And another about our current state of affairs...
From the Teachings of Ezra Taft Benson we read:
"The pending economic crisis that now faces American is painfully obvious. If even a fraction of potential foreign claims against our gold supply were presented to the Treasury, we would have to renege on our promise. We would be forced to repudiate our own currency on the world market. Foreign investors, who would be left holding the bag with American dollars, would dump them at tremendous discounts in return for more stable currencies, or for gold itself. The American dollar both abroad and at home would suffer the loss of public confidence. If the government can renege on its international monetary promises, what is to prevent it from doing the same on its domestic promises? How really secure would be government guarantees behind Federal Housing Administration loans, Savings and Loan Insurance, government bonds, or even social security?
"Even though American citizens would still be forced by law to honor the same pieces of paper as though they were real money, instinctively they would rush and convert their paper currency into tangible material goods which could be used as barter. As in Germany and other nations that have previously traveled this road, the rush to get rid of dollars and acquire tangibles would rapidly accelerate the visible effects of inflation to where it might cost one hundred dollars or more for a single loaf of bread. Hoarded silver coins would begin to reappear as a separate monetary system which, since they have intrinsic value would remain firm, while printed paper money finally would become worth exactly it's proper value--the paper it is printed on! Everyone's savings would be wiped out totally. No one could escape.
"One can only imagine what such conditions would do to the stock market and to industry. Uncertainty over the future would cause the consumer to halt all spending except for the barest necessities. Market for such items as television sets, automobiles, furniture, new homes, and entertainment would dry up almost overnight. With no one buying, firms would have to close down and lay off their employees. Unemployment would further aggravate the buying freeze, and the nation would plunge into a depression that would make the 1930s look like prosperity. At least the dollar was sound in those days. In fact, since it was a firm currency, its value actually went up as related to the amount of goods, which declined through reduced production. Next time around, however, the problems of unemployment and low production will be compounded by a monetary system that will be utterly worthless. All the government controls and so-called guarantees in the world will not be able to prevent it, because every one of them is based on the assumption that the people will continue to honor printing press money. But once the government itself openly refuses to honor it--as it must if foreign demands for gold continue--it is likely that the American people will soon follow suit. This in a nutshell is the so-called 'gold problem.' (An Enemy Hath Done This, p. 218.)" (The Teachings of Ezra Taft Benson p 639-640.)
Ezra Taft Benson, speaking of the upcoming economic crisis quotes Hamilton, but then also gives us hope to move forward and rebuild a monetary system and healthy economy which shall be a model once again for all the world. Benson states:
". . .it is even possible that some of the government manipulators who have brought us into this economic crisis are hoping that, in panic, we, the American people, literally will plead with them to take our liberties in exchange for the false promise of 'security.' As Alexander Hamilton warned about two hundred years ago: 'Nothing is more common than for a free people, in times of heat and violence, to gratify momentary passions by letting into the government principles and precedents which afterward prove fatal to themselves' (Alexander Hamilton and the Founding of the Nation, p. 21.) Let us heed this warning. Let us prepare ourselves for the trying time ahead and resolve that, with the grace of God and through our own self-reliance, we shall rebuild a monetary system and a healthy economy which, once again, will become the model for all the world. (An Enemy Hath Done This, pp. 220-21.)" (The Teachings of Ezra Taft Benson p 640.)
Dwight Eisenhower's Secretary of Agriculture, Ezra Taft Benson met with USSR's Nikkita Khrushchev and related:
“I have talked face to face with the godless communist leaders. It may surprise you to learn that I was host to Mr. Khrushchev for a half day when he visited the United States, not that I’m proud of it. I opposed his coming then, and I still feel it was a mistake to welcome this atheistic murderer as a state visitor. But, according to President Eisenhower, Khrushchev had expressed a desire to learn something of American Agriculture — and after seeing Russian agriculture I can understand why. As we talked face to face, he indicated that my grandchildren would live under communism. After assuring him that I expected to do all in my power to assure that his and all other grandchildren will live under freedom he arrogantly declaired in substance:
“ ‘You Americans are so gullible. No, you won’t accept communism outright, but we’ll keep feeding you small doses of socialism until you’ll finally wake up and find you already have communism. We won’t have to fight you. We’ll so weaken your economy until you’ll fall like overripe fruit into our hands.’
“And they’re ahead of schedule in their devilish scheme.” (Ezra Taft Benson “Our Immediate Responsibility.” Devotional Address at Brigham Young University. circa 1968.”) [access the audio file on this page.]