Is it REALLY a Dollar? at 3:07 PM

Take a look at this $1 bill and see if there's anything weird about it.

In case you didn't notice, this isn't a dollar. A dollar is the old term for one ounce of silver. The reason we call this a dollar is because of the old silver standard that the US dollar used to be based on. Nowadays, one ounce of silver is worth about $15 (varying with the market, of course). 

That goes to show you how inflation is affecting prices. The value of silver didn't go up, the value of your US "dollar" bill went down.

This is one of the many factors that is putting the US economy in such a tight spot right now. Our "dollar" has no solid, precious metal value, just imaginary made up value.

This is a picture of the way things used to, and ought to be now.

At first glance, it looks like the same bill as the one above, but you will notice that it doesn't say "Federal Reserve Note. One Dollar", It says "Silver Certificate. This certifies that there has been deposited in the treasury of The United States of America, one silver dollar, payable to the bearer on demand." 

Back in 1928, when this bill was issued, you could walk up to the Federal Reserve Bank, give them this bill and they would give you one ounce of pure silver.

If you take a modern "dollar" bill to the Federal Reserve Bank, they will give you nothing more than a smile.

That's why you never see the old "Five and Dime stores" anymore.

-Graydon L