The People formed the government and charged it with the protection of the nation and the commerce across the seas. They gave Congress the responsibility to coin currency and set its worth. Today it seems, that most people do not know what money is.
Money is the property of the People. It represents work, in all the various forms, manufactured goods, research and development, and all forms labor. But in order for money itself to possess worth, it must be something of worth. Traditionally, money has always been made of metals; gold, silver, copper. These metals were fashioned into coins, giving the coinage inherent value. The Knights Templar were one of the earliest known groups to use the letter of credit, paper money, or script as money; however, they gave that paper worth, by accepting the metals as deposits and guaranteeing payment in metals on demand at a Templar bank at their destination so that the letter of credit had value based on the deposit of metals.
The worth of various metals is inherent in thier industrial uses. Copper can be used for pipes, wiring, cooking (skillets and kettles,) while more valuable metals such as gold for overlays, preventing decomposition of the underlying substance, or as linings for cups and vessals to prevent reactions with liquids. Silver has been used traditionally for its medicinal value and for adornment, jewelry. Today they are used as they were traditionally and in the electronics industry. These metals have always been used in the making of coins as they are today. The founders of this republic knew and understood that principle and that is why there is no mention of paper currency in the Constitution.
Now they also were aware of the fact that transporting large amounts of silver and gold was burdensome, costly, and a security risk. So in order to have paper money that had worth greater than the paper and ink used to produce it, they also created reserves of gold,silver, and coper to back that paper currency. In that way, the worth of the monetary unit (the U.S. dollar) would remain stable, without inflation or deflation of its trade value, so long as there was an equal amount of metals to maintain that worth.
Federal Reserve Notes are NOT money. They are instruments of debt having an assigned value 1, 5, 10, 20, etc. When you work and get paid, and you receive a check from your employer, that is not money either. When you deposit that check in a bank or credit union, the institution will credit your account for the amount received through that instrument of debt, and they in turn will issue a debit notice to the bank from which the payroll account of your employer is drawn.
But where is the worth in that money? And what makes each of those Federal Reserve Notes worth one U. S. dollar? The answer is nothing! There is no worth in a Federal Reserve Note since it it is backed by nothing. Its worth is determined by the number of dollars in circulation. The private Federal Reserve and the banks that own it can print whatever number amount is requested with intrest. The Federal Reserve prints more and more paper money and then they adjust the worth because of inflation and intrest. That is the simple reason your dollar is worth less and less.
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