Tom Luxsox Coins

Dollar Note

What Really Backs the U.S. Dollar?

Since 1971, U.S. citizens have been able to utilize Federal Reserve Notes as the only form of money and for the first time had no currency with any gold or silver backing.

This is where you get the saying that U.S. dollars are backed by the "full faith and credit" of the U.S. Government. In other words, Nixon implied take our paper dollars or don't.

The U.S. at this time was a world super power having been victorious in WWII and there really wasn't much anyone could do about the decision by the U.S. government to abandon metal backing.

What does a dollar or Federal Reserve note represent now that gold and silver no longer back any of the currency printed in the U.S.?

A dollar bill used to say "This note is legal tender for all debts, public and private, and is redeemable in lawful money at the United States Treasury or at any Federal Reserve Bank." Look at a dollar bill today. It simply says; "This note is legal tender for all debts, public and private." In other words, you can't redeem it for "lawful money."

Guess what folks? A dollar bill is not lawful money, but rather "legal tender."

From the Treasury;

"Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. Redeemable notes into gold ended in 1933 and silver in 1968. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy."

What the government, via the Treasury and the Federal Reserve, really did in 1971 was coerce you to accept something (Federal Reserve notes) that used to be redeemable for gold and/or silver but now aren't redeemable at all.

But let's play along with their definitions and see if "all the goods and services in the economy" really back the dollar?

What the Treasury would have you believe is that GDP backs the dollar. GDP is defined as "The monetary value of all finished goods and services within a country's borders in a specific time period It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory."

To break it down;

GDP = C + I + NX + G

where:

"C" is equal to all private consumption, or consumer spending, in a nation's economy "I" is the sum of all the country's businesses spending on capital

"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)

"G" is the sum of government spending

For the U.S. Presently:

C is down to nothing with high unemployment and people struggling just to pay bills. I is down to nothing (especially now that lending has dried up) NX is hugely negative and has been for quite some time

G is all that is running the show

Yes, that's right, government spending is all that is running the show for the most part.

Does anyone think that adding more debt to debt is in the long run a healthy thing to do? Does it work for the consumer to take out more credit cards and use this newly created credit to pay for old debt and current expenses? Hardly. So how will it work for the U.S. government?

Can the U.S. government really afford to keep policing the world and fight wars when the only thing that allows them to do so, the U.S. dollar, is on the brink of collapse?

So if this theory of GDP backing the dollar is viable, and if government spending is all that is backing the dollar at this point in time, where do they get the money to do it? Answer; taxes and printing it out of thin air.

Since politicians don't get elected by raising taxes, that leaves only one viable answer; printing it or creating credit. Or in other words, DEBT. It's a nice legacy that our generation is leaving future generations isn't it?

The George W. Bush administration was spending out of control and President Obama's administration is piling on debt at an even more alarming rate "to prevent the system from collapsing" mind you. Any bets on their success? The system will collapse as long as government keeps spending.

But the reality with this government theory of GDP backing the dollar is flawed to begin with. The dollar acts as a "medium of exchange" and is only valuable because it can be exchanged for goods and services. It is one's production that is the actual backing of the dollar, not the piece of paper itself.

Take another look at that dollar bill you pulled out....

Do you need further proof that U.S. dollars are debt? What does it say at the very top of the dollar bill? It' says "Federal Reserve Note."

What is the definition of the word "note?"

Note: "A written promise to pay a debt."

What is this debt that you, the one who is possessing these dollars, has to pay? I thought your production (via your hard earned labor) was something you got to keep? But according to what you are being paid for your labor, i.e. dollars you are accepting as payment, are nothing but IOU's.

Since you can't redeem these IOU's for "lawful" money (gold or silver) any longer, what makes you think that these pieces of paper called "notes" that have 38 short years of existence are going to maintain your wealth in the years to come?

What are you doing about it today to protect yourself?

Don't be confused by all the games the Treasury and the Federal Reserve are playing. Educate yourself as to what money is and what really backs the U.S. dollar. Educate yourself about investing in gold.

About the Author

My free white paper, "How Gold Investments Can Secure Your Retirement Years" is a good start. Please do yourself a favor and read it. Note: I do not sell gold as the white paper is for information purposes only. If you like what you have read, please visit and sign up for my blog.

Million Dollar Theater California Note Cards Pk of 10 by CafePress $15 10 note cards with a photograph by Bruce Cutter of the Million Dollar Theater in Los Angeles, California. California Note Cards Pk of 10 Sending a note card is the perfect way to express yourself anytime. Let your friends and family know you care, whether you're marking a special occasion or just keeping in touch. A personal note on a beautiful card will make a lasting impression and a tou

Namibian Dollar $71.7 High Quality Content by WIKIPEDIA articles The dollar replaced the South African rand, which had been the countrys currency while it was under South African rule as SouthWest Africa 19201990. The rand is still legal tender, as the Namibian dollar is linked to the South African rand and can be exchanged on a onetoone basis locally. Namibia was also part of the Common Monetary Area from independence in 1990 until introduction of the dollar in 1993. In 1990, moves were under way to replace the rand with a new Namibian currency. The name kalahar was proposed, as the Kalahari Desert is located in eastern Namibia. The name of Namibias central bank was going to be known as the Namibia Reserve Bank. Denominations of this planned currency included 2, 5, 10, and 20 kalahar. (Note: There were two different designs for the 20 kalahar specimen notes.) However, these plans came to nothing, but some specimen notes were printed in a range of denominations. Author: Surhone, Lambert M./ Tennoe, Mariam T./ Henssonow, Susan F. Binding Type: Paperback Number of Pages: 76 Publication Date: 2010/12/04 Language: English Dimensions: 6.00 x 9.02 x 0.18 inches

Green Dollar Sign Green Note Cards Pk of 20 by CafePress $25 Money makes the world go round and drives greed. It can't buy you happiness, but it will buy a lot of things that will make you happy. Show your love of money with this green dollar sign. Green Note Cards Pk of 20 Sending a note card is the perfect way to express yourself anytime. Let your friends and family know you care, whether you're marking a special occasion or just keeping in touch. A personal note on a beautiful card will make a lasting impression and a tou

Dollar Rose Funny Note Cards Pk of 20 by CafePress $25 I'm sure there's some deep philosophical meaning that can be read into this design, but the truth is simply that I thought a rose made out of a dollar bill looked really cool and surreal. Funny Note Cards Pk of 20 Sending a note card is the perfect way to express yourself anytime. Let your friends and family know you care, whether you're marking a special occasion or just keeping in touch. A personal note on a beautiful card will make a lasting impression and a tou

Secret Note $1.3 This unique sheer vellum invitation has bold colors. Invitation has beach theme with sand dollar, starfish, and bottle. Wording may be printed on the sand dollar and in bottom right area. Bright white reception, respond, and informal/thank you cards are available.

United States Dollar $79.66 United States Dollar. Dollar/Peso sign, Coins of the United States dollar, Federal Reserve Note, United States Consumer Price Index, Reserve currency Author: Miller, Frederic P./ Vandome, Agnes F./ McBrewster, John Binding Type: Paperback Number of Pages: 76 Publication Date: 2009/10/08 Language: English Dimensions: 5.98 x 9.01 x 0.18 inches

Dollar $6 Dollar - Steve Hofstetter

Kennedy Half Dollar $74.88 Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. Succeeding the Franklin half dollar, the Kennedy half dollar is a coin of the United States first minted in 1964, the year following the assassination of President John F. Kennedy. It features the face of Kennedy on the obverse and an eagle on the reverse. The obverse was designed by Gilroy Roberts; the reverse was designed by Frank Gasparro. Author: Miller, Frederic P./ Vandome, Agnes F./ McBrewster, John Binding Type: Paperback Number of Pages: 100 Publication Date: 2011/02/26 Language: English Dimensions: 5.98 x 9.02 x 0.24 inches

Dollar Meadows by ResortQuest $366 Dollar Meadows owners are long time Sun Valley visitors with a colorful athletic history depicted in photos and ski memorabilia throughout the property. Books, antiques and homey touches make this a special home away from home that has been adopted by many appreciative families over the years. In several units the most desirable feature is the big deck off the entryway with views of both Baldy and Dollar Mountain. Check in is located at 200 West River St., Ketchum, ID 83340.Please note that there is a departure cleaning charge for stays of two nights or less. 2 bed/2 bath deluxe condo w/loftAll condos have their own exterior entrance w/ private decks and gorgeous views. Some of Dollar Meadows Condos have access to Sun Valley amenities such as outdoor hot tubs, and an Olympic pool. Please check each unit description to see if the unit you are interested in has access. Unit bedding varies. Unit sleeps 6. Max Guests 6 4 bedroom/2 bathroom deluxe condoAll condos have their own exterior entrance w/ private decks and gorgeous views. Some of Dollar Meadows Condos have access to Sun Valley amenities such as outdoor hot tubs, and an Olympic pool. Please check each unit description to see if the unit you are interested in has access. Unit bedding varies. Unit sleeps 8. Max Guests 8 5 bedroom/3 bathroom standard condoAll condos have their own exterior entrance w/ private decks and gorgeous views. Some of Dollar Meadows Condos have access to Sun Valley amenities such as outdoor hot tubs, and an Olympic pool. Please check each unit description to see if the unit you are interested in has access. Unit bedding varies. Unit sleeps 12. Max Guests 12 Unit Amenities Alarm clockBalconyBarbecue GrillDeckDVDFireplaceIronIroning BoardLinens ProvidedNon SmokingPets Not AllowedPrivate EntranceStereo SystemTowels ProvidedTVVCRViewsWasher/Dryer

Dharma Sand Dollar Rug $95 Bring the exquisite design and striking pattern of the Dharma Sand Dollar Rug into your home to set it apart from all of the rest. This vibrant rug is hand-tufted and handmade with raw New Zealand Wool and finished with a natural latex adhesive in India. Wool provides a luxurious feel, is soft, thick, strong, resilient and static-resistant, perfect for high-traffic areas. Rug is made with earth in mind, with organic and sustainable materials used when available. Please note, shedding is part of the natural wear-in process and also characteristic of fine wool. Available in your choice of sizes.

Brunei Dollar by Trev, Nuadha [Paperback] $113.11 Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. The ringgit Brunei (Malay) or the Brunei dollar (English, currency code: BND), has been the currency of the Sultanate of Brunei since 1967. It is normally abbreviated with the dollar sign , or alternatively B to distinguish it from other dollardominated currencies, It is divided into 100 sen (Malay) or cents (English). The Brunei dollar is managed together with the Singapore dollar at a 1:1 ratio by Monetary Authority of Singapore (MAS). (Singapore is one of Bruneis major trading partners.) Author: Trev, Nuadha Binding Type: Paperback Number of Pages: 164 Publication Date: 2011/07/24 Language: English Dimensions: 9.02 x 5.98 x 0.38 inches

Salt Spring Dollar $74.88 Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. The Salt Spring Dollar is a local currency issued by the Salt Spring Island Monetary Foundation to promote local history, art and goodwill on Salt Spring Island, British Columbia, Canada. Roundtable discussions of the Sustainable Salt Spring Island Coalition examined the possible establishment of a local currency in the fall of 2000. In July 2001, the Salt Spring Island Monetary Foundation was established and registered with the Province of British Columbia. The first issuance of the currency taking place in September 2001. In 2006, the Spring Island Monetary Foundation began planning their first silver coin edition. The first coins were minted and issued in December 2007. Author: Surhone, Lambert M./ Tennoe, Mariam T./ Henssonow, Susan F. Binding Type: Paperback Number of Pages: 84 Publication Date: 2011/02/25 Language: English Dimensions: 5.98 x 9.02 x 0.20 inches

Note $10 Note

The Note $10.49 The Note

$100 Dollar $49.99 $100 Dollar

Dollar Medallion $6.99 Dollar Medallion

Holy Dollar $10 Holy Dollar

Dollar Bling $10 Dollar Bling

Dollar Diamonds $10 Dollar Diamonds

Dollar Lights $10 Dollar Lights

Dollar Bundle $10 Dollar Bundle

Dollar Billz $10 Dollar Billz

Dollar Horizon $10 Dollar Horizon

Fall Dollar $10 Fall Dollar

Love The Dollar $10 Love The Dollar

Matrix Dollar $10 Matrix Dollar