History and Health of the US Dollar

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The Original USD

The USD as we know it today began as a vastly different creature – in name and in kind.

The USD began in the 1780s as the Spanish silver coin named the pieces of eight, which the continental Congress chose to use as their money because the global markets were familiar with this coin.

Edwin Viera Jr. explains in the book, Pieces of Eight:

“Monetary historians generally first associate the dollar with one Count Schlick, who began striking such silver coins in 1519 in Joachim’s Thal, Bavaria.

Then called ‘Schlicktenthalers’ or ‘Joachimsthalers,’ the coins became known simply as ‘thalers,’ which became transliterated into ‘dollars.’

Interestingly, the American colonies did not adopt the dollar from England, but from Spain. Under [Spain’s] monetary reform of 1497, the silver real (‘ray-ahl’) became the Spanish monetary unit…

A new coin consisting of eight reales [‘ray-ah-lace’] also appeared. Variously known as pesos, duros, piezas de ocho (“pieces of eight”), or Spanish dollars (because of their similarity in weight and fineness to the thaler), the coins quickly achieved predominance in financial markets of the New World because of Spain’s then-important commercial and political position.”

It has been proposed that the infamous dollar-sign – $ – was adapted from two “S” symbols on Pillars of Hercules on either side of the Spanish silver coin – the real.

Paper Money or Silver Money?

Goldbugs – people who strongly support gold or gold-backed currency, and many global financial experts and analysts such as G. Edward Griffin and Eric King of King World News – have presented a gold-and-silver-backed currency system in the United States as a response to the dollar crisis.

Furthermore, Griffin and other historians claim that US dollar crisis actually began when the US changed from the silver money to the paper money and has continued in waves ever since.

As a currency declines, the amount of currency necessary to trade for an ounce of silver increases.

As the US dollar devaluation continues, since the dollar is connected to global currencies, global currencies being devalued as well.

Silver, considering its history as a trusted form of money, grows in demand as confidence collapses in the paper and electronic money. One way to measure US dollar crisis to to watch the price of silver.

US dollar crisis would typically result in a rising price of silver.

Is the price of silver rising? To what extent is there US dollar crisis?

China – Preparation and Profit with Silver

Sensing US dollar crisis or simply seeing the potential for great growth in silver, the public – particularly in China – has been trading their currency for silver and the price of silver has been rising to reflect this ascending demand.

The Chinese public has not been alone in this flight to silver safety. Around the globe, people have been transmuting the assets into precious mental.

Preserving their life. Growing their wealth.

What are you doing with your money?



Source by Roth E Barrons

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Forex

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