When the Kingston Trio got here out with their rendition of “Greenback Dollar” with the lyrics pronouncing “I do not deliver a dam about a greenback dollar I spend it simply as fast as I can” today, half of of that word is really proper. Too many of us maintain to spend that dollar ever faster although. But, what we do care approximately is why that ever disappearing greenback doesn’t come up with the money for the things it used to. We do provide a dam about every remaining dime that comes into our ownership these days.
To recognize the seriousness of america monetary status is to hint the history of the greenback or Greenback as it become recognized throughout the Civil War. The time period dollar refers to prison soft, published in green on one facet and issued by means of the USA all through the American Civil War. Currency at that time became sponsored up by way of gold but, when the Civil War broke out the demand for more foreign money became too much for the gold reserves america had. What President Lincoln did by issuance of the Greenback was to position the backing of dollar totally primarily based at the credibility of the U.S. Government. Much like it’s miles today. Those Greenbacks again then turned into in large part what financed the Civil War and in the end making the primary commercial revolution viable.
Today, our floundering US greenback is precariously close to falling off as the world’s reserve currency. The essential motive is that we nonetheless have our currency completely subsidized up by means of the credulity of our government. The Federal Reserve maintains to print fresh “Greenbacks” and loans the cash with interest it to america government. It is the interest that is making Wall Street and the Federal Reserve wealthier at the fee of america economic system. Think of the Qualitative Easing the Fed did following the financial catastrophe of 2008. All that did turned into enhance the power brokers whilst essential avenue maintains to languish in monetary distress.
When Lincoln assumed office he already understood that the outcome of the conflict would be in large part determined with the aid of the resources of the North. Lincoln also understood the significance of elevating enough funds to effectively carry out the conflict attempt. With this in mind Lincoln on the day after his inauguration nominated Salmon P. Chase to be Secretary of the Treasury. Secretary Chase alone was authorized by Lincoln to behave on all matters bearing on the us of a’s finances. Chase, like maximum every body else on the time, underestimated the severity of the War in phrases of its duration and value.