Phillip Tilley

The dollar cannot fall

November 18, 2007 |  26 comments
Image Credit: sxc.hu When we were kids, we all heard the story about George Washington throwing a dollar across the Potomac River. This is a formidable task in light of the fact the Potomac is a mile across at its narrowest point. And why did our first President hurl a dollar across the Potomac anyway? Did he have so much money that he could afford to throw it around? Perhaps he was making a deposit in the river bank. Maybe he was trying to float the dollar or give it more liquidity. Maybe he just didn’t know the value of a dollar. Such a feat could not be repeated today for several reasons. We no longer have silver dollars to throw anywhere, and the Federal Reserve Notes don’t fly very far when thrown, (and they make terrible paper airplanes). Some people say a dollar just doesn’t go as far as it used to. The Federal Reserve keeps telling us the dollar is falling. It’s enough to make me hurl.

The truth is the dollar cannot fall in value. That is because the dollar is the unit of account for the United States. According to the Coinage Act of 1792, a dollar is essentially one ounce of pure silver. It is a unit of measure for our finances. As a unit of measure it cannot change in any manner, grow, shrink or fall in value. An ounce of silver is still the same ounce of silver today as it was in 1792.

It is not unusual to have units of measure tied to the real world. A gram equals one cubic centimeter of water at its maximum density. A BTU equals the quantity of heat required to raise the temperature of one pound of water one degree Fahrenheit at or near 39.2 degrees Fahrenheit. Horse Power is a unit of power equal in the U.S. to 746 watts and nearly equivalent to the English gravitational unit of the same name that equals 550 foot-pounds of work per second.

For anyone to believe the dollar could fall in value would be the same as an inch getting smaller or a pound weighing less. “Breaking news, the mile got shorter against the kilometer today in trading.” How ridiculous! The dollar is the unit of account for the U.S., but we don’t really use dollars anymore, we use worthless Federal Reserve Note currency. There is no money. So what is really meant when economists announce the dollar has fallen in value? In reality it means that the Federal Reserve Note has fallen in value against what a dollar would be if we had one.

In 1964 when a silver dollar was worth one dollar, an ounce of silver was worth, you guessed it, one dollar. The value of the Federal Reserve Note at the time was equivalent to one dollar by law, Legal Tender. We stopped using real dollars after 1964. The recent price of an ounce of silver was 14 Federal Reserve Note dollars. That means the real value of a Federal Reserve note is one fourteenth of a dollar, or about 7 cents, that is if we had real dollars which we don’t.

If it feels like you work and work and have nothing to show for it, this is the reason. So the dollar cannot fall in value but the Federal Reserve Note currency we use most certainly can and does. Wake up people, the money matrix has you.

Phillip Tilley is the author of The Money Matrix of the New World Order and other articles. Comments (26)

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