We recently had the pleasure of interviewing Jeremy Cordon on The Liberty Block’s podcast. Jeremy is the CEO and co-founder of Goldback, a company which manufactures real money.
What makes it real money?
The goldbacks are flexible bills, and are self-backed by gold. In fact, each bill contains a specific amount of gold. Their One Goldback bill contains one thousandth of an ounce of pure gold. Their Ten Goldback contains ten thousandths, and so on.
Unlike the Federal Reserve’s decreasingly valuable paper notes, the goldbacks contain within them a scarce commodity of inherent and time-tested value: gold.
The United States Federal Reserve manipulates and inflates the ‘money’ supply in many ways. By practicing the corrupt art of ‘fractional reserve banking’, they create tremendous inflation. The Federal Reserve and the US government have created a financial policy for all banks in the US in which only a tenth of the money they claim to have must be kept at the bank. This means that banks which have one million dollars in their vaults can act as if they have ten million dollars. They can maintain a total of ten million dollars within their customers’ accounts. If more than ten percent of their customers attempted to withdraw the cash from their accounts, it literally would not be there. Even if the US dollar was backed by gold (which it isn’t), this would mean that the money supply of the US government’s central currency is massively inflated.
Imagine if I owned one car and I ‘sold’ the car to two different individuals, took their money, and promised that they could come pick up the car anytime. This creates a multiple-claim issue, of course. This is what is happening with the US dollar on a massive scale. However, since dollars could be printed and/or created by altering numbers on screens, the day of reckoning comes much more slowly and inconspicuously. In fact, there may not be one day of total collapse of the dollar at all; it may just continue to lose a large percentage of its purchasing power each year for all eternity. Remember, since the Federal Reserve was created in 1913, the US dollar has lost a terrifying 99% of its purchasing power. So, even if you save a few million dollars for retirement, that money will be worth much less by the time you retire.
An ever-increasing number of people are buying gold, silver, and other hard assets. Some are buying them to hedge against inflation and maintain the value of their money, and some are buying it to literally replace the failing dollar. For the latter group, the goldback is the perfect form of money. Unlike a one ounce bar of gold (which is worth over $1,800), these small denominations of gold money are perfect for everyday purchases. In Utah, dozens of businesses already accept goldbacks. In New Hampshire, many pro-liberty businesses and individuals also accept this new form of real money.
Large and small precious-metals websites sell the goldbacks. The price of the goldback does not fluctuate; the amount of fiat FRNs necessary to buy one goldback does fluctuate, though.
If you are not confident that the US dollar will hold its value over time, consider trading some of your ‘Federal Reserve Notes’ for some truly gold-back bills.