Constitutional Money The Rotary Club of New York May 2014.
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Transcript of Constitutional Money The Rotary Club of New York May 2014.
Constitutional MoneyThe Rotary Club of New York May 2014
Three Questions:1. Is the Dollar a Constitutional unit of
measure?
2. What is One Dollar?
3. What happens when Constitutional monetary standards are forsaken?
Money of the ConstitutionArticle I Section 8, Clause 5[The Congress shall have Power] To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
Article I Section 9, Clause 1… a Tax or duty may be imposed on such Importation, not exceeding ten dollars for each Person.
Article I Section 10, Clause 1No State shall … make any Thing but gold and silver coin a Tender in Payments of Debts.
Amendment VIIIn Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved …
The Dollar is but one of several Constitutional Units of Measure:
Unit of Measure
Times Stated Definition when the Constitution was Ratified
Year 33 One revolution of the earth around the sun’s axis
Day 21 One revolution of the earth around it’s own axis
Hour 1 15 degree rotation of the earth around it’s own axis
Mile 1 A unit of linear measure equal to 5,280 feet
Dollar 2 A coin containing 371.25 grains of silver
Eisner v. Macomber, 252 U.S. 189, 206 (1920)Congress cannot by legislation alter the Constitution, from which
alone it derives its power to legislate, and within whose limitations alone that power can be lawfully exercised.
What is One Dollar?
One Dollar is a standard unit of measurement
Weight: 16 Ounces = 1 Pound * 2000 = 1 Ton
Length: 1 Inch * 12 = 1 Foot * 3 = 1 Yard
Analogous
24 Hours = 1 Day * 7 = 1 WeekTime:
Money: 371 ¼ grains of Silver minted = $1.00
Dollars or Units – each to be of the value of a Spanish milled dollar as the same is now current and to contain three hundred and seventy-one grains and four sixteenth parts (371 ¼) of a grain of pure … silver
Does the Constitutional Dollar standard exist today?
• Yes! How do we know that?
• The number $1.292929292.It is derived from the constitutional dollar unit.
Title 31 U.S.C. §5116(b)(2): The Secretary shall sell silver under conditions the Secretary considers appropriate for at least $1.292929292 a fine troy ounce.
Congress’ Responsibility to Regulate the Value of Coin
Key:
1 troy oz = 480 grains1 troy oz = 31.1034 grams1 troy oz = 1.09714 oz
1 Eagle (10 Dollar)(247.5 grains Gold)
1 Dollar(371.25 grains Silver)
X 10 =(3,712.5 grains
of Silver)
1 Cent(46.3 grainsof Copper)
X 100 =(4,630 grains
of Copper)
1 Dollar(371.25 grains Silver)
Congress has the responsibility to regulate the value of all minted coins to the fixed pure metal Dollar standard
Supreme Court - Coin Money is a Constitutional Requirement• United States v. Marigold, 50 U.S. (9 How.) 560, 567-
568 (1850):
“ [Congress has] the duty of creating a pure metallic standard of value throughout the Union. The power of coining money and of regulating its value was delegated to Congress by the Constitution for … preserving the uniformity and purity of such standard of value * * *
"If the medium could immediately be expelled, and substituted by one it had neither created, estimated, nor authorized one possessing no intrinsic value then the power conferred by the Constitution would be useless wholly fruitless of every end it was designed to accomplish.
1792 Penny
Marigold was cited in: International Bancorp Llc v. Societe Des Bains De Mer et Du Cercle Des, 329 F. 3d 359, May 19, 2003
What happens when Constitutional monetary standards are forsaken?
1. An unrealized loss of capital and property;
2. A loss of real economic value;
3. The loss of the full economic impact of automation;
Property = # Lawful Money $
($)13,500
=1957
1,600 Sq. Ft. Home
= # Egg Cartons(Brown Eggs)
=
~37,700
# Legal Tender $
$13,500
=
U.S. Silver Certificate
No LawfulMoney Available
=
~37,700 “$85,400”
Fed. Res. Bank Note
1982
1,600 Sq. Ft. Home
=
($)13,500
=
~37,700
2007
1,600 Sq. Ft. Home“$175,000”
Fed. Res. Bank Note
=
Unrealized losses of capital and property
Buy1957
Sell2007
1,600 Sq. Ft. Home
No Cartons of Eggs Gain
No Gain No Tax Due
No Lawful Money Gain
No Gain No Tax Due
Federal Reserve Note“Gain” of $161,500
Alleged Tax Due ~FRN$55,000
After FRN Tax results in aLawful Money Property
Loss of ($)4,269
After FRN Tax results in aPhysical Egg Carton Loss of
11,922 Cartons of Eggs
Property
($)13,500
=
=
($)13,500
= # Lawful Money $
The purported Federal Reserve Note “Gain” is actually a “quiet theft” in thatit results in a physical property loss with the perception of an actual gain.
=
=
~37,700
~37,700
= # Egg Cartons(Brown Eggs)
1,600 Sq. Ft. Home
$13,500
$175,000
=
# Legal Tender $
U.S. Silver Certificate
Fed. Res. Bank Note
=
Quiet Theft!
Stock = # Lawful Money $
$1,942.00
=
= # Egg Cartons(Brown Eggs)
=
~5,424
# Legal Tender $
$1,942.00
=U.S. Silver Certificate
No LawfulMoney Available
=
~4,266 “$4,884”
Fed. Res. Bank Note
=
$2,338.56
=
~6,571 “$30,501.00”
Fed. Res. Bank Note
=
A loss of real economic value
1962
4 Shares IBM Stock
1982
75 Shares IBM Stock after splits
2007
300 Shares IBM Stock after splits
IBM Stock Splits: 1964-05-18 [5:4], 1966-05-18 [3:2], 1968-04-23 [2:1], May 29, 1973 [5:4], Jun 1, 1979 [4:1], May 28, 1997 [2:1], May 27, 1999 [2:1]
Buy1962
Sell2007
IBM Stock
17% Gain in Eggs Cartons
Tax Due ~172 Egg Cartons
17% Lawful Money Gain
Tax Due $59.48
Federal Reserve Note“94% Gain” of $28,559
Alleged Tax Due (15%) ~FRN$4283.85
FRN Inflation results in a83% tax rate or $328.45 of the $396.56 of the purported gain
After FRN Tax results in aPhysical Egg Carton Loss of
923 Cartons of Eggs
Stock
$1,942.00
=
=
$2,338.56
= # Lawful Money $
The purported Federal Reserve Note “Gain” is actually a “quiet theft” in thatit results in an 83% tax rate with the perception of 15% tax rate.
=
=
~5,424
~6,571
= # Egg Cartons(Brown Eggs)
IBM Stock
$1,942.00
“$30,501.00”
=
# Legal Tender $
U.S. Silver Certificate
Fed. Res. Bank Note
=
Quiet Theft!
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 610
2
4
6
8
10
12
Inflation adj 3.2%cost/unit
The loss of the full economic impact of automation.
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 610
2
4
6
8
10
12
Inflation adj 3.2%cost/unit
However, lower cost of production often results in lower revenue. Thus, to increase revenue a manufacture either has to increase sales or add more features to maintain revenue.
■ Sale price ■ Inflated Sale price
Automation lowers the cost of production. Inflation however ensures the appearance of increased revenue while providing bankers unearned profits (red)
Example – Ford Mustang
1965 Features
• Convertible
• 170 CID /101 HP 6 cylinder engine
• Drum brakes
• Bucket Seats with lap belt restraint
• No air conditioner
• AM Radio
$2,557
Example – Ford Mustang
2007 Features
• Convertible
• 4.0 L /210 HP 6 cylinder engine SOHC
• Ventilated disc brakes
• Bucket Seats with Air Bags
• Air conditioner
• 120W Stereo / iPod input
$31,700
The Lawful Money Cost of a Ford Mustang has Remained Constant
1965 =
U.S. Silver Certificate
($) 2,557
$31,700
Fed. Res. Bank Note
=
($) 2,557
=
($)2,557
=2007
It’s only inflation that has given the appearance that the sales price and Ford’s revenues have been increasing.
Answers:1. Is the Dollar is a Constitutional unit of
measure? Yes.
2. What is One Dollar? A coin containing 371.25 grains of pure silver.
3. What happens when Constitutional monetary standards are forsaken? The citizens are unknowingly defrauded.
Thank YouQuestions and Answers
Supreme Court - Coin Money is a Constitutional Requirement
• United States v. Marigold, 50 U.S. (9 How.) 560, 567-568 (1850):
“They [Congress] appertain rather to the execution of an important trust invested by the Constitution, and to the obligation to fulfill that trust on the part of the government, namely, the trust and the duty of creating and maintaining a uniform and pure metallic standard of value throughout the Union. The power of coining money and of regulating its value was delegated to Congress by the Constitution for the very purpose, as assigned by the framers of that instrument, of creating and preserving the uniformity and purity of such standard of value * * *
"If the medium which the government was authorized to create and establish could immediately be expelled, and substituted by one it had neither created, estimated, nor authorized one possessing no intrinsic value then the power conferred by the Constitution would be useless wholly fruitless of every end it was designed to accomplish. Whatever functions Congress are, by the Constitution, authorized to perform, they are, when the public good requires it, bound to perform; and on this principle, having emitted a circulating medium, a standard of value indispensable for the purposes of the community, and for the action of the government itself, they are accordingly authorized and bound in duty to prevent its debasement and expulsion, and the destruction of the general confidence and convenience …." 1792 Penny
Marigold was recently cited in: International Bancorp Llc v. Societe Des Bains De Mer et Du Cercle Des, 329 F. 3d 359, May 19, 2003 for a different reason but still stands affirming congressional responsibility to maintain a pure metallic monetary standard;