Sunday, March 6, 2011

Rocket Scientist Recommends Gold

While it is exciting to see the upheaval in MENA and the overthrow of dictators in the region, true freedom and prosperity is unlikely to come to the region until many in the general population understand the importance of property rights, the rule of law and free markets.

It's the same in the United States, while there is an uneasiness in the air about big government, and a call for less government by many, few of these calls for less government indicate a deep understanding of what less government means. This lack of understanding exists at the very core level in the shape of a failure to understand the necessity for a money that can not be manipulated by government.

Congressman Ron Paul has been at the forefront in explaining why gold makes for an ideal currency, but the understanding of the importance of gold must go beyond those that have read Ron Paul's books. There needs to be many books written about gold and more general discussion of the topic. That's why I am pleased that David Redick sent me a copy of his new book, Monetary Revolution-USA.

Redick started out his career as an aerospace engineer working on rocket engines and satellites, before entering the business world. His book, though simple to follow, contains the logical presentation you would expect from someone trained as an aerospace engineer.

Redick's case for private mints that issue gold and his call to end the Fed and legal tender laws is as sound as it gets.  The book also contains important historical information. Redick explains how President Woodrow Wilson was tricked by the evil Bernard Baruch into signing the Federal Reserve Act. Reddick also points out that the English Parliamentt passed the 'Currency Act of 1764', which caused a depression in the colonies and was one of the reasons for the American Revolution.

Redick also makes the important point, that you rarely see discussed, that because the dollar is also the global  reserve currency, it allows the U.S. to import so much and to off-shore so many jobs than otherwise would be the case, as other countries hold onto dollars, thus protecting the value of the dollar. Redick all makes clear that this free ride for American consumers and American businesses is slowly coming to an end.

Redick's book closes with a six-step plan to return to gold as money, as part of his plan, he calls for the abolishment of Fannie Mae, Ginnie Mae, Sallie Mae, the FHA, the Pension Guaranty Board, the FDIC, all TARP like projects, the Export-Import Bank, etc. etc.

He calls for the U.S. to terminate membership in the IMF (and get our gold back!), the World Bank, the BIS, the G-20, the G-8, and the United Nations.

I couldn't agree more.

This is as solid of a book as you are going to find on gold as money, and the dangerous domestic and international organizations that exist to prop up the dollar and the paper economy created by use of the dollar.

For anyone looking to understand why we need to return to a "private gold standard", this book provides the answer. For those who have all ready read Ron Paul's books on the topic, Monetary Revolution-USA is great supplemental reading. The two authors think alike on the topic but bring their own unique voices to the subject. This book deserves to be read far and wide. It is an important tool in the revolution for sound money.


  1. There was some other funny business surrounding Woodrow's signing of the FRAct, which I detailed here:

  2. Perhaps you would find Ingo Bischoff's comment interesting?:

    "Take the Federal Reserve Note. It is the worst of all the currencies. It is monetized debt. It will always eventually self destruct. It is irredeemable. While it works, it is good as a "consumption" currency, but you cannot use a Federal Reserve Note for your savings, because you cannot save debt.

    Then take the U.S. Greenback. This currency is not as bad as the FRN because it is a "Bill of Credit". It is accepted because the holder has confidence in the U.S. Government. It is irredeemable. It is good as a "consumption" currency, but you cannot use a U.S. Greenback for savings, because you save what you already own. The greenback as a "Bill of Credit" is a claim on the assets of the U.S. Government, assets which you already own.

    Then there is the commercial bank created redeemable currency. This currency is good as "consumption" currency, even better as a "savings" currency. This currency is created against the value of Real Bills which are backed by goods moving to market, and which can be redeemed on demand for gold. Which means that any investment trust is happy to take your redeemable currency and invest it for you in gold bonds to get an interest return.

    Do you see now why the U.S. Congress had to pass the Social Security Act in 1935...???

    FDR had confiscated all the savings of the American people in 1933. Then he forbade them to hold gold in the future. The American people were prohibited by their own government from saving for their old age. Does any one realize that...??? I think, if they did, there'd be a revolution in the streets tomorrow morning."

    - From the comment section of an interview of Ingo on The Daily Bell