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Mining Affairs Forum March 20,
2009-“Shock and Awe Economics”
By Ken Thornberg
During the lifetime of many Americans, our nation has gone from
being the greatest creditor nation to being the greatest debtor
nation. It didn’t happen overnight, for the U.S. has been
the victim of a well-strategized conspiracy for decades, orchestrated
by those with a penchant for patience. Our nation is run by those
who both sustain an array of unconstitutional programs and confiscatory
taxation to help boost the supply of red ink in the Treasury’s
balance sheet, and wish to change our entire economic system.
Inflation’s Thievery
What has been a major goal in this series of steps? Inflation.
Inflation is one of our government’s greatest hidden taxes
on all Americans and one of the least known. Consider the bailout
plan that Bloomberg says will amount to $7.4 trillion dollars,
CNN saying $7.2 trillion, Reuters chiming in $8.3 trillion, and
Congressman Ron Paul with $8 trillion. Now consider that the definition
of inflation is not “rising prices” as most Americans
believe. Rising prices are simply the ‘result’ of inflation.
Inflation is actually the increase in the amount of currency in
circulation. Does this Bailout Plan remind you of an “increase
in currency?” That would be a “duh” revelation
to anyone who has graduated from Elementary School, wouldn’t
it? Well, this stimulus bill offered is like taking blood from
one arm and putting it into the other arm through a leaky tube!
The man who saved $10,000 in 1950 and attempted to spend his fortune
50 years later found out that it was worth less than 10% of what
it was when he stuffed the money in the sock under his bed! Where
did his fortune go? It was stolen from him through a watering
down of the currency’s value accomplished by putting more
of it in circulation. If that same “fortune’ had been
put into gold, the value would not have dropped. Today our federal
government borrows about $2 billion daily to finance its
operations for which it has no money!
Counterfeiting Legally
If you or I counterfeit money, it is a crime. How can it be right
when a government does it? In the 1920s, a $20 bill could be exchanged
for a one-ounce gold coin. Paper dollars were backed by gold at
the time. Today you need about 900 paper dollars for the same
gold coin. The dollar’s value has been eroded through inflation
and our paper money has absolutely nothing to back it. In January
of 1993, National Geographic Magazine published an article
entitled, “The Power of Money.” Asst. Editor Peter White
wrote one of the officials of the Federal Reserve and asked where
the Fed got the money it had just used to purchase $100 million
worth of Treasury bonds. White wrote: “We created it,”
a Fed official tells me. “It’s money that didn't exist
before.” White—Is there any limit on that? “No
limit. Only the good judgment and conscience of the responsible
Federal Reserve people.” White—And where did they get
his vast authority? “It was delegated to them in the Federal
Reserve Act of 1913, based on the Constitution, Article 1, Section
8. ‘Congress shall have power…to coin money and regulate
the value thereof…’”
The only problem is that our Founding Fathers never gave anyone
the right to inflate. We’ll talk more about that later. It
is the combination of volume, quality and availability of goods
that affects the price of goods; the practice of inflation affects
the price (value) of money. Producers and the local grocer are
not responsible for inflation! Inflation also lowers the value
of our savings, insurance policies, retirement funds, and whatever
else is denominated in dollars. It amounts to a government tax
on us. So we have this hidden tax and the printing of money that
makes the typical American the loser as our dollars become less
valuable. Listen to socialist John Maynard Keynes from his book,
Economic Consequences of the Peace: “By a continuous
process of inflation, governments can confiscate, secretly and
unobserved, an important part of the wealth of their citizens…The
process engages all of the hidden forces of economic law on the
side of destruction and does it in a manner that not one man in
a million can diagnose.” That’s from a socialist!
I could say more on this topic—a lot more—but let’s
move on.
Legal Tender?
Small pieces of paper unbacked by anything and carrying a notice
that they must be accepted as “legal tender for all debts
public and private” do not fit the definition of sound money.
All of our money, not long ago, was backed by gold and/or silver.
The changes, easily seen on our paper money, have eliminated the
backing of our money by any valuable commodity at all. It is worth
no more than the paper and ink it is made of and since no commodity
like gold or silver is needed, it can be printed “at will.”
This is one reason the respect for the dollar is fast disappearing.
We have gone from commodity money to fiduciary money (backed by
a commodity) to fiat money today.
The Fed official above spoke of the Constitution as what gives
them the right to print as much money as they want. Does it? No,
his comment was totally fraudulent. That clause never gave the
government the right to print fiat money, as that type of money
didn’t even exist and our Founding Fathers would turn in
their graves if they knew we operated with it today. All the Constitution
did was give government the right to establish a mint to stamp
the people’s precious metals into coinage of a fixed
weight, size and purity. Period. So the Constitution restricted
the government from issuing money of any kind. Even the
states were prohibited from the practice of coining money. Anyone
remember the creation of “greenbacks” around Civil War
times? Within ten years of that event, the Supreme Court declared
it unconstitutional!
Alan Greenspan, long-serving Chairman of the Federal Reserve,
relied on a distortion of the Constitution when he wrote this
letter to a congressman: “Consequently, while no state government
may emit “bills of credit” or make anything other than
gold or silver coin a legal tender in payment of debts, the federal
government is not limited in what it may designate as legal tender.”
Mr. Greenspan, that is a fatally flawed attitude toward the rule
of law. He also wrote in 1967 in his book, Capitalism: The
Unknown Ideal as follows: “In the absence of the gold
standard, there is no way to protect savings from confiscation
through inflation.” Hmmmm….. His predecessor, Paul Volcker,
said to a congressional panel in 1979, “The standard of living
of the average American has to decline…I don’t think
you can escape that.” Oh? Now Mr. Volcker is one of President
Obama’s team. Our Founding Fathers referred to paper money
as destructive and even threatened to reject the entire Constitution
if the federal government was allowed to issue paper money.
True Wealth
Wealth is productivity. Manufacturing is what made our nation
great. Over the past 30 years, we have seen manufacturing jobs
in America plummet from 19 million to about 13 million and it
is still declining. Outsourcing has truly been one reason, thanks
to NAFTA, the WTO, and other pacts. However, regulatory burdens
which do not exist in other nations are a huge cause of this also.
This is an attack on our middle class that today’s conspirators
wish to see lose their wealth so that our nation can more easily
be “morphed” with Third World nations into that “New
World Order” our nation’s oligarchy desires so much.
The Federal Reserve’s Role in all this
Karl Marx in his infamous Communist Manifesto had in his
“ten steps to achieve communism,” “Centralization
of credit in the hands of the State, by means of a national bank
with State capital and an exclusive monopoly.” Well, that’s
our Fed! When this Act was passed in 1913 in our own nation, there
were many who opposed it, seeing the danger of runaway inflation.
My, they were prophets in their day. Since the Fed is a private
agency and not a government-operated agency, it is worse than
Marx envisioned! It was ushered through Congress by Edward Mandell
House, President Woodrow Wilson’s “alter ego.”
House wrote in his book Philip Dru, Administrator that
he sought “Socialism as dreamed of by Karl Marx.” Well,
we got it, plus today a president who has openly championed socialism,
a first for our nation. House and Marx also endorsed an income
tax system, a social security system, a world government, and
an overhaul of the Constitution. Today, that last goal appears
immaterial because our Congress and President have no intention
of following it anyway, thanks to a lethargic public which will
not speak up and be diligent to protect it’s freedoms. After
Wilson’s legacy, president Roosevelt dumped the gold standard,
Lyndon Johnson dropped the silver standard, and Nixon removed
our last link to gold. Said Texas Congressman Wright Patman in
1968, “In the U.S. today, we have in effect two governments…We
have the duly constituted government…Then we have an independent,
uncontrolled and uncoordinated government in the Federal Reserve…”
In 2007, the Fed stopped publishing a money stock figure known
as M-3 telling how much currency had been created. Gee, can you
figure out why?
Federal Reserve power is completely consistent with the attitude
expressed by the founder of the Rothschild banking dynasty, Meyer
Amschel Rothschild, who said, “Let me issue and control a
nation’s money and I care not who writes the law.” Finally,
the Fed has never been subjected to an audit. Never.
Our national debt clock now stands at $10.674 trillion dollars
and is rising quickly, amounting to an average of over $35,000
for each living soul in America. Future indebtedness is now closing
on $100 trillion. In 2007 alone, our interest paid to banks (mostly
foreign!) was $430 billion dollars! Not long ago the entire federal
budget wasn’t that much.
Since the Fed was created through an act of Congress, it can be
abolished through an act of Congress. Our nation ran fine without
the establishment of such an entity and it can again. If money
is a commodity, no one needs to manage it.
Other Things Needing to Go
How about the income tax, for example. It accounts for only 40%
of our government’s revenues and if abolished, would take
our government spending back only so far as 1997!! That is not
very far back, is it? Then we have Social Security that is supposed
to have a Trust Fund that our payments come from…which of
course does not exist. Never did. Another lie. It’s a great
ponzi scheme. It simply takes valuable dollars and pays them out
in much cheaper dollars years later. Wow, what a plan. I wish
I could do that with my mortgage!
The Ultimate Goal
Professor Carroll Quigley, in his book, Tragedy and Hope,
wrote about his membership in the Council on Foreign Relations,
noting its goal: “…it is nothing less than to create
a world system of financial control in private hands able to dominate
the political system of each country and the economy of the world
as a whole.” There’s more, but you get the picture.
Both Greenspan and Volcker hold memberships in the CFR, along
with memberships in the Tri-Lateral Commission and meetings with
the Bilderberger conference attendees in Europe. The latter is
made up of 100 top political, financial and media leaders from
the U.S. and Europe who meet behind closed doors in secret to
decide what steps the world takes for the following twelve months.
It is the CFR leadership and others who are promoting the establishment
of a new currency for North America, the Amero.
If the path on which our nation has been placed is not reversed,
our independence will be cancelled and a tyrannical world government
will be established. Just review our direction these past many
decades and it is too painfully obvious that our speed in that
direction has increased.
The Bailout and an Answer
The latest bailouts will continue to quickly inflate and
devalue our dollars, pension funds, insurance policies, etc. The
“line” we are given is that many institutions being
saved are “too big to be allowed to fail.” Hogwash!
In a free enterprise system, there will always be failures, along
with successes. Failing entities should be allowed to fail!
The alternative is perfect socialism as dreamed of by our new
president, including nationalism of our banks, insurance companies
and manufacturers. Fascism is one simple step away after that.
What do we do? First, let’s re-establish the definition of
a dollar, which is 371.25 grains of silver. That’s the only
legal definition of the dollar we have ever had. Private mints
should be allowed to stamp people’s precious metals into
coinage. Legal tender laws established by the Fed should be abolished.
No bank issuing currency not backed by commodity money should
be allowed. The Federal Reserve should then be abolished and not
replaced. H.R. 833 has been introduced into the House of Representatives
to do just this. I strongly urge readers to write their Congressmen
to join the other 30 co-sponsors of this bill, today! Finally,
we must end deficit spending and pay off our national debt as
soon as possible.
Remember the prophet Isaiah’s statement long ago? “My
people have been led into captivity because they have no knowledge.”
There is a design behind all of this to keep the truth from the
public and it is called a “conspiracy” which is defined
in Webster’s as, “More than one person acting in secret
for an evil purpose.” Could all of our leaders be ignorant
of what they are doing? Are they stupid? I believe both answers
are “No.” But could there be a design behind it? Since
the enemy is not an ideology in which men believe, but a conspiracy
in which men participate, it stands that what David Rockefeller
wrote in his 2003 book, Memoirs, needs repeating: “Some
even believe we are a part of a secret cabal working against the
best interests of the United States, characterizing my family
and me as ‘internationalists’ and of conspiring with
others around the world to build a more integrated global and
political and economic structure—one world, if you will.
If that is the charge, I stand guilty, and I am proud of it.”
Wow. Note that he used the word “conspiring.” This was
the former chairman of the CFR for decades. Dr. James Lucier wrote
in 1966, “The first job of conspiracy is to convince the
world that conspiracy does not exist.” Well, it is organized
evil and it is difficult for any thinking American today to deny
that evil is hard at work in our nation right now. How else could
this supposed collapse taken hold so fast?? Does it not have all
of our heads spinning over how quickly these bailouts were suddenly
needed to pay AIG executives their $165 million in past due bonuses
and banks their due for their greed that was putting them under?
The conspiracy referred to by David Rockefeller relies on non-conspiratorial
but self-serving hands to reach its one-world goal and these bailouts
point to nothing less than self-serving individuals who have contacts
in government to bail out their greed and poor decision-making,
all at our expense.
Let me close this long epistle by suggesting that my readers obtain
a short (75 Pages), simple, but profound book published in 1850
by French economist Frederic Bastiat called The Law. If
you want a fabulous explanation of what we have discussed in this
month’s column, you can purchase it by linking to this web
address: www.shopjbs.org/magento/index.php/books.html?p=2
I pray that all of you will begin sharing some of these facts
and contact your federal representatives and ask that our government
stop this incredible waste today. Then support H.R. 833.
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