The State of Gold: The State of State

By: Douglas V. Gnazzo | Fri, Dec 9, 2005
Print Email

"Gold would have value if for no other reason than that
it enables a citizen to fashion his financial escape from the state." [1]


There are basically two types of government: 1) government that is the expression of the rights and freedoms of the individual, not the State; 2) government that is the expression of the rights of the State - over and above whatever rights it chooses to allow its individual subjects to have.

Government is that which governs - the people, within the boundaries of the State. When the people choose to create the government, the people are free.

When the elite rulers choose to place themselves and their families as the government, the people are not free - they are subjects, subject to the whims of the rulers - of State.

The colonists of America fought the Revolutionary War against the King of England, and the State thereof, to win their freedom and liberty from the tyranny of the King of State.

The Declaration of Independence and the U.S. CONSTITUTION are written forms of expression of the rights of the individual over and above the rights of the State.

The people created the government in order to secure their individual rights as being sovereign to the State. The individual comes first, the State second.

"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. --That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed...." [2]

The Constitution is a trust between the people and the government created thereby. Within the document a contract was also made, between the people and the government.

The Constitution is both a trust, and a contract. Hence the difference of words: The Constitution of the United States, and The Constitution For the United States of America.

"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America." [3]

Silver And Gold

The Constitution delegated certain powers to Congress. One of these powers is the power to coin money - not to print it, but to coin it.

"To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures..." [4]

Furthermore, it declared that:

"No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts..."

THE COINAGE ACT OF 1792 expounded on both the ability to coin money, as well as the disability to make any Thing but gold and silver Coin a Tender in Payment of Debts, by clearly defining what a dollar is:

"DOLLARS OR UNITS - each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver."

"And be if further enacted, That the money of account of the United States shall be expressed in dollars, or units, dimes or tenths, cents or hundredths, and the milles or thousandths, a dime being the tenth part of a dollar, a cent the hundredth part of a dollar, a mille the thousandth part of a dollar, and that all accounts in the public offices and all proceedings in the courts of the United States shall be kept and had in conformity to this regulation." [5]

The Money Power

Congress was granted the power to coin silver and gold coin. What silver and gold? The silver and gold that individuals would bring to the mint for coining - that was the only precious metal so coined. All such silver and gold was private property, not State property.

"And be it further enacted, that it shall be lawful for any person or persons to bring to the said mint gold and silver bullion in order to their being coined; and that the bullion so brought shall be there assayed and coined as speedily as may be after the receipt thereof, and free of expense to the person or persons by whom the same shall have been brought. And as soon as the said bullion shall have been coined, the person or persons by whom the same shall have been delivered, shall upon demand receive in lieu thereof coins of the same species of bullion which shall have been so delivered, weight for weight, of the pure gold or pure silver therein contained..." [6]

Congress was also granted the power to borrow money in Article 1 Section 8 Clause 2:

"To borrow money on the credit of the United States" [7]

The power to coin money is not the power to create, or to issue money. The power to borrow money would not be needed if the power to create and issue money had been granted to Congress. Why would one need the power to borrow if one had the power to create money?

Separation Of Money And State

The money power was not granted to Congress, only the power to coin already existing private specie property, and the power to borrow money. The money power resides with the people.

"The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." [8]

But that was then, and now is now. The state of the State is far different from that first envisioned, at least as seen through the eyes of those whose ideals and principles allowed for such forethought - as there were others even then that had a different end in sight.

Together the State and The Federal Reserve have control of the money power, although they answer the elite's beck and call. Bottom line - the money power is not in the hands of the people where it belongs. It has been usurped away by illusion and delusion, like a thief who comes hiding in the shadows of night.

The money power needs to be taken back by the people. This is one of our most basic rights and freedoms. Even the power of the military-industrial war machine, which can annihilate the enter Earth, is dependent upon the money power. Money is indeed the sinews of war, as war is the sinews of dishonest money.

A return to Honest Money of honest weights and measures of silver and gold according to the Constitution and the Coinage Act of 1792 would return the money power to the people.

Wars would not be fought except in defense of the homeland, as there would not be any proliferation of dishonest fiat debt-money to finance the war machine of the merchants of death.

"It is important to remember that government interference always means either violent action or the threat of such action...taxes are paid because the taxpayers are afraid of offering resistance to the tax gatherers. They know that any disobedience or resistance is hopeless. As long as this is the state of affairs, the government is able to collect the money that it wants to spend. Government is in the last resort the employer of armed men, of policemen, gendarmes, soldiers, prison guards, and hangmen. The essential feature of government is the enforcement of its decrees by beating, killing, and imprisoning. Those who are asking for more government interference are asking ultimately for more compulsion and less freedom." [9]

The People created the government to protect its rights and freedoms. One of the most basic rights and freedoms is the right and freedom of the money power - the power to issue the common medium of exchange - money.

The government was never vested with the authority to issue money, only to borrow and coin it. The State was never delegated the power to create money - it took it. It should return that which it took.

"Deficit spending is simply a scheme for the 'hidden' confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights." [10]

The State of gold is the same as in the past. It is the State of the State that has changed, not gold. Gold remains the bastion of private property - of freedom and liberty for all.

" Gold is the soul of all civil life, that can resolve all things into itself, and turn itself into all things." [11]

Coming Soon - Open Letter To Congress
Seeking Redress For The Return To Honest Money

[1] William F. Rickenbacker
[2] Declaration of Independence
[8] The Bill of Rights Amendment 10
[9] Ludwig von Mises
[10] Alan Greenspan
[11] Samuel Butler


Douglas V. Gnazzo

Author: Douglas V. Gnazzo

Douglas V. Gnazzo
Honest Money Gold & Silver Report

Douglas V. Gnazzo is the retired CEO of New England Renovation LLC, a historical restoration contractor that specialized in the restoration of older buildings and vintage historic landmarks. Mr. Gnazzo writes for numerous websites, and his work appears both here and abroad. Just recently, he was honored by being chosen as a Foundation Scholar for the Foundation of Monetary Education (FAME).

Disclaimer: The contents of this article represent the opinions of Douglas V. Gnazzo. Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Douglas V. Gnazzo is not a registered investment advisor. Information and analysis above are derived from sources and using methods believed to be reliable, but Douglas. V. Gnazzo cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. This article may contain information that is confidential and/or protected by law. The purpose of this article is intended to be used as an educational discussion of the issues involved. Douglas V. Gnazzo is not a lawyer or a legal scholar. Information and analysis derived from the quoted sources are believed to be reliable and are offered in good faith. Only a highly trained and certified and registered legal professional should be regarded as an authority on the issues involved; and all those seeking such an authoritative opinion should do their own due diligence and seek out the advice of a legal professional. Lastly, Douglas V. Gnazzo believes that The United States of America is the greatest country on Earth, but that it can yet become greater. This article is written to help facilitate that greater becoming. God Bless America.

Douglas V. Gnazzo © 2005-2013
All Rights Reserved Without Prejudice

All Images, XHTML Renderings, and Source Code Copyright ©