Founding Fathers Warned Against & Prohibited FIAT Currency

Both of our precious metals are in a strong upward move. Thus far, it has been a series of stair steps with two up and one or one and a half back, etc. Both metals are very strong with silver showing some signs of attempting to catch up with gold's move. Currently, gold is at 818.60 on a down tick and silver at 10.34 on a down tick. It is current rush over? We will see as the day moves on. For the time being, it looks to be another up day. However, we must remember that both have made huge gains in the last three days. A rest may be needed and we have a short trading week with the Thanksgiving Celebration.

Mining stocks are mostly much higher now and there is much more interest in them during the last two days. The DJI is up about 31 to 8478.

From BBC News:

11:37 GMT, Saturday, 22 November 2008

UBS loses favour with angry Swiss

It has been a hard year for the biggest Swiss bank, UBS. After losing millions in the US sub-prime mortgage market, it has had to beg the Swiss government for help. As Imogen Foulkes reports, its reputation in Switzerland may never recover.

Read the article HERE.

From The Wall Street Journal:

The Fed Is Out of Ammunition

A discredited dollar is a likely outcome of the current crisis.

By CHRISTOPHER WOOD

Read the article HERE.

From Financial Times:

Bring back the link between gold and the dollar

By Richard Duncan

Published: November 23 2008 19:07 | Last updated: November 23 2008 19:07

Read the article HERE.

From Casey's Daily Resource Plus on Dr. Copper:

"The base metals were all solidly in the green on Monday. Copper went skyward late in the pre-dawn hours, peaked just shy of $1.70 in the late morning, then eased slightly into the afternoon hours, finishing at $1.6614/lb., up 8 2/3 cents from Friday."

Copper is an indicator of manufacturing activity and a general gauge of commodities in general.

This on the dollar and currencies from The Daily Pfennig today:

"The currencies continued their assault on the dollar today as investors felt more comfortable returning to the higher yielding currencies. Brazil was the biggest mover, advancing over 6 percent vs. the US$. Sweden also advanced for a second day, moving up over 5% against the greenback. The only currency which gave ground vs. the dollar was the Japanese Yen which was sold as investors moved back into the carry trades.

There really wasn't a single event which sent the dollar down, but instead the currencies steadily increased throughout the day. Bad housing data in the morning confirmed that house prices are continuing to fall and while sales have tumbled. The median price of homes in the US fell 11.3 percent from a year earlier, the largest drop on record.

But equity investors weren't frightened by the data, and were actually encouraged by President elect Obama's call for a large stimulus package. With the stock market rallying, currency investors felt comfortable enough to pick up some bargains in the Brazilian real and other higher yielding currencies. This is the pattern which we have been seeing over the past few weeks, and one which looks to continue through the end of the year. I don't personally think this is the turning point for the dollar, as we will likely see some more safe haven buying before the end of the year. But longer term investors can still take advantage of the prices on some of the beaten down currencies which still have good fundamentals. I would include the Nordic currencies of Sweden and Norway along with the commodity currencies of Australia and Brazil."

This from Mine Web:

CAPITAL MARKETS MAY BE THAWING

The gold bull market starts here . . .

Gold bullion jumped nearly USD 60/oz on Friday, spurring wide, and heavy, buying of gold stocks; Barrick, the world’s biggest, rose 31% on the day.

Author: Barry Sergeant
Posted: Monday , 24 Nov 2008

JOHANNESBURG -

Gold bullion jumped nearly USD 60/oz on Friday, recording intraday lows and highs of USD 742.93 and USD 801.92, respectively, and spurring heavy buying of listed gold stocks, from the majors to the juniors. "We had size buying", observed a London-based sales-trader, "in the majors - Barrick, Kinross, Goldcorp, the mid tier Yamana, and as far down the list as the Congo juniors - Moto Goldmines."

Read the article HERE.

The designers of our Constitution were well aware of the dangers of unbacked FIAT currency and wrote in a prohibition for the use thereof. "Congress shall have Power. . . To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; . . ." The colonies had used FIAT currency after they had run out of Spanish Doubloons to pay for the English goods brought over by ship.Of course, King George would respond with a order cease use of paper currency. However, that would take months for the demand to get to the colonies. Then they would issue a new FIAT currency. This went on for some time, so they were fully aware of the problems of paper currency.

Gold and silver have been money of preference for centuries. In the early biblical times, payment was made in gold and silver by weight. God recognized the sinful nature of man and explicitly prohibited a person to even own differing weights: a large and a small. He knew the temptation would be to great to use the weights to defraud the other party to a transaction.

Throughout history nations have grown and fallen when they drift away from the Sovereign God of all. Many lost empires and some never lasted very long. A major symptom of most has been a debasing of the currency in violation of God's law. Nations debase currency and run to paper currency, because there is no limit to the amount which can be very cheaply printed or created by simple blips on computers. As the nations currency loses international respect, the nation also loses respect. As goes the currency, so goes the nation. We are now facing that today in the world as America has turned from the God of many of our founding fathers.

While many of our founding fathers sought to create a nation set on a hill which would shine forth with God's light to the rest of the world, we are in a period during which that light has been shut down. We must pray that the new president will see his responsibility as a minister of the Triune God of all and exercise his office in accordance with God's Law-Word.

We, as individual citizens, families, and churches must renew our commitment to King Jesus and be the lights to the world and salt of the earth within our own spheres of influence. Without this, our nation will never return to the founders vision.

Best to each, Doug