American dollar – construct of belief

Article I Section 8 – congress

 coin money
 regulate the value thereof
 fix the standards of weights and measures

1792 – coinage act – regulate coins of US

 dollar – 3 quarters of an ounce of silver

 half dollar
 quarter dollar
 dismes (dimes)
 half dismes (half dimes)
 eagle – 10 dollars – half an ounce of gold
 half eagle
 quarter eagle
 inscription – United States of America

money – a silver coin of the US of the value of 1/10 of an eagle / 1 dollar

1st 80 years – coins – lawful money

1794 – US Mint Philadelphia – minting coins – gold/silver

Section 19 – death penalty for anyone caught debasing the nation’s money

Article I Section 10 – no state shall

 coin money
 emit bills of credit – unbacked paper promissory notes as money
 only gold and silver accepted as payment of debts

Gold not money

fractional reserve banking – counterfeiting

Benjamin Franklin – dishonest money system – reason for revolutionary war

King George III – refusal of honest money system – cause for war

1791 – First Bank of the United States – opposed by Thomas Jefferson – banking institutions are danger

Private banks – bad

First Bank of the United States – Charter revoked by James Madison

1816 – Second Bank of the United States – Andrew Jackson (sworn enemy of the Central Bank)

1833 – Second Bank of the US – charter revoked – Andrew Jackson

1849 – gold discovered at California

 1 dollar – tenth gold eagle

 20 dollars – double gold eagle
1833 – 1890 – gold $20.67 an ounce – fluctuated 1 penny

1891 – 1930 – gold $20.58 to $21.32

1861 – Abraham Lincoln – financed War of Northern Aggression – printing unbacked paper money

Lincoln’s Greenbacks - Treasury reeled in coins and replaced by greenbacks

1866 – silver dime – 5 cent nickel – replenish silver reserves

paper notes – debt – money among selves but not with government

1880s – silver and gold certificates

1907 – JP Morgan – financial luminary – exploited influence – publishing rumors that a prominent bank in New
York in solvent? – mass hysteria – mass withdrawals – Great Depression – New York Stock Exchange – down 50% -
NYSE prompted people to tell the government to “Break the Grip of the Money Trust” – JP Morgan provided
solution

Dec. 23rd, 1913 – Federal Reserve was born – cartel of counterfeiters – began printing Federal Reserve Notes –
government sanctioned note – demand note – redeemable only at Washington or member bank

1932 – Franklin D. Roosevelt – counterfeit-enabling President – demonetized gold –ending production – in order to
stimulate economy

April 1933 – FDR – Executive Order 6102 – 10000$ fine / 10 years prison – deliver, on or before May 1, 1933, gold
coins, gold bullions, gold certificates to Federal Reserve in exchange for $20.67 in Federal Reserve Paper - gold
raised %60 to $35 an ounce

1944 – WWII - 730 delegates – 44 allied nations – Mount Washington Hotel – Woods, New Hampshire – rules and
regulations among world’s financial states

After WWII – US emerged economic and military powerhouse - 50% of gold world wide

Bretton Woods Agreement – British pound to US dollar as World’s Reserve Currency – redeemable - gold at $35 an
ounce

1945 – end of war – Russia and US – superpowers –

1945 – 1991 – Cold War

1946 – 1964 -78 million baby booming children to population

Bretton Woods Agreement – major flaw – nothing to prevent the Federal Reserve in expanding the supply of
federal reserve notes

1964 – last year US coins was struck with silver

1960s & early 70s – Vietnam War – Federal Reserve – running budget deficits

Expenditures in Vietnam war – made it clear to other countries that US was printing money more than then they
had in gold

French – Under Charles de Gaulle – became suspicious of US – unable to honor Bretton Woods obligation – US
Gold declined

1971 – France attempted to withdraw its gold - Nixon refused

August 15, 1971 – Richard Nixon – “Defend the dollar against the speculators.” – suspend convertibility of the
dollar to gold – end Bretton Woods Agreement – steal gold to countries that trusted US

War on Drugs –rise in national crime – 1980s?

1973 – King Faisal of Saudi Arabia – only accept US dollars as payment of oil – protection of oil fields

1975 – same offer as 1973 to OPEC (Organization of the Petroleum Exporting Countries) – only accept US dollars
for oil

In order for other countries to get oil – sell physical goods to America – assured use of dollar – origin of Petrodollar

Petrodollar cycle – goods to dollar; dollar to oil; oil to goods – repeat for $$$ - kept OPEC in power

70% of Saudi Arabia’s wealth landed in Federal Reserve of New York

military expenditures of US – more than all countries in the world combined

1975 – 1991 – US used currency to outspend all other countries – amass weaponry and military

1991 – end of Cold War; collapse of communist bloc – thought to be an era of peace and stability – US invaded
Iraq (First Gulf War) – George HW Bush and Bill Clinton Administration – sanctions (decade) – half million children
deaths – Clinton’s Administration – aware of deaths – US Secretary of State – Madeleine Albright – “price worth it”

November 2000 – Saddam Hussein – trade oil for Euros – 3.3 billion barrels of oil – US bought 2.5 million but payed
in Euros – direct attack on dollar

Bush Administration – with help of mainstream media – fabricated – Iraq had WMDs (Weapons of Mass
Destruction) – Iraq – Axis of Evil

2003 – US invaded Iraq - oil sales turned back to dollar – costing Iraqis – 17% of profits

March 2, 2007 – General Wesley Clark – memo to take out – Iraq, Syria, Lebanon, Libya, Somalia, Sudan, Iran

Libya – Gaddafi – organize – bloc of African countries – create gold based currency – Dinar – replace dollar within
the region – after Gaddafi’s death by rebels – Set up Libyan Central Bank

2011 – US and NATO forces – destabilized Libyan Government

Nothing holding up value of dollar at this point

China and Russia will not tolerate an attack on Iran and Syria

Iran – key oil producing ally of China and Russia – defensive pact with Syria