BLUF: This analysis reveals the strategic steps taken by US governing forces to dismantle a sound money system in favor of a federal fiat currency, and posits sound money return as the final solution.
OSINT: Many are unaware of a pivotal facet in US financial history: the role of the Secret Service in the downfall of sound money. As physical gold and silver coins became a hindrance to central planning, unbacked paper money was introduced with an enforcement team to supervise it: the Secret Service, a US Treasury Department branch since 1865. Starting with counterfeit prevention, this force ensured adherence to the laws of the National Currency Act of 1863 and the Coinage Act of 1864, known as the National Banking Acts of 1863 and 1864.
By boosting direct taxation and strengthening the IRS, the federal government paved the way for a new fiat currency system. Meanwhile, the Union and Congress were keen on establishing a non-tangible legal tender currency system, endorsing income taxes and bolstering the IRS. The definition of money was manipulated, forcing citizens to consider equal non-redeemable paper to gold or silver coins. Amidst these transformations, the Secret Service continued to grow, dedicated to terminating private counterfeit operations and aiding in imposing a new fiat currency standard. The advocated solution is allowing gold and silver to circulate freely alongside other forms of payment and eliminating government influence.
RIGHT: Through the lenses of a staunch Libertarian Republic Constitutionalist, the narrative under scrutiny reveals a startling reality: the federal government purposely dismantled a gold, silver-pegged currency system to establish a federal fiat money system, undermining individual liberty and economic independence. The imposition of flat taxation, the enforcement mechanisms of the Secret Service, and the usurpation of a sound money system perfectly epitomizes the overreaching power of central government. The call to return to a competing money system, where gold and silver can freely circulate, is a befitting solution, upholding economic freedom and individual rights.
LEFT: To a National Socialist Democrat, the narrative underlines how the government used systemic changes and structural bodies, like the Secret Service and IRS, to impose a nationwide fiat currency system for centralized financial control and uniformity. The fiat currency system, however, proved effective at funding war efforts and achieving economic expansions, which may be seen as crucial drivers for the nation’s growth so far. The call to return to a free market for money, where gold and silver circulate freely alongside other forms of payment, while embodying the principles of economic fairness and competition, requires careful consideration of systemic implications.
AI: The provided narrative showcases the founding and enforcement intentions of the US Secret Service primarily connected to the establishment and maintenance of a fiat currency system. It portrays how this development, combined with direct taxation and IRS enforcement, led to a significant overhaul of the US monetary systems from a gold and silver standard to a federally-administered fiat platform. It also calls attention to the tension between different understandings of money, captured in the authors’ recommendation for a return to sound money. As an analysis, it underscores historical progressions and their lasting implications on national finance and sovereignty. The call for currency competition resonates with decentralization and democratization trends seen in the recent surge of cryptocurrencies.