Since implementation of the Federal Reserve Act in December of 1913 the United States dollar has lost 97% of its purchasing power. In other words, items (utilizing adjusted/comparable costs of production) selling today for $1.00 were regularly traded at 3 cents in 1913. Considered from another perspective, a good quality man's suit could be purchased in 1913 for one troy ounce of gold valued at $20.00. A comparable quality suit would sell today for approximately $1,297.00 which just happens to be the value of 1 troy ounce of the yellow metal.
The preamble to the Federal Reserve Act reads as follows:
"An Act To provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes."
The author of HR 1207, Dr. Ron Paul (R Texas 14) intends to introduce legislation in the 112th Congress during 2011 requiring an audit of the gold allegedly owned by the US government and secured in depositories at Ft. Knox, Kentucky and the New York Federal Reserve vault at 33 Liberty street New York, NY. It is anticipated that the opposition to such legislation will consist of the self same opponents as those who killed HR 1207. An important argument of our rulers will however be undercut, and that is the separation of politics and monetary policy to wit: the gold is either in the depositories and owned by the Treasury and the Federal Reserve or it is not.
Such an audit will in the opinion of this writer reveal that either a) the gold seized/stolen from the American people in 1933 is still secured where the government assures us that it is, or b) it has been sold, leased or transferred to the London gold depository.
The desperation of our elite rulers to control the monetary policies engendered by their insistence on the acceptance of fiat paper currency whose printing presses they control is beginning to be revealed to the nation's booboisie. When such knowledge becomes widespread the game will be up and the result will not be pleasant to behold.
There are valid reasons why precious metals have evolved as media of exchange lo these many millennia. The chief reason being the inability of political elites to "print gold" not withstanding the "clipping" of coins by Roman emperors and the issuance of "Federal Reserve Notes" by our current elite.
The tide of history is rising and cannot be stemmed by the current elite in Washington and New York.