THE UNITED FIAT SERFDOM OF AMERICA

Fiat money is a medium of exchange, but it has no commercial commodity value, no producer or consumer value, nor does it convey any title to an underlying commodity property. The only method of imparting value to an irredeemable paper fiat money is through government decree based solely upon the enforcement of legal tender laws with threat of penalty. In total and absolute contrast, commodity money, such as gold money, is a medium of exchange which retains an underlying commercial commodity value, it retains both a producer and consumer value and since that value is inherent in the underlying commodity of the money it actually conveys title to the commodity as private property of the individual holding the commodity money. Additionally, there is no necessity to involve the impartation of value to a commodity money by government, nor is there a need to enforce the use of commodity money by legal tender laws.

Given the generalized acceptability of gold commodity money, any form of that money, based upon weight would translate into a universal medium of exchange and do so on a global scale even though the coinage may be of foreign origin. Because of this characteristic of gold money, it is possible to construct all currencies based upon weight and the exchange opportunities of such currencies would be subject to both producer and consumer costs that cannot be found in any other type of money, especially fiat money. Gold money, unlike fiat money, is based upon the most fundamental principles of a barter economy; as such the indirect exchange involved with gold money maintains a direct interaction with the underlying pre-existing barter economy. In fact, gold money is the direct result of the barter economy. Gold maintains its marketable characteristic because of its connection to the most basic barter economic principles, which make up its foundation.

Today, the world is plagued with fluctuating fiat currencies that provide absolutely no consistency as a medium of exchange. Exchange becomes difficult since there arises a conflict in the manner in which fiat money must be sustained and in order for any exchange to take place, this system is dysfunctional on several levels, but especially in the balance of trade between countries, and to a large degree the means by which companies of all sizes, and individuals make economizing decisions. Gold money, on the other hand, based upon weight is a very stable and provides a solid foundation on which to base exchange, this factor also gives the ability to make sound economizing decisions and reliable information on which such decisions can be made.

As a medium of exchange, money normally serves as a measure of value, but in order to actually contain a measure there must be an imputation of value otherwise there can be no real measure on which to base value. As such, fiat money does not serve as a measure of value since the face value is in contradistinction with the underlying value, which is essentially the value of the paper itself. The imputation of value found in fiat monetary systems has absolutely nothing to do with the money itself for there is no value to fiat money, all value is imparted to fiat money via the government legal tender laws used to enforce its use and the manipulation of interest rates which serves to provide fiat money with a pricing structure.

It is apparent within the world that we live that most people associate the measure of value of their fiat dollars in terms of face value, but that is far from a meaningful measure of value and only is a numerical valuation that does not relate to the ordinal value of fiat currency since the currency is subjected to inflationary depreciation. As such, the ability to actually measure value within a fiat monetary regime becomes increasingly difficult as time progresses and depreciation takes place. With an unstable purchasing power, it becomes impossible for fiat money to actually serve as a concrete measure of value, this is particularly true considering the nature of our political economy since the continuous state of government and central banking intervention precludes a stable constant of value measurements.

Since fully functional money always arises as commodity money with all the market characteristics of a commodity value; that being said the question therefore, is how does fiat money arise and what is necessary to transform what amounts to pieces of paper into a medium of exchange? Fiat money is a forced unit of value and exchange, which never arises naturally from a voluntary exchange with an underlying measure of value. Fiat money is developed as a money substitute that carries with it some of the characteristics of money but essentially is not money in the purest sense of the word.

Such money substitutes cannot convey title to any underlying value since there is no underlying value in fiat currencies. Since it is not possible for title to be conveyed all claims of ownership are null and void; indeed, under a fiat monetary regime there are usually numerous claims to each fiat monetary unit and those claims range from the U.S. Government, to the Federal Reserve System, to national and regional banks and then to corporations, as well as individuals, but these claims do not convey absolute title to something that cannot, in the strictest sense, be considered private property at any point in ownership.

There are other problems that arise with a fiat monetary system, especially when that system is subject to a fractional reserve system of banking. Under a fractional reserve system the banks do not maintain a 100 % reserve therefore, the system lends itself to providing numerous claims at the same time on the same money, thus the possibility of bank runs is ever present in such a system. When a bank run occurs, the problem is revealed as people want to lay claim to their money but there is only a fraction of their money available to them under the system.

Prior to 1914, the year the Federal Reserve Act took full effect, commodity gold money circulated in various forms ranging from bullion to gold certificates. Gold certificates are actual claim to title of the amount of gold on deposit or warehoused at a banking institution, as such they can and have served as mediums of exchange only because of the underlying value of the gold that entitled them. Additionally, there are non-monetary instruments, which also can be exchanged as though they were money and yet they do not bear weight upon the total supply of money in circulation, they simply serve as an exchange unit in lieu of the money they represent. An interesting fact about gold commodity money is that, unlike fiat money, the gold proper and the gold certificates could circulate side-by-side without affecting the total money stock. This is possible because when a gold certificate is issued in a particular denomination, the equal amount of gold was take out of circulation and placed on deposit, thus there are no nominal pressures on the supply of money.

In this country, fiat money was saddled upon the gold money system by using the certificate system as a medium. It was necessary for those who supported the creation of a complete fiat monetary system to use the existing certificate system as a means of injection into the economy. The fact is that no fiat system can arise without the facility of an existing commodity monetary system upon which it is "piggy-backed"; usually this action is executed by stealth and deception without the population of a country ever being aware that it has taken place. It is in this manner that what was once completely worthless paper can be issued into the money stream and assumes purchasing power for it is accepted and used, by an unsuspecting public, as though it had equal purchasing power as real titled money. Essentially, fiat money appeared to be exactly like certificate receipts and since those certificate receipts represented a complete and unconditional claim to gold money, fiat money with no claim to any absolute money was exchanged as though it were absolute money. Problems arise when the monetary policies of both government and central bank extend the usage well beyond reserves; this is particularly true when there is a political agenda behind such expansive policies.

In most cases, people rarely think of how money actually functions within an economy. In most people’s minds money has a very one-dimensional quality…it buys things. It is, in the minds of most people, a purely linear mechanism that can be counted in a straight line. Basically, money is the purchasing power that each monetary unit provides in an economic transactional exchange. One of the primary signs of the quality of money is its purchasing power, but also, in relationship to that purchasing power is the savings rate. This is both a real and perceived quality that translates into cash-holding behaviors of people.

It is therefore, nothing more than the liquidity status of money that allows for transactional exchange to take place within an economy and as long as that liquidity provides purchasing power at virtual face value for such transactions and the settlement of debts then there is rarely a problem in perception, but when the face value of a currency does not relate to the purchase value then the problem becomes evident and confidence is lost. That is the primary problem with fiat currencies, due to the likelihood in fiat monetary expansion the purchasing power never remains at the face value of the currency.

Now, in terms of perception it really doesn’t matter how purchasing power is generated because people are only interested in what and how much they can purchase with a given unit of money. It is only when that purchasing power is diminished that people begin to take notice however, it is rarely understood that it is not a problem in pricing as they continually rise, but a problem with the currency as it continually depreciates in purchasing power.

With a fiat monetary system there must be a mechanism that provides for the imputation of value and the primary force behind that mechanism is government, its legal tender laws and taxation. Under fiat monetary systems taxation is not related to revenues since under such systems there is no need for taxation, it only serves as a social control and as an enforcement mechanism to require people to use the fiat currency. People do not voluntarily use fiat money; it is a monopoly that government has granted itself outside the parameters of Constitutional authority. Fiat currencies do not arise naturally nor voluntarily, they are always are imposed and the reasons they are imposed are evident to some people, it is purely for the benefit of government. Central Banks likewise, are instruments of this government monopoly and function at both the behest and benefit of the government and the political interests of the government.

The imposition of fiat currencies have never been for the benefit of the people and in fact, the people are the ones that always have suffered when government imposes fiat currencies upon them. Fiat currencies are the most deceptive of currencies for while they retain their face values; the deliberate policy of monetary inflation robs people of their labor and their ability to generate wealth. Essentially, there comes a time when people work for pennies on the hour while they think they are receiving the full face value of their fiat currency paychecks. It is a feudal system that always, without exception creates a peonage where the people labor for little and the government benefits from the virtual unlimited resources of a country. Fiat currencies used by governments always create a productive serfdom and the people that make up that serfdom rarely understand their own fate.

“The problem with fiat money is that it rewards the minority that can handle money, but fools the generation that has worked and saved money.”- Adam Smith

In support of the fiat monetary system, the government has allowed for certain creativity in banking and accounting. What would be considered criminal under an asset monetary system is sanctioned and encouraged under a fiat monetary system and for good reason, without such activities a fiat monetary system could not perform the primary functions of a transactional economic exchange unit, in other words it would not act as money in the economy. Under any total fiat monetary system it is imperative that there be a pricing mechanism to support the imputation of value otherwise it doesn’t function as money, it would be nothing more than what it really is: paper. Of course, this mechanism is found in the various schemes created by both government and the Federal Reserve Banking System.

There are those who mistakenly think that fiat money functions as money because it circulates, but the truth is that without the various artificial mechanisms put in place by government and banking there would be absolutely no value imparted to the paper we use as money. The truth is that the government could print all the fiat money it wanted to and without those hidden mechanisms it would be nothing but the paper it really is: worthless. Voltaire knew exactly what he was talking about when he correctly stated, ““At the end fiat money returns to its inner value—zero.”

The facts are clear, there was a very deliberate plan to the creation and execution of a fiat monetary system. When reading the works of John Maynard Keynes it becomes evident that the fiat conspiracy was nothing more than a shared power-grab between the political powers and banking powers. Keynes stated: “By this means (fiat money and fractional reserve banking) government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft.”

While fractional reserve banking has been used in various monetary systems, including gold, it is however, fiat currency that benefits the most from a fractional reserve system. Without fractional reserve banking there would be no possible way that fiat money could function as a medium of exchange because the amount of fiat currency necessary to maintain a 100% reserve demand would instantly peel away all perceived and purchase value imparted to the currency by the various schemes used to support the system.

Among those deceptive schemes is the fact that all of the Treasury’s deposits are not counted as a part of its reserve against any money it has issued. Prior to the creation of the Federal Reserve Banking system all U.S. Government deposits were considered a part of the total money supply, thus all variations in the money stock could be readily known. This is not the case in the Fiat Fractional Reserve System since there can be no total demand on all deposits on the banking books.

So demand deposits under the Fiat Fractional Reserve System are subject to limited transferability. The problem, at least for the Fractional Reserve System, is there is simply not enough money to cover all demand deposits. Since the Fractional Reserve System maintains a well-constructed veil that protects the banking system from bank runs. At one time there was a 30-day notice required for the withdrawal of all savings deposits, but it was very rarely imposed for if it were then the veil would instantly be pulled back on the system causing a very rapid and devastating run on banks across the country. Imagine, if you will, that you wanted to withdraw your savings, your money and the bank teller tells you that you would have to give the bank 30 days notice before you would have your own money. It would be an instant confidence breaker in the system and the system would not be able to survive such revelation of the inner workings of the Fractional Reserve System.

The means of payment under the Fiat Fractional Reserve System actually describes one of the essential definitions of fiat money. In this system the Fiat Money may be parked in one form and spent in another, but the system must maintain the interchangeability in order to maintain a degree of parity and acceptability of the system. This characteristic poses one of the problems with the system and that problem is the extreme elasticity necessary to keep the system from imploding upon demand withdrawals and the total lack of asset value.

Every Fiat Monetary System is designed for the benefit of the government and its political allies never the people subjected to its deceptive functions. Fiat Currencies, at the hands of government, has always been a means by which government could, through the hidden taxation of inflationary depreciation, secure a relatively costless form of power generating funds, most of which are used to either extend the scope of government, but also to amass assets. It essentially accomplishes this by simply using inexpensive paper and inking its official signage upon it, then it is just a matter of enforcing the use of the fiat money by the people through a series of penal codes.

Additionally, one of the more insidious characteristics of all fiat monetary systems is that it allows government to divert the wealth and resources from the private markets into its own coffers. Governments, with the instrument of fiat currency, creates what amounts to a vampire economy where the labor and generated wealth from that labor is siphoned off from the people and transmitted to the government without the necessity of the more unpalatable form of direct taxation.

While there are those who sing the praises of the fiat monetary system, it should be no surprise that those who favor such systems the most are bankers and politicians who have a large stake involved in maintaining the fraudulent and deceptive system. It should also not come as a surprise that there are those within our society that exploit the system to increase their own holdings and are essentially granted almost monopolistic rights by the government and are beneficiaries of a system that otherwise makes life difficult for the working individual.

There are some very peculiar consequences of this fiat monetary system, one being a divergence of wealth generation between those who are politically favored and those who are basically politically ignored. Those who are favored by the political influence they peddle are able to take pecuniary advantage of the system, benefiting from the mechanism of inflation in ways that are difficult for the regular citizen to understand, most citizens are completely unaware of the connections between government and those who are politically favored.

Although there are usual detractors, the truth is that all fiat currency systems have been abused throughout history by governments and has always led to corruption and the eventual destruction of the currency itself along with the economic society connected with the currency. Fiat systems lend themselves to total government monopolies over money; in fact it is impossible to maintain a fiat system without such government monopolistic control. Under such monopolistic control the government enjoys the power to dictate and deprive, give favor and grant influences.

It, fiat currency, is the one instrument that the government has at its disposal that can completely subvert all Constitutional restrictions and limitations. From this one monopolistic tool, there is the granting of privilege that our government was never intended to possess; likewise, with this tool the government also has the ability to deprive the most fundamental right of money property upon which all other private property rights rests. Fiat money is the key for all government usurpation and allows government the ability to act as though it were not the servant of the people but their master and they its subjects.

In Liberty and Eternal Vigilance,
Republicae

The Destructive Keynesian Continuum

It is, at times, difficult to wade through all the subtle changes that have occurred in this country, particularly the truly drastic changes that took place during the 20th Century. The problem is that there is simply not much information about these subtle, but drastic and transformative changes that were implemented in our government and country but there are hints.

These hints can be found in various publications, documents and news sources from the period from the 1930's to our present day, but the interpretation of these hints requires connecting dots that are not always apparent. One area in particular went through a massive and relatively misunderstood metamorphosis beginning in the 30's and today we remain trapped by those changes in the very foundational structure of our economic system.

It was, without a doubt, a revolution one that completely overturned the order and role of our government in our lives. This revolution came in the form on a complete economic transformation that promoted the intervention of government into the markets, but that was just part of the story; for this transformation allowed the government to expand its ability to intervene into every area of the lives of the American People.

Under the cloak of saving free market capitalism this revolution subverted the very foundations of the free market and throughout the process it has been instrumental in subverting the Constitutional foundation of individual freedom within this country. The Great Depression opened the door to the imagination of economists and politicians; since that time it has run wild.

The government came to the rescue during the 1930's and has been in the rescue business ever since. What the American People didn't know was the heavy price of that rescue; most are still unaware of the actual price that they have paid since the government came to the rescue or the price they continue to pay. They say that nothing is free and that has never been as true as what we have been wooed to relinquish in return for what is purported to be economic security.

We look at what occurred during the 30's and think that the government only intervened in the markets, banks and industry, but the truth is that this was only a portion of the rescue plan that revolutionized the foundational economic and political principles of our country. The other part of this rescue plan involved the government playing a direct role regulating all income, savings, and investments and spending.

Of course, we think we are in control of our income, our savings, spending and investments, but the reality is that the government has implemented controls through various subsidies, taxation, as well as government ownerships and partnerships in various sectors of the economy. Even wages and prices are manipulated through this system of government management. For decades we have been fed the line that we live under free market capitalism, but it is impossible to compare what this government has done over the past three quarters of a century and believe that it remotely resembles free market capitalism or freedom, for that matter.

With the goal of full employment and capacity production, this government began to take a path that would radically change the entire complexion of not only the political economy, but the social economy of this country. In the process, the structure of our government was also transformed into a system of bureaucratic administration responsible for the management of this massive economic machine they created. Once this system was created it could not be abandoned without massive economic and social disruption, the political price for such disruption would simply be too high a price for the politicians to pay therefore, it continues. Of course, it is not without its benefits, but those who benefit are not the workingmen and women of this country.

In order to sugarcoat the reality of this massive management system the government bureaucrats invented various labels such as "Compensatory Fiscal and Monetary Policy", it simply sounded much better than Government Managed Economy, but the name doesn't change the meaning. The drift into a socialized system of economic, social and political management began during the 30's and the march toward a full-fledged, systematic socialistic government has continued unabated. Once implemented, the system became self-perpetuating.

As J. Kenneth Galbraith said:

"There is a widespread notion that one of the most primitive of modern ideological choices is whether a government shall be Keynesian or not . . . no present or future administration really has the non-Keynesian choice."

Regardless of which political party is in office, the nature of this political economic system, once it was implemented, became self-perpetuating. It moves the country toward a self-socializing form of government regardless of the desires of the People of this country and even our elected representatives. The revolution in economy thought during the 30's was far more than economic in nature; it was also completely revolutionary in the political and social arenas as well.

There should be no doubt as to the direction the Keynesian, Neo-Keynesian and Post-Keynesian ideologies are taking this country. As Paul A. Samuelson stated: “[Fascist Regimes] have often passed socialistic measures. This is not a paradox at all, for fascism was (or is) a form of socialism similar to British socialism, or to the managed-currency, welfare state proposed by American Keynesians.”

By the 1940's this revolution in "new economics" had infiltrated the universities of this country and permeated economic thinking to the point that all opposing views were effectively rooted out of the higher educational system in this country. Generations of economic students were completely indoctrinated in the essentials of this new economic catechism. By 1950, the majority of universities and professors were teaching this new economic doctrine, textbooks reflected the accepted doctrine and the students were oblivious to just what they were being taught since it was the only accepted school of economic thought presented.

The truth of the matter is that so-called new economic theory was not new at all, but a revival of core socialist patterns of economic thought that were formulated during the second half of the 1800's. This core socialist pattern involved government intervention into economic affairs that would gradually lead to government intervention into social affairs; the outcome of which would be a transformation of the entire political structure of the country.

One of the ideas that arose from The Great Depression was the idea of "social-consumption expenditures", sounds innocuous enough until we understand what it means and the purposes behind such expenditures.

Lawrence Klein, in his book "The Keynesian Revolution" provided the meaning and the purpose behind such expenditures:
"We need a non-profit institution like the government which can provide a comprehensive, minimum program of social security in order to reduce the propensity to save. This program must cover the entire population, and it must cover all those contingencies which cause people to save on a large scale for the future."

While maintaining the label of free-market capitalism and individual freedom that is associated with it, we have a system that both confiscates and redistributes the labor property of people in order to reduce savings. In a managed economy, savings is an anchor that weighs down the movement of the entire system of this political economy. Under this managed system savings must either be drastically reduced or eliminated all together in order for other aspects of control to take place; it is easy to see that the reduction of savings in this country has been achieved.

Remember, the goal is worker productivity, full employment that allows the system to continue maintains control, particularly social control; without it the flaws in the system quickly become apparent. The focus therefore, is jobs; even the most useless jobs are considered vital to the entire complexion of the system. To understand just how far this ideology goes the words of Theodore Morgan explains the extent that the government will take in order to maintain the system: “. Even from the point of view of output, it is better to employ men in digging holes and filling them up than not to employ them at all; it is better to employ men to make products which we thereupon dump in the middle of the ocean than to leave them idle."

Of course, all of this was seen during The Great Depression, the government followed the recommendations of Keynes to "do something". This rather strange concept can be found throughout the economic theories of those who espoused the "new economy". While it is apparent that those who follow such economic thought must have considered their proposals and theories logical, the following example should show just how irrational these people were, and still are: "Giving money to foreigners is a form of "investment," even though we get nothing in return. If we could only export one of the printing presses used for the manufacture of Federal Reserve Notes to, let us say, China, our foreign investment would be enormously higher."
Keynesian lunacy has run rampant in our country and still, to this very day, influences our government in ways that few understand. According to these ideologues, government spending, obviously of any type, stimulates private employment and economic stability, yet it is all financed through taxing or inflationary monetary policy which drains and strains the entire "private sector" within the mixed economy. As we have seen, this government, along with its partner in managed finance: the Federal Reserve Bank, has effectively manufactured the monetary system needed to achieve the socialization of this country, without the use of a fiat monetary system none of this would be possible. It is also a mistake to believe that the Federal Reserve Banking system serves an economic purpose, it does not, its purpose is political in nature and the directors of the Federal Reserve are completely faithful to the political trust of those who appointed them and the legislation that allows the bank to continue functioning in a political capacity that promotes very specific socio-economic agendas.

Those who followed Keynes were well aware that sound money had to be destroyed otherwise there would simply be no way to implement the complete core socialist pattern in this country. The various proposals of Keynes and his subsequent disciples, who advocated "compensatory fiscal and monetary policies", by implication, necessitated the abandonment of sound money and this was accomplished by the introduction of inconvertible currency. Once the currency became inconvertible it was merely a formality to then create a total fiat system, which was accomplished in 1971. As Nixon said when he cut all ties between the U.S. Federal Reserve Note [once known as the Dollar] and gold: "We are all Keynesians now!"

Of course, Keynes was well aware of the dangers of fiat currency, so too have his subsequent Keynesians and Keynesian-derivations. They have all readily admitted that inflation, and the depreciation of the fiat currency is a problem, but they maintain it is controllable, but the controls are as onerous as the problem. Thus to prevent the effects of an ever-expanding fiat monetary supply, these proponents maintain that the government must have the power to manipulate credit, interest rates, prices and wages. The government, in accordance with this ideology, must be "given" total control over all fiscal policy.

This control, this power "allows" them to spend whenever and spend whatever amount that they "feel" is needed to stimulate the economy, but it also "allows" them to tax, regulate and stifle to any degree to restrain the subsequent inflation brought about by their print and spend fiscal policies. What this means is that the government central planners have a direct affect on the lives of each and every American. Not only do they directly affect the lives of Americans in terms of individual income, savings and expenditures, but essentially the future of the American People to actually determine the direction of their lives is also affected by these policies.

Now, because of the very nature of this "new economic" system, the only alternative to this form of management is for the government to implement wage and price controls. If all of this sound likes Socialism, there is a reason for that. Many of our politicians; and most of those who adhere to the officially approved economic thought don't seem to realize just what this system has done and is doing to this country. It is absolutely amazing to listen to our politicians, the economists they listen to and the media that covers this entire theatrical production of folly and irresponsibility. The have utterly failed to grasp the fact that by "allowing" government to maintain complete control over fiscal and monetary policy that it has effectively abolished the free market principles that promote individual liberty and freedom. The entire concept of government control over the aspects of the market is completely inconsistent with the Constitutional traditions of the United States and destructive to those means.
However, to avoid the flaws inherent within this mixed and managed economy, the government must maintain and expand its authority over taxes, spending, credit, investment, wages and general price controls otherwise the system eventually stumbles. Thus, the self-perpetuating nature of the system becomes of paramount importance even though every solution becomes a subsequent problem that requires yet another solution, which creates, even more problems. The cat cannot stop chasing its own tail.

Again, to understand the mentality of these "new economists", these Keynesians and Keynesian-derivatives we need look no further than their writings. When dealing with the rapid increasing debt, these economists seem to give us a choice between two untenable conditions. As the Stanford economist Tarshis stated: "If we do not want high debt, high interest rates, high wages, and high prices, then in effect we do not want high employment and prosperity." Such logic is required by this political economic ideology and by implication, the system does not allow for one without the other. There are so many connections that are unseen in this system, so many forces at play that few know the consequences of the interactions of those forces, but the consequences are becoming more and more evident.

One such consequence we are facing today is that of our creditors and their willingness to continue to finance our economy through the purchases of U.S. Treasuries. Even a few decades ago this question was on the minds of the Keynesians, once again as Tarshis said: "The only question, then, is whether the government can always find a lender or someone who will accept government bonds. In the final analysis this is no problem for the simple reason that the government controls the Federal Reserve Banks and can always compel them to buy government bonds. Anyone who controls a bank and is free to make the rules under which it operates will have no trouble in borrowing money. The government is in precisely this position, and therefore can always secure funds. There is no sign that a high debt exhausts the credit of the government of the United States. And since as a last resource "it can borrow from itself," there need be no fear on this account."

In the same vein of thought, Lawrence Klein said: "An internally held public debt can never be a burden, because we owe it to ourselves." Of course, this line of thought rests solely upon the idea that the managed "mixed economy" can, under the "compensatory fiscal and monetary policies" continue to grow enough to produce a balance between production and debt, thus affecting the ability to reduce the burden of debt. The balancing act cannot however, be sustained under such an economic system because the system is in constant conflict with the natural market forces that always seek to correct distortions, particularly when those distortions are created by numerous and massive external interventions which seek to artificially manipulate the economy for social and political reasons. Those social and political reasons are based in the concept that the government is the sole provider of appropriate social action, thus it is therefore, the sole granter of all benefits to achieve such action.

Another Keynesian voice from the 50's denotes the attitude that now flourishes in this government: "Probably, majority opinion agrees with our own national policy that the right of a man to engage in business for himself is not a basic freedom." ~ Theodore Morgan. This grand ideological experiment has created the most unbelievable contradictions in our country; while labeling itself as the defender of our liberty and freedom on one hand, on the other it implements policies that are totally and absolutely alien to the principles this country was founded on. It is as if those in our government cannot understand the connection between economic freedom and individual freedom; there is no concept within our government that not only does "compensatory fiscal and monetary policy" infringes upon the liberty of the People, but that it actually contributes to a steady decline in the economic prosperity of this country.

Make no mistake about what the so-called ethical goals of this government are, those goals are doctrinally Socialist whether it is ever admitted or not. Through the years, the decades, it has been easy for these ideologues to accuse and blame free-market capitalism for all the economic and social woes faced in this country, yet when we understand that those economic and social woes are not the result of free-market capitalism, but are a direct result of seven decades or more of government intervention and social engineering.

Even today, the People are hearing that in order to save free-market capitalism we need to abandon the principles of the free-market. Saving capitalism seems to be the favorite mantra of Socialist ideologues and yet, today, as in the 1930's, the problem is not the free-market, but the distortions brought about by government intervention. Under this Keynesian Socialist system the solutions always turn into problems that require more solutions; this fact is clearly evident by looking at the effects of this economic thought in this country over the last seventy-five or more years.

Through the decades, there has been a growing vested interest in the various types of government spending, especially in terms of subsidies; political corruption is a natural outcome of the creation of such vested interests. Indeed, along with vested interests in spending and subsidies, there is the inclination toward inefficiency and waste, not only in material resources, but in terms of human resources as well.

We have allowed our minds to be glossed over with decades of indoctrination that presents a completely different portrayal of our political, social and economic situation in this country; the reality is concealed by years of acceptance and compliance. Those who continue on this diet of social preferences, politically correct social planning and the collective conscience of our country never understand the problems that such policies create, they simply appear unable to see the connection and therefore they must always seek yet another scapegoat on which to place their hands before banishing the animal to the wilderness. Eventually there will be no scapegoats on which to place blame and they will have to take full responsibility for the policies they have promoted and enacted.

As a former Keynesian, Dr. L.A. Hahn stated: For it [the Keynesian view] presupposes an economy whose members do not see through the changes brought about by monetary or fiscal manipulation or as some might say, the swindle. Above all, it presupposes that people are blinded by the idea that the value of money is stable by the "money illusion."

Indeed, Keynesian Economics and its derivatives are little more than the Economics of Illusions, but it appears that those illusions have been so pervasive and obviously persuasive that few in their ranks question its validity. The concrete proof of the illusionary nature of these economic theories is the economy itself; it is the product of such nostrums. As such, it is impossible to believe that based on the illusionary nature of these theories and the application of those theories that a healthy economy can be produced by the policies that emanate from them. It the assumption is incorrect, the results of those assumptions will also be incorrect.

Contrary to those who are following closely in the footsteps of Keynes and his theoretical descendants, it is impossible to have underinvestment in free markets, additionally if they seek a remedy for unemployment they need look no further than to a return of free market labor and the removal of trade barriers, which, by the way, includes the so-called free-trade agreements which are nothing more than managed trade.

There is no alternative, for as we are seeing this government is following a well-beaten Keynesian path toward even further dislocation. It is absurd to believe that this government, by utilizing the same type of policies that created this economic dislocation, can, by simply enlarging those polices, cure the economic ailments that this country now suffers. The government is once again embarking on yet another easy-money policy to solve the problems that easy-money polices cased.

Unemployment cannot be cured by such actions; perhaps I should say that employment, productive economic employment, couldn’t be created by such actions. The government is once again traveling down the expedient road that will ultimately lead absolutely nowhere. Thus is will only perpetuate and in the process only aggravate the very problems it seeks to solve. Eventually, these forces will converge into a situation that is completely beyond the control of any policies, but for some reason those in our government are blinded by the idea that although the solution they are seeking to implement has been the source of the problem that maybe it will work this time if we throw much more money at it; the results will be catastrophic.
Decades have proven that Washington, D.C. is filled with weakness and immense amounts of bad judgment; as well as political officials who are willing to yield to various influences that are far from beneficial to this country and its People. Perhaps the circumstances faced by this country will finally awaken the People to the reality that they now find themselves and in the process the People will once again place demands for real responsibility on every level of government.

In Liberty and Eternal Vigilance,
Republicae

Keynesian Socialist Subversion

The last seventy years or so have proven the massive flaws in the official economic and monetary policies which are promoted by this government, but it appears that there are few who are either capable or willing to view these flaws regarding the solutions that are available to resolve those flaws. Evidently, during this latest economic dislocation, we will see yet another round of flawed economics and monetary policy emanating from the Keynesian mentality that permeates the official realms of our government.

Keynesian Economics was created to create problems and not offer solutions. That seems to be a radical statement however, when you judge that statement in the light of the writings of those who knew John Maynard Keynes and his economic theories, it becomes apparent that they were well aware of the effects that Keynesian Economics would have on the well-being of the economy and that those effects would create the need for an ever-increasing amount of government intervention. Perhaps the clearest explanation of the effects of Keynesian Economics can be found in the writings of Keynes’ contemporary and Socialist Comrade John Strachey. Strachey stated that Keynesian Economics was “an indispensable step in the right direction. The fact that the loss of objectivity, and the intrinsic value of the currency which is involved (i.e., inflation) will sooner or later make necessary, on pain of ever- increasing dislocation, a growing degree of social control . . . for the partial character of the policy will itself lead on to further measures. The very fact that no stability, no permanently workable solution can be found within the limits of this policy will ensure that once a community has been driven by events to tackle its problems, in this way, it cannot halt at the first stage, but must of necessity push on to more thorough going measures of re-organization."

It should be very obvious, and irrefutable, that the real purpose of Keynesian Economic Theory was to completely undermine economic stability, thus creating a constant and steady need for government intervention that would eventually destroy the actual free market, leaving no alternatives but a government centered Socialist market economy.

In the book ”The Failure of the New Economics”, Hazlitt stated, correctly, "Keynes's plan for ’the socialization of investment' would inevitably entail socialism and state planning…Keynes, in brief, recommended de facto socialism under the guise of ’reforming' and ’preserving' capitalism." That statement, of course, is in agreement with Strachey’s assessment about what effects Keynesian Economics would have on the substructure, and eventual superstructure of economics.

Strachey again, referring to Keynesian Economic Theory, said: “If once it were admitted that capitalism could be regulated and controlled in this way, might not the wage-earning majority of the population come sooner or later to the conclusion that the thing to do was neither to put up with things as they were nor to go through the fiery furnace of social revolution, in order to establish a wholly new system, but to harness - to bit and to bridle - capitalism in its own interest? Was it not apparent that Keynesism had only to be pushed a little further and a state of things might emerge in which the nominal owners of the means of production, although left in full possession of the legal title to their property, would in reality be working not for themselves, but for whatever hands had grasped the central levers of social control?”

Additionally, Strachey stated: “It is impossible to establish communism as the immediate successor to capitalism. It is accordingly proposed to establish socialism as something, which we can put in the place of our present decaying capitalism. Hence, communists work for the establishment of socialism as a necessary transition stage on the road to communism.”

Thus, according to Strachey, the goal has been to gradually introduce Socialist mechanisms within the capitalist market systems through degenerative measures [such as Keynesian Economic Theory] that would increasingly promote government intervention in the markets. This has indeed happened over the last seventy-some-odd-years, and today we are seeing an even greater push by government in a response to this latest dislocation in the economy, as predicted by Strachey, as well as other Socialists.

It becomes apparent that one of the goals of Keynesian Economic Theory is the transformation of a free market economy into an official government economy. Indeed, if we look at the effects of Keynesian Theory on the actual monetary and economic policies executed in this country over the decades it becomes easy to see that this particular theory has eliminated the normal market mechanics for artificially induced and managed market mechanics. You will notice that over the years the savings rate in this country has gradually deceased, consumption, driven by debt, has increased and during this process the government has drastically increased its power over the economy. Due to various mechanisms within Keynesian Economics, in particular the enforced use of Fiat Money, private monies for investment has gradually dwindled while government monies have increased. Without private monies there is no other way for the markets to be maintained other than through public funding, thus the government must intervene and provide capital in the markets, as we have seen. At this stage, once the government infuses public funding, it has the power, as we see, to dictate not only conduct within the market, but also the various processes involved in business decisions.

John Maynard Keynes was closely associated with various Socialist groups; in fact Keynes once described himself as a Bolshevik and was well aware of Socialist doctrine and theory. Keynes, in his book “Economic Consequences of the Peace”, stated: "By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some.... The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose."

Indeed, Nikolai Lenin spoke before the Second Congress of the Communist International and declared of Keynes: “I will quote another economic source which assumes particularly great significance, the British diplomat Keynes, the author of The Economic Consequences Of The Peace, who on the instructions of his government, took part in the Versailles peace negotiations, watched them directly from the purely bourgeois point of view, studied the subject step by step, and took part in the conference as an economist. He arrived at conclusions which are stronger, more striking and more instructive than any a Communist revolutionary could advance, because they are conclusions drawn by an acknowledged bourgeois....”

The political economic nature of Keynesian Economics cannot be denied, nor can the effects of those theories on the entire economic and social structure of our government. Keynes, in a letter to fellow Socialist George Bernard Shaw, said: “I believe myself to be writing a book on economic theory which will largely revolutionize ... the way the world thinks about economic problems. When my new theory has been duly assimilated and mixed with politics and feelings and passions, I can’t predict what the final upshot will be in its effect on actions and affairs. But there will be a great change, and in particular the Ricardian foundations of Marxism will be knocked away.”

Geoffrey Pilling, a Marxist, wrote of the effects of Keynesian Economic Theory on the Western Capitalist Societies saying: “It [the West] accepts Keynes’ own belief in the primacy of ideas in the shaping of state economic policy. An examination of the development of the role of the state indicates that there is an organic trend towards ever-greater state involvement in the attempted regulation of economic and social matters. It concurs with Keynes’ own judgment about the significance of his work: namely that it did in fact constitute a revolution in economics. We have already noted that there is little if any agreement amongst those who would wish to be labeled Keynesians about the nature of this revolution.”

The “Keynesian Revolution” has effectively created a continual increase in the levels of involvement by the government in economic markets, in fact if you look at the latter half of the Twentieth Century you will see that free market capitalism, not only in the United States, but internationally, has been heavily influenced by this Socialist Keynesian Revolution. It is also important to understand that the works of Keynes was not only lauded by various Socialist groups, including Marxists, but the Fascists and even National Socialists [Nazis] equally held Keynesian Theories in high esteem. In writing the “Forward” to his German Edition of the General Theory, Keynes stated: "The theory of output as a whole, which is what the following book purports to provide, is much more easily adapted to the conditions of a totalitarian state, than is the theory of production and distribution of a given output produced under the conditions of free competition and a large measure of laissez-faire."

In the Journal of Political Economy, you will find: “German economists in the early 1930s were well aware of Keynes's work, and were developing theories along parallel lines. These involved the now-familiar prescription for economic depressions of large budget deficits, public-works programs, and easy credit.”

Of course, there can be no doubt that government involvement in the markets and the regulatory state reached its height under Fascist theory and execution; likewise Keynesian Economic Theories lead to the overwhelming necessity of such intervention. The Fascists, in particular the National Socialist Party [Nazi], were the first to put into practice the economic theories found in Keynes’ General Theory; the Nazis implemented truly massive public works projects and increased deficit spending seeking to encourage full employment of the German peoples. The Nazis also created what amounts to an inflationary boom, this naturally increased productivity, but as we know it was based on the assumption that an inflationary boom can be permanent when in fact they are artificially induced and will eventually deflate.

The fact is that inflationary booms are nothing more than the conscious application of Keynesian policies, which naturally lead to even more government intervention due to the effects brought about by the collapse of such inflationary booms. Whether Marxist, Socialist or even Fascist, Keynesian Economic Theory provides the necessary economic system to achieve government involvement in the social relationships of economic production.

When a government employs Keynesian Economic Theory there is the inexorable tendency toward more and more government intervention into every area of economic functioning within the market. Actual regulation of the capitalist economy has little to do with what is finally arrived at through the policies employed and are only the medium by which greater intervention becomes necessary. The theoretical work of Keynes, as well as others, cannot be underestimated and should not be confused in judging cause and effect; hearkening back to the words of Strachey, there is an inherent process within the mechanics of Keynesian Economics that promotes the implementation of Socialist Political Economics, thus replacing free market capitalism with government intervention. Generally speaking, while there appear to be contradictions engendered by the apparent growth in economic production during the various business cycles, particularly in the boom portions of those business cycles, the gradual increase of the degenerative effects associated with the bust of the booms cycle provided the material foundation for increasing government activity and intervention in the markets.

In looking at Keynesian Economic Theory, it should be apparent that Keynes has become on of the central forces behind government regulation of the markets and the increasing degree of intervention into those markets. The ideological importance of this aspect of Keynesian Theory is the basis of the growing role of government and has not only transformed capitalism, but has basically negated the effects of capital markets in favor of government control. In this respect, which is of extreme importance, Keynesian Economic Theory has provided the government with a central function within the economy. Since his theories tend to implement the need for such intervention, the question then arises concerning the effects such intervention have on the lives of the individual and the degree to which the individual becomes dependent on the government for his economic, and therefore social well-being?

Keynes’ criticism of unregulated capitalism rest primarily in his belief that social stability could not be achieved or maintained and therefore he saw the need of a highly centralized economic plan be administered by government intervention; thus, this belief lead him to a rather pragmatic-utilitarian view of the necessity of ad hoc government intervention in economic markets. This idea or belief however, did not originate from Keynes’ himself, but came from the Fabian Essays, published in 1889, by Sydney Webb, Bernard Shaw and others. Like Marx, the Fabians, including Keynes, believed that it was necessary for governments to gain control over capital markets, the monetary systems, credit and the implementation of a progressive income tax system to achieve the goals of Socialism. Indeed, Keynes, in pure Fabian form, thought that it was absolutely necessary to end laissez-faire policies in order to end capitalism, for without free markets; capitalism would then be prone to crisis after crisis under the guise highly regulated economy while retaining the capitalist label. Free market capitalism died in the Twentieth Century, thanks in a large part to the policies promoted by Keynesian Economics.

President Bush recently said: "I've abandoned free-market principles to save the free-market system, to make sure the economy doesn't collapse." Now, if you look at that quote from President Bush in the light of Keynes’ General Theory, you will find a more eloquent statement bearing the same meaning: “Whilst, therefore, the enlargement of the functions of government, involved in the task of adjusting to one another the propensity to consume and the inducement to invest, would seem to a nineteenth-century publicist or a contemporary American financier to be a terrific encroachment on individualism, I defend it, on the contrary, both as the only practicable means of avoiding the destruction of existing economic forms in their entirety and as the condition of the successful functioning of individual initiative.”

Bush, in short, reiterated what Keynes stated, advocating further government intervention into the markets to save the capitalist system; nothing could be further from the truth however. As Keynes stated: “Our final task might be to select those variables which can be deliberately controlled or managed by central authority in the kind of system in which we actually live.” In concrete terms, Bush, like Keynes, meant that there is a necessity to select as many variables within the economic system as possible, at this point, to achieve effective and applicable controls in preserving the existing economic form while allowing for even greater government management. Under the continuing guise of preserving the capitalist market system, Keynes, and it appears that Bush, believed that the operations of the government intervention would be crucial to “save the free market system”, even though it involves a complete abandonment of free market principles, essentially destroying the last remnants of free market capitalism.

For decades the American People, and even most of our politicians, have lived under the illusion that our economic system has retained its free market capitalist nature; the fact is that there has been a hybrid system that is so far removed from free market principles that it can no longer be defined as a free market. Keynes’ views have prevailed and today we see that the government has taken an extensive and growing responsibility over economic functions in our society.

Like Keynes, most of our politicians believe that the government must not only regulate the economy to provide price stability and “full” employment, but that it is also obliged to promote any and all measures that generate sufficient investments to compensate for the shortfall of private capital in our system due to various economic drains brought about by the policies of Keynesian. Thus, in the Keynesian view, the government should employ what amounts to national income to achieve various economic and corresponding social goals; this is exactly what has taken place in this country over the last seventy years as we have seen the rise of the government as the central component of our economic system and not merely an external force. Essentially, the government has promoted what amounts to “welfare capitalism”, which in realistic terms is nothing more than Socialism where a government “supra-class” of administrators who manage the economic and social welfare of all members of our society regardless of their social status or economic position.

It should be evident in our current state of government involvement in economic relationships in the market that Keynesian theories have become the primary driving force behind economic and monetary policies in this country. Additionally, it is evident that the degree of income redistribution that takes place in this country has proved effective in producing a stratified social structure where a hierarchy of wealth is concentrated in those who are politically connected and enjoy the benefits of those connections with government. Along with the upward redistribution of income, Keynes proposed that the wages of the masses be reduced covertly through the government-regulated process of inflation or monetary depreciation.

Keynes stated: “A movement by employers to revise money-wage bargains downward will be much more strongly resisted than a gradual and automatic lowering of real wages as a result of rising prices.” Thus, as we have seen, particularly since 1971, the government use of controlled inflation would allow for an increase in the nominal wages or face value wages of workers while actually affecting a simultaneous reduction in real wages or purchase value wages through price inflation. This would not only achieve he goal of providing government with needed revenues for its expansion, but would continue the illusion that more money is being put into the pockets of the working man and it would also allow for the illusion of greater profits for business; the reality, of course, is just the opposite. Regarding this effect Keynes stated: ”It is not the ownership of the instruments of production which it is important for the State to assume. If the State is able to determine the aggregate amount of resources devoted to augmenting the instruments and the basic rate of reward to those who own them, it will have accomplished all that it is necessary.”

Essentially, Keynes proposed that the government, and only the government is responsible for the determination of the rate of reward a person can achieve by productivity; thus the functions of market forces are no longer determinant factors. One should make no mistake about what has taken place in this country or in the effect of Keynesian Economics have had on the entire economic structure upon which this country depends. There has been a very definite and intentional control over income policies in this country, all under the disguise of ensuring price stability and social equity. What most people don’t understand is that these policies create numerous distortions within the economy and have untold unintended consequences that promote the need for ever-increasing government intervention. Consequently, there has been a gradual move toward government-centered arrangements within the economy, and those developments have rapidly increased over the last couple of decades which have essentially lead to the creation of a type of Socialist Corporatism, which, by the way, is not inconsistent with the ideals of Fabian Socialism.

Keynesian Economic Theory, in particular The General Theory, paved the way for the ideology that free market capitalism is incapable of being maintained and could not regulate itself or function without government intervention. It is therefore claimed that government intervention and the ancillary spending that always accompanies that intervention is the essential precondition to achieve stability in the market, the consequences of this intervention is, of course, the increased provisions of Socialization, not only in the market, but also in society. The most prominent feature of Keynesian political thought has come in the form of the drastic rise of government spending, but apparently the vast array of economic experts fail to see or choose to ignore is that such intervention and spending is nothing less than a massive drain on surplus value and capital, thus the effects will always aggravate and dislocate the market. Keynesian-based economic and political policy made such spending acceptable and generally respectable due to the fact that such spending is presented as a means of economic growth and stabilization however, the history of the last fifty years has shown that is not the case.

The creation of a mixed economy the standard of Fabian Socialistic thinking, which Keynes obviously adhered to in his theories, can be found in the Fabian Political & Economic Policy is the foundation of the Socialist agenda: "The individualistic manufacturer and farmer will be FORCED BY EVENTS to submit to far-reaching changes in outlook and methods. What is required, if with only a view to equitable treatment of individuals, is transfer of ownership of large blocks of land - not necessarily of all the land in the country, but certainly a large proportion of it - into the hands of the proposed STATUTORY CORPORATIONS and PUBLIC UTILITY BODIES and OF LAND TRUSTS."

Historically, all public expenditures were considered basically economically unproductive however, as Keynesian Economics gained widespread acceptance, the historical and accurate historical view has been pushed out of the way by the proposition that not only was such spending beneficial, but that the massive levels of debt to fund such expenditures was of no consequence. According to the theory, at least, the vast amount of borrowed funds would be recouped by higher taxation on the production stimulated through such expenditures, of course that is not quite how it worked out.

Alvin Hansen, one of the leading Keynesian Economist during the 1960’s stated: “the long-standing lesson of history that growth requires an increase in money, credit and debt. And in the public-private economy of today, a well-balanced growth suggests an increase of debt at all levels – business debt, consumer debt, state and local debt, and federal debt.” While, on the face of it, such a statement seems to be correct, indeed there appears to be a general expansion of economic growth, but the nature of that growth should be called into question. The fact is that such an expansion, both of the money supply and credit, both of which are debt instruments, have a long-term detrimental effect in the markets, creating unhealthy distortions and eventual economic dislocations which always require an increasing degree of government intervention.

Under the prevailing winds of policy, based largely upon Keynesian thought, all government expenditures is financed through borrowing, thus pushing the growing burden into the future and thus, regardless of the political will, it will always drain future surplus value, or as we have seen over the last few years, hope-for surplus value. The reality of our economy, disguised as capitalism, still produces surplus value in the private sector only to have it drained away by the public sector. The resources devoted to the public sector always come at the expense of the private sector. The presumption that government spending can actually be a means to the creation of productive and therefore surplus value is to indulge in an illusion, yet our politicians seek to engage in such illusions on a regular basis. Eventually however, the future becomes the present and the effects of previous economic policies, government interventions and expenditures prevail. We are seeing distortions on a number of fronts, many of which have not revealed themselves as of yet, but will press upon our economic reality in ways that the government will not be capable of providing solutions, even temporary ones.

Even Marx was well aware of the illusions behind such government expenditures: “The sum that was lent to the state no longer has any kind of existence. It was never designed to be spent as capital to be invested, and yet only by being invested as capital could it have made itself into self-maintaining value . . .. No matter how these transactions are multiplied, the capital of the national debt remains purely fictitious, and the moment these promissory notes become un-saleable, the illusion of this capital disappears.”

The charade can only be maintained as long as the growth of government expenditures is at a rate below the accumulation of capital, when the equilibrium shifts and the distortions present themselves the dislocation is no longer containable and there is a growing threat of consumption of a far greater proportion of productivity and thus the extraction of surplus value increases. The inclination of those in government however, is to increase expenditures, as we are currently witnessing; this action, particularly under the already burdened system, will only exacerbate the problems. The parasitic claims of the government continues to fasten onto flesh of this country, it lives and thrives on the backs of the people by passing the burden of debt for the various spurious programs onto the working class of this country through increasing reductions of their living standards, the depreciation of the labor value of their wages and the increase of social controls.

As with former Administrations, the new Administration will continue to press forward with exactly the same policies that created this growing and chronic economic dislocation in the first place. The point will come however, when the government must institute severe cuts in every area that it has assumed responsibility in its expansion of the welfare/warfare state. The conundrum will come when those who have lambasted free market capitalism run out of scapegoats and must admit that the malfunctioning within the economy is due to the character of the policies of government intervention and Keynesian-based economic theory.

In Liberty and Eternal Vigilance,
Republicae

The Enemies of Good Government

Let us never forget that an enemy to good government is an enemy not only to Our Country, but to each and every Citizen of this country; for such an enemy has divested himself of all social sentiments and duties which are characteristics to the goals of good government. Such an enemy has degraded himself far below the rank and dignity of man and deserves not only to be classed with the lowest of the low, but also deserves our indignation and contempt, such are those traitors who under the pretense of leadership presume their positions to be that of rulers. These enemies are licentious disturbers, destroyers of the public peace and the public good, as well as the future of our Dear Country for whom so many have given their fortunes and their lives.

Those within our government have expressed their disrespect, time and again, for the principles upon which this Country was Founded and through which it once Prospered. It has been proven that these politicians despise good government and sound policy through their presumptuous actions, they not only show disregard for the legal standards set forth by the Constitution, but even disregard the Consent of the People themselves. This federal government is bound by the Compact of Agreement, made solely between the People of the Several States united only by the continuation and adherence of all articles within that Agreement by the parties thereof. When any party of such a contract either disregards or violates the articles upon which they agreed, then that Agreement is null and void. It should once again be obvious that there are those, enemies of both good government and the People, have Breached the Trust of that Noble Compact and trod upon every fundamental principle of Representative government.

Therefore, in order that we may form a right judgment on the duty that has enjoined us by the Noble Text of that Compact of Agreement, for our Protection and the Prosperity of our lives, that we should now not take the necessary steps to ensure both our security and our future prosperity against all usurpations, against all despicable acts and legislations intent on our subjugation and the degradation of our Constitutional Republic would be considered a dereliction of our solemn duty.

Had those we elected persevered the state of sound rectitude in their decisions and their behavior toward the Law of this Land, then we would be disposed to follow them and obey the legislations that they pass however, this is no longer the case. We must therefore, concede to our own conscience and those same principles that led our forefathers to reject the abuses and usurpations that pressed upon them, taking upon themselves the instruments of self-defense and preservation.

Today, we are witnessing a multitude of absurd decisions and the most pernicious legislative acts that are contrary to every good principle of government and Proper Representation of the People themselves. We must understand that the doctrine of non-resistance, of unlimited passive obedience to those who are proving to be the worst of tyrants, concealing their villainy through the use of a light and insubstantial guise, posing in their treason, as Constitutional representatives bound by oath when they are providing us with all the evidence that reason should require to resist their cunning and destructive ventures.

In such a state, should we not have the Right, nay not only the Right, but the Duty to make such persons, those who are enemies within our own house, paid by our own labor, who have injured our well-being and our future stability, repair the damages that they have heaped upon us and upon this country. Is it not within our Right and Duty to inflict Just Recompense and extract Punishment upon them for such heinous crimes against this People and this fair Country and in such actions hope that we will restrain them from doing the like in the future?

Have we not witnessed that even the most basic necessity of our Liberty and our future Freedom is being rendered impossible, in most cases, to enjoy our lives in any tolerable degree without feeling the pressure from this government? Has not our resentment grown, lashing out at our own conscience that we now find ourselves in a state that can no longer be considered or even called a state of Freedom, but a state of the vilest slavery and dreadful bondage?

Is it not the most perfect state of Freedom that consist of obeying the very dictates of right reasoning and thus appropriate actions both in maintaining and defending the very Rights that were secured for us by those who crafted the Articles of our Constitutional Compact? Our Fair Land has been lead into a fallen and degenerate estate; we have been betrayed by the actions of those who were entrusted to protect this Land and its People from the very dangers that they now impose upon us!

Those within this government are saturated with the unbridled lust for power, unrestrained by our Consent and disrespectful of the very tenets upon which government, this government is obligated, by Solemn Compact, to uphold. These officials, forgetful of their oath, have forsaken the true design of good and civil government and that is to protect men in the enjoyment of Liberty. Thus, it should follow that such tyrants, through the use of arbitrary powers, are completely inconsistent with and subversive of the very standards upon which they have bound themselves by oath. Should we not therefore, be of the mind that consequently, all authority of such tyrants is both null and void, making our duty to their actions and their illegal legislations equally as null and void?

When a People find themselves cruelly oppressed by The State, they have the Undoubted Right to cast aside such a yoke of tyranny and assert their Rights and their Liberty. It is however necessary, if such reasoning is considerable, to judge that they have both the sufficient power, and indeed, the strength to maintain their position, standing their ground in the defense of their Just Rights against their oppressors. So, the preeminent law is that of self-preservation, it is the first law and it is our indispensable duty to protect ourselves when all other means of redress have been exhausted and therefore we have the Right to Renounce all submission to such an abusive government.

In Liberty and Eternal Vigilance,
Republicae

The Psychological Trigger of Hyper-Inflation

In a fiat monetary system, there will always be a balancing act between inflation and deflation since the central banking system must manipulate the money. It is however, very rare for a fiat system to suffer from deflation because of the very nature of the monetary system itself and it only occurs when there has been a boom in the business cycle brought about by, once again, central banking manipulation of interest rates.

Of course, in our “collective” memory, the only thing we can associate deflation with is The Great Depression however, that memory when compared to our current deflationary bout is skewed by the differences between the two monetary systems; the one which existed prior to 1934 and then the one that now exist that came about in 1971. It should be obvious, but perhaps not, that a foundational difference in the monetary systems will have profound effects on both inflation and deflation along with economic movements and behaviors. In a way, the world was turned upside down in the 30s, not because of The Great Depression, but because of the actions taken by our government in concert with the Federal Reserve Banking System.

When FDR debased our currency through the confiscation of gold and the revaluation of the official price of gold some very interesting things had to take place, similarly when Nixon cut the ties of gold completely from the dollar some drastic changes needed to occur. I don’t think many understand just what had to take place and what was involved to completely transform the monetary system of this country during these two periods. Basically, everything involved with all the very complex relationships within the economy and the market dynamics of domestic economy and later the foreign economy were eliminated during these transformations. It is therefore, impossible to adequately compare any economic disruption prior to those events to those we are now experiencing. While superficial comparisons can be made, the comparisons end there. There is a completely different dynamic at work under a total fiat monetary system than was at word during The Great Depression or even prior to 1971. Indeed, that difference was witnessed during the latter part of the 1970s and into the 1980s when the economy began to experience something that, according to the Keynesian/Neo-Classical “Text-Book” Economists, was not expected nor did it fit into their econometric models. Stagflation was simply not possible under their economic ideology.

Remember, prior to that time there had never been a period when there was a downturn in economic growth while there was an inflationary monetary event. The key, of course, was that the Dollar was no longer tied, in any way, to the only anchor of stability it had ever been tied to and that was gold. Historic inflationary charts reveal a great deal about the effects, not only of sound money, but also of partial and total fiat money. Interestingly, the ability to inflate without the restraint of gold commodity is extremely evident from that singular point in our economic history: 1971. Since that time there has been a steady incline in the amount of fiat money that has been created and perhaps more interesting is the steady decline in the overall economic and social health of this country.

The degree at which our Dollar’s purchasing power has been diminished since 1971 is absolutely astounding; actually it should be alarming to all of us. The purpose of money is to act as a means of exchange and when the purchasing power of a currency is drastically debased there is not only an economic consequence, but also a socio-political consequence to such depreciation. When a drastic depreciation takes place over a few decades there is a corresponding decline in both the political and social economy.

When a currency, which is a means of exchange, loses its purchasing power it eventually loses its meaning as a means of exchange, confidence is lost and as that confidence in the money erodes so too does the confidence in the political structure occur.
I have had people say to me that people are making more money today then they ever have in our history that is true on the surface and it is perhaps one of the greatest deceptions of our time. It is not however, the number of Dollars or the face value of those Dollars that matter, it is the amount of goods and services that those Dollars can be exchanged for that provides the benefit. It is the Quality, not the Quantity of money that provides a social benefit.

Now, it is important to understand that inflation will eventually destroy the fiat monetary system and deflation will prolong the system’s life span. Inflation eats away at the purchase value of fiat money and deflation increases the purchase value of each fiat unit. Thus, as most of us know, inflation has eaten away at approximately 97% of the purchase value of the U.S. Federal Reserve Notes. It has been a type of taxation without any representation whatsoever; that in it would be enough to cause any one of our 18 Century ancestors to rise up in revolution, but we have been effectively duped by a very clever scheme to deprive this nation of our birthright.

Today, this and other countries find themselves in the situation of crisis because that is the belly of the fiat beast; there is a natural inclination toward fiscal abuses, not only on a governmental scale, but on a corporate and individual level as well. Everyone seems to be wondering just how this crisis came about, the answer is extremely easy: the fiat monetary system!

The world has been under the heavy thumb of the central bankers for the last 37 years in particular, prior to that they were restrained by a partial fiat monetary system that would only allow them to play in their cesspool up to their collective ankles. Since 1971 however, they have jumped head-first into the muck and mire of a total fiat system that has allowed them, along with their political comrades, to scrape up the dregs of a monetary system that will ultimately spell disaster, not only for the People of this country, but in the process even the central bankers will suffer as the monetary monster they created and upon which they depend, turns on them with a vengeance and consumes the works of their filthy hands.

Now, in a maddening dash toward the fiat abyss, the central bankers are embarking on a predictable path which will lead to ultimate destruction of the fiat monetary system, the only system they have, the only system they place their faith into and depend upon. Today, although hidden from our view, there is an absolute unprecedented depreciation of our Dollar taking place and few realize the fact that the “precious” fiat Federal Reserve Note, along with just about every other fiat note around the world, is being destroyed.

To give an example of just how skewed our economy is under a fiat system we should look at savings. Normally, under a sound monetary system a decrease in the savings rate will translate into a rise in interest rates, regulating credit accordingly, but not so under a fiat monetary system. Savings have been very low in this country, debt has been high and the FED artificially pressures rates downward. Everything in the man-made fiat monetary system is completely contrived and contrary to sound economics; it shows in more ways than we can imagine.

Now, Mises, in his wisdom, stated:
"There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved."

Now, that one statement holds a vast amount of information that is very pertinent for us today, for it maps out the only two routes available to the Federal Reserve and this government. Either the Federal Reserve will allow for the economic exhaustion to run its course, abandoning its easy-money-easy-credit fiat policies, or the currency will be destroyed by hyperinflation. The problem of course is that they fear deflation because it will lay their plans before the world, exposing their inner-workings and fraud for all to see; the other alternative they feel they can control, but the awakening will be rude and cold. They live under a grand illusion and perhaps they are as deluded as the majority of politicians and the people themselves, but they will simply not be able to avoid a reality that is about to destroy their system.

At the moment, the bond markets are draining capital away from the economy, but that will not remain the case for much longer. The FED is churning out liquidity in record amounts, primarily in the form of direct infusions instead of the routine fractional reserve system. The massive debt, both public and private, is proving to be more and more difficult to pay off and as interest rates continue to fall, the actual value of that debt increases. The new fiat world order is saturated with malinvestments, stagnate debt and dwindling profits. All the while, the Bond Market sucks productive capital away from sector after sector, creating its own set of problems for the FED analytically.

We simply don’t grasp just how distorted our economic world really is; it is difficult to understand just what had to take place in the natural order of things when our economy was completely divorced from gold money. Not only did that distort the economic order, but also the resulting monetary policies, along with the regulatory policies of the government itself, have created an economic environment that is surreal and fantastical in its mechanics. There has, through market manipulation and fraudulent monetary contortions, been a massive asset mispricing, not only here in the U.S., but around the world.

On top of all that, there is a looming monstrosity lurking on the books of the Bank of International Settlements, you know the Central Bank of Central Banks, and that monstrosity is a vast quagmire of debt derivatives that will soon begin to function as an enormous black-hole. Since there is little knowledge or transparency about these “debt” assets, no requirements of disclosure about what they are and where they are associated, then there is no possible way to prepare for an eventuality of derivative toxicity streaming into the world’s economic circulatory system. One thing is certain, the Federal Reserve, along with our Treasury, is no longer just the lender of last resort, it appears that they have been forced, by their own past actions, to become the buyer of last resort also. They have the “printing presses” full of paper and ink, ready for what comes their way.

One of the problems, of course, is that under a fiat monetary system there will always be an excess of fiat paper then there is a demand for it. That sounds strange, how can there be an excess of money in an economy? The nature of fiat is to run in excess of demand because it must rely upon quantity since it cannot rely upon quality. The economy we see today is exorbitantly inflated by the fiat system, so much so that few people understand the illusion that the quantity of money creates. That is one reason that so few people can wrap their heads around a return to gold money, they look at today’s economy and are magically hypnotized by the face amount of dollars involved and say there is not enough gold to do the job. However, every dollar of economy value is only valued around 3 Cents or less, it does make a huge difference. Even so, the monetary mechanism of gold money does not act the same as fiat money, nor does it require a constant supply to be effective since each unit operates as a means of exchange throughout the economy and is rarely stagnate.

Under a fiat system inflation is the normal stage of operations; it must be inflated to maintain the illusion of its effectiveness. When there is a contraction, or even a simple stall within the creation and expansion of fiat money there is a direct effect on the economy superstructure, as we are currently witnessing in this and other countries. While there are those who believe the underlying debt is a restraint upon the creation of money, the truth is that it only restrains a certain type of fiat money creation. We have been told, not only by Bernanke, but also by other central banking heads that they have an unlimited ability to create as much money as they feel they need to effect economic stimulation. What they don’t say is that an unlimited supply of fiat money has very definite consequences. They rarely admit that such an unlimited ability increasingly makes the purchase value of the currency worth less and less.

Another reason why the fiat monetary system must rely upon a continual increase in supply is that there must be some way for the central planners to compensate for the continual decrease in the purchase power of each monetary unit through inflation. Strange isn’t it? They debase the money through the increase of the money supply, but they have to increase the money supply to combat the effects of increasing the money supply and on and on and on and on they go down their yellow brick road as though they know where they are going. Their dilemma, of course, is that there is no way for them to play catch-up with the loss of purchasing power of the currency, not matter how much money they create the currency will always lose more value quicker than they can “print” it out.

The cows come home when the public begins to loose all confidence in the currency. This is particularly true when interest rates, which have been kept at artificially low levels, begin to bend to market pressures and the FED can no longer keep them down. What triggers the wide-spread lack of confidence in the currency is when the people realize that they money is increasingly worthless even when interest rates are beginning to rise, which would normally indicate a stronger value within the currency, but during a highly inflationary environment, the opposite happens. At that point the people begin to spend their increasingly worthless dollars as soon as they get them in their hands. The wild demand for money stops even though they’re seemingly an unlimited supply of money available. People and markets suddenly realize that all the money in the world cannot substitute for purchasing power of money. It is a strange occurrence and it happens the same way every time. It is almost an overnight epiphany that occurs.

You see, hyperinflation is not only a monetary event, but it is far more of a psychological event. During boom periods of economic fiat expansion, there a demand for money, the problem comes when a deflationary period enters the economic fiat landscape. At that point, as we have seen, the central bankers push the “presses” into overdrive, full steam ahead to avoid facing the consequences of correction associated with a fiat bust. It is during this period that the danger of hyperinflation evolves because the supply of money is rapidly increasing but the demand for that money is decreasing. Eventually, everyone begins to understand that no amount of fiat money can replace the loss of value associated with the money. At that point everyone suddenly gets a mind, they suddenly come to a realization about just how much of a fraud they have been victimized by over the years and they are no longer willing to play the game.

This great psychological event, as I said, always happens suddenly, so fast in fact that the government must respond by revaluing each monetary unit, seeking to exchange old fiat money with lower denominations with new fiat money complete with ever-increasing numbers of zeros on its face. The system, along with the central bank and government, is effectively destroyed. It is all crippled, stripped of its power to enforce not only legal tender laws, but also all laws. The government is effectively neutralized by a hyperinflationary event and the fiat monetary system is dealt a final deathblow from which it simply cannot recover because it cannot regain the confidence of either the people or the market.

A deflationary depression can be devastating to a country with massive layoffs, bankruptcies, defaults and business closures, but the money is never destroyed through deflation that is not the case with hyperinflation. Deflationary will prolong the fiat monetary system, almost cleaning the system of excesses but hyperinflation will absolutely destroy everything that is even remotely associated with the currency. A deflationary depression will simply allow the Federal Reserve to continue its fiat shenanigans; hyperinflation will destroy the Federal Reserve, the fractional reserve banking system and the political machine that supports its criminal activity.

We have already been told, time and again, that the Federal Reserve will not allow a long deep deflationary event to occur; the other side of that coin is that their options will include, as we are now seeing, a drastic inflationary push of fiat economic instruments. Remember, our Dollar has already been debased by 97% or more, it will not take much to tip the scale of inflation where the people’s psychology is triggered and they cease any demand for the massive amounts of fiat money coming into the system.

In Liberty and Eternal Vigilance,
Republicae

The Destructive Measure of Fiat Inflation

Inflation is a peculiar thing particularly since it is not necessarily innately built into an economy. Continual inflation is an act of intervention into normal monetary mechanics, unlike supply/demand inflation; continual inflation is implemented by a very narrow operation of expanding monetary creation, particularly that of the fiat monetary supply.

It has been relatively easy for this government and the Federal Reserve to hide the inflationary monetary policies from the public for decades behind the idea that it is simply a supply and demand issue increasing the price of goods and services in this country, but that ruse is rapidly coming to an end as more of the population is becoming educated to the actual causes of our continual inflationary push. Of course, there are other factors that can be manipulated to contribute to the ruse of inflation, such as the rising costs associated with raw materials and labor.

Since 1971, we have seen a continual rise in prices; year after year there has been a depreciation of the purchasing power of our dollar. Part of the ruse is that there appears to be much more money floating around, and indeed there is along with more people earning more dollars each year and thus there appears to be a great deal more wealth in our country. The problem of course is not the number of dollars within an economy, but the actual purchasing power of each dollar that determines wealth.

Under the Federal Reserve Act of 1913, one of the primary objectives listed in that Act is price stability, but what really is price stability and who can appropriately determine a stable level of price. As we have seen, repeatedly, the FED attempts to determine price through its policies by seeking to balance economic growth on a razor's edge; it is an impossible feat as we have seen over the years. So, what is price anyway? In a free-market price is really determined by equilibrium between those who produce the goods and those who consume the goods. In other words, the market sets the price of goods and services under a free and unencumbered market economy; the same is true of interest rates in a free market economy.

There are extremely crucial elements within free market economies, which cannot be duplicated although they can be distorted. Not only are there numerous variables within a free-market economy, but also there are numerous variables of variables that simply cannot be adequately determined, measured or predicted. In terms of pricing, one thing in particular either compels or restrains price and that is the purchasing power of each dollar within economic circulation at any given moment.

This is particularly true in a fiat monetary economy since continual inflationary pressures brought about by government or central banking intervention into monetary mechanics always plague such systems. Thus, if we were to take an overall view of pricing throughout the entire economy under a fiat monetary system, we would see a direct correlation between the total monetary stock within that economy and how pricing if effected by that supply. Since the Federal Reserve has a very limited pallet from which to work, the primary tool that it has used over the last decade has been monetary expansion. It appears that in the collective mind of the FED that it believes that a continual increase in pricing is essential for economic growth and thus it appears that inflationary pricing is the same, in their collective mind, as stable pricing.

As we have seen through the years, this government and the FED cannot bear the thought of price declines and will do everything they can to assure that there is absolutely little or no deflationary pressure within the economy. This however, is a very dangerous road to travel upon, as we have seen of late. Eventually, when the artificially created booms begin to deflation the FED must resort to extraordinary measures, once again, as we have seen in this latest fiat fiasco.

It is essential to understand that under normal circumstances, within a free-market economy, prices are determined as a reciprocal quantity of the supply of goods and services then directly by the demand of consumers for those goods and services. As we have seen within our economy, there is an overwhelming supply of both goods and services, which, under normal free-market forces would mean a steady decline in pricing. In some instances, such as computers, we have seen a drop in pricing, that however appears to be the result of technology rather than an actual supply/demand issue. So, if there is such a huge supply of goods and services within an economy such as ours where is the inflationary push coming from? Obviously, it must be coming from the demand side and the primary source for all demand-side inflation is the increased supply of money and therefore the depreciated purchase value of each dollar in circulation.

Since we have determined that the source of our chronic inflation, particularly over the last 37 years, has been the steady increase in the monetary supply then it is important to understand who controls that supply. As we know, the FED controls the supply, has, over nearly four decades, increased that supply enormously, and has done so not necessarily due to a growing demand for money but as a political expediency to fuel a rapidly growing federal government and maintain its political agendas and policies on the domestic front and around the world.

We should understand that government has always sought to control money because with that control breeds a power that rivals any level of military might. When a government can control not only the creation of the money supply, but the means in which that money is distributed within the economy then there is a huge degree of power shifted away from the people and the markets. At one time, a man's money was his private property and an asset that was literally beyond the control of government and government hates any form of money beyond its reach or control. The more control over money the government can retain the more control over the people it can retain. Therefore, the government has always sought to bring about a complete control, a complete monopoly of money in order to finance what it considers its interests along with its interventionist adventures; but just as importantly, to maintain social control over the population of citizens.

Thus, as we know, our government has implemented a central banking system that is completely politically motivated in order to achieve this degree of control. In a very real sense, this great power has been placed into the hands of a rather small group of people that are in charge of the creation and control over the money that once belonged to the people. It should not be a surprise to anyone that there is a very good reason behind this fact; one is that under a fiat monetary system the government can easily avoid the need for over-taxation of the population to keep them placated. Another huge advantage of a fiat monetary system is that it can be easily manipulated to provide a vast illusion of wealth through the extension of debt.

An equal consideration is that under such a fiat monetary monopoly, the leadership of the country can easily create any amount of money needed for its own expansive functions, spending without much restraint and lending or giving it always to ensure the sometimes-precarious loyalty of the allies it attempts to buy favors. Of course, this was not nearly as easy under a sound monetary system that required much more responsibility and accountability. While gold and silver money proved to be the bane of the "ruling class", the printing press has proven to be its best friend. Once the dollar was defined as a measure of gold, today it is defined as a note of increasingly questionable value. So, the transformation of the dollar from a demand note representing an actual redeemable value of real money to a debt note was easily completed without much fanfare or public notice. It is truly an amazing fact just how complacent the people of this country have become, for once revolutions would have been fought to retain the monetary integrity of a country.

Instead of being restrained by common-sense budgets under a real sound monetary system, the government was now free to stamp its "seal of approval" on pieces of paper and call it money with virtually no real costs associated with its creation. While the consequences of such maneuvers are not immediately visible, eventually, due to the nature of fiat money and the gluttony of governments, the consequences of monetary depreciation will wreak havoc on all fronts including economic, social and political. This government will "print" as much money as it can possibly get away with until the consequences of its actions catch up to its irresponsible actions. Political expediency has trumped common-sense reality in this country for decades, but that too will end as the consequences of its actions become blatantly apparent under immense inflationary pressures.

Since money only performs its ideal utility at the pinnacle of its purchasing power and inflation is a process of depreciation, then there comes a point when people begin to realize that the utility of their money is no longer as functional as it once was at a previous time. As the government, through the agency of the Federal Reserve, increasingly depreciates the purchase value of each dollar through inflation of the money supply, people reach a point where they seek to convert their cash into other tangible assets as quick as possible to retain some degree of value. Additionally, there comes a time within the market itself that begins to demonstrate that the purchasing power of each dollar has been debased to the point that it is no longer a reliable measure of exchange. During the final stages of an inflationary push leading into a hyperinflationary event, there will be a rapid increase in the purchasing of goods due to the fact that more and more people will lose the confidence in the currency and seek to exchange it as fast as possible for some asset in which they feel a degree of security.

The monetary history of the last century has seen the systematic dismantling of all types of restraints that checked the power and scope of our government. With the advent of the Federal Reserve Act, the leash was removed from the government's neck and it was free to roam in just about any direction it deemed necessary in order to accomplish its goals and secure its interests. By 1933, the all-out assault on sound monetary policy had begun and the actual restraints of monetary inflation were eroded by gradually erasing the gold barrier from the fiat dollar and creating the impression that the paper Federal Reserve Note was the actual money instead of the gold that once backed those notes completely. By the 1960s the last vestiges of sound money were eliminated from the domestic monetary system and, of course, by 1971 all ties were successfully broken between gold and the U.S. Dollar. The actions taken in 1971 finally released the constricting bonds of gold on the fiat monetary system and thus ushered in an international push toward a relatively uniform fiat mechanism as the U.S. effectively declared it would no longer pay its foreign creditors and trading partners. Essentially, the U.S. Government once again reneged on its obligations in a similar fashion as it did under the Administration of FDR. So much for the "Full Faith and Credit of the United States"!

Though few seem to realize it, the fact is that there is a defined limitation upon the Fiat Monetary System and that limitation is based in the inflationary deterioration of the purchase value of the money itself. Even under a process of controlled monetary expansion, the government will always push such a system to the extreme limits of its efficiency. The degree of this limitation is easily measured by the level of degradation of the currency itself, from the peak of its purchasing power to the point where the money has been depreciated to such a low level of exchange that it no longer functions within an economic matrix. At that point, of course, the currency collapses and all that is dependent upon that currency collapses.

It should be obvious that the government, without reservation, will always abuse the powers of inflationary fiat creation and in turn it will always be forced to intervene because of the economic consequences of such inflationary policies.

In Liberty and Eternal Vigilance,
Republicae

Crimes of The Fabian Socialists

There are an unimaginable number of "conspiracy theories" regarding the New World Order, some with merit, most are simply illogical and without merit. I will not delve into the initial beginning of this "New World Order", but I begin at a pertinent point in its history that will, hopefully, explain just what they plans have been, how those plans have been implemented and how they will ultimately be defeated by their own plans.

It is vital to understand that the New World Order is inextricably tied to the Fabian Socialists which formed in England during the later part of the 1800s and their intricate plans for a global fascist-socialistic society. In fact, there is no New World Order outside of the Fabian Socialist agenda. It should be remembered that the Fabian Socialists were equally accepted in both the Nazi/Fascist and the Communist/Marxist/Leninist/Maoist/Trotskite ideologies. The Fabians have been, throughout their history, political and social chameleons who have, through stealth and deception, changed their outer skin to infiltrate every political, social and educational institution around the world, particularly in Great Britain and the United States. Speaking of chameleons, the primary symbol of the Fabians is a "wolf wrapped in a sheep's skin".

The Fabians, like all socialists, are completely dedicated to the centralization of all power, in all aspects of society and government. Their primary push as been to advance the idea that the power of government, The State, is the center of society. Fabians are not above calling themselves anti-socialist, conservatives, liberals, moderates, or any other name in order to achieve their goals of centralization. They are not above joining any group that can be used to influence official and public opinion to achieve their goals and indeed, they have succeeded over the decades to do just that. The rise of The State, its well-being and the gradual increase in its power is of primary importance to the Fabians over any and all considerations for the individual. Their goal has been to wean the individual away from self-dependence and responsibility toward a dependency on The State and a sense of responsibility toward the "common good".

Their "silent revolution" undermines a nation from within, deep within the bowels of the society in order accommodate a gradual, incremental transformation into a socialist society. One of the famous Fabians was George Bernard Shaw, the playwright, he stated clearly the techniques the Fabians used: "Our propaganda is one of permeating - we urged our members to join the Liberal and Radical Associations in their district, or, if they preferred it, the Conservative Associations - we permeated the party organizations and pulled all the strings we could lay our hands on with the utmost adroitness and energy, and we succeeded so well that in 1888 we gained the solid advantage of a Progressive majority full of ideas that would never have come into their heads had not the Fabians put them there."

In 1889, Sidney Webb, another Fabian said:
"The Fabian Society occupies a different sphere as a Socialist Society from that of the two larger bodies. It includes members of all the other organizations, with a number of active workers chiefly of the middle class, and 'literary proletariat'. . . . The Society exercises a considerable influence, more real than apparent, by the personal participation of its members in nearly all reform movements, as well as by their work at the Universities and in the fields of journalism and the teaching of Political Economy. It is not, however, a numerous body, and makes no attempt to increase its numbers beyond a convenient limit."

In his book The New Despotism, Lord Hewart, written in 1929, revealed the serious nature of the Fabians involvement in the British government: "A mass of evidence establishes the fact that there is in existence a persistent and well-contrived system, intending to produce, and in practice producing, a despotic power which at one and the same time places Government departments beyond the sovereignty of Parliament and beyond the jurisdiction of the Courts."

It is evident that the expansion of the Fabian Socialist Plan has been successfully extended to the United States with the primary push during the Administration of Franklin D. Roosevelt in the 30s and 40s. Needless to say, the Fabians had a direct influence on Woodrow Wilson and the creation of several pieces of legislation, including the Federal Reserve Act, as well as the 16th and 17th Amendments; all of which set the stage for every component for the future implementation of the Fabian Plan. The primary influence on Wilson was Colonel Edward Mandell House, the Fabian who was influential in the founding of the Council on Foreign Relations along with the bankers: J. P. Morgan, John D. Rockefeller, Bernard Baruch, Otto Kahn, Jacob Schiff and Paul Warburg. As we know, House was also heavily involved with the creation of the Federal Reserve Bank, the Round Table Group and the forerunner of the United Nations, the League of Nations. All, each and every one of these institutions, including any ancillary organizations, is completely Fabian in concept, ideology and agenda.

"The crisis [the Great Depression] discovered a great man in Franklin Roosevelt...None too soon he has carried America forward to the second stage of democratic realization. His New Deal involves such collective controls of the national business that it would be absurd to call it anything but socialism, were it not for a prejudice lingering on from the old individualist days against that word...Both Roosevelt and Stalin were attempting to produce a huge, modern, scientifically organized, socialist state, the one out of a warning crisis and the other out of a chaos..." H.G. Wells The Fate of Man 1939

Now, another extremely important point of understanding of the Fabian Socialist can be found in a book by Colonel House called Philip Dru: Administrator. In this book Colonel House describes the political agenda of the Fabians in the implementation of the New World Order under the Administration of the Fabian Socialists. It is a very scary scenario and the strategies found in this book have been enacted, step by step, stage by stage, ever since it was written. Within it can be found the plan of having a small, select group of powerful insiders causing a depression which compels the country to elect a man who just happens to talk to the people in what is called "fireside chats" in which this newly elected president will introduce and launch a plan called "The New Era".[now remember this book was written in 1912] From that point, these insiders [Fabians]control the government, control the banks and corporations, weaken the country to the point that there is a very real chance of society splitting in civil war, at which point a dictatorship is imposed on the justification of keeping the country together. The character in the book that assumes dictatorial power is named Philip Dru, the Administrator.

There is absolutely no doubt that the implementation of the New Deal was nothing more than that of the Fabian Socialist Plan. The Fabian Political and Economic Planning Committee proved indispensable in the formation of the New Deal, in fact if you read what the New Deal accomplished and compare it to the Fabian P.E.P. they are almost indistinguishable from each other. A portion of the Fabian P.E.P. stated: "The individualistic manufacturer and farmer will be forced by events to submit to far-reaching changes in outlook and methods. What is required, if with only a view to equitable treatment of individuals, is transfer of ownership of large blocks of land - not necessarily of all the land in the country, but certainly a large proportion of it - into the hands of the proposed statutory corporations and public utility bodies and of land trusts."

Another principal instrument used in the New Deal creation was the monetary and economic policies proposed by John Maynard Keynes and the Marxist Dexter White. White, of course, played a primary role in the development of the Bretton Woods Agreement in 1944 and the establishment of the IMF. In fact, White was later appointed the Director of the IMF by President Truman.

The great American Patriot John T. Flynn stated in his book entitled The Road Ahead that there was a "creeping revolution" taking place in the United States and made a clear connection between Fascism and Fabian Socialism when he said: ". . . the line between Fascism and Fabian Socialism is very thin. Fabian Socialism is the dream. Fascism is Fabian Socialism plus the inevitable dictator."

The Fabian Socialist have intentionally presented their ideology within a very socially acceptable package; humanitarian in appearance and approach, its actual purpose is complete, absolute power over society as administered through an iron fist covered in a kid-skin glove.

John Maynard Keynes promoted his services as a capitalist economist, but the reality of his politics and his economics were far from capitalistic. One Fabian Socialist by the name of John Strachey was very clear about the true intentions of Keynesian Economics and monetary policy. He proposed Keynesian policies as "an indispensable step in the right direction. The fact that the loss of objectivity, and the intrinsic value of the currency which is involved (i.e., inflation) will sooner or later make necessary, on pain of ever-increasing dislocation, a growing degree of social control . . . for the partial character of the policy will itself lead on to further measures. The very fact that no stability, no permanently workable solution can be found within the limits of this policy will ensure that once a community has been driven by events to tackle its problems, in this way, it cannot halt at the first stage, but must of necessity push on to more thorough going measures of re-organization."

Keynes stated: "Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become 'profiteers,' who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery."

Sounds like a familiar process doesn't it? The fact is that the Fabians have been in, in one degree or another, control of this country since at least the later part of the 1800s, some may say since 1860 with the nationalist putsch by Lincoln [who was influenced by Marxists from the failed revolution of 1848] and have continued to press their agenda into a Socialist society.

Perhaps one of the most important points to understand is the purpose of the central banking system and the fiat monetary system to the Fabian Socialist New World Order Plan. As explained by H.G. Wells, in his 1930 book entitled The New World Order:

"we grasp this not very obscure truth that there can be, and are, different sorts of money dependent on the economic usages or system inoperable, which are not really interchangeable, then it becomes plain that a collectivist world order, whose fundamental law is such a Declaration of Rights as we have sketched, will have to carry on its main, its primary operations at least with a new world money, a specially contrived money, differing in its nature from any sort of money conventions that have hitherto served human needs. It will be issued against the total purchasable output of the community in return for the workers' services to the community."

H.G. Wells described that as a part, one of the primary parts of the Fabian New World Order's Plan was the contrivance of a monetary system that would be issued, through a central banking system, against the total productive output of the society exchangeable in return for labor. The description is striking because what it denotes is a monetary system where there is no real value to the money itself, in other words a fiat currency, but the "value" would be the production of labor. Now, if you put this together with the quotes from Keynes, you will quickly see that the key to their plan was a highly centralized government with a highly centralized banking system issuing a monetary unit, which through the instrument of inflation, would be reduced from an actual value to a value based solely upon the exchange of labor. This was a truly socialistic concept, that inflation would be used to transform the sound monetary system of the United States into a socialistic monetary system where the exchange rate is the actual labor of the population. Today, that is what we have, our money has no value, but it is exchanged based upon labor.

I realize that many think this current economic down-turn is just the New World Order simply playing the next stage in their plans to impose a complete socialistic society during this latest economic crisis, but in my research I see a very different story. Based on the Fabian Socialist Political and Economic Planning Committee, the New World Order has made no other plans for another monetary system except the Fiat Monetary System and Central Banking System that are now in place and which are now in crisis. I am of the opinion that the New World Order is in trouble, the elite is in trouble because the system that they have spent at least the last 95 years investing all of their power, their time, their resources and intellect in is rapidly approaching a period of time when it will completely collapse. For decades they have pressed their plans, all based on a socialistic vision of creating little more than a feudal system of peonage where the people make up the productive base of their wealth through a system of confiscation and transference from the people themselves into the coffers of the Elite Administrators. Their Socialist Empire is completely built upon and dependent on the continuation of this system; the only system left to them would be a system of complete slavery and that is untenable and totally non-conducive to their plans of Socialism because it would not allow for the continued productive transfer of wealth as the current system allows.

So, as much as these Fabian Elites have put into this system, as much as they seemed to think they could continue the control of the system and extend it globally, they appear to have deluded themselves into thinking that an economic system built solely upon the creation and extension of debt was sustainable indefinitely. The Debt Standard of Fiat Money, based upon labor exchange and debt expansion will collapse, it is a mathematical impossibility for it to continue and with that collapse the Fabian Elite will lose not only their ability to maintain their power, but they will lose their wealth and position in our country and others. Once the collapse of the monetary and economic systems occur, they will have no options left to them, there will be nothing they can do to salvage the system.

There can be no doubt that during this time of collapse the Fabian Socialists will show their true nature, the heart of which is brutal disregard of the individual. They will attempt to put a death grip on society, squeezing as much life as they can from it and will do so in the most extreme ways imaginable. We must however, never relent or retreat from our principles, from our goal of Liberty and Freedom, even when the Fabian New World Order Thugs begin their final oppressive push to retain their power and wealth.

There will be a period of chaos, during this period we must consider the Elite as absolute enemies of the People, of Liberty and Freedom. During that period we must consider such criminals the legitimate focus for the People's Justice. I personally see no other options but the total and absolute elimination of the sources of this Fabian Socialist plague from our land. Until this land is purged from the influence of this Fabian Socialist Ideology the Constitutional Republic will not be safe for Liberty and Freedom, nor will prosperity ever return as long as they remain a viable force.

Now, I leave you with these horrible thoughts from one of the Fabian Traitors, David Rockefeller: "We are grateful to the Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is now more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries."

In Liberty and Eternal Vigilance,
Republicae

The FED Will Inflate

It is important to realize a few things when comparing the deflationary depression of the 1930s, in fact any deflationary depression prior to 1971 and the events that are occurring presently. The fact is the complete financial and economic institutional structure is 180 degrees from what it was during those periods, the entire dynamics of the economic substrate is completely different and the monetary system is now very different then it was during those previous deflationary depressions. All of these factors are, it seems, rarely taken into consideration by those who promote the idea that we are heading into an imminent deflationary period leading to a depression that will be equally as deflationary. While I believe that we will experience a deflationary mixture within the economy, the overall trend will be inflationary. What appears to be happening in many instances is that people look at certain sectors within the economy and point to depressed pricing structures developing and while that is true, such deflation does not preclude an over all trend toward an inflationary event or worse.

One of the interesting notions that are making its round once again is that during The Great Depression the Federal Reserve was not able to inflate during the crisis because prices were simply deflating much more rapid than the FED could counteract. While that is true to a degree during that period we must remember that there have been some very drastic transformations during the last 40 years in both the institutional and monetary framework of the Central Banking process, perhaps the most striking one is that during the 1930s, the monetary system was still on a gold-backed, partially fiat system, today that is no longer the case. Remember, money back by gold poses a very restrictive and narrow means of operation for any Central Bank, that's the main reason so many Central Planners hate gold.

The FED has long been freed from the restrains that gold money placed upon it, especially the restrains it confronted during the deflationary Great Depression. It was restrained from inflating during that period because of the fundamental foundation of the monetary system of that period. There are no longer any such restrains that limit the ability of the FED to inflate to combat any deflationary pressure it sees in the economy. While I understand that those who see a deflationary depression on the horizon are coming from, the claim that because there has been excessive credit creation and therefore excessive debt, including massive defaults in the economy that the FED has reached a point in which they have effectively lost control over the money supply and that deflation is increasing faster than the FED so that it can now only "push the string" can inflate is erroneous. While it appears that there is indeed areas within the economy that will suffer from deflation, the response will be an unrestrained push by the FED to inflate on a massive scale, one that we are already beginning to witness.

Even if the banks cannot stimulate new loans, and therefore new bank-money [money created through the fractional reserve system], the FED, as we are beginning to see, will directly infuse and inflate liquidity into the system and take up the slack within the commercial and investment banking systems, side-stepping, as it were, the fractional reserve system of banking for a direct system of monetary inflation. Even many of the actions taken recently by the FED, the Treasury and the Central Banks of the world are all inflationary to the extreme; even the rise of the FDIC insurance limits on accounts is an inflationary measure that will eventually work its way into the general economy.

For decades the American Public has been told and reassured that the U.S. Banking System is safe, that the "Full Faith of the Government of the United States" backed not only the obligations of the government itself, but also insured depositors against overwhelming loss. The American People are already being rudely awakened, the scales are falling off of their eyes, or I should say that the scales are being ripped off of their eyes en-masse about the actual risk associated with this fraudulent fractional banking and fiat monetary system. They don't understand it fully yet, but the faade is being ripped away by circumstances.

The continuation of bank failures will, if not stemmed by the FED, prove to be massively deflationary, but there is simply no way that the FED will allow an escalation of bank failure without first stepping in with yet another massive influx of Fiat Liquidity. The bailouts are far from over folks, and with those massive bailouts come massive and un-hindered inflation of the money supply. The problem is that by that time the confidence of the People in this phony system will have been cleansed away and will not easily be restored.

Perhaps few have realized it, but there has actually been a global permanent monetary crisis for decades, a balancing act on the edge of a razor blade between deflation and inflation, stability and instability. It is a system that has an inherent flaw within its very nature and we are forced by those playing this balancing act to endure this system of fluctuating rates that are simply used to manipulate wealth creation for those who are already wealthy, to increase the power of those politicians and central bankers who already have power. It is evident that those in our government are woefully ignorant of just what has been happening, what is happening and what will happen to this monetary system and the resulting economic and social disaster that will eventually express itself in the collapse of the entire global monetary system. We are however, on the very edge of a fundamental shift, one that can only have an eye-opening outcome. This shell-game that has been played, whether by actual intent or pure ignorance, is coming to an end.

John Maynard Keynes, the father of our Fiat Monetary System, pressed for an international paper unit that would fluctuate through an independent fiat monetary system around the world, well folks that is exactly what was implemented in 1971 when this country finally cut all ties between the currency and gold. You see, we have been operating under a global currency since 1971, you don't have to wait for one to come, it has been here and it is called Total Fiat Money. While there was some talk by both the Fabian Socialist Keynes and the Communist Dexter White to use a unified paper currency called the "bancor" or the "unita", it was concluded that the same thing could be achieved much easier is every country retained their "own" currency as long as each currency was Total Fiat so they could basically pyramid the expansion of the national currencies in at system that allowed total control over the economy and the global societies. So, we have a world currency whether we know it or recognize it or not and have had one for at least the last 37 years.

In this way, the Central Banks of the world could inflate together, create a massive Feudal System of Peonage on a global scale and maintain both political and social controls over the various populations of the world without very much restrain or limitations. The problem, of course, is that they appear to actually believe in the system that they created for these purposes. It appears that they believe so much that they don't realize that the system they have placed so much of their faith and future into is one that is inherently flawed and will self-terminate. Fortunately, even with the global monetary system they created, they have not been able to wipe away the identity of individual countries, nor will they ever be able to do so, it is simply too strong within the hearts of people around the world. If anything, we are seeing a move for more independence within various peoples of the world, not less. The banking and political powers of the earth are now so tied into a system that is not only unstable, but is rapidly becoming an incoherent mess in their hands.

T
In Liberty and Eternal Vigilance,
Republicae

The Right of Money Property is a Revolutionary Right

First, we should all recognize that the monetary use of gold is not without its flaws, no system can possibly be considered perfect due to the interactions of human beings and the unforeseen consequences of their actions. However, the primary flaw with all fiat monetary systems is that they always fall into mismanagement and abuse by those who manage the system due to the nature of the system itself. Every attempt at stabilizing fiat money is usually short-lived, because by its very nature the entire system must rely upon a consistent expansion of the money supply to continue economic growth. This major flaw, combined with mismanagement, will always end in the destruction of the monetary system, there are no exceptions.

Now equally, a gold specie system, administered by a central bank or under the heavy control of the government is not much more successful than a fiat system because of the simple reason that it can easily be abandoned by a stroke of the pen. The most successful monetary system would be one in which individual banks of issue not only had the fiduciary responsibility of good business practices, but also they would not have the ability to renege on the promises and demands of that responsibility to their depositors. Not only would this provide a much longer stability of prices, but also, as witnessed in history, a much more stable economy.

It has empirically been shown that the tendency of inflation usually persist under all fiat monetary systems, but not under what could be considered a classical gold monetary system where, through private banking, the promises of redemption are enforced by the sheer demand of the public. In order for the public to have confidence in such a system, it would, as always, have to have a credible commitment from the banks to maintain gold redemption of any bills of issue, and that any breach of this contract would not simply be dismissed as it appears under our current fiat monetary system. Now, this does not preclude the fact that banks are businesses, and mismanaged businesses do fail and should always be allowed to fail. That being said, such businesses should always provide for independent audits and publication of the findings of such audits to the public, especially to the depositors.

While I personally defend the use of gold as a monetary necessity, I do not defend it on purely ideological [i.e. Constitutional] grounds, but also on rational grounds as well. It is a very rational monetary system; it requires absolute responsibility on all parties, especially the government. Unlike fiat money, gold is not, nor can it ever be an inherent liability; by its very nature it is an asset.

Today, we are accustom to and therefore inclined to think of gold in terms of fiat evaluation. We look at the fiat price of gold and therefore assume that it is the actual value of gold when it fact it is merely the fait price that reflects the inflated, therefore debased purchase value of our fiat currency. Likewise, our entire economy is calculated in fiat terms, logically because at this time that is all we have, however, it is important to realize that the entire economy is based upon a debased evaluation. In other words, the evaluation of our economy should be recognized in highly inflated terms, therefore the real economy minus this inflation is substantially less than it appears in the numbers. I realize that is difficult for some to wrap their minds around, but if you view the economy in terms of a 1913 100 cent Dollar you will get the real economic evaluation. The reason for this is that since our money has lost the majority of its economic purchase power over the last 95 years, the economic evaluation is based upon far less purchasing power per dollar of value.

Take, for instance, $1Million Dollars in today's fiat evaluation, under a 1913, 100 cent Dollar evaluation that $1Million Dollars would equate to only $45,007.36 [*using government CPI figures]. As you can see, that is a massive denigration of the purchase value of our money over the last 95 years. Real economic activity is distorted through the consistent long-term depreciation of the monetary system. It should also be apparent, that under this long-term depreciation of the monetary standard, all economic contracts are also suffer from distortion, even future business projections suffer under the weigh of this distortion, thereby skewing any real possibility of accurate business models, especially when it comes to inventories, capital improvements, as well as profits and losses.

Now apply that same principle to the fiat price of gold which, at the moment is trading around $823.00 per ounce, in a 1913 100 cent Dollar, the price is $41.77. Once again, if we abandon the rose colored fiat glasses we see the truth behind the fiat system of serfdom, we are laboring for pennies. The illusion of wealth is strong, especially in this country, but that is exactly what is provided by a fiat monetary system: an illusion.

As we have seen over the last several years, those who manage the fiat monetary system [i.e. The Federal Reserve] have succumbed to political pressures, even though the charter forbids such collusion. The Federal Reserve Act never really stopped the Fed from doing what they wanted anyway; by 1922 the Fed began to monetize debt by forming what we now know as the Open Market Committee to purchase U.S. Treasuries though it was expressly forbidden to do so by the 1913 Act. The political pressure to inflate, therefore to mismanage the system, has increased as politicians forget that there is no such thing as a free ride, even under the pennies from heaven system of fiat money. The "Piper" will be paid!

Of course, as we have readily seen over the years, the average person is bombarded, via the media and the politicians, with the ideal that the problems associated with inflation are due to natural price increases. It is far easier for them to place the blame on things outside of their immediate control then to confess that the real culprit is the monetary system imposed upon the People.

From the 1890's, there was a major push to substitute gold-bullion, and thus gold-exchange standards for the traditional gold coin standards which were far too restrictive on the government and the increasingly powerful bankers in this country. It was extremely beneficial to both government and the bankers to extend and stretch their available gold reserves by any means possible. The real push, of course, was to eliminate the restrictions that the old gold coin standards placed upon them, they wanted a free hand, and of course, as we know, they got exactly what they wanted at the expense of the People and the future welfare of this country.

As we know, by the late 1920s, the entire substrate that had been formed in the previous decades by the government and the inter-central banks, with their reckless issue of credit came crashing to the ground. While there have always been those who blamed gold for the problems, the real issue behind the crash was how the banks economized the gold system and issued, with little restraint, easy credit policies.

It should be relatively obvious that when you have a managed fiat monetary system, and therefore a managed economy, the political forces will always pull or push monetary policy toward the interests with the strongest political connections, thus distorting the system even more. These pressures, always politically motivated, will add a particular bias to all governmental monetary decisions made within the economy; in doing so, the ideals of a representative government are effectively circumvented by the power of monetary policy and the consequences of that policy.

I believe it was Irving Fisher who stated: "illusionary and tantamount to open approval of the government's power to manipulate purchasing power according to the appetites of powerful pressure groups", nothing could be more factual than that statement. There is absolutely no doubt in my mind that the creation of the fiat economic system was purely politically motivated to induce a social outcome through the transformation of economic life in this country. The system was created to solely benefit those who created it and control it, for it provides no real benefits to the People themselves. The system is, at its very heart, an attempt to defraud the People of this country of their Right to Private Property and their ability to gain wealth through honest means.

There was a time in our country when our money was our property. It was more than just a medium of exchange or an economic instrument; it was, in a very real sense, property. When a man labored he received compensation in value equal to his work, his produce or his creativity; the money he earned was his property, just as anything else he owned. He could be assured that his money was a store of real value, he could spend it as he pleased, he could store in a bank, stuff it in his mattress or bury it in a mason jar in his back yard and it was no ones business but his own. He could be confident in the value of his money, that he could dig that Mason jar from the ground years later and still have money that kept an equivalent value as when he buried it, it was real money, sound money and it was his private property. He could be assured that his government could not confiscate it, track it or regulate it once it was in his hands; it was real property, his property. He need not worry about whether he carried a suitcase full of it from city to city, state to state or country to country because it was, without any equivocation, his property to do with what he wanted.

That all changed in 1933, when FDR issued the Executive Order No. 6102 that proclaimed the hoarding of gold and silver by the People [he called them subjects of the United States] "posed a threat to the peace, equal justice, and well-being of the United States; and that appropriate measures must be taken immediately to protect the interests of our people. Therefore, pursuant to the above authority, I hereby proclaim that such old and silver holdings are prohibited, and that all such coin, bullion or other possessions of gold and silver be tendered within fourteen days to agents of the Government of the United States for compensation at the official price, in the legal tender of the Government. All safe deposit boxes in the banks or financial institutions have been sealed, pending action in the due course of the law. All sales or purchases or movements of such gold and silver within the borders of the United States and its territories, and all foreign exchange transactions or movements of such metals across the border are herby prohibited. Your possession of these proscribed metals and/or your maintenance of a safe-deposit box to store them is known to the Government from bank and insurance records. Therefore, be advised that your vault box must remain sealed, and may only be opened in the presence of an agent of The Internal Revenue Service.
By lawful Order given this day,
The President of the United States."

What an amazing decree, it totally and completely destroyed the Constitutional Rights of the People concerning private property, as well as protection against search and seizure. Of course, following that un-Constitutional and criminal act, the official currency was devalued by 40% and the official price of gold was then revalued upward. Thus the enslavement of the American People that was planned in 1913, had effective been implemented by 1933. The People had no choice in the matter, no redress whatsoever, they were required, by "law" to exchange their real money for a devalued sum of paper money whether they like it or not.

Now, it should not be surprising to anyone that if the government is powerful enough to take one penny from you they can take absolutely everything from you. Dr. Paul stated that: "If it gets bad enough, they'll declare a national economic emergency. They'll take over the banks, all business and industry. They may even try to confiscate our gold."

The power to confiscate gold is still on the books as the law of the land. I urged the full commission to recommend Congress repeal the power to confiscate gold in an economic emergency. We pushed it to a vote and I was the only one that voted to recommend to Congress that we never again contemplate taking the gold of the American People. The fifteen other members voted it down. The power is still there on the books, and they can do it anytime they wish."

In our Constitutional Republic, the Founders were well aware of the potential dangers involving the nation's currency and with that knowledge they gave us with some extremely strong admonitions concerning the value of money as property. They had experienced the results of unsound money and knew that monetary instability would not only threaten the nation's economic freedom, but all freedoms and liberties enjoyed by the people.

In the preliminary draft of our Constitution the following words were considered: "To borrow money and emit bills [fiat currency] on the credit of the United States." The wording however, was struck from the final document and for good reason. Due to the Founders knowledge of history and even their experience with the "Continentals", they knew the danger that emitting such bills posed to the nation and the value of the monetary property of the People. Indeed, it was more than just the monetary property Rights, but all Rights of the People that concerned the Founders; for they were aware that if the monetary system was ever corrupted that the entire system could be corrupted.

In fact, there were some in the Constitutional Convention that believed that it would be better to discard the entire Constitution instead of allowing "and emit bills" to remain. The passion concerning the ability of Congress to "emit bills" was so powerful because the Founders knew that such ability had the potential to undermine the Republic.

The cardinal rule of money as real property is essential for a Free People; absent that cardinal rule the government assumes powers that will always infringe upon the Rights of the People. As we have seen, when money is little more than an impotent instrument of exchange, monopolized and regulated by the government then the government is; apparently, free to treat it as such. The government can debase it, confiscate it, control it, track it and basically manipulate it to benefit any agenda it pleases.

Is it any wonder why the Founders were so concerned about taxation without representation? Such taxation allowed the King's government to tax the fruit of the people's labor indiscriminately. It totally ignored their property rights and amounted to open robbery of the people's private property. Today, we have the semblance of representation, but in reality those we elect rarely consider our consent when crafting legislation. Perhaps if we actually considered what has taken place over the last century we would once again raise our arms in revolution and cast out those who should be considered nothing more than common criminals acting for their own benefit instead of that of the people.

Through the years our financial privacy has been invaded through a system that has completely eliminated not only the property rights of our money, but also the value of our money and indeed the essence of our money itself has been detrimentally altered. Today, our money has been transformed, by certain factions in both the banking cartel and government, as an instrument of a government. A government that no longer places value upon the Rights of the People to keep their property and to use that property in ways that should be considered private and inviolate is a government operating outside the Consent of the People and the Law of the Land. Along with the Central Bankers, such a government seeks to use unsound money for purposes other than the real benefit of the People.

This government began to follow the path toward unsound money the moment it bowed down to the power of the bankers by passing the Federal Reserve Act in 1913. Since that time we have witnessed some of the most heinous acts against the People and their property in the history of this nation. Under the watch of the Federal Reserve, this country and its people suffered numerous depressions and recessions, including the Great Depression. These financial crises served the bankers and the government well, it provided opportunities to both bankers and the government unparallel in our nations history. The scope and power of the government was immensely expanded in the wake of the Great Depression and although the Federal Reserve was intended to avert such economic panics, it was the major contributor to that economic catastrophe and, indeed, as it turns out, a prime beneficiary of the economic disaster. During the Great Depression there was a tremendous amount of wealth that was transferred into the hands of not only the Central Bankers, but into the coffers of the government itself.

The Great Depression provided the government with an opportunity never before seen in this country's history; the Crash of 29 and the ensuing depression followed the natural progression of monetary debasement and control. It also proved to be the impetus for the destruction of the property rights associated with money. It gave the government "claim" over the people's money, making it nearly impossible for a man to control or maintain his money as private property. FDR's confiscation of gold and the government's decision to renege on its promise to redeem its Liberty Bonds and other government obligations marked the beginning of the end of private money property in this country; it also marked the end of the full faith of the United States government.

By 1971, the goal of destroying private money, and the rights associated with it, was completed when the government quietly achieved a total fiat currency coup d'etat and their banking partners, the Federal Reserve now had free-reign to control the monetary interests of this nation through a complete monopoly. This effectively ended all property rights the people retained in their money. Since that time, we have witnessed a drastic confiscation of the wealth of this nation by the government and its banking cartel. This confiscation is hidden from the masses of people and takes the form of inflation, draining away the purchasing power of the nation's money and the ability of the majority of the people to maintain a stable livelihood.

Alan Greenspan once said: "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation." He should know, for under his tenure at the Federal Reserve, the people of this country have been victimized and seen their wealth robbed through that insidious form of theft called inflation. We have seen our standard of living stolen from us and with the complicity of our own government we have witnessed the demise of our property rights, and indeed all our rights. The fruit of our labors are being siphoned off by those who are no longer worthy of being called our Representative Government, they have long ago abandoned good government for abusive powers and what amounts to little more than blatant highway robbery. They have replaced our Liberty and Rights with something that is totally contingent upon our compliance under the illusion of freedom. They have transformed this nation from one of producers, manufacturers and good labor into a debt-dependent serfdom created to increase their own real wealth and powers while reducing the actual standard of living for millions of hard-working Americans.

How many times did our Founders clearly warn us of the potential for deceit and corruption associated with the unsound money, but through trickery and overt deception this nation was lead down a path that will, ultimately, prove its undoing? The Father of the Constitution, James Madison stated that unsound fiat money would destroy the necessary confidence between man and man, in public councils, industry, the moral standing of the people and the complete character of the republican government.

The last century saw a progressive disregard for the Constitution and authority, in many cases it is simply ignored by government. Such disregard should not be considered anything less than criminal, a breach of contract between the government and those who have consented to be governed under that agreement.

The people must come to understand that one of their fundamental rights is that of money property and the only way to have money property is for money to be a sound store of value, untouchable by government, separated from the influences of a monopolistic Central Bank, free of the threat of confiscation or undue taxation without appropriate Constitutional Representation. It is a Right that must be restored to the People, without such restoration there is little hope of us maintaining the few vestiges of freedom left to this People.

We stand at a time when this nation will face a great turmoil; the next few years will determine the future of our nation.

The Right of Money Property is a revolutionary right; it stands as a bulwark against those who would assume authority over us and our future. The Right to produce, to labor in exchange of just and sound compensation without the interference of government or the overt monopolistic control of the Central Bankers is essential for a good and prosperous future. We must repudiate all extra and un-Constitutional usurpations and hold those within government accountable for such crimes.

The People must once again take an offensive stance against all those within and without the government who continue to seek to overthrow the remaining remnants of our Constitutional Republic. Our call to sacrifice is no less vital as that of our Founders, our call to defend this Constitutional Republic is no less essential for the survival of this nation.

I leave you with these words:

"When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. --That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security."

In Liberty and Eternal Vigilance,
Republicae

America's Irreversible State of Collapse

There was a time in this country when those who advocated a Fiat Monetary Standard were considered certifiable crackpots, monetary quacks and dangerous interventionists set on domination of both the political and economic processes in this country, the roles have been reversed and those who advocate sound money are assigned such epitaphs of derision. Fortunately, that will change and at this point in time, change rather rapidly as the true nature and inherent problems of fiat money become evident to the people themselves.

At one time, Classical Liberalism promoted the ideals found within the principles of a sound monetary unit that not only provided stability economically, but also provided for the spread of real prosperity and liberty. The cornerstone of Classical Liberalism was private property rights and the cornerstone of all private property rights was, and is sound money, money that is actual real property, solely owned by the individual who labored either by the sweat of his brow or the sharpness of his creative mind. Such money was not owned or controlled in any significant way by government except in trust through the regulation and verification of the fineness of coinage in purity, weight and measure. Otherwise, money was the property of the individual, or legal corporation, just as any other property of which legal title may be held.

Along with the ideal of private property rights, Classical Liberalism, which could just as easily be called Jeffersonian Liberalism, promoted a confidence in the market economy, as free as possible from all interventions, especially from the government. They held, and still hold that private property rights, in all aspects, provides for the best means of production and distribution of prosperity within society with a system of economic organization organic in both concept and operation. It was, and is, the best system to secure the broadest means of prosperity and individual protection within a society for it assigns the individual consumer the power to choose which producers provide the best quality at the lowest possible price for the consumer's needs and desires. The principles of sound money and free, unencumbered markets were just some of the foundation stones that help create this wonderful and I might add, successful experiment in the broadest spectrum of individual freedom and liberty the world had experienced: These united States of America under an mutually agreed Constitutional Compact between the people and their government.

The Founders of our country realized that the main challenge facing such a liberal system of government and society was how to control the only real danger that would ever face the country, the government itself. The goal of the Founders was to institute a government so cumbersome, so divided in function and authority that all power would be distributed between the general government and the independent State Republics; the best description could be called a Republic of Republics, functioning in a cooperative compact. Then, of course, they implemented further divisions within the general government itself, once again dividing function and authority to ensure that power could not easily be concentrated or consolidated.

In essence, the general federal government was simply a reflection of the will of the people through the agency of their respective State Republics. So, the main problem, in the minds of the Founders, was how to prevent those who are entrusted to govern by consent from becoming despots, endangering and enslaving the citizenry in their stewardship. The layers of defense for individual liberty was obviously the primary goal in the institution of our system of governments and the focus of each layer of defense was the broadest application of individual freedom and liberty possible within such a system. What an absolute shame that we have allowed ourselves and our country to devolve far from such a very workable, very efficient ideal.

Today, there are few who seem to realize or understand that within all the defenses for individual freedom and liberty laid out by the Founders, was the principle of sound money. It is absolutely impossible to understand the full meaning and import of sound money without understanding that one of the primary purposes of sound money is the protection of individual freedoms and liberty, private property rights, as well as a protection against government intrusion. Sound money is politically and ideologically in the same strata as our Constitution and our Bill of Rights, and it is just as important to our freedom and liberty. It was, and should be considered, the most essential restraint upon arbitrary government expansion and the potential for unbridled consolidation of power.

The principle of Sound money has a dual purpose, one positive, one negative; in the positive aspect it provided for the greatest degree of individual freedom and liberty while providing for the broadest spectrum of free market choices. On the negative side, its aspect was one of governmental restraint, an abutment of reckless expansion, potentially dangerous debt aggregation and of course eventual despotism. In such a system, only actual coinage was to be considered loose legal-tender, all tokens, scripts and types of "paper-money" were to only represent the real money and only served as fiduciary mediums, which upon demand of the holder, were completely redeemable in lawful real money. "Real money", it definitely has a wonderful ring to it, doesn't it?

Today, we are so far-removed from the concepts of sound money that it is totally foreign to our understanding; we have been convinced that the only monetary system that is acceptable or applicable is the one we current have imposed upon us and that is the fiat monetary system. Sound money is an alien concept, so much so that we don't realize just what we are missing, it doesn't enter our minds, for the most part we are totally unaware of the benefits of a sound monetary system. Of course, a fiat monetary system requires ignorance, equalized with confidence, in the general population to function properly, without widespread ignorance or confidence, the system fails, as we will see.

The fiat system not only relies upon widespread ignorance and misplaced confidence, but it also relies heavily upon government intervention and regulation. A sound money system, on the other hand, doesn't rely upon such numerous variables in order to function; actually it is extremely simply and straightforward in both functionality and application. A sound money system can easily operate independently of all government policies and the pressures of political intrigues, including very divisive party politics. Such a system also helps to prevent government officials, and representative assemblies, from using various tricks to elude their budgetary and fiscal responsibilities to the people and the country.

Since the rather subversive introduction of the fiat monetary system in this country, there has been little room for the consideration of a sound monetary system. The proponents of the fiat system have for the most part, effectively exiled it from economics and serious monetary studies for good reason, for it poses the greatest danger to the fiat system and those who enormously benefit from that system. The various proponents and schools of economic thought have yet to consider the precarious position they are in because they have failed, utterly failed to contemplate that all their theories are based upon a monetary system inherently doomed to failure. Such a foundational flaw will always ultimately distort all conclusions associated with it, especially when the flaw is not considered to exist. Today, our country is fraught with what could only be considered "Crypto-Despots", eager to maintain their position as well as their power, the prime impetus of which has been the introduction of a system of fiat money for it provides them with medium of control over society that they crave.

So, there are few questions asked and the questions that arise are based upon incomplete assumptions because the foundational structure of the economy is completely based upon a system that contains two divergent fault lines, which will, in time converge in disaster. The first fault line consist of the inherent terminal life span of all fiat monetary systems due to the systemic inflationary pressure, the second fault line consist of requirement of absolute widespread public confidence in fiat money itself.

Eventually, these two fault lines converge and the system collapses. Such collapses are not preventable any more than the system itself is sustainable without massive government and central banking interventions. The system lends itself to those who require the benefits of inflationism, this trait, of course, is welcomed and enhanced by both government and central bankers who are all too eager to utilize such a trait to their best advantage. What need is there to operate within budgets, to maintain expenditures by within tax revenues since, according the a former Chairman of the Federal Reserve of New York: "taxes for revenue are obsolete", and indeed they are obsolete within a fiat monetary system. I have found that the full import of that statement has yet to be realized, especially within the minds of the majority of economists and their feeble schools of economic theory fashioned around the fiat monetary system, a system that is inherently flawed.

Eventually, of course, the people, the economists and the politicians will become painfully aware of just how flawed the fiat monetary system really is as the very harsh reality rises into view, affecting everything and everyone within this country. Like all fiat monetary systems, ours is destined to go through the same stages of failure as all others before it, and our economy will, at that moment, collapse under the weight of massive insolvent debt, upon which the system is created.

Inflation is an easy tool in the hands of the government as long as they can maintain it at gradual incremental increases over long periods of time, but the moment a rapid increase occurs, the ruse becomes far more difficult to maintain. In the first stage, the people will begin to witness the rapid increase in prices for both goods and services. While at that point they simply believe the government when it states that commodity prices are rising for various reasons; the government of course, always has a plethora of reasons on hand to justify such price increases, all in the hope of maintaining the charade.

At this stage, there will be a few people who actually realize just what is going on in the economy, but unfortunately the majority will remain true to their conditioning and while they may gripe, will not question the true cause of their financial pain or the culprit behind it. The majority will continue living their daily routines as though the inconveniences of higher prices will be a passing phenomena, continuing to misplace their trust in a government that was in on the damnable ruse from the beginning as it shifts all blame to something or someone other than itself.

While, at this stage, people may wish to make certain purchases, they think that prices will eventually retreat so they put off the purchases in the short-term until a later date. This common attitude is relatively short lived because as prices continue to rise, at unprecedented levels over longer, consistent periods of time, people will begin to think that because prices are so high that they will then put off a purchase for a year or two, perhaps then prices will once again subside to more normal and manageable levels for their income. The last stage abruptly hits and the entire system then faces catastrophic collapse when the people begin to think that they had better make a purchase, any purchase immediately because they realize that the purchasing power of their fiat money is rapidly loosing its value of exchange.

So, the people, in a panic, will withdraw, if they are allowed, their bank deposits, cash in their stocks, redeem any bonds for cash to exchange for commodities or merchandise they feel will retain value even if they have no real needs for the commodities or merchandise they are buying. As the panic spreads, shortages being to take shape, manufacturing slows to a halt, unemployment skyrockets, and public services breakdown and in the last stages chaos ensues. The government seeks to assert itself, but to no avail for even the government under these circumstances, in this present age will prove to be as impotent as the fiat money they so ardently promoted, to solve the problems faced by the country and the people.

While it is easy to see the conclusion of such a system as a failure, the truth of the matter is that entire system, and the polices created to sustain it, were failures from the beginning. The purpose of the system is not, nor has it ever been throughout history, for the benefit of the people; its sole purpose is to provide the government with unlimited, unrestrained finance and the central bankers with an incredible profit machine without much oversight or regulation to impede their government authorized monopoly.

So, the system of government and central banking fiat money, dependent upon intentional deception of the population to remain viable comes to an abrupt end, it is no longer a manageable system of exchange, nor will it provide the government with a free financial reign. There are no solutions to the problems inherent within our government's fiat monetary regime even though the government economists continue to heap unabashed praise on both the system and the polices required to maintain it, that will become more and more difficult as the system reaches its terminal point.

Historically, fiat inflation was realistically deemed extremely dangerous to the economic, social and political safety of a country, but as usual, the temptation for the unleashed power and the ability to use the fiat system to convert the labor of a population to unlimited wealth for those in charge of the money has always proven far too great to resist. Of course, the campaign to demonize sound money has been unrelenting, primarily from those who benefit the most from the fiat monetary system, and those who have been duped into believing it was the source of all economic troubles prior to the advent of the Federal Reserve System, of course, it wasn't. Those pro-inflationist, those fiat-philanderers have vowed to forever prevent sound money from raising its head in this and other countries again, but their faith will be shaken soon enough.

In Liberty and Eternal Vigilance,
Republicae