http://www.freerepublic.com/fo
rum/a3b47b8d82c72.htm
America Is In Trouble -- BIG
Trouble

Your Opinion/Questions
Editorial Keywords: AMERICA
Published: 7/7/2001 Author:
SM
Posted on 07/07/2001 18:35:20
PDT by spoosman
The primary reason America is
in trouble is that the value
of assets are secured with and
d
more

http://www.freerepublic.com/fo
rum/a3b47b8d82c72.htm
America Is In Trouble -- BIG
Trouble

Your Opinion/Questions
Editorial Keywords: AMERICA
Published: 7/7/2001 Author:
SM
Posted on 07/07/2001 18:35:20
PDT by spoosman
The primary reason America is
in trouble is that the value
of assets are secured with and
denominated by fiat currency.
Fiat currency needs no
collateral as security. Fiat
currency is backed only by
faith. If you believe it is
worth exchanging your valuable
productivity for, than you
will make that trade. If you
do not believe it, you won't.
Fiat economies explode the
size of government, foster
socialism, destroy savings
through guaranteed inflation,
and leave equities at certain
risk of deflation collapse
when there is not enough
productivity left to support
it's predecessor, inflation
bloat.

In our present system, fiat
currency is the product of a
private banking cartel. The
definition of a cartel is: a
combination of independent
commercial or industrial
enterprises designed to limit
competition or fix prices.
That is all the
euphemistically named federal
reserve system is. Prior to
December 24th, 1913, America
had freely competing and
independent banks, that were
required by law (based upon
the constitution -- after all,
why have such a law?) to have
a gold reserve to
collateralize their currency.


What this meant was, as long
as a bank had the gold in
reserve, it could issue its
own currency and serve its
clients as the need for
capital, savings and
investment demanded. There was
no central banking authority
to report to. Banks were
regulated by the states, and,
to the best of my knowledge,
there was no direct federal
regulation. Inter-state
banking was not allowed.

Private banking interests in
New York, some having European
'parents', by the time 1907
rolled around, did not like
the competition. 'Lucky' for
them, there happened to be a
banking 'crisis' just about
that time, creating the
pretext and setting the stage
for banking 'reform'. The
leaders of the reform effort
were the banking interests,
who arrived at a juncture
where they realized that some
form of cooperation amongst
their titanic selves was
better than competing amongst
themselves and not gaining
control over all banking
throughout the United States.

By December of 1913, they got
what they wanted -- complete
control over banking in the
United States. What a sweet
deal it was. Not only were
they able to subjugate the
once independent banks of
America to their control, they
were able to market their own
currency, dictating that every
bank, every man, every woman,
and every child use it. To
make the deal even sweeter,
this cartel was empowered by
the federal government to do
what the states prohibited
their banks from doing;
issuing currency by fiat.

Banks that were previously
disallowed from issuing credit
beyond what their gold
reserves could cover, are now
suddenly put out of business
by another banking power than
can. That means they are not
able to extend credit to their
customers unless they first
obtain the credit (in the form
of the cartel's fiat) from the
new central banking authority,
an 'authority' simply being a
small group of politically and
economically powerful
individuals who are very
ambitious, as well as equally
thirsty, for earthly glory and
power.

Now that the cartel has been
granted an unfettered license
to monopolize banking in
America, now that they
represent the 'official'
currency of the United States,
being a private banking
concern, it just would not be
fair for them to take upon
themselves all that 'risk'
(heaven forbid!) at running
this vital enterprise for the
(tears running down the cheek,
flags waving, salutes all
around, patriotic goose bumps
rising) United States of
America. 'Don't be silly!' the
US government said to their
new creation, 'we would not
think of such a thing.
Whatever you need, we will get
for you!' 'Great,' said the
cartel, 'because in order for
us to take on this risk, and
since we are going to be
issuing all the currency, we
are going to need that gold.'
By the time the year 1934 had
ended, they got it -- they got
it all.

Not a bad trade, really. The
cartel prints a fancy piece of
paper, and they get gold in
exchange.

The government, of course,
just loves this deal. Now the
government can expand
indefinitely without having to
raise taxes. All Right!! Just
call up the cartel and they'll
print up whatever you need.
Oh, it is a loan of course.
They structured it as a loan
game as not to create the
appearance of the government
just printing money. That
would just not do. 'We are not
just printing money,' the
government reassures us. 'We
are getting a loan. By all
means we will pay it back.
This is a sound financial
transaction.'

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