Where Are We Now?

By Bernard von NotHaus, Monetary Architect/Editor
LIBERTY DOLLAR NEWS: November 2004 Vol. 6 No. 11
Liberty Dollar

To make an informed decision, we need to understand where we are. When it comes to money, we need to know where we are in the monetary cycle. What does that mean?

It means that the continuum we call 'time' moves in cycles. Times change. History records this as 'good times and bad times'. Over time, our mind works wonders and we tend to forget the bad times and yearn for the 'good old times' even though they were not so good when we were experiencing them. Monetary history, or at least our memory of it, seems to function along similar lines.

Unfortunately, such memory loss will not serve us so well this time. These are critical times for our money and us. This time will be remembered as a turning point in world events. A time that we cannot turn away from. For that reason, we must turn to monetary history to become informed, if we are to make the best of the immediate future and guarantee that these will be 'good old times'.

On November 3, 1918, Germany signed a conditional surrender and brought the First World War to a close. As such, Germany accepted responsibility for the destruction of Europe and agreed to pay an enormous sum to rebuild the Continent. To compound this impossible task, the Allies barred Germany from exporting goods to the rest of Europe.

Well, Germany was a bombed out country. It had no money. And without exports, it had no income coming into the country. It was destitute. But it had a solution! In spite of the fact that the Gold Standard was still the standard, Germany would simply continue to print 'Notgeld' (German for emergency money) to make the first payment which was due six months after surrendering. Of course, this issue of un-backed paper currency was followed by others and others.

Soon Germany was awash with emergency paper money. For indeed, Germany was in an emergency. And it grew worse. Much worse. Workers were paid twice a day and quickly ran out to give the money to their wives so they could buy food before the prices went up. Often, for those who went to a restaurant, they paid for their food when it was ordered, because prices changed while they were eating! Even worse were the people who didn't eat. Many would descend on an unguarded horse standing at a hitching post with meat cleavers and knives, and hack off pieces of horsemeat, right in the street. Times were terrible.

But money was so plentiful that a wheelbarrow was often used to cart it around. And when someone went into the bakery for bread and left the wheelbarrow full of money outside, the wheelbarrow was stolen, but not the money! Money simply depreciated to such a point that it became worthless.

Did anyone see this coming? Did anyone witness his or her own decent into a totalitarian Nazi regime? Of course not. Sure things were 'crazy', but the world had just experienced its First World War - the war to end all wars! Most people, reasoned that if it were really bad, they would know it. That was not the case. Nor is it the case now.

During this time money changed. Just like it is doing now. Laws changed. Just like they are doing now. And just like then, most people saw little change, because it happened gradually. The phrase is 'incrementalism'.

In the beginning it was simply expeditious for the Germans to print some paper money and get on with the reparations as per the terms of the 'conditional surrender'. Don't you understand? It was like the old Perry Mason plot, they 'had to do it'. Not much has changed today.

On January 1, 1919, before all the craziness started, Germans could have bought an ounce of silver for 12 marks. (Remember that number: 12 marks.) Few did. "Why should I have silver?" was the common question. But as the value of the paper currency was diluted with more money, it depreciated and its purchasing power nose-dived. It was only later that the Germans were driven to hacking at horses in the street.

As the once noble German mark continued to sink in value, the price of silver in marks increased, as silver always does because it represents 'real' value. Do you have any idea, what the price of the same ounce of silver was as the mark reached zero in 1923? Pause for a moment and pick out a figure, any figure. 100? Maybe a 1,000? Or even a million? No, none of these will do. What do you think the price was only four years later, on November 7, the day when a little guy with a mustache jumped on a table in a beer hall in Munich and yelled that the revolution had began? Could an ounce of silver cost more than a million marks? Impossible, would be a reasonable answer. But these were not reasonable time. This was pre-Nazi Germany.

It may surprise you then to learn that it cost 543,750,000,000 (543 BILLION, 750 MILLION) marks to buy the same ounce of silver! In four short years, the price in German marks of silver became all but impossible. The people simply could not outrun the runaway inflation. Nor can we! Do you 'think' silver is expensive now? You know nothing about survival. Unfortunately, we may all find out, all too soon.

Why? Because America now stands at the same place in the monetary cycle as pre-Nazi Germany. We stand at the edge of a precipice and the void before us is so deep that we cannot see the bottom. Not since Rome fell in A.D. 476 and the civilized world was plunged into disorder, have we had such a worldwide problem. The last time the fallout lasted almost thousand years! Now with over 50 percent of the countries holding the US dollar as their 'reserve currency' to protect them from an economic collapse, we face an undeniable emergency. Very few see it. And worse, not many people are doing much about it.

Just like the 'poor Germans' after the First World War, they had no money so they didn't see any reason to buy silver. Soon they had Nazism, less of a life and no money. But the few Germans who knew where they were in the monetary cycle and changed their German marks into the gold and silver backed US dollar, British pound, Swiss franc, or anything even wheelbarrows, not only protected their money, they prospered! After the American stepped in and established a new mark and put Hitler in power, the Germans with the 'smart money' bought back the industries for much less than pennies on the mark. But there were few 'smart' German buyers, most of Germany was bought by the Americas! The same 'Americans' who financed and profited both sides of World War II!

But the current situation is much worse now. Not only is half the world dependent on the fraudulent fiat US dollar, and not only are the Chinese and Russians now dumping the US Dollar, but there is nobody to save us. Trust me, the government cannot, and will not save you. If you don't save yourself, you will be left with nothing more than the motive that drove the Germans to hack at horses in the street.

If this decorum is not quite acceptable for you, then please understand where you are in the monetary cycle and make an informed decision before it is too late. I would like to think that since Americans engineered such a disaster, that 'damn Yankee' can-do spirit will lead mankind away from such a frightening future. If the dollar is not changed, if we do not return our money to a disciplined value backed currency, we will live and die to see runaway inflation, with a tyrannical government protecting us.

What will it take to drive the mindless Americans who accepted the Patriot Act to accept any relief from the disorder? What will it take for Americans to accept a new, high tech feudal order with a security camera everywhere? Initially home cameras would be available but optional. What would it take for Americans to demand a New Order? Simply the disorder of a monetary meltdown. When there is disorder, people cry out for order. Any order! Even order from a Hitler. Remember everything Hitler did was authorized by the German legislature and was legal.

Our future does not have to be so dire. You can simply adopt a plan to move an increasing amount of your money to value - to gold and silver. Will you protect your money? Probably not. Like the human nature exemplified by the 'poor Germans', very few will understand where we are in the monetary cycle and profit. Even fewer will grasp the potential of the Liberty Dollar that would gradually move America towards a peaceful solution for such an ugly worldwide problem.

Please take action! There is nobody to save us, but ourselves. Head off the coming disorder. Get some Silver Libertys for yourself and help preserve civil order. Only by banding together and adopting a free and independent currency which provides us with "just weights and measures" will we be able to throw off the yoke of a manipulated monetary system and generate a peaceful and prosperous society.

We choose, therefore we are free. Either change your money or lose it. That is the choice. Please choose your future wisely.