What Is Your Stop-Loss Plan to Protect Against Inflation?

From the earliest days of our union as the United States, our nation operated without a true central bank, and then from 1836 to 1913, the National Banking System (established during the Civil War) was created. This system produced an “inelastic” currency (tied to government bonds), seasonal credit shortages (especially around harvests), and frequent banking panics (notably 1873, 1893, and 1907). The assumption then was that an “inelastic” currency was a bad thing. The upside of inelasticity was stability. The value of a dollar was stable, just as stable as a 1-oz silver or gold piece. And that is where the story of the Goldback comes from. The price of one Goldback today is $8.09 USD. To learn more or acquire your sound money, text “GOLDBACK” to 5208087340.

Up to this point, the Hamiltonian economics model was the way of life in America. Hamiltonian and Henry Clay have gotten a lot of press recently over the differences between the American Economic System and the Imperial Economic System. “Hamiltonian economics” refers to the financial and economic program developed by Alexander Hamilton, the first U.S. Secretary of the Treasury (1789–1795). It emphasized a strong national government, public credit, a central bank, a stable national currency, and the promotion of commerce and manufacturing to be a self-sufficient nation. Yes, the opposite of today’s globalist construct that does not serve the self-sufficiency nature that makes America great.

The value of gold and silver does not change; it is the value of the paper notes issued by a bank (today, the Federal Reserve), redeemable for silver or gold, but not from the government, but from each other. Sadly, in 1978, the United States was talked into getting off the gold standard.

Today, the “price” of exchange for paper to gold or silver changes by the minute, hardly a stable currency. This is not the hallmark of sound money, but instead a sign of market instability brought on by national debt and irresponsible spending by Congress.

The unwelcome intruder, inflation…

Not until 1913 and the Jekyll Island agreement, which quietly pushed America into the Federal Reserve Banking system, was inflation a factor. That all changed when the international banking oligarchy essentially took over the American banking system. Inflation has become an accepted factor in the decline of personal wealth retention. But it doesn’t have to be.

Sadly, almost nothing is taught in American public schools today about Hamilton’s program, which was outlined in major reports to Congress, the fragile post-Revolutionary finances of the new republic:

• Public credit and debt assumption: In his *Report on Public Credit* (January 1790), Hamilton proposed that the federal government fund the national debt at full (par) value and assume the Revolutionary War debts of the states. This created a funded national debt that bound wealthy creditors to the federal government’s success, lowered borrowing costs over time, and established U.S. creditworthiness. He famously viewed a properly managed national debt as a potential “national blessing” when it fostered liquid markets and confidence.
• National Bank: In the *Report on a National Bank* (December 1790), Hamilton proposed the Bank of the United States (often called the First Bank of the United States), chartered in 1791 for 20 years with $10 million in capital. The federal government held a 20% stake; private investors held the rest. Modeled partly on the Bank of England, it served as the government’s fiscal agent (collecting taxes, paying debts, holding deposits), issued banknotes, provided commercial credit, and helped stabilize the currency and money supply. Hamilton argued it would turn “dead stock” (gold and silver) into productive capital.
• National currency and mint: Hamilton pushed for a stable monetary unit (the U.S. dollar) and the establishment of a mint to produce coins based on gold and silver standards.
• Manufactures and industry: His Report on Manufactures (1791) advocated protective tariffs, subsidies, and infrastructure to develop domestic industry—ideas later expanded in Henry Clay’s “American System” (tariffs, national bank, and internal improvements). All of this aimed at a self-sufficient nation.

These measures faced fierce opposition from Thomas Jefferson, James Madison, and agrarian interests, who viewed them as unconstitutional expansions of federal power favoring northern commercial elites and resembling British systems. The First Bank’s charter expired in 1811 and was not renewed. The Second Bank of the United States was chartered in 1816 but vetoed for renewal by President Andrew Jackson in the 1830s, leaving the U.S. without a central bank until 1913.

Hamilton’s system is credited with rapidly establishing key components of a modern financial architecture: public debt markets, a national currency, a central bank-like institution, and the foundations for commercial banking. Economic historians often describe this as a swift “financial revolution.”

Brief History of the Federal Reserve System

The United States operated without a true central bank from 1836 to 1913 under the National Banking System (established during the Civil War). This system produced an “inelastic” currency (tied to government bonds), seasonal credit shortages (especially around harvests), and frequent banking panics (notably 1873, 1893, and 1907).

The “Panic of 1907” was the decisive catalyst. Private banker J.P. Morgan organized emergency liquidity, but the episode highlighted the dangers of relying on individuals. Congress responded with the Aldrich-Vreeland Act (1908), which created the National Monetary Commission (chaired by Senator Nelson Aldrich) to study reforms.

Key developments leading to the Fed:

• In November 1910, a secret meeting at Jekyll Island, Georgia, involved Aldrich, Paul Warburg, and other bankers and officials. They drafted a plan for a central reserve association (later refined into the Aldrich Plan).
• After the 1912 election of Democrat Woodrow Wilson, the Republican-backed Aldrich Plan gave way to a Democratic alternative shaped by Rep. Carter Glass and H. Parker Willis. The result was a political compromise.
• President Wilson signed the Federal Reserve Act on December 23, 1913. It created a decentralized system of 12 regional Federal Reserve Banks overseen by a Federal Reserve Board in Washington, D.C.
• Member commercial banks held stock in their regional Reserve Banks. The system was designed to provide an elastic currency, act as a lender of last resort, improve the payments system, and enhance financial stability—while balancing private banking interests with public oversight and regional diversity.

The Drag and Drain on Personal Wealth…

What the Fed has failed to do in typical political fashion is to prevent inflation.

Holding gold at today’s price is a stop-loss strategy to preserve what you have. It is true that if you hold Goldbacks, as the price of exchange of gold increases, there could be a slight arbitrage when you exchange a Goldback for paper notes, but why would you do that if a merchant or political subdivision of government accepts Goldbacks?

Featured states on Goldbacks include New Hampshire, Nevada, Arizona, Florida, South Dakota, Oklahoma, Texas, Utah, Wyoming, and Idaho, with more states coming. No matter the state, the value of the Goldback is the same. One Goldback is valued at $8.09 USD (8/1/2026). For more information or to acquire holdbacks, text GOLDBACK TO 5208087340.

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