The US dollar crumbling down?

Nov. 9/07 - Many people are wondering why the US Dollar has been falling so much in value over the past few years... there are many reasons why the US Dollar has lost nearly 60% of it's purchasing power in just the past 4 years alone... one of the big reasons why the US Dollar is falling so rapidly can actually be traced back to June of 1968.Not many people outside of currency experts and very knowledgeable investors know this, but a very a sophisticated fraud was perpetrated upon the US taxpayer by the US Govt. back in June of 1968 that set into motion the rapid erosion of purchasing power in the US Dollar.You see, under the US Constitution, only Gold and Silver are considered real money, and in fact, the US Dollar used to be backed by Gold and Silver, however, the US Dollar is no longer backed by either Gold or Silver, and in fact, the US Dollar is no longer backed by anything of tangible value. Going back a little in time; by the late in 1960's, the US Govt. started racking up big debts & deficits, one of the reasons for the big increase in debts and deficits was the unexpectedly large expenses incurred waging the Vietnam war (sound familiar)... at that time, the US Govt. was spending more money than they could legally print under the amount of Gold it held in reserve... the US Govt. desperately needed to print more money to fund their war and debts than their Gold reserves would allow, so the US Govt. simply decided to re-write laws (regardless of their long-term financial consequences & Constitutional law) and started the de-coupling process away from backing the US Dollar with precious metals.Starting in June of 1968, the US Govt. stopped guaranteeing US Dollars with Silver, you see, prior to 1968, US Dollars used to be called "Silver Certificates" because, prior to June of 1968, the US Dollar could actually be cashed-in at anytime for a guaranteed amount of Silver... this Silver guaranteed the US Dollar had real value, which was the guaranteed amount of redeemable Silver. Nowadays however, the US Dollar is "guaranteed by nothing" of tangible value... and while you can still exchange a current US Dollar for some Silver today, there's "no guarantee" on how much Silver that US Dollar will be redeemable for tomorrow, or at any other time in the future... meaning the same US Dollar today may buy less Silver (or Gold) tomorrow, and even lesser amounts as time goes by due to inflation... simply translated; the US Dollar is now only backed by "confidence".The following 2 pictures of US Dollars shows the fraud on the Dollar, and partially explains how the "confidence game" works... notice how the following two US Dollars look almost identical, yet they are extremely different... I've highlighted the important but subtle differences in pink.

First, lets examine the pre-1968 US Dollar... notice at the very top of this pre-1968 US Dollar it says "SILVER CERTIFICATE"... and notice that directly under the word "SILVER CERTIFICATE" it says "THIS CERTIFIES THAT THERE IS ON DEPOSIT IN THE TREASURY OF"... and then notice on the very bottom of the Dollar is says "IN SILVER PAYABLE TO THE BEARER ON DEMAND". The wording on this pre-1968 US Dollar means it carried certifications/guarantees from the US Govt... those 2 extremely important guarantees are: (1.) that each US Dollar was backed by a corresponding amount of Silver that was being held on deposit by the US Treasury, and (2.) The owner of each US Dollar could exchange their paper certificate to real money (Silver) at any time. It was these "certifications/guarantees" that originally gave the US Dollar Silver Certificates their value, strength, & desirability. Now lets examine the modern US Dollar... notice at the very top of the modern US Dollar it's missing the words: "SILVER CERTIFICATE", instead it just says "FEDERAL RESERVE NOTE"... and notice its also missing the words: "THIS CERTIFIES THAT THERE IS ON DEPOSIT IN THE TREASURY OF"... and notice it's also missing the words: "IN SILVER PAYABLE TO THE BEARER ON DEMAND". Because the modern US Dollar is missing the early original certifications/guarantees, financially it means; the modern US Dollar is no longer backed, certified, or guaranteed by anything of tangible value... the US Dollar is no longer backed by Silver or Gold... the US Govt. no longer certifies/guarantees the purchasing power of the US Dollar via a Silver peg. The modern US Dollar is essentially the biggest "confidence game" in the history of mankind... because the only thing that backs the modern US Dollar is the faith and confidence in the US Govt. and the US economy, which is why the US Dollar is fallen so rapidly in value over the past few years.

SOURCE: WEBPENNYS.COM