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America’s Golden Years
Yesterday I talked about the planned devaluation of the US dollar by the Federal Reserve and the eventual replacement of the dollar by the Chinese yuan in international trade transactions.
The debasement of our currency is well along, and, one has to assume, on schedule. I rhetorically asked about what the response of the US government might be…
Of course, there has been none, and most likely, there will be none. Every indication tells me that the dollar is being prepped for burial—and it will be a quick death for all dollar denominated assets…
Debt rises faster than economic growth
It’s scary to even think about this, but what other reasonable conclusion do you see? Are the interest payments on the national debt going to go away? Or, will they go up as interest rates must inevitably rise?
Just as importantly, will the economy grow quick enough and long enough to pay the compounding debt service? A simple fact of life is that compounding interest on debts grows much faster than the economy, even in good times.
A question I hear from time to time is, “what’s the big deal about the debt? We owe it to ourselves.” Ah, if only that were still true.
The sad truth is that 100 years ago, President Woodrow Wilson changed that reality by his establishment of the Federal Reserve, a private bank that took over the money creation rights and privileges that the Constitution gave the US Congress.
“I have ruined my country,” President Wilson wrote at the time, “given it over to a handful of dominant men.” And he was right.
Before that happened, whenever Congress created money for whatever reason, any “repayment”, if there was one, was truly to ourselves. But as we now know, those days are long gone. Now that Ben Bernanke and his cluster of money creators create money from nothing, and then lend that created money to banks and nations throughout the world, the American people indeed pay interest on national debt; but we do not “pay it to ourselves.”
No, today, and since 1913. That is when both the Federal Reserve was founded and the federal income tax was first imposed upon the American people. Since then, the interest payment for US government debt, has been paid to…whom else?
Why, the Federal Reserve, of course, in all its various incarnations. The nasty thing about this fact is that, if we no longer owe ourselves money, but rather, a private institution with no government oversight, no auditing, that has authority over each and every one of us.
The Fed also has an army called the IRS that abrogates the constitutional principals of innocent until proven guilty, the individual right of non-self-incrimination, and various privacy rights.
Since the above describes how it really is, a simple question is in order: “Is America truly still a sovereign nation?” By sovereign, I mean are we masters of our own collective or even individual fates? Put more simply; are we really free?
Or, given the reality of the Federal Reserve, are we hamsters on a wheel in a cage of debt, churning out interest payments on a national debt that can never be repaid, with no control over interest rates or our currency, and no remedy in our own constitution? Sure, we get to own a house, take vacations, and go about our business—more or less—but do we have control of our destiny as a nation? Do we control our currency? Does the US dollar really belong to the US?
For many people, the answer to this question is obvious… Many believe that we are no longer a sovereign nation or a free people. We really have no control over our national destiny. We certainly have no control over “our” money.
Ask yourself, “Which Congressional vote allowed the Federal Reserve to pay other private banks around the world trillions of dollars? Who voted for this?” Answer: No one did. No American did, anyway. Who voted for the Fed’s quantitative easing? Who voted for more of this debt? Again, nobody.
The other golden rule
Given this state of banks running the nation, which both Thomas Jefferson and Amschel Rothschild warned us against, what is the solution?
For many, buying and holding gold is the key. Why? Because gold is an effect and stable store of value; it cannot simply be created. And, contrary to Fed Chairman Ben Bernanke’s strenuous assertions to the contrary, gold is money and has been since the beginning of civilization. In fact, all paper money pales next to gold…especially the devalued greenback.
That is why, in the last Great Depression, one of FDR’s first acts as president was to confiscate gold from the American people and change the gold price from around $20 an ounce to $35 an ounce.
Get that? First he stole gold from the American people, and then he stole again as he devalued the dollar by 75%. What do you think will happen during Great Depression 2.0?
Why don’t we let former Fed Chairman Alan Greenspan tell us in his own words?
“Deficit spending is simply a scheme for the “hidden” confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.” - Alan Greenspan, Gold and Economic Freedom (1968)
For all those buying and holding gold, Mr. Greenspan has told you what it represents to the Federal Reserve: An obstacle to their expansionist monetary policies and a bulwark for individual property rights. That is a very big incentive to get gold out of the hands of citizens, isn’t it?
Care to speculate on how long Americans will be “allowed” to hold onto their gold as the economy continues to decline?
And those are…The Gorrie Details.