End the Fed! National Day of Protest and Education 11:22:08: WORSE THAN THE GREAT DEPRESSION
You can speed the processing of Ending the Fed; by buying Silver now. Each Troy oz is a dagger in the heart of the beast from Jekyll Island. You must own the Physical metal in your hand.
Monex is the low-cost gold and Silver retailer. Paul Bea @ monex 800-949-4653 x2172
To support Goldmoney use Kevin from Goldmoneybill.org as referral.
Friday, February 27, 2009
Massive Gold Shipments coming into the US?
A secret source in the video implies that the U.S. Government is buying Gold while the dollar is at an all-time high. We see, I have heard reports for years of the U.S. going back on the Gold standard. Most likely the movement will happen with the Gold Bills.
Monex is the low-cost gold and Silver retailer. Paul Bea @ monex 800-949-4653 x2172
To support Goldmoney use Kevin from Goldmoneybill.org as referral.
Silver is your means of preserving your wealth. Monex is the low-cost Silver retailer. Jump on the 500% rise in Silver over the next two years. 800-949-4653 x2172
use Kevin from Goldmoneybill as referral to help support this site.
Wednesday, February 25, 2009
CAFR FUNDS: THE GOVERNMENT SURPLUS SHELL GAME
Now the Cafr Funds are tough to wrap your head around, that there is a 60 Trillion dollar Surplus nationwide. How could that be? How could a fraud this large be so throughly prepetrated? EGO according to Walter Burien. We are so hung up on our own supposed intelligence that we can't see the forest from the trees. We do after all, drink Fluoridated water without a second thought, take chemicals into our body, without a giving a hoot about the consequences to our holy temple. Olestra...need I say more.
So read this article through and re-read it as homework, then go to Walter site and digest the mountain of info there. This is more important than restoring the Gold Standard at this point. First, uncover the massive deception and then fix the problem; which is the use of paper as money. 100 years from now, our descendants will be scracthing their heads, wondering how we could kill each other over paper. Step on our fellow man for paper.
The first thing to understand is that shell games are very profitable. Government expanded their "gross" income as they continued to raise their "tax" income. In doing so, the public's focus was on battling increases in tax income looking at "Budget Reports" and were kept oblivious to governments ever-growing "non-tax income" (CAFR or AFR Reports a 136,000 reports and growing)
The public maintained the illusion that government "survived" off of tax income, (with the help of the bought and paid for Media and Political talking heads monopoly) and as of 2000 only 1/3rd of the gross income when looking at the big picture was tax income.
Now here is the key for comprehension: Government's attitude was; Anything we collect in tax income we are responsible to the public for oversight and disclosure given to the public. Anything we accomplish pertaining to our gross income that is non-tax income, we are only accountable to ourselves and we can invest, spend, and transfer that income as we choose without public oversight and disclosure given. Well, that amount has now blossomed into 2/3rds of the gross income. Publicly promoted budget reports given for public consumption are almost exclusively showing tax income.
The psychology behind maintaining this shell game can be explained with a basic analogy: If you have two neighbors, Steve on the left and Dick on the right.
If Dick every other week knocked on your door to borrow money for this that and the other thing, you would avoid him like the plague, and cringe if you know he is going to or was knocking on your door. You try not to think of him at all.
Now on the other hand if Steve knocked on your door every other week to invite you to fly to Zurich, Munich, Belize, etc., in his personal jet, you are watching him like a hawk, every single move he makes, with patient anticipation of Steve knocking on your door again. You think about him often.
The biggest problem in breaking the veil of illusion with the middle and some of the upper class is ego: "They could not have pulled this off right under my nose, I am an intelligent person and savvy on world social and business affairs."
When these people take the time to independently look for the first time, do the math and then comprehend, then the next phase is depression: "They did it, it is to late now, it is to big, we will never be able to change it.". At that point I tell them to stop their whining, and that they "did it" over the last seventy-five years and that is a snap of the finger time wise. With unified force and comprehensive applied application, it can be corrected in ten to fifteen years, AND as a result all taxation can be phased out and an economy established that will be so prosperous, it will be the definition and start of what is called in biblical terms, the Millennium!...
The "Silence is Golden" routine funneled down from the top maintaining a void of comprehension that was truly golden for them in the conquest / takeover game.
1. Per composite Government, they ALREADY took it all over by investment! In fact many local governments fund their own debt through the back door and promote for repayment by the public at the front door locking in an investment return and ever increasing power base of standing liquid assets.
2. Any "state retirement fund" as are all other local governments retirement funds, they are; "strictly participatory". The employees do not own 1c of those funds they buy a ticket to ride, and the local governments own those funds. These funds are those local government's power base of control, of which they fudge the actuarial projections constantly to inflate the base of those funds. These funds were the primary tool used for government to take it all over by investment.
Government in its own greed and through the use of select off-shore trading accounts has sucked (for a hand to the other hand transfer) a few trillion dollars in total out of many of these funds through derivative market manipulations, to justify a further drain on the people for refunding, and build their investment takeover capital further both seen (domestically managed funds) and unseen (offshore managed funds).
That is why I have said several times over the last five months; "An audit of government's off-shore management funds both directly or indirectly managed is urgently needed to determine the net results of the recent global market manipulations." TRF funds will stabilize government retirement benefits for all government employees with a direct cash deduction payout as needed to those employees and will be done so not even touching a small fraction of the TRF overall fund balances year to year and at the same time pay for the same local government's budgetary expenses. (No taxation needed!)
3. Being that "Government has already taken it all over by investment" the TRF comes in and reverts ownership back to direct benefit to the people through phasing out "all taxation", the biggest organized crime inflicted on the population of this earth, and makes visible the hidden influence peddling for profit accomplished to start war, genocide, or stripping of taxpayer revenue into shill investments held to guarantee a massive profit for the inside players at taxpayer expense and loss, with this being the second biggest crime on earth.
Continued at Source
Silver is your means of preserving your wealth. Monex is the low-cost Silver retailer. Jump on the 500% rise in Silver over the next two years. 800-949-4653 x2172
use Kevin from Goldmoneybill as referral to help support this site.
So read this article through and re-read it as homework, then go to Walter site and digest the mountain of info there. This is more important than restoring the Gold Standard at this point. First, uncover the massive deception and then fix the problem; which is the use of paper as money. 100 years from now, our descendants will be scracthing their heads, wondering how we could kill each other over paper. Step on our fellow man for paper.
The first thing to understand is that shell games are very profitable. Government expanded their "gross" income as they continued to raise their "tax" income. In doing so, the public's focus was on battling increases in tax income looking at "Budget Reports" and were kept oblivious to governments ever-growing "non-tax income" (CAFR or AFR Reports a 136,000 reports and growing)
The public maintained the illusion that government "survived" off of tax income, (with the help of the bought and paid for Media and Political talking heads monopoly) and as of 2000 only 1/3rd of the gross income when looking at the big picture was tax income.
Now here is the key for comprehension: Government's attitude was; Anything we collect in tax income we are responsible to the public for oversight and disclosure given to the public. Anything we accomplish pertaining to our gross income that is non-tax income, we are only accountable to ourselves and we can invest, spend, and transfer that income as we choose without public oversight and disclosure given. Well, that amount has now blossomed into 2/3rds of the gross income. Publicly promoted budget reports given for public consumption are almost exclusively showing tax income.
The psychology behind maintaining this shell game can be explained with a basic analogy: If you have two neighbors, Steve on the left and Dick on the right.
If Dick every other week knocked on your door to borrow money for this that and the other thing, you would avoid him like the plague, and cringe if you know he is going to or was knocking on your door. You try not to think of him at all.
Now on the other hand if Steve knocked on your door every other week to invite you to fly to Zurich, Munich, Belize, etc., in his personal jet, you are watching him like a hawk, every single move he makes, with patient anticipation of Steve knocking on your door again. You think about him often.
The biggest problem in breaking the veil of illusion with the middle and some of the upper class is ego: "They could not have pulled this off right under my nose, I am an intelligent person and savvy on world social and business affairs."
When these people take the time to independently look for the first time, do the math and then comprehend, then the next phase is depression: "They did it, it is to late now, it is to big, we will never be able to change it.". At that point I tell them to stop their whining, and that they "did it" over the last seventy-five years and that is a snap of the finger time wise. With unified force and comprehensive applied application, it can be corrected in ten to fifteen years, AND as a result all taxation can be phased out and an economy established that will be so prosperous, it will be the definition and start of what is called in biblical terms, the Millennium!...
The "Silence is Golden" routine funneled down from the top maintaining a void of comprehension that was truly golden for them in the conquest / takeover game.
1. Per composite Government, they ALREADY took it all over by investment! In fact many local governments fund their own debt through the back door and promote for repayment by the public at the front door locking in an investment return and ever increasing power base of standing liquid assets.
2. Any "state retirement fund" as are all other local governments retirement funds, they are; "strictly participatory". The employees do not own 1c of those funds they buy a ticket to ride, and the local governments own those funds. These funds are those local government's power base of control, of which they fudge the actuarial projections constantly to inflate the base of those funds. These funds were the primary tool used for government to take it all over by investment.
Government in its own greed and through the use of select off-shore trading accounts has sucked (for a hand to the other hand transfer) a few trillion dollars in total out of many of these funds through derivative market manipulations, to justify a further drain on the people for refunding, and build their investment takeover capital further both seen (domestically managed funds) and unseen (offshore managed funds).
That is why I have said several times over the last five months; "An audit of government's off-shore management funds both directly or indirectly managed is urgently needed to determine the net results of the recent global market manipulations." TRF funds will stabilize government retirement benefits for all government employees with a direct cash deduction payout as needed to those employees and will be done so not even touching a small fraction of the TRF overall fund balances year to year and at the same time pay for the same local government's budgetary expenses. (No taxation needed!)
3. Being that "Government has already taken it all over by investment" the TRF comes in and reverts ownership back to direct benefit to the people through phasing out "all taxation", the biggest organized crime inflicted on the population of this earth, and makes visible the hidden influence peddling for profit accomplished to start war, genocide, or stripping of taxpayer revenue into shill investments held to guarantee a massive profit for the inside players at taxpayer expense and loss, with this being the second biggest crime on earth.
Continued at Source
Silver is your means of preserving your wealth. Monex is the low-cost Silver retailer. Jump on the 500% rise in Silver over the next two years. 800-949-4653 x2172
use Kevin from Goldmoneybill as referral to help support this site.
Tuesday, February 24, 2009
Ron Paul: Transperancy of the Fed
In this article Ron Paul advocates a repeal of the legal tender laws to allow competing currencies. He of course is talking about competing currencies fully backed by Gold and Silver, much like the New Hampshire Gold currency bill found at Goldmoneybill.org
On Transparency of the Fed
This week the Federal Reserve responded to the American people’s increased concerns over our monetary policy by presenting new initiatives aimed at enhancing the Fed’s transparency and accountability. As someone who has called for more openness from the Fed for over 30 years, I was pleased to see the Fed acknowledge the legitimacy of this need.
The Federal Reserve controls the flow of money and credit in our economy because Congress has abdicated its responsibility over the nation’s currency. This process therefore occurs centrally, and almost completely outside the system of checks and balances. Because of legal tender laws, people are left with no real choice, except to build their lives and futures around this monopoly currency, vulnerable to powerful central bankers. The Founding Fathers intended only gold and silver to be used as currency, however, inch by inch over the decades, this country has backed away from this important restraint. Our money today has no link whatsoever to gold or silver. For many reasons, this is extremely dangerous, and has a lot to do with the boom and bust cycles that have resulted in the crisis in which we find ourselves today.
The Fed is now pledging to reveal to the public more about its economic predictions, and calls this greater transparency. This is little more than window-dressing, at best, utterly useless at worst. Many analysts, especially those familiar with the Austrian school of economics, saw the current economic crisis coming years ago when the Federal Reserve was still telling the American people their policies were as good as gold. So while it might be nice to know what fantasy-infused outlook the Fed has on the economy, I am much more interested in what they are doing as a result of their faulty, haphazard interpretation of data. For instance, what arrangements do they have with other foreign central banks? What the Fed does on that front could very well affect or undermine foreign policy, or even contribute to starting a war.
We also need to know the source and destination of funds provided through the Fed’s emergency funding facilities. Information such as this will provide a more accurate and complete picture of the true cost of these endless bailouts and spending packages, and could very likely affect the decisions being made in Congress. But with so much of the Fed’s business cloaked in secrecy, these latest initiatives will not even scratch the surface of the Fed’s opaque operations. People are demanding answers and explanations for our economic malaise, and we should settle for nothing less than the whole truth on monetary policy.
The first step is to pass legislation I will soon introduce requiring an audit of the Federal Reserve so we can at least get an accurate picture of what is happening with our money. If this audit reveals what I suspect, and Congress has finally had enough, they can also pass my legislation to abolish the Federal Reserve and put control of the economy’s lifeblood, the currency, back where it Constitutionally belongs. If Congress refuses to do these two things, the very least they could do is repeal legal tender laws and allow people to choose a different currency in which to operate. If the Fed refuses to open its books to an audit, and Congress refuses to demand this, the people should not be subject to the whims of this secretive and incompetent organization.
Silver is your means of preserving your wealth. Monex is the low-cost Silver retailer. Jump on the 500% rise in Silver over the next two years. 800-949-4653 x2172
use Kevin from Goldmoneybill as referral to help support this site.
On Transparency of the Fed
This week the Federal Reserve responded to the American people’s increased concerns over our monetary policy by presenting new initiatives aimed at enhancing the Fed’s transparency and accountability. As someone who has called for more openness from the Fed for over 30 years, I was pleased to see the Fed acknowledge the legitimacy of this need.
The Federal Reserve controls the flow of money and credit in our economy because Congress has abdicated its responsibility over the nation’s currency. This process therefore occurs centrally, and almost completely outside the system of checks and balances. Because of legal tender laws, people are left with no real choice, except to build their lives and futures around this monopoly currency, vulnerable to powerful central bankers. The Founding Fathers intended only gold and silver to be used as currency, however, inch by inch over the decades, this country has backed away from this important restraint. Our money today has no link whatsoever to gold or silver. For many reasons, this is extremely dangerous, and has a lot to do with the boom and bust cycles that have resulted in the crisis in which we find ourselves today.
The Fed is now pledging to reveal to the public more about its economic predictions, and calls this greater transparency. This is little more than window-dressing, at best, utterly useless at worst. Many analysts, especially those familiar with the Austrian school of economics, saw the current economic crisis coming years ago when the Federal Reserve was still telling the American people their policies were as good as gold. So while it might be nice to know what fantasy-infused outlook the Fed has on the economy, I am much more interested in what they are doing as a result of their faulty, haphazard interpretation of data. For instance, what arrangements do they have with other foreign central banks? What the Fed does on that front could very well affect or undermine foreign policy, or even contribute to starting a war.
We also need to know the source and destination of funds provided through the Fed’s emergency funding facilities. Information such as this will provide a more accurate and complete picture of the true cost of these endless bailouts and spending packages, and could very likely affect the decisions being made in Congress. But with so much of the Fed’s business cloaked in secrecy, these latest initiatives will not even scratch the surface of the Fed’s opaque operations. People are demanding answers and explanations for our economic malaise, and we should settle for nothing less than the whole truth on monetary policy.
The first step is to pass legislation I will soon introduce requiring an audit of the Federal Reserve so we can at least get an accurate picture of what is happening with our money. If this audit reveals what I suspect, and Congress has finally had enough, they can also pass my legislation to abolish the Federal Reserve and put control of the economy’s lifeblood, the currency, back where it Constitutionally belongs. If Congress refuses to do these two things, the very least they could do is repeal legal tender laws and allow people to choose a different currency in which to operate. If the Fed refuses to open its books to an audit, and Congress refuses to demand this, the people should not be subject to the whims of this secretive and incompetent organization.
Silver is your means of preserving your wealth. Monex is the low-cost Silver retailer. Jump on the 500% rise in Silver over the next two years. 800-949-4653 x2172
use Kevin from Goldmoneybill as referral to help support this site.
Monday, February 23, 2009
HR:833 Federal Reserve Abolition Act Bill: Ron Paul
Rep. Ronald Paul [R-TX](no cosponsors)
Cosponsors [as of 2009-02-14]
Cosponsorship information sometimes is out of date. Why?
Text:
Full Text
Status:
Occurred: Introduced Feb 3, 2009
Occurred: Referred to Committee View Committee Assignments
Not Yet Occurred: Reported by Committee (pending)
Not Yet Occurred: Voted on in House (pending)
Not Yet Occurred: Voted on in Senate (pending)
Not Yet Occurred: Signed by President (pending)
This bill is in the first step in the legislative process. Introduced bills and resolutions first go to committees that deliberate, investigate, and revise them before they go to general debate. The majority of bills and resolutions never make it out of committee. [Last Updated: Feb 14, 2009 3:46PM]
Last Action:
Feb 3, 2009: Referred to the House Committee on Financial Services.
Related:
See the Related Legislation page for other bills related to this one and a list of subject terms that have been applied to this bill. Sometimes the text of one bill or resolution is incorporated into another, and in those cases the original bill or resolution, as it would appear here, would seem to be abandoned.
Source
Cosponsors [as of 2009-02-14]
Cosponsorship information sometimes is out of date. Why?
Text:
Full Text
Status:
Occurred: Introduced Feb 3, 2009
Occurred: Referred to Committee View Committee Assignments
Not Yet Occurred: Reported by Committee (pending)
Not Yet Occurred: Voted on in House (pending)
Not Yet Occurred: Voted on in Senate (pending)
Not Yet Occurred: Signed by President (pending)
This bill is in the first step in the legislative process. Introduced bills and resolutions first go to committees that deliberate, investigate, and revise them before they go to general debate. The majority of bills and resolutions never make it out of committee. [Last Updated: Feb 14, 2009 3:46PM]
Last Action:
Feb 3, 2009: Referred to the House Committee on Financial Services.
Related:
See the Related Legislation page for other bills related to this one and a list of subject terms that have been applied to this bill. Sometimes the text of one bill or resolution is incorporated into another, and in those cases the original bill or resolution, as it would appear here, would seem to be abandoned.
Source
Sunday, February 22, 2009
Gold Hits $1000 New High Near
he spot gold price broke through the psychologically important $1,000 level on Friday as global markets fell and investors sought a safe haven.
By Gary White
The price hit $1004.99 an ounce at 12.56pm in New York trading. Earllier in London it had flirted with the $1,000 level, hitting 999.10 an ounce at 2pm in London, before sliding to at $989 later in the session.
Natalie Dempster of the World Gold Council said: “People are fearful of the combined impact of near-zero interest rates, quantitative easing and the fiscal stimulus packages on future inflation. Investors are looking at both the solutions to the problem and the problem itself and realising that both are positive for the price of gold.”
Falling stock markets boosted the appeal of the precious metal as the Dow Jones Industrial Index fell 2.3pc by lunchtime in New York.
In London, the FTSE 100 slid 129.3 - or 3.2pc - to close at 3889.06. The index has fallen 7.2pc this week and and has now fallen 12.3pc since the start of the year.
Germany's DAX fell 4.8pc and France's CAC dipped 4.25pc.
Spot gold hit its all-time high in dollar terms of $1.033.90 in intraday trade on March 17 last year, before falling to around $680 in October.
In a report to clients issued on Friday, Barclays Capital noted that gold was outperforming other asset classes and it could reach new highs later in the year as inflation returned, the oil price moved higher and the dollar started to weaken.
“Precious metals are not only the best performing commodity sector by a substantial margin (all the rest are in negative territory), but also the best performing asset overall, with stocks and property down sharply year-to-date,” it said.
Gold has been in an uptrend since February 2001, when the price was at $254.
The current spike will raise more questions about Gordon Brown’s decision as Chancellor of the Exchequer to sell of more than half of the country’s gold reserves. He sold off 400 tons of bullion in a series of auctions between 1999 and 2002 in a move that some analysts say cost the country more than £2bn.
Source
Silver is your means of preserving your wealth. Monex is the low-cost Silver retailer. Jump on the 500% rise in Silver over the next two years. 800-949-4653 x2172
use Kevin from Goldmoneybill as referral to help support this site.
Saturday, February 14, 2009
Gold Money Bill Hits the Wall Street Journal!
Judy Sheldon Wall Street Journal Online
Things are starting to heat up. Validation right now is starting to trickle in from the MSM. The patriot movement is beginning to make a big dent in the conciousness of the public and the MSM. That happens over-time when the Truth is expounded continually and loudly via the pens of bloggers. Commonsense is returning to the American people and a return to a Constitutionally based government is sure to follow after the return of the use of Gold as Money. The commercial code the active law of the land today is based on the use of the Federal Reserve debt notes. A Sovereign Republic based on the common law is founded on the use of Gold as money. For the National government to be constitutionally based, it needs to be debt-free. A return to a Sound-based monetary system is the first step towards a Constitutional Republic based on the rule of Law.
Kevin Goldmoneybill.org
Let's go back to the gold standard.
If the very idea seems at odds with what is currently happening in our country -- with Congress preparing to pass a massive economic stimulus bill that will push the fiscal deficit to triple the size of last year's record budget gap -- it's because a gold standard stands in the way of runaway government spending.
[Commentary] Corbis
Under a gold standard, if people think the paper money printed by government is losing value, they have the right to switch to gold. Fiat money -- i.e., currency with no intrinsic worth that government has decreed legal tender -- loses its value when government creates more than can be absorbed by the productive real economy. Too much fiat money results in inflation -- which pools in certain sectors at first, such as housing or financial assets, but ultimately raises prices in general.
Inflation is the enemy of capitalism, chiseling away at the foundation of free markets and the laws of supply and demand. It distorts price signals, making retailers look like profiteers and deceiving workers into thinking their wages have gone up. It pushes families into higher income tax brackets without increasing their real consumption opportunities.
In short, inflation undermines capitalism by destroying the rationale for dedicating a portion of today's earnings to savings. Accumulated savings provide the capital that finances projects that generate higher future returns; it's how an economy grows, how a society reaches higher levels of prosperity. But inflation makes suckers out of savers.
If capitalism is to be preserved, it can't be through the con game of diluting the value of money. People see through such tactics; they recognize the signs of impending inflation. When we see Congress getting ready to pay for 40% of 2009 federal budget expenditures with money created from thin air, there's no getting around it. Our money will lose its capacity to serve as an honest measure, a meaningful unit of account. Our paper currency cannot provide a reliable store of value.
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So we must first establish a sound foundation for capitalism by permitting people to use a form of money they trust. Gold and silver have traditionally served as currencies -- and for good reason. A study by two economists at the Federal Reserve Bank of Minneapolis, Arthur Rolnick and Warren Weber, concluded that gold and silver standards consistently outperform fiat standards. Analyzing data over many decades for a large sample of countries, they found that "every country in our sample experienced a higher rate of inflation in the period during which it was operating under a fiat standard than in the period during which it was operating under a commodity standard."
Given that the driving force of free-market capitalism is competition, it stands to reason that the best way to improve money is through currency competition. Individuals should be able to choose whether they wish to carry out their personal economic transactions using the paper currency offered by the government, or to conduct their affairs using voluntary private contracts linked to payment in gold or silver.
Legal tender laws currently favor government-issued money, putting private contracts in gold or silver at a distinct disadvantage. Contracts denominated in Federal Reserve notes are enforced by the courts, whereas contracts denominated in gold are not. Gold purchases are subject to taxes, both sales and capital gains. And while the Constitution specifies that only commodity standards are lawful -- "No state shall coin money, emit bills of credit, or make anything but gold and silver coin a tender in payment of debts" (Art. I, Sec. 10) -- it is fiat money that enjoys legal tender status and its protections.
Now is the time to challenge the exclusive monopoly of Federal Reserve notes as currency. Buyers and sellers, by mutual consent, should have access to an alternate means for settling accounts; they should be able to do business using a monetary unit of account defined in terms of gold. The existence of parallel currencies operating side-by-side on an equal legal footing would make it clear whether people had more confidence in fiat money or money redeemable in gold. If the gold-based system is preferred, it means that people fully understand that the purpose of money is to facilitate commerce, not to camouflage fiscal mismanagement.
Private gold currencies have served as the medium of exchange throughout history -- long before kings and governments took over the franchise. The initial justification for government involvement in money was to certify the weight and fineness of private gold coins. That rulers found it all too tempting to debase the money and defraud its users testifies more to the corruptive aspects of sovereign authority than to the viability of gold-based money.
Which is why government officials should not now have the last word in determining the monetary measure, especially when they have abused the privilege.
The same values that will help America regain its economic footing and get back on the path to productive growth -- honesty, reliability, accountability -- should be reflected in our money. Economists who promote the government-knows-best approach of Keynesian economics fail to comprehend the damaging consequences of spurring economic activity through a money illusion. Fiscal "stimulus" at the expense of monetary stability may accommodate the principles of the childless British economist who famously quipped, "In the long run, we're all dead." But it shortchanges future generations by saddling them with undeserved debt obligations.
There is also the argument that gold-linked money deprives the government of needed "flexibility" and could lead to falling prices. But contrary to fears of harmful deflation, the big problem is not that nominal prices might go down as production declines, but rather that dollar prices artificially pumped up by government deficit spending merely paper over the real economic situation. When the output of goods grows faster than the stock of money, benign deflation can occur -- it happened from 1880 to 1900 while the U.S. was on a gold standard. But the total price-level decline was 10% stretched over 20 years. Meanwhile, the gross domestic product more than doubled.
At a moment when the world is questioning the virtues of democratic capitalism, our nation should provide global leadership by focusing on the need for monetary integrity. One of the most serious threats to global economic recovery -- aside from inadequate savings -- is protectionism. An important benefit of developing a parallel currency linked to gold is that other countries could likewise permit their own citizens to utilize it. To the extent they did so, a common currency area would be created not subject to the insidious protectionism of sliding exchange rates.
The fiasco of the G-20 meeting in Washington last November -- it was supposed to usher in "the next Bretton Woods" -- suggests that any move toward a new international monetary system based on gold will more likely take place through the grass-roots efforts of Americans. It may already be happening at the state level. Last month, Indiana state Sen. Greg Walker introduced a bill -- "The Indiana Honest Money Act" -- which would, if enacted, allow citizens the option of paying in or receiving back gold, silver or the equivalent electronic receipt as an alternative to Federal Reserve notes for all transactions conducted with the state of Indiana.
It may turn out to be a bellwether. Certainly, it's a sign of a growing feeling in the heartland that we need to go back to sound money. We need money that works for the legitimate producers and consumers of the world -- the savers and borrowers, the entrepreneurs. Not money that works for the chiselers.
Ms. Shelton, an economist, is author of "Money Meltdown: Restoring Order to the Global Currency System" (Free Press, 1994).
Silver is your means of preserving your wealth. Monex is the low-cost Silver retailer. Jump on the 500% rise in Silver over the next two years. 800-949-4653 x2172
use Kevin from Goldmoneybill as referral to help support this site.
Things are starting to heat up. Validation right now is starting to trickle in from the MSM. The patriot movement is beginning to make a big dent in the conciousness of the public and the MSM. That happens over-time when the Truth is expounded continually and loudly via the pens of bloggers. Commonsense is returning to the American people and a return to a Constitutionally based government is sure to follow after the return of the use of Gold as Money. The commercial code the active law of the land today is based on the use of the Federal Reserve debt notes. A Sovereign Republic based on the common law is founded on the use of Gold as money. For the National government to be constitutionally based, it needs to be debt-free. A return to a Sound-based monetary system is the first step towards a Constitutional Republic based on the rule of Law.
Kevin Goldmoneybill.org
Let's go back to the gold standard.
If the very idea seems at odds with what is currently happening in our country -- with Congress preparing to pass a massive economic stimulus bill that will push the fiscal deficit to triple the size of last year's record budget gap -- it's because a gold standard stands in the way of runaway government spending.
[Commentary] Corbis
Under a gold standard, if people think the paper money printed by government is losing value, they have the right to switch to gold. Fiat money -- i.e., currency with no intrinsic worth that government has decreed legal tender -- loses its value when government creates more than can be absorbed by the productive real economy. Too much fiat money results in inflation -- which pools in certain sectors at first, such as housing or financial assets, but ultimately raises prices in general.
Inflation is the enemy of capitalism, chiseling away at the foundation of free markets and the laws of supply and demand. It distorts price signals, making retailers look like profiteers and deceiving workers into thinking their wages have gone up. It pushes families into higher income tax brackets without increasing their real consumption opportunities.
In short, inflation undermines capitalism by destroying the rationale for dedicating a portion of today's earnings to savings. Accumulated savings provide the capital that finances projects that generate higher future returns; it's how an economy grows, how a society reaches higher levels of prosperity. But inflation makes suckers out of savers.
If capitalism is to be preserved, it can't be through the con game of diluting the value of money. People see through such tactics; they recognize the signs of impending inflation. When we see Congress getting ready to pay for 40% of 2009 federal budget expenditures with money created from thin air, there's no getting around it. Our money will lose its capacity to serve as an honest measure, a meaningful unit of account. Our paper currency cannot provide a reliable store of value.
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So we must first establish a sound foundation for capitalism by permitting people to use a form of money they trust. Gold and silver have traditionally served as currencies -- and for good reason. A study by two economists at the Federal Reserve Bank of Minneapolis, Arthur Rolnick and Warren Weber, concluded that gold and silver standards consistently outperform fiat standards. Analyzing data over many decades for a large sample of countries, they found that "every country in our sample experienced a higher rate of inflation in the period during which it was operating under a fiat standard than in the period during which it was operating under a commodity standard."
Given that the driving force of free-market capitalism is competition, it stands to reason that the best way to improve money is through currency competition. Individuals should be able to choose whether they wish to carry out their personal economic transactions using the paper currency offered by the government, or to conduct their affairs using voluntary private contracts linked to payment in gold or silver.
Legal tender laws currently favor government-issued money, putting private contracts in gold or silver at a distinct disadvantage. Contracts denominated in Federal Reserve notes are enforced by the courts, whereas contracts denominated in gold are not. Gold purchases are subject to taxes, both sales and capital gains. And while the Constitution specifies that only commodity standards are lawful -- "No state shall coin money, emit bills of credit, or make anything but gold and silver coin a tender in payment of debts" (Art. I, Sec. 10) -- it is fiat money that enjoys legal tender status and its protections.
Now is the time to challenge the exclusive monopoly of Federal Reserve notes as currency. Buyers and sellers, by mutual consent, should have access to an alternate means for settling accounts; they should be able to do business using a monetary unit of account defined in terms of gold. The existence of parallel currencies operating side-by-side on an equal legal footing would make it clear whether people had more confidence in fiat money or money redeemable in gold. If the gold-based system is preferred, it means that people fully understand that the purpose of money is to facilitate commerce, not to camouflage fiscal mismanagement.
Private gold currencies have served as the medium of exchange throughout history -- long before kings and governments took over the franchise. The initial justification for government involvement in money was to certify the weight and fineness of private gold coins. That rulers found it all too tempting to debase the money and defraud its users testifies more to the corruptive aspects of sovereign authority than to the viability of gold-based money.
Which is why government officials should not now have the last word in determining the monetary measure, especially when they have abused the privilege.
The same values that will help America regain its economic footing and get back on the path to productive growth -- honesty, reliability, accountability -- should be reflected in our money. Economists who promote the government-knows-best approach of Keynesian economics fail to comprehend the damaging consequences of spurring economic activity through a money illusion. Fiscal "stimulus" at the expense of monetary stability may accommodate the principles of the childless British economist who famously quipped, "In the long run, we're all dead." But it shortchanges future generations by saddling them with undeserved debt obligations.
There is also the argument that gold-linked money deprives the government of needed "flexibility" and could lead to falling prices. But contrary to fears of harmful deflation, the big problem is not that nominal prices might go down as production declines, but rather that dollar prices artificially pumped up by government deficit spending merely paper over the real economic situation. When the output of goods grows faster than the stock of money, benign deflation can occur -- it happened from 1880 to 1900 while the U.S. was on a gold standard. But the total price-level decline was 10% stretched over 20 years. Meanwhile, the gross domestic product more than doubled.
At a moment when the world is questioning the virtues of democratic capitalism, our nation should provide global leadership by focusing on the need for monetary integrity. One of the most serious threats to global economic recovery -- aside from inadequate savings -- is protectionism. An important benefit of developing a parallel currency linked to gold is that other countries could likewise permit their own citizens to utilize it. To the extent they did so, a common currency area would be created not subject to the insidious protectionism of sliding exchange rates.
The fiasco of the G-20 meeting in Washington last November -- it was supposed to usher in "the next Bretton Woods" -- suggests that any move toward a new international monetary system based on gold will more likely take place through the grass-roots efforts of Americans. It may already be happening at the state level. Last month, Indiana state Sen. Greg Walker introduced a bill -- "The Indiana Honest Money Act" -- which would, if enacted, allow citizens the option of paying in or receiving back gold, silver or the equivalent electronic receipt as an alternative to Federal Reserve notes for all transactions conducted with the state of Indiana.
It may turn out to be a bellwether. Certainly, it's a sign of a growing feeling in the heartland that we need to go back to sound money. We need money that works for the legitimate producers and consumers of the world -- the savers and borrowers, the entrepreneurs. Not money that works for the chiselers.
Ms. Shelton, an economist, is author of "Money Meltdown: Restoring Order to the Global Currency System" (Free Press, 1994).
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