The FRN$ illusion is under increasing pressure.
In The Age Of Turbulence Alan
Greenspan wrote on page 483, “But the dysfunctional state of American
politics does not give me great confidence in the short run. We could
instead see a return of populist, anti-Fed rhetoric, which has lain
dormant’. Despite receiving no significant coverage in the evaporating government
managed press Ron Paul’s bill to audit the Federal Reserve, H.R. 1207, has attracted 260 cosponsors.
GREENSPAN AND THE FED DESTRUCTION
Alan Greenspan occupied the position of Chairman of
the Federal Reserve from 11 August 1987 to 31 January 2006. During this
tenure that spanned four presidential administrations derivatives ballooned
as the financial markets shot towards space thinking they were free of the
constraints of monetary gravity. But gold’s gravity will not be
defied.
Greenspan knew or should have known that the rise of
the derivative markets would pose systemic risk to the fiat monetary and
fractional reserve banking system. Almost tongue in cheek he quips,
“I fear that my successors on the FOMC, as they strive to maintain
price stability in the coming quarter century, will run into populist
resistance from Congress, if not from the White House.”
To combat this resistance Reuters reports that
the Federal Reserve is going to hire Linda Robertson. She is a veteran
lobbyist, former VP for government affairs for evaporated Enron, assistant
Treasury secretary for legislative and public affairs under President Bill
Clinton and is currently at Johns Hopkins University as head of government,
community and public relations.
ROLE OF GOVERNMENT
On page 481 Dr. Greenspan also hit on the real issue
with regard to monetary policy:
I have always harbored a nostalgia for the gold
standard’s inherent price stability – a stable currency was its
primary goal. But I’ve long since acquiesced in the fact that the
gold standard does not readily accomodate the widely accepted current view of
the appropriate functions of government – in particular the need for
government to provide a social safety net.
The Industrial Age saw the rise of gargantuan
welfare and warfare states which view humans as livestock which are reduced to
‘material input’ for the system which harvests their milk and
meat. Whether toddlers marching off to government schools, the youth
marching off to Normandy or Vietnam, the middled aged marching off to the
assembly lines in manufacturing plants or accounting firms, the aged being
wheeled off to nursing homes or the fully depreciated being hauled off to
their final burial place there was one commonality: coerced taxation.
The premiment form of taxation to perpetuate this
illusion of safety nets has been inflation. The Federal Reserve with
its little green coupons has been able to engage in confiscation through
inflation which is a form of taxation without representation or due process
of law. Additionally, as William Grieder asserts in Secrets Of The Temple: How The Federal
Reserve Runs The Country the federal government and Federal Reserve
deliberately induce recessions to lower inflation and interest rates.
EVAPORATING ILLUSIONS
Just ask the graduating college seniors with a
commencement into the worst labor market in decades. Even worse, the Wall Street Journal reports that their wages will
be lower their entire working life. Perhaps Obama, who they largely
voted for, will buy them something besides Ramen to eat. But really
they should be happy to have even Ramen.
Next are the middle aged who are entering their peak
earning years. The responsible who got good grades and a good job,
following the traditional path to be harvested, are now saddled with
mortgages, declining home prices, being milked overtime by their employers
without being given extra rations, perhaps have some medical related debt and
know they will never see the benefits of Social Security or Medicare that
gouge their paychecks. The irresponsible are drowning in unreasonable
credit card debt. This group is debating whether to file bankruptcy or pay
their debts.
The Baby Boom generation are entering their golden
years with eviscerated 201Ks. This group diligently saved for years and
has seen the purchasing power evaporated in a matter of months. The
country they grew up in is a distant memory and the current state of affairs
is almost unrecognizable.
The politicians realizes the cost benefit analysis
of this demographic and since involuntary euthanasia is currently prohibited
the federal government does the next best thing; it subsidizes genocide with
multi-trillion dollar prescription drug plans to purchase death pills like
Vioxx which was FDA approved and killed over 50,000 people. If
the Reaper does not visit soon then at least this demographic is kept in a
comatose state.
Each of the demographics are being assaulted by the
economic conditions. All demographics are encountering incredible stress from monetary issues.
Each of the demographics is pitted against the other by the various
government policies. All are united as their faith in ‘the
system’ and the illusion is rapidly evaporating. Many wish they
had an adhesive remover pen.
PROPER ROLE OF GOVERNMENT
Tough economic times require tough decisions.
Government is a parasitic organization and in the long run must have
the consent of the governed. The livestock are getting restless.
They are flailing, grasping and searching for better ideas; actionable
ideas that will help heal their economic wounds.
On page 468 Dr. Greenspan wrote:
In my experience, the most important is the nature
of our rule of law. I do not believe most Americans are aware of how
critical the Constitution of the United States has been, and will continue to
be, to the prosperity of our nation.
The first step in healing the economic wounds is
understanding that virtually everything the government, which acts almost
completely outside the bounds of the Constitution and The Declaration of
Independence, and its paid allies say is false. This step is essential to
withdrawing consent from the costumed thieves, coercers, professional liars and
killers; like former officer Johannes Sebastian
Mehserle who is being charged with murder for the execution of Oscar Grant. The
withdrawal of that consent, even if exercised through civil disobedience, has
a massive effect on the costumed parasites.
The secretive Federal Reserve is outside the bounds
of the Constitution. The FRN$, not a real dollar, is outside
the bounds of the Constitution. These are the primary tools used to
oppress The People, who are the sovereigns, and keep them in their role as
livestock.
Gold and silver are not mere barbaric commodities but
essential checks and balances in the political machinery and played a vital
role in the waning prosperity Americans currently enjoy. British
Sovereigns have that name for a reason. Those who buy gold or silver seize sovereign
wealth and asset their independence; they have a voice in the future.
Auditing the barbarous relic called the Federal
Reserve and abolishing it and its little green ticket, the FRN$, will be
great steps towards putting America the country back on a firm foundation for
economic prosperity.
CONCLUSION
The age of turbulence has arrived. The
illusion so many have lived within is rapidly evaporating. The Great Credit Contraction has begun
(It seems Mr. Bonner of the Daily
Reckoning has decided to use my phrase). All the demographics are
seeing their ability to enjoy life and pursue happiness impinged by economic
conditions. This Greater Depression, that we
are only a couple years
into, will likely leave an indelible impression upon those under 40 and
radically alter their behavior for the lifetime just like those who went
through the two decade
Great Depression.
The Greater Depression need not continue into
‘the coming quarter century’. The solution is extremely
simple to start: (1) remove any taxes on gold and silver, (2) remove
legal tender status for the FRN$, (3) raze the Federal Reserve to the ground
and (4) repeal the Sixteenth Amendment.
Will there be a difficult adjustment process?
Sure, it would be the destruction of a world reserve currency; but that
is happening anyway just in slow motion. Why prolong the pain and
continue misallocating resources? The turbulence would last perhaps for
six months instead of a quarter century and then America will be back on its
solid economic foundation and can become a tremendous wealth generator like
it was. Let your Congress Critter know your opinion; after all they
work for you.
Trace Mayer
RuntoGold.com
Trace Mayer, J.D., holds a degree in Accounting from
Brigham Young University, a law degree from California Western School of Law
and studies the Austrian school of economics. He works as an entrepreneur,
investor, journalist and monetary scientist. He is a strong advocate of the
freedom of speech, a member of the Society of Professional Journalists and
the San Diego County Bar Association. He has appeared on ABC, NBC, BNN, many
radio shows and presented at many investment conferences throughout the world.
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