The United States and many other Western nations are facing a demographic disaster. As I’ve mentioned before in SurvivalBlog, birth rates have fallen below the population replacement rate. In this essay, I will spell out some root causes of these demographic shifts that might surprise you, as well as some practical solutions. The primary cause of the current negative societal trends goes even deeper than a liberalized academic system, an activist mass media spouting progressive blather, entrenched D.C. “Swamp” politicians and bureaucrats, and uncontrolled illegal migration. The taproot of the pernicious weedpatch of our societal problems is monetary. It all comes down to the very nature of our money in circulation since 1913.
I’ll get into some of the current societal ills in detail, but first I must spell out some important pieces of history:
The U.S. Constitution declared gold and silver to be lawful money. The Coinage Act of 1792 essentially cloned the traditional Milled Spanish Silver Dollar’s weight, size, and purity as the U.S. Dollar. This was later codified in Title 12, Section 152 of the U.S. Code. The same law standardized the weight, size, and purity of U.S. gold coins. When the U.S. Mint struck $10 Gold Eagles and $20 Gold Double Eagles (containing 0.9675 Troy ounces of gold) and silver dollars (containing 0.7734 Troy ounces of silver), that at that time indicated respective values of $20.67 per ounce for gold and $1.29 per ounce of silver. That worked out to a silver-to-gold ratio of nearly 16-to-1. And that ratio roughly matched mine production (and costs), at the time.
The Federal Reserve Act of 1913 established the Federal Reserve System as the central bank of the United States. This new central bank scheme allowed a heretofore unconstitutional form of money to be created. Because banks only had to hold a fraction of their deposits as reserves, the rest could be loaned out at interest. Thus, new Dollars were effectively loaned into existence. Henceforth, the size of the nation’s money supply was expanded not by mintage and currency printing but instead by manipulation of interest rates. Interest rates are controlled by the Federal Reserve’s Open Market Committee (FOMC) — which was also created in 1913.Continue reading“Demographics, Dollars, and Our Destiny”

