Submitted for your consideration while standing by for FURIOUS FLAMES from the FRIENDS OF PAPER MONEY!
I wrote this a number of years ago when things were NOT going well with the economy. They have become ugly – VERY UGLY -- once again as man -- or certain men -- cannot resist playing god as we continue to violate the universal, immutable laws of economics.
A prime example of how men play god is this bit of madness:
FDR took the U.S. off the gold standard in April 1933, and by summer he was setting the gold price every morning from his bed. His Treasury Secretary, Henry Morgenthau, reported that at one point the president ordered the gold price up 21 cents. Why 21, Morgenthau asked? Roosevelt replied, because it’s 3 x 7, and three is a lucky number. “If anyone knew how we set the gold price,” wrote Morgenthau in his diary, “they would be frightened.”
There is STILL plenty about which to be frightened today.
History proves that EVERY house of cards eventually comes down. And the higher the card house, the harder the fall when it finally comes. And when it does, the more freedoms we will voluntarily surrender to "restore order." It was the Founders' concern about this historically valid problem that prompted their attempt -- now ignored -- to keep American "money" sound and honest. See the last section of Article 1, Section 10 of the Constitution for details.
And I certainly recognize that NO system of commodity backed paper “money” is foolproof -- and we now seem to be led by some of history’s biggest fools. It begs the question: How’s the current UNBACKED system working for you?
When we hear that gold (or silver) is so much an ounce, we are being given a ratio expressed by the media friends of paper money the precisely reverse of how it SHOULD be expressed.
At the moment, gold is NOT, for example, $1,700 an ounce, rather, the “dollar” has been reduced to a value of 1/1,700th of an ounce of gold. If the “dollar” eventually inflates to 1/6,300th of an ounce of gold, folks will get a more meaningful picture of what the politicians and the Fed have done to the currency. Sadly, by then, it will probably be too late.
Another interesting metric is that before the vote-buying politicians and masters of the universe at the Fed pulled us off a precious metals standard back in the day, the dollar was equal to 1/35th of an ounce of gold. And it has been calculated that the “dollar” of today is equivalent to less than 1 cent when measured against the metals backed dollar of 1913 or so BEFORE the Fed and the beloved INCOME TAX.
Sadly, it will ever be thus and it seems we must relearn those painful lessons every few generations.
In case some of you hadn’t noticed, class is now in session.
Since the guano hit the air handler, I’ve been getting far, far fewer flames from the paper money lovers at sites I frequent. When, over 4 years ago, I began ranting about the incredibly stupid financial devices (derivatives, mortgage backed securities, etc.) being created to hoodwink the greater fools out there who were snapping up these things, I could count on about half the responders to tell me I was too simple-minded to understand these highly complicated financial “products.” I guess all those really bright financial guys are either living on their private islands or too busy or washing car windows at traffic lights to post rebut my posts.
And consider that when gold and silver come up in the news, the talking heads fall into the old, establishment approved method of measuring the precious metals in the rapidly failing paper when they SHOULD remark that it is the metals that are – within the narrow confines of fluctuations caused by their uses as industrial commodities – holding THEIR value and it is the paper that is INFLATING. (The classic example is that around 1900, one could buy a fine man’s suit for one ounce of gold. YOU STILL CAN!!!)
A fiat money system of the sort we are now painfully watching collapse creates a FALSE world of FALSE feelings of well being and elevated lifestyles. During the expansion phase of such a system, those living under it spend or borrow more than they should, have more children than they can afford and, at the national level, come to believe they can afford to allow a score of millions of illegals to come here for free educations, welfare payments, free medical care, etc. They reject the immutable and universal economic realities and embrace what my old friend, the late Tupper Saussy, called “the IDEASPHERE.”
Now that the inevitable economic catastrophe is upon us, how much fun is it to watch the idiots in congress who triggered this thing scramble for cover by blaming everyone else? Not much!
The only folks who feel good now are the Hank Paulsons and Obamaites of the world who are in the process of conducting what may prove to be one of the largest raids on the REAL wealth of this nation – our labor and real property – ever witnessed.
Our only choice is to return to an honest system of money the politicians and bankers cannot easily manipulate. A commodity-based system using the ultimate commodity found to be more than satisfactory by countless civilizations before this one: Precious metals – gold and silver.
And the ONLY way for THAT to come to pass is to clear out the economic ignoramuses now occupying those expensive digs on Capitol Hill and replace them with common sense CITIZENS who understand that the cost for keeping our heads in the sand will have a very high cost: The remainder of our freedoms.
It should be obvious by now that the current party system is NOT working as intended. The best way to get them into those offices is GOOOH. Visit www. GOOOH.COM and join the millions of fellow citizens who’ve had enough of this insanity masquerading as “leadership.”
"Liberty lies in the hearts of men and women; if it dies there, no constitution, no law, no court can save it." -- Judge Learned Hand, 1944