Is inflation causing you pain at the gas pump, the grocery store, and everywhere? If we still had gold and silver as money, we would not have price inflation. Hear why below.

Inflation Video Script:

Inflation is a hot topic right now. According to the economists from the Austrian school of economics, inflation is actually the expansion of the monetary base. So, inflation is process of the Federal Reserve printing more and more money and putting that currency into the market. When you have more of something, it is worth less which means our dollar is losing value.

In 1971, Nixon took us “temporarily” off the gold standard. He said it was because of gold/money manipulators that he was ending the convertibility (by foreign nations) of dollars into gold. Well, we’re still temporarily off the gold standard. After 1971, our dollar has been termed the “petrodollar”, meaning the dollar was only backed by our willingness to go to war for Saudi Arabia and other middle eastern countries because they agreed to keep the dollar as the reserve currency and only take dollars for oil. Since oil is the biggest traded commodity between nations, and countries have to use dollars to buy oil, that’s why it’s called the petrodollar.

After going off the gold standard (dollar backed by gold in Fort Knox) in 1971, there were no handcuffs or restrictions on government spending. Once our currency was no longer backed by gold, the Federal Reserve could print as much money as they want to buy the bonds created by the U.S. government who could now spend and spend and spend. Once we we cut the tie between the dollar and gold, the dollar was no longer “as good as gold” and became fiat currency.

In 1964, a gallon of gas was a quarter. Today I would buy a silver quarter from you for four dollars. So, your gas is still the same cost today as 1964 when priced in silver. In another example, a Hershey bar used to cost a dime. That same Hershey bar today costs you over a dollar. But a silver dime is worth $1.50 today and can buy you a good sized Hershey bar.

If we still had silver in the coinage like it states in the constitution, gas would still be about a quarter or less due to automation. When we have gold and silver as our money, we would actually have natural deflation and our products would cost less over time. We have increases of prices when we have enabled the inflation of the monetary base.

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