place, the Unit of Account must be stable. This means that the price for goods and services must be based upon a Unit of Account that is stable. The only items which qualify for use as a Unit of Account are gold and silver.
"With the monetary system we have now, the careful
saving of a lifetime can be
"There's a sensible realization that small open
economies, heavily dependent on
"The coin must have no nominal value. In our paper money universe, with bills distinguished mainly by the numbers printed upon them, to engrave a precious metal coin with a value which is expressed in terms of paper money, is to condemn the coin to disappear from circulation. This will occur with complete certainty, the moment that the market price of the precious metal in the coin approximates or surpasses the engraved paper money value. At that moment, the coins will be gathered for melting into bars which are worth more, in paper money, than the total engraved paper money value of the coins.1
The gold and silver coins that were displaced by paper, all had values engraved upon them – that is why they disappeared.
Another point is that the coin to be selected for use as money, must be of a weight, or a fraction of a weight that is defined by the system of weights and measures. The troy ounce is such a weight." Hugo Salias Price |