Money, Politics, and Central Banks

Politicians have robbed us for generations

Freedom, IN – I have proposed a three-step plan to fix most of our worst problems by federal legislation. In many previous releases I detailed plans for fixing the corruption we call “the Two Party System.” That was Step #1.

Step #2 is to fix our twisted-hybrid political/private financial system.

Money itself, as a fiduciary currency/unit of trade, can be a wonderful thing. When scrupulously maintained as trustworthy, it facilitates honest trade, and practically guarantees peace.

Unfortunately, we’ve not had such money since 1913, though it’s still required by our state and federal constitutions.

Why? Because the most effective way to hide the true costs of war, tax the public without their knowledge, enrich elites, and covertly monetize the massive debts incurred by impossible political promises and a military empire and industry, is to replace naturally limited money with cheap currency*, and then devalue it by making gobs of it.

There’s a long, repetitious history of this. In every case, from ancient Egypt to today’s Venezuela, devaluing currency represents a slide to catastrophe.

There are no exceptions; “fiat currency” always fails. And it’s always by the same stupid pattern.

Politicians spend money they expect future generations to pay, so they have to find a way to devalue/inflate the supply of currency, and then point fingers of blame everywhere but at themselves when it all collapses.

The United States of America has occupied the catbird seat of fiat currencies since WWII, with 2/3rds of the global reserve currency. But that is ending shortly, as our dollar is based purely on trust, and violence; and the world is both losing trust in us, and sick of our endless Petrodollar Wars. We have been deceived right up to the brink of collapse, and we’re past due for some radical action. So:

  1. Audit the Fed. We are bankrupt, and it’s time to go through an orderly and just restructuring of debts, nullifications, and dismantlings.
  2. Replace the current Federal Reserve System with a truly private banking system that is not only subject to audits, reporting and SOP as with other incorporated institutions, but also has NO power to monetize political debts or create currency.
  3. All money/currency authority and accountability shall be in the US Congress as per Article I Section 8:5 of the Constitution for the United States of America, so that politicians will be held accountable for greed, shortsightedness, and trans-generational theft.
  4. However, people must be free to use whatever form of money or currency suits their needs. “Cryptocurrency,” foreign coins, even conch shells or knotted strings are not the government’s business. Our government’s only legitimate role in interpersonal transactions is when there is force or fraud involved.

In other words, I propose we stop lying, stealing, making promises we can’t keep, and clean our accounts for the promotion of peace, prosperity, security …and freedom.

Liberty or Bust!

Andrew Horning

 

*One could debate the meaning of the words and concepts “money” and “currency” forever.  But for the purposes here, currency is an “official” (mandated or agreed upon) trade instrument that has no intrinsic value.  Money is a pretty abstract concept, since value is still applied by humans, but it’s generally a scarce/limited/difficult-to-reproduce thing that therefore has by itself been granted some relative value (gold, silver, rare shells, libertarians).

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What’s the choice here?

A good part of any “major” party (meaning “entrenched and corrupt”) campaign is hurling and repulsing the attack that “corporate money” or “out of state contributors” have bought off the candidate.  Fair enough; we all know the problem of money in politics.  Yet politicians know that’s what we vote for, so they take the money and run anyway.  And sure enough, we vote for them anyway.

OK, that’s what we want, apparently.  We do vote for it over and over and over and over….

But especially irritating to me personally, is when journalists hurl the “not enough money to be competitive” grenade.  So a good part of any “third party” campaign is wasted trying to gain the imprimatur of legitimacy offered by all that we hate about politics. 

We try to tell voters we “mean to win” when elections aren’t even about candidates; they’re about voters.  We try to raise money in order to get the “free media” exposure obtained by attaching corrupting strings to the candidate.  We try to become, in other words, just like the fancy pants parties so that we’ll be treated to the same respect and electoral success as those evil monstrosities.

What in the world is that all about?  Are we to feign upset about the obscene, corrupting money in campaigns, and then wallow in it, and point to the pathetic challengers who “can’t raise enough money?”  Are we to demand a truly level playing field …in which all campaigns are corrupt from the start?

Or, could we perhaps undergo the long-due epiphany that the playing field is not at all level, and that the candidates who should enjoy the greatest advantage are those without strings attached, who stand for something, and who are actually candidates for public service, not Caesars in waiting.

Remember, the corporate giants who contribute to Big Party campaigns expect, and get, special deals for their investments.  Ordinary folks who contribute to Big Party campaigns probably don’t know how much of their tax money already goes to these parties, and have believed what they’ve been told about “reality,” “pragmatism” and their “wasted vote.”

Who, on the other hand, is willing to pay for a level playing field?  Who will reach into their own wallets and/or time to do what is right, as opposed to “playing the game?”

In all the years I’ve been watching, I’ve seen only one candidate who is worth more than a puddle of spit raise “enough money to be competitive,” and that is Ron Paul.  In my lifetime (50 years and counting), he’s the first guy to actually stand for something and raise huge stacks of cash.

It could be that others, like me, are just lousy at fundraising.  OK, that’s a distinct possibility.

But if people who stand for constitutions possess an unfortunate, perhaps genetic inability to raise money, what would you rather have?  An evil dictator who knows how to campaign, or a great public servant who just can’t put on a show like that?  Would you prefer a great politician/ bad candidate, or a great candidate/ deadly politician? 

Well, think about an analog in any other area of life.  If you need a delicate, life-saving surgery, would you prefer a skilled surgeon who may have a speech impediment, but has a brilliant surgucal success record; or would you choose a handsome actor who can’t hold a scalpel, but delivers inspiring lines with poise and pathos?

Is this really that hard?

Once again, the choice is yours.

 

 

About our “Fed…”

On the morning of November 14, 2007, “federal” “officials” (look up the meaning of both words, read the constitution, and you’ll see sad irony in these words) raided a company that produced “private voluntary barter currency” known as the Liberty Dollar.

Now many people have already said something like “well, good; only our government should make money.” 

Unfortunately, not only is that bad and anti-constitutional thinking, but also, our “government” (in any legitimate sense) is involved with our money today in only one way – it attacks nations who challenge the crony-capitalist monetary scheme called “the petrodollar.”

Oh, I know.  We’re told that everything our government does is for a Darned Good Reason.  To think otherwise is unpatriotic and probably even terrorism.

So, I’ll just lay out what I know to be fact, and we’ll see if we can find the DGR, or something else…

Since 1913, USA money and our federal monetary policy has been created and directed by a quasi private, para-political, most-definitely-for-profit central bank; not by the US Congress as the constitution requires. 

If you’ve read The Constitution of the United States, you know that the U.S. Congress is authorized “To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.”  

Congress, via the Treasury, of course, still makes coins (though no longer of metal of intrinsic value).  But all paper currency, and the value of both coins and paper, as well as the policies by which all money works in this country, has been unconstitutionally delegated to a “private business.”  

It is in fact, the only private business I am aware of anywhere in the world, that operates completely free of regulation.  Or audits.  Or reporting requirements.  And with secret shareholders.  Oh, and they don’t have to answer questions if they don’t want to.

Now, anybody who knows anything about me knows that I’m 100% Free Market right down to the subatomic level.  I know that whatever our government touches turns to blood, and I know very well that politicians:

a. Lie  

b. Have guns and bombs

 

So the less politicians do, the better I like it.  And my few quibbles with the Constitution for the United States are where the founders stuck their nose too far into free market domains.  

But it is exceptionally dangerous to mix free market impulses with political force.  Such hybrids end up amplifying the worst of both trade released from accountability to the market, and politicians freed of accountability for their lust of power.

And through all of recorded history there’s been a deeply spooky problem with the control of money, and how that can so quickly become a crony capitalist, politician/banker bastard; neither free market, nor under law, but a monster that lives outside all borders of law, nation, morality, or long-term economics.  And THAT is what “The Fed” actually represents.

Let me explain.

Paper currency, at its best, has no intrinsic value.  Even what we call “real money,” like gold and silver, no matter how historically stable have values that are agreed upon, not truly intrinsic.  It is an instrument of value exchange.  If everybody agrees to use it for the exchange of goods and services, then it doesn’t matter whether your money is a scrap of paper (backed by nothing), a seashell, a gold coin or even a carved stick.  All the preceding things have been used effectively in trade.  

Here’s where things get ugly, because it involves greed, ignorance, sloth and all those other failings we typically group into that curse, “human.”

If the money supply, whatever its form, is manipulated for the wrong reasons, severe oppression (like serfdom/slavery) can result.  When people are granted a monopoly in determining what money is and who can make it…oy vey…there will be trouble.  And our government granted such a monopoly, in violation of our state and federal constitutions, in 1913.

One result is that all our banks operate on the principle of “fractional reserve banking,” which means that they can act like they have far more money than they actually have.  This allows them to loan out the same dollar many times, charging interest along the way, in order to make far more money in profit than could otherwise be the case.  Our system is supposed to be that new money is abstractly “created” by loaning out more money than actually exists, but is then “destroyed” when debts are paid. 

Obviously, a “run” on the bank would be bad, since the whole scheme is based upon an abstract fib…and immense trust in the people who’re both granted the power to create money, and the responsibility to destroy it.  But theoretically, without serious runs on the banks, it could all work out; sort of.  If the money supply is kept in reasonable correlation to our transactions, then the magic works to a degree.

Ahhhh, but the central bankers, who’re never audited by anybody and are in fact mostly unknown, make most of their money from government debts, not free-market trade! 

Many people get things twisted up here, with the enemies and friends all wrong.  The central bank devised in secret by Senator Nelson Aldrich, Frank Vanderlip, Henry Davison, and Paul Warburg at Jekyll Island was actually supposed to be an entirely, truly private consortium to handle only private, free-market banking screwups – just as J.P. Morgan, pretty much all by himself did, during the Panic of 1907.

Yes.  I’m saying that J.P. Morgan was a good guy.  So was the Creature from Jekyll Island we often think is the problem.  It was politicians like Woodrow Wilson and FDR that wanted us to think they saved us from bankers by making central bankers clean up political messes!  Politicians are the ones who created The Fed as a bastardized, political version of what Aldrich proposed.

Let me repeat this because it’s the pivot point.  The Federal Reserve is NOT really a private banking system any more than it is “federal.”  It does NOT serve the interests of legitimate banking so much as it serves the whims, unfulfillable promises and…endless wars…of politicians.  The more our government spends, the more money the cronies (both political and transpolitical) make, the more promises politicians can make, the more accountability and reality and debt our politicians can punt to the next generation.

It’s a system of nearly endless political IOUs, and of course, profits from debt.  It is, after all, a system that monetizes and markets debt!  (I say nearly, because I suspect it’s about to crash in maybe a decade)

Wars are of course the biggest single money makers, since, as James Madison pointed out: War is the parent of armies; from these proceed debts and taxes; and armies and debts and taxes are the known instruments for bringing the many under the domination of the few. No nation can preserve its freedom in the midst of continual warfare.  …In war, the public treasuries are to be unlocked; and it is the executive hand which is to dispense them.” 

As of now, the undeclared wars in Iraq and Afghanistan have racked up about $5500 in debt for every man, woman and child in the USA.  Some generation is going to have to pay this in addition to all the other stuff (like the Ponzi schemes of Medicare/Medicaid and Social Security) ratcheting up the “national debt,” or find some way to nullify it all.

And I think it’s grimly ironic that now, with all the litigating, ballyhooing and campaigning against “big business,” “special interest” groups and “monopolistic business practices,” the most dangerous industry of all, the biggest of them all – banking (which Thomas Jefferson said was more dangerous than standing armies), is completely unregulated, monitored or even recognized as the root threat.

It’s like we’re crying about ants in our cupboard as wolves are crashing through the window.

Of course, all this was made worse (much worse) when Nixon unilaterally ended the Bretton Woods Agreement and based our “petrodollar” monetary system solely on the trade of oil, and military might.

War profiteering is a terrible thing, of course.  But war profits are, for those who can get them, a Darned Good Reason to do something. 

And war profiteers are the guys who run our money supply, and therefore our economy. 

These are the guys who fund our government.   

The good news is that for the first time in at least a half century, there’s an easy way to fix this: vote for Ron Paul.  The bad news is that if he doesn’t win, then debts, and violence, and division and corruption, will get a lot worse…

Well, now you can’t say I didn’t warn you.