When the U.S. Dollar Finally Becomes Worthless

Discussion in 'Chat' started by W5HRO, Jul 16, 2015.

  1. W5HRO

    W5HRO Administrator

    Anyone remember the below and notice anything different about it?

    remember_this.jpg

    Notice how at the top of the bill it says SILVER CERTIFICATE? I still have a few of these stashed away, but what does the current one dollar bill say? Also notice the other parts that are missing on today's bill. "THIS CERTIFIES THAT THERE IS ON DEPOSIT IN THE TREASURY OF…" And at the bottom, "IN SILVER PAYABLE TO THE BEARER ON DEMAND".

    Well, there are warning signs the U.S. dollar is going to collapse and it's already started. The government has started printing larger and larger amounts of money out of thin air that's not backed by anything and it's getting worse. Ever since Nixon took us off the gold and silver standard back in 1971 the problem has been slowly escalating. The recent mortgage and bank crisis bailouts are good examples because the government's fix was to just print more worthless paper.

    I think most people don't fully understand what money really is. When you hold a dollar bill in your hand what makes it worth one dollar? What is it backed by? The answer is it's not backed by anything anymore and it's becoming as worthless as the paper it's being printed on. The photo I attached above meant that dollar was backed by one dollar's worth of silver being held at the U.S. Federal Reserve. Unfortunately that hasn't been the case since 1971.

    Anyway, this is going to be a real problem and could lead to the worse economic crisis this country has ever seen. I don't know about anyone else, but the warning signs are plain as day. Look what recently happened to Greece.

     
  2. W1VTP

    W1VTP Member

    Start buying "junk silver" currency. I'm too old to care (78+) but if I had concerns for the long term, I'd either do that or gold (gold market is too volatile for my taste).

    http://www.jmbullion.com/charts/gold-price/

    I have one of those silver certificats: one my mother gave me for my 21st birthday
     
  3. W5HRO

    W5HRO Administrator

    We were actually taken off of the gold standard in 1934. That's actually when the whole thing started. Everything had always been fine up until then and the government only printed money backed by gold in the Federal Reserve. If someone wanted to exchange those notes/bills (gold certificates) they could and those bills would be destroyed as soon and they were exchanged. They didn't continue to circulate or print money we didn't have.

    Anyway, it was due to the Great Depression and they were trying to stimulate the economy and every economic crisis or downturn that has happened since they try to stimulate things by printing up more money and getting it into circulation. FDR started it with the Silver Purchase Act of 1934 which switched everything to silver instead of gold, then Nixon finally ended it the rest of the way in 1971.

    It's been on a slow downhill slide leading to disaster ever since FDR first screwed it up and started the ball rolling. Almost every president since has in one way or another followed suit. However, what the last two administrations have done just pales by comparison. What they started in 2008/2009 should scare the hell out of everyone because sooner or later we are going to pay the ultimate price and we will find ourselves in a similar situation as Greece.

    I think the biggest problem is that the average person doesn't have a clue as to what's going on. The mass just isn't educated on it and doesn't have an understanding of how things actually work and what money (currency) really is. They won't know until the disaster eventually happens and it will.

    P.S. I have around four or five of the 1957 silver certificate bills and I think at least one of the 1934 bills. I also have a couple of the $5 bills with the red ink on them, but I forget what those are.
     
  4. W1VTP

    W1VTP Member

    Here's mine. I think they either had taken these off line or were about to. 1958, when I turned 21. Those were the days! Sadly, I don't have any other bills. Things were too tight in those days

    Junk silver is the most painless way to get real currency. Silver has been quite a roller coaster ride come to think of it

    Al

    SILVER CERT DOLLAR (FRONT).jpg
     
  5. W5HRO

    W5HRO Administrator

    Yeah, that's a 1935 series.

    I found the below pics online via Wiki

    1934 Series
    1934.jpg

    1935 Series
    1935.jpg

    Unfortunately the Silver Purchase Act of 1934 did little to stimulate the economy back then so in the end it was all for not. It wasn't until WWII started that everything improved. The war is what turned things around, but the metal and currency change started us on the wrong downhill path and we have been it on ever since.

    P.S. I searched around and I think the $5 bills I have are just 1963 red seal bills. I'll have to look at them later this weekend to see what the dates are, but 1963 sounds right because they were given to me like your bill was sometime in the mid to late 60's. I think they still look almost new, but they are not silver certificates.
     
  6. K4TQF

    K4TQF Member

  7. W5HRO

    W5HRO Administrator

    I found my 1963 red seal bills when JFK tried to make the problem worse via Executive order 11110. These bills were suppose to be printed during the transition period until Silver Certificates could be removed from circulation. After his assassination they were discontinued by LBJ and Federal Reserve Notes were printed again. JFK was a real wacko nutcase because these reds seal bills were not backed by anything and were not even connected to the Federal Reserve at all. Talk about printing money out of thin air ::)

    red_seals.jpg
     
  8. WB4WHJ

    WB4WHJ Member

    I think those were Treasury notes with the red ink?
    Been a long time since I have seen one.
    I have seen a 1928 100 dollar gold note, a friend of mine has.
    US money now is just fiat currency.
    73
    Bo wb4whj
     
  9. W5HRO

    W5HRO Administrator

    The red seal bills were issued in 1928, 1953 and then again by JFK in 1963 and for different reasons each time.

    If Wikipedia is correct...

    On November 28, 1961, President Kennedy halted sales of silver by the Treasury Department. Increasing demand for silver as an industrial metal had led to an increase in the market price of silver above the United States government's fixed price. This led to a decline in the government's excess silver reserves by over 80% during 1961. Kennedy also called upon Congress to phase out silver certificates in favor of Federal Reserve notes which, according to the Associated Press at that time, were still backed by gold.

    Kennedy repeated his calls for Congress to act on several occasions, including his 1963 Economic Report, where he wrote

    "I again urge a revision in our silver policy to reflect the status of silver as a metal for which there is an expanding industrial demand. Except for its use in coins, silver serves no useful monetary function."

    "In 1961, at my direction, sales of silver were suspended by the Secretary of the Treasury. As further steps, I recommend repeal of those Acts that oblige the Treasury to support the price of silver; and repeal of the special 50-percent tax on transfers of interest in silver and authorization for the Federal Reserve System to issue notes in denominations of $1, so as to make possible the gradual withdrawal of silver certificates from circulation and the use of the silver thus released for coinage purposes. I urge the Congress to take prompt action on these recommended changes."

    Just one dumb move after another...