A brief history of money.

A BRIEF HISTORY OF MONEY

Money, we are all familiar with it, most want more, some to the point of  excess. It has been described as the, "Root of all Evil".  Realistically, we do need a certain amount, but I would like to talk about a simple brief history of Money.

Originally, most financial transactions were a form of barter,"I'll trade you a goat for that woven shirt that one of your wives made". Or,"I am tired of goats, how about we trade for some of your sheep". This all worked out well and good, but eventually someone got the bright idea of converting wealth to some form of exchange.

There is some record of salt being a form of exchange, or round stones with holes,  but most items were quick to lose their value when someone either found a pit with enough salt to flood the market or a method to mass produce stones with holes.

Eventually they settled on gold and silver as a form of money. Early records show that, as early as 2150 BC, the Shekel and Talent were used in the middle east, These were measures of weight,  A shekel was .36 of a troy weight oz. A Talent was equal to 60 manehs and 3000 shekels. This standard of weight was used by Egypt, Babylon, Phoenicia, Greece, Persia etc.  The ratio was 15 shekel's of silver = 1 shekel of gold.  Everyone had a balance scale to do business.

Finally, as governments grew and became more sophisticated, the minting of money began. This consisted of coins which were of a standardized weight, usually embossed with the image of  the King or individual in power at the time. It made trade much simpler and must have caused a recession in the scale business.

As is usually the case, it did allow for some skullduggery, clipping and shaving of coins was known to happen. Then Kings sometimes made the coins smaller with the same designation. This may have been the first form of Government endorsed inflation.  "Honey, were did we put that old scale?"

Interestingly, the size and weight of coins varied over the years, but the ratio of gold to silver was fairly constant from 500 BC up to the 20th Century.

Biblical  times-  12-1             Rome          12-1         Europe     0-1492        10-1

Early Greece      13-1             Early Japan  8-1                          1492-1834   15-1

Alexander          10-1             Early China  12-1        England                       16-1

The United States settled on the ratio of 15-1  The Constitution stated that all money was to be gold or silver coin.

O course, we have been talking about gold and silver coins. What about paper money?

In medieval Europe, gold and silver was the medium of exchange. When someone had a little more than needed for survival, they often placed it with a Goldsmith, who had a natural need for security in his business.  He would account for their items and give them a receipt.  The Rothschild's started out this way.  Humans sometimes being a little lazy, and not too careful about things, began to exchange the receipts for other goods and services and leave the gold with the goldsmith.  Goldsmiths, who were a little sharper than the average person of the day, soon realized that his receipts were as good as gold, and no one knew how much gold he really had stored for people. He was able to purchase Real-Estate, finance explorers to the new world and many other endeavors with his own receipts that did not represent gold in his possession. I could expound forever about how they used this power, but I will resist.

There were many known instances were these early bankers got a little too greedy, rumors circulated that there was more receipts than gold, and a run for their gold started.  When they could not produce the gold,  he might have been found hanging somewhere.

Remember, Politicians and Governments always take note of a good idea to increase their power and wealth.

Early paper money was a receipt for a weight of gold or silver, In the USA. a silver dollar was .7734 troy oz. of silver.  20 silver dollars could be exchanged for 1 Oz. troy of gold, a $20 gold piece. This was a ratio of 15-1. I personally remember silver certificates, which were supposed to be redeemable for 1 silver dollar. Up to 1934 you could exchange a $20 bill for a $20 gold coin. The US dollar had the reputation of being, "as good as gold". The gold-silver ratio today is 72-1.

In 1914, with passage of the Federal Reserve Act,  money no longer represented an asset, but would now represent Government debt. A promise to repay by the government.

In 1934, President Franklin Roosevelt, by executive order, ordered all citizens to turn in their Gold Coins in exchange for paper $20.00 bills. Private possession, or exchange of gold was outlawed. When the government decided they had confiscated all the gold they were going to get, they raised the price of gold to $35.00 oz., this was used for trade between countries. Those wonderful paper dollars they exchanged with the citizenry just became worth 43% less than the gold coins they exchanged.  Citizens were threatened with $10,000 fines and 10 years in jail for not cooperating.  Gold ownership was again legalized in December of 1974.

Silver still circulated as coins till 1964,  when they were replaced by alloys with no intrinsic value.

So now all money that exists, has  no intrinsic value, but only the confidence that someone else will exchange goods and services for it. While there are many instances in modern history where that confidence evaporated, so far most people are still willing to accept modern currency.

Currency itself is now in the process of being replaced with electronic currency, Bitcoin, Debit and Credit cards etc.. Endless possibilities, that will make the ancient clippers, shavers and dishonest goldsmiths envious.

originally published Oct. 12, 2015

It appears we are now coming to the end of fiat currency era, that is currency without any real built in value. What will replace it is yet to be seen. Big government would of course love to have currency that is just a digital entry, that they could manipulate, block, or devalue with a click of a computer. It seems some of the world is exploring another option that would be some form of real money. There is one of those age old truths that good money will always drive out bad money. That is true as long as there is an option of good money available. I expect we will seeing the new options in the near future. 
5/8/23

We now see the plan to introduce a central bank digital currency. Indeed, a monetary unit without any intrinsic value, unable to be held personally. It will allow governments to view every transaction, determine what transactions should be allowed, confiscate all wealth with the click of a computer key and in effect give government ultimate power over the people. It will be the end of all freedom of choice in a free market. It will give government the ability to tax, inflate, confiscate and dictate what can and cannot be traded. It will create all kinds of methods to avoid this trap and will be accompanied with the penalties to enforce that this is the only alternative money.

8/24/23

We can expect the unsustainable debt and deficits of the United States, accompanied by the desire of other countries to flee the use of the dollar, to reach a crisis in the near future. It is very likely that it will soon be clear that this debt will no longer find those willing to risk this haven for their real money. We can expect schemes to rescue this situation with possibly forced investment by IRA and 401's into U.S. debt or a sudden crisis followed by the end of this current fiat money system. We expect the cure to be total control of all assets.

5/3/2024

The EU is pushing to get its CBDC launched this year. As the debt situation in most of the western world is escalating many predict some sort of reset of the financial system. It will most likely be preceded by a debt crisis and then the roll out of the promised solution.

9/27/2024

We now see flight from U.S. bonds from countries around the world. It seems that interest rates are now possibly needed to rise to sell this debt. Those liquidating U.S. debt seem to be buying Monetary metal. The answer to shoring up the U.S. dollar and debt market is a balanced budget. With a $2 trillion deficit either raising taxes or cutting spending will cause a economic recession at best.

1/14/25

The purpose of this article is to hope to make people aware of what money is supposed to be. A store of value, an asset, not an instrument of manipulation by governments. 

3/17/2025

Gold is now $5200 an oz. silver $89.00 an oz. 57-1 ratio. No balanced budget in sight by any pollical party. The debt and deficits are unsustainable. The flight from fake paper money around the word continues.

2/27/2026

Debt continues to rise, gold and silver rise has paused during this Iran war, but the western banking and currency system is unsustainable. I reprint this with the hope that more will understand that money should be an asset under your own control.

6/1/2026

Bond yields approaching crisis levels, accelerating trade war all indicate some sort of changes to money in the future. Only sound real money can insure steady predictable prosperity and security. At present there is no real government issued money in existence.

9/3,2003 

Are energy prices and inflation about to escalate?

 NARRATIVE WILL NO LONGER CONTAIN ENERGY PRICES

WE SHOULD EXPECT MANY NEW RECORD HIGH PRICES 

 

The latest escalation of the conflict in Iran, coupled with the energy wars in the Russia/Ukraine conflict are now about to move costs to the next level and possibly actual shortages. The biggest increase are in diesel and heating oil. Today diesel is over $6.00 gallon and heating oil is at $5.20 a gallon. This is a result of the continued conflict with Iran and the damage being inflicted on western Russia's refining capacity.

 

Much of this has to do with refined products, especially diesel and aviation fuel. Much of these products are refined outside the United States and Russia has discontinued the export of Diesel fuel. Russia, even today, was still a producer of Diesel fuel for the United States.  The rise in diesel fuel prices will result in higher prices for everything, from food, every product that is transported, it will increase inflation and probably interest rates.

 

Bond yields exploded with the 2yr now yielding $4.40 %, ten year 4.81 % and 30 yr, 5.28%, this will dramatically add to the US deficit just in servicing its debt that is rising by the day. We may be on the precipice of a debt spiral that will bring down the world economy. Speeches, and optimistic narratives may no longer be effective. The realities of basic math will always overcome empty words.

 

While the G20 was an exercise in political gamesmanship the other meeting in Kyrgyzstan of the Shanghai cooperation Organization, SCO, was optimistic that their members will prosper with mutual cooperation. The presidents of the biggest members, Russia, China, India and Iran  with 8 other members and 15 associate members represent 40% of the worlds population and 25% of the worlds GDP. Their agenda was a multi polar economic alliance that is independent of the western economic system.

 

This meeting precedes the bigger more diverse BRICS meeting coming up Sept 12-13 in New Delhi. It will have a similar goal of cooperation and a multi polar economic system. All these nations have refused to cooperate with sanctions and other economic warfare. The sad reality is that endless war and economic sanctions have increased cooperation and which is in effect isolating those who have engaged in those practices.  

 

Hopefully the west will realize that it cannot control the world by force and intimidation and it is possible for coexistence and mutual prosperity. 

 

 

 

 

 

 

Venezuela oil, A deal they could not refuse.

 THE OIL WARS CONTINUE

"THOU SHALL NOT STEAL", STILL RELEVANT TODAY 

 

It seems there is much celebration about the US just increasing IT'S oil reserves by 65 billion barrels. A so called "historic deal" that transfers the ownership of Venezuela's oil to the United states or to whoever it will designate. This contract is for 25 years. 

 

The acting president, Delcy Rodriquez has signed the deal without any vote by the population. She is an acting president and one wonders if she would be considered authorized by international law to even make such an agreement. It is very likely she was given the choice of taking the gold or getting the lead. I recall that she was publicly told that if she did not cooperate, she would face a fate worse than Maduro, who is in jail in New York.   

 

I suspect the other nations in South America took notice, maybe that is the point. I also suspect that while all seems quiet in Venezuela and the southern region, history has proven that such abuses have consequences that may be beyond estimation. While Maduro was a controversial president, as was Chavez, they were both elected by the people of Venezuela, democracy in action. Of course, election irregularities were claimed, and maybe true, but the reality is both were very popular, with near half the population. We can assume many of those are not happy at the moment, and when the time comes to actually put feet on ground to start pumping oil we may very well see a new insurgency from within and maybe from without to show the displeasure of people of the south.

 

We will have to see, but it is doubtful that this taking will not have repercussions, The commandment, "Thou shall not steal" applies to nations and not only individuals and the punishment usually come in this lifetime rather than later.

 

 

 

 

 

 

The problems with US beef production.

 FOREIGN COMPETITION MAY MAKE THINGS WORSE

OPPORTUNITY FOR LOCAL PRODUCERS?

 

Everyone knows that beef prices have risen, particularly since the COVID disruptions. Most of the beef is produced in the western parts of the US. While there always have been local producers, most of the big markets are supplied from herds in the west, processed in the Midwest. Chicago has historically been the central distribution place for beef. Rail transportation mostly has been replaced by Trucks. In the past most retail stores had their own butchers and received shipment of hanging sides and would cut it up in house and package it. Today most beef comes already cut up in boxes. This creates a shorter shelf life and adds to the risks of retail markets.

 

The last several years the western producers have faced severe drought which has caused them to reduce their herds due to lack of food. Today the nations herd is at a decades long low level, particularly for western ranchers.

 

Last week Tyson closed a major processing plant in Illinois laying off 2700 workers also announced closing of plants in Utah and Washington state. This followed the closing of two  major plants in Pennsylvania. When and if production resumes there may be a shortage of processing capability in the future.

 

It should be noted that the meat processor union had a major new agreement in 2024 with wage, benefit and pension increases, now many tens of thousands of those jobs are gone. One wonders if there is not a trend developing of importing more beef.

 

The cost of raising, processioning and transporting beef has risen due to inflation, the cost of diesel fuel and feed.

 

Producers have been trying to increase their herds but it is very costly, Today calves, 4-6 weeks old can bring up to $1500 at auction. Feeders, 500 pounds can bring $2000. Old dairy cows which once sold for $400 can bring as much as $1000. Fat desirable Angus steers bring around $2.30 a pound live weight. A 1500 lb steer is then $3450 before processing. Processing can cost $600 to $800. Final retail weigh is around 40% of live weight. This would be $7.33 a pound before transportation and profit.

 

If the trend is going to be to import beef from oversees, it will be a disincentive for domestic production. The big processors can skip union and other domestic costs and buy beef already for retail sales. I would doubt that will significantly lower prices. 

 

It may be an opportunity for local producers, particularly if they can be allowed to process their own cattle. This would skip several transportation steps and other costs.  Today it is mandated that a inspector is on site with his own office and paid by the processor. It should be possible for a system of accreditation for domestic local producers, this would cut costs and possibly prices to consumers. 

 

 

 

 

Mystery CIA visit to Russia? What it wasn't about.

 WHY TAKE A HUGE CARGO PLANE ON A DIPLOMATIC MISSION?

WHAT WERE THEY HAULING IN OR OUT? 

 

Speculation abounds as to what CIA director Radcliff was doing in Moscow.  First off, they claimed it was an unannounced visit, does anyone believe you can fly a US military plane into Moscow without proper approval?

 

Then we are told Radcliff flew in to threaten or warn the Russians, another unlikely prospect, any such warnings do not need a massive cargo plane.  Then we are told it could be an offer for Russia to stop giving Iran intelligence data, the kind of data that allowed Iran to take out CIA assets in west Asia. Maybe, but what would the US offer, to stop giving such data to Ukraine? Lavrov, while claiming he did not speak to the US did make it clear that no agreements would be made with the US as they have not honored any such agreements for years.

 

One thing is certain, Russia agreed to the visit and also tipped off Reuters so they could get a video of the plane approaching Moscow. So why did they come, with a big plane? It is reported that they had their own transportation in the plane and proceeded in caravan to Moscow. While many claim a 8 hour meeting, others account for time in transit etc and limit the meeting to less than 90 minutes.

 

Again, did they haul something into Moscow or out.  Most likely out and then more speculation, some time ago there were reports of the Russians capturing high level US military and CIA personnel in Ukraine, some dead and some alive. If true, the Russian's may have been ready to let them go and we can bet the US wanted them back as quietly as possible. The Russian's may have stipulated and demanded only to be handed over to the CIA director in Moscow, with probably some other messages. A big plane with cars going in and out and no witnesses, as good as it gets.

 

The other development this week was the visit to Moscow by a representative of the Pope, first time in 4 years, some believe it was attempting to insure humanitarian handling of civilians and clergy as this conflict come to an end, offering any assistance that will be needed. 

 

The reality on the ground, Ukraine is now almost entirely out of interceptors and the US has none to give. Russia has shut off access to Odessa and southern black sea ports and grain is no longer being exported. Russia is likely to add Odessa to its new oblasts in the future. 

 

The last stronghold in Donetsk region is now coming under attack and when it falls it will allow Russia to have full control of that region.  The battles have intensified and Ukraine is being advised by the US to conscript the women, a desperate action.

 

While the fighting may go on for some time, this war is over and Ukraine will end up a landlocked poverty stricken state dependent on western aid for its long term future.  The discussion now will soon be about the post war future of Ukraine.

 

 

 

 

Russia about to do final tests on nuclear powered weapons.

 SKYFALL AND POSEIDON, NEXT GENERATION NUCLEAR WEAPONS

LITTLE ABILITY TO DEFEND AGAINST 

 

It is expected that Russia is about to do final testing on their nuclear powered nuclear weapons. Both are ultra long range  airborne and submersible weapons. These weapons research began after the US ended its participation in the nuclear arms treaty.

 

Skyfall, the NATO designation or  Burevestnik is a nuclear powered nuclear armed cruise missile that flies at 300 ft making it difficult to track on radar. It has an unlimited range and can fly for possibly days, making it possible to travel over the south pole or any route to reach its target. It's first test in 2019 ended with disaster killing several of its scientists. An October 2025 test was successful flying for 15 hours and traveling 14,000 KM. It has also been labeled the "Flying Chernobyl" due to its problem of leaving traces of radioactive debris in its wake. Maybe they have found a way to minimize this, but one wonders if some pollution is relevant when discussing nuclear weapons.

 

The Poseidon is a nuclear powered and nuclear armed torpedo fired from a nuclear submarine. It is 75 ft long and again capable or unlimited range and much faster than surface vessel. It is reported to be able to run at depths of 3000 ft and speeds of 185 km per hr.  It would most likely not be used on ships, but could travel up estuaries or ports.

 

The miniaturization of nuclear power to make these weapons possible is possibly the most interesting breakthrough and could have many uses in the future. 

 

Both these weapons are expected to be finally tested in possibly days and then placed in service, no one know how many can be made and how long to manufacture, but is seems very limited in the near future.

 

 

 

 

Canada resists colonization.

 THE EMPIRE HAS NO LIMITS

NOT ABOUT TRADE, ALL ABOUT SOVEREIGNTY

 

The imposition of 50% tariffs on Canada after it refused the latest trade deal with the Trump administration is just one more signal about US intentions with the world. Are these tariffs now just another form of sanctions for not submitting to US power? Will we soon see a blockade and other methods of intimidation?

 

This so called trade deal is now the third trade deal with Canada, first was NAFTA in 1994, this was replaced by USMCA in 2020. While one could understand that NAFTA, after being in force for 26 years, may have needed some updating this latest Trump negotiated USMCA is hardly been in effect long enough to be fully implemented. It now appears that his latest deal is more about Canada submitting to US power over its affairs than trade. This deal was an attempt to move Canad toward being under US control, sort of a colony or as some believe, a new state in the US. 

 

While the details have not yet fully become  public, it seems that language was inserted after the initial agreement was finalized that would give the US the power to control what other trade deals Canada could engage in with other countries and also power to veto internal infrastructure projects. We can assume this is to force Canada to only buy or have big projects from US companies and to insure that Canada does not do business with anyone not approved of by Washington. It is in effect an infringement on Canada's right to sovereignty. 

 

One can expect much of this has to do with Canada engaging in business with China directly. If Canada buys products from the US, even if they originate in China, it will be acceptable. It just another attempt at some sort of colonial control  similar to some of the rules now imposed on Venezuela. 

 

We may expect that China may very well now make Canada a trade deal offer far fairer to Canada than any deal with the US. I am sure they would be willing to buy all the timber, oil and other resources and get a bargain on Chinese electric cars and other goods. They would not care what other counties Canada would trade. They may also be offered access to the new Arctic trade route. 

 

Canada has a lot more leverage than Washington radmits, but actually using it would likely result in threats of military action.