I recall having many discussions with well-meaning, well-educated friends about the nature of money and banking over the past many years. Many of these men ardently believed that federal reserve notes are “money”, that the federal reserve is a national bank operating in the public interest, and that gold and silver are obsolete.
There seemed no means of persuading them, at the time, that the little pieces of green paper in their wallets are not money. Rather, they are IOUs issued by a central bank operating with a malevolent motivation. Worse still, those little green IOUs do not represent moneys owed to the bearer (you), but rather as proof of a debt owed by the bearer (you) to the federal bank. Such a bizarre, backwards and logic-defying situation is so absurd, that even the beneficiaries of the arrangement can scarcely believe they have conned humanity for so long. Yet, so they have.
It seemed nigh impossible to convince people of the truth of these assertions during the bubble years. Everyone was delighting in the illusion of wealth. Property values seemed to be rising without end. All other paper assets were likewise on a path that seemed to suggest a permanent prosperity. How could there be anything wrong with that?, they asked.
However, property values were never rising in a “real” sense. That is to say, they were not rising unless there were some tangible improvements made to the property relative to the surroundings.
Home values were not rising in the absence of such improvements (new roofs, etc). What was happening was that the green paper used to purchase the homes was growing increasingly less valuable with each passing year. The effect was the same. It took more and more pieces of green paper to buy the house. But we were conned into thinking we were getting wealthier when in fact we were getting poorer! Read the last paragraph as many times as necessary to understand it.
Americans were hoodwinked, bamboozled and fleeced. Your 401k, pension, insurance policy, stock portfolios, etc, are likewise denominated in a currency that has been systematically devalued over many decades. The stock market looks like it is going “up”, but it’s not. As the currency is devalued, the illusion is that all assets valued in that currency are rising. If you are not horrified by the implications, you don’t quite understand it yet. We were conned. Those who thought they were wealthy 3 years ago, but are now living under a highway overpass know this, even if they don’t know exactly how it happened.
Understand that paper money is issued by a private central bank, a corporation, that is not primarily motivated to serve the public. The idea that the federal reserve bank was/is “federal” was fraudulently impressed upon the public to allow cover whilst they systematically looted the nation over the span of 10 decades. If anything, I am understating the reality.
The shareholders of the federal reserve system are motivated to make a profit. To do so, they must keep the economy going as long as they can, whilst draining it of it’s life force. Like parasites, they are motivated to keep their host alive so that they can continue to suck it’s life energy. The fact that they are no longer attempting to hide their nefarious misconduct, engineering the recent theft of trillions of dollars (TARP/QE1/QE2) in broad daylight, suggests that they know the host is terminal and about to die. They are taking all they can before the party stops.
The “No Bankster Left Behind” “bailout” that was given to the banks enriched a very small few at the expense of Americans everywhere. Was this really an unintended consequence? Can one really believe that still? The $ Trillions involved could have been reduced by over 50%, and given in equal shares to all American Citizens to pay-down their mortgages. The so-called subprime crisis would have ended immediately and the country would have been radically invigorated overnight. Instead, the money was pocketed by a well-connected few. This is so obvious a 5th grader can easily see it. But alas, as we know from the TV show, 5th graders are pretty darn smart…
It is well worth the time to understand the monstrosity of the system that permits the fed to print money at will, at almost $0 cost like a counterfeiter in his basement, and then lend that “money” to the US government at interest. It is a boondoggle of such magnitude it is almost impossible to believe such a con could really be true. Yet it is true.
When the federal reserve act was passed in 1913, the future of our country was sealed. It was simply a matter of time before the wealth of the nation would reside in the hands of a well connected few. The president at that time, Woodrow Wilson, later lamented that he had betrayed the country by allowing for the fed’s charter to exist.
So what about gold and silver coins? Can they be employed at this late date to “fix” the multiple crisis facing humanity? It should be noted that the largest international banks settle their debts with each other in gold. Reflect on that for a moment. As far as international banks are concerned, at the end of the day they want gold – not pieces of paper. Why do you suppose that is the case?
Silver and gold coins maintain “real” value. Consider that in 1964, when the last silver quarters were minted in America, a good hearty lunch could be had for 2 quarters, ie, 50 cents. Today those same 1964 quarters are worth in the ballpark of $20. That’s still enough for a good hearty lunch. Do you understand what this means? 1964 SILVER QUARTERS HAVE THE SAME PURCHASING POWER THEY DID WHEN THEY WERE ISSUED 47 YEARS AGO.
So, ponder this question: does a hearty lunch cost more now than it did in 1964? No, it does not. The price of lunch is still the same. What changed is not the “price” of the lunch, but the value of the paper “money” used to pay for it. This is the same illusion we saw in the housing bubble, the stock market illusion, etc.
Unfortunately, even when we understand the nature of the problem, and the apparent solution, we are left with a problem. . Yet, it is not clear that gold and silver coin represent a viable solution to today’s problems for one simple reason – most are too broke to buy any silver or gold.
The founders of the American experiment demonstrated a profound wisdom by insisting that gold and silver remain the only lawful money in America. But can we make gold and silver the only lawful national money once again? Purists insist that we must, if we are to ever escape from the ravages of the parasite class of bankers that are consuming us. I sympathize with this position.
The problem is that very, very few Americans have any gold or silver, nor the means to buy any. Americans so-called wealth is today almost nothing but paper. In a word, we are penniless destitute, from the standpoint of the founders of America. 99.999% of Americans can scarcely afford to buy a single gold coin. We need an interim step that will allow Americans to rebuild their wealth as we re-integrate precious metals into the system.
Since the root of the problem was that we allowed private bankers to issue our currency we can safely declare that STEP #1 is that every state in the union immediately adopt a state central bank that issues state money, at no interest, to their state governments as requested by their state legislatures.
That newly-issued state money would immediately support all manner of state expenses, public works and payment of all state taxes. It would do so at no cost to the state. A system such as this is already employed by North Dakota. As some may already know, North Dakota is currently the only state in the country NOT being ravaged by economic devastation today. This is not a coincidence. Please google “Bank of North Dakota” for more information.
This solution is breathtakingly simple to implement. In a single stroke and virtually overnight governments would become solvent and able to support massive public works projects on roads, bridges, schools, health care, etc. Imagine what California could do tomorrow if they created the Bank of California, chartered to issue California Money, with the crest of the State of California emblazoned thereon. In a day’s time they could pay every city and state employee, fund every state pension, pay for the re-design and re-engineering of every bridge, road and tunnel in the state. They could do all this and much more, without raising a single tax. Indeed, taxes could be reduced drastically.
At the same time, a mechanism MUST be introduced to re-integrate precious metals into the equation, beginning day 1, to avoid the problems associated with an oversupply of newly issued bills of no intrinsic value.
There will be no losers in this undertaking, with one very significant exception. The parasite class of banksters who have grown accustomed to charging their victims interest for using their counterfeit money, continue to fight this growing idea with all the tools at their disposal. As they are far and away the wealthiest class on the planet, their propaganda campaigns at all levels are extreme.
Meanwhile, by re-introducing small denomination silver and gold coin into the economy the value of “false” money, ie, coin struck of worthless metals such as our dimes and quarters of the present will quickly be abandoned as the worthless junk they are. Prices would quickly stabilize and the accumulation of REAL wealth by everyday working people would begin once again. EVERYONE WINS, except the parasite class (banksters).
I am certain that there are many people bringing ideas such as this to the attention of state governors at this time. Let’s do what we can to demand they act quickly to enact such a common-sense proposal.