"And Night Will Be No More"

I DIDN’T SPEAK UP

"In Germany, the Nazis first came for the communists, and I didn’t speak up because I wasn’t a communist. Then they came for the Jews, and I didn’t speak up because I wasn’t a Jew. Then they came for the trade unionists, and I didn’t speak up because I wasn’t a trade unionist. Then they came for the Catholics, and I didn’t speak up because I was a Protestant. Then they came for me, and by that time there was no one left to speak for me." [Rev. Martin Niemoeller sent to Dachau, 1938]

BROKE OR NOT

As we saw in part one, Mr. Krugman believes that the Social Security trust fund is either real or fictional, and he believes that it is real. I do not dispute the fact that the Social Security trust fund exists, and is as Mr. Krugman states – for real.

However, the fact that the trust fund exists is not the same as saying that the trust fund contains any actual wealth, or securities that represent and can be redeemed for wealth. Old Mother Hubbard had her cupboard, but ask her poor dog how he fared.

There is a strong possibility that the trust fund exists, but that there is no money in it, especially when compared to what is going to be needed to meet future promised obligations without We The People having to pay more money into the government to actually fund the trust, be it by higher Social Security taxes, or whatever other specters the wizards of finance conjure up.

Any way you look at it, we are paying ourselves – if indeed we ever get paid. It is similar to the logic that says that the national debt isn’t a big deal - as we only owe it to ourselves.

And if you believe that one I have a bridge for sale in the Gobi Desert that you would probably be interested in buying. The water I’ll throw in for free. Maybe we should all just forgive and forget ...? Now there’s a novel idea.

Remember, the promise of Social Security benefits is backed by the good faith of the United States government. Based on past performances of gold confiscation, and the reneging of paying our foreign obligations off in the promised medium of gold, during Nixon’s infamous closing of the gold window, you now know why it says “In God We Trust” on the dollar bill.

It also helps to know that there may be a fiscal crisis of large-scale deficits and indebtedness looming on the horizon, but as Mr. Krugman assures us – there is nothing to be worried about. The real problem is that so many bonds are being sold, not that social security happens to be buying them.

Mr. Krugman also fails to mention that all of the securities held by the trust funds are special issues, which means that they are available only to the trust funds, and they have a special feature of being non-marketable securities, which means they can’t be sold in the market. All sounds fairly sound, especially if one is deaf, dumb and blind.

Which may very well be a contributing reason as to why debt is expanding at unprecedented and alarming rates

“Outstanding consumer debt more than doubled to over $10 trillion between 1992 and 2004.”

“Last year savings in the US was only $133 billion, roughly a third of what it was in 1995 when savings was $306 billion.”

“Last year that figure $20 of debt was issued for every $1 of savings.” [Puplava]

But of course there is always the possibility that it is all just mere coincidence, as most of history is told to be. I’ve always wondered what the future thinks about circumstance and happenstance.

DEPLETION OR SOUNDNESS

We have found that Social Security is a social insurance system established in 1935. Its stated purpose is to provide benefits to workers and their families upon retirement, disability, or death. It is what is called an earned benefit insurance program. Only those who work and pay taxes are eligible for social security benefits.

The promise of Social Security benefits is backed by the good faith of the U.S. government in the same way that the government backs the value of the dollar. So, how has the U.S. government fared in backing the value of the dollar?

Well, since 1913 the dollar has lost 95% of its purchasing power, which doesn’t amount to a very stellar performance in maintaining the value of the currency.

Perhaps such is the reason why the Social Security administration states that meaningful comparisons of current dollar values over long periods of time can be difficult because of the effect of inflation, which is another name for the debasement of the purchasing power of the currency to the above referenced 95%.

Under the "intermediate" and "high cost" projections of the trust fund, the trust funds become depleted within the next 40 years. The assets of the larger trust fund (OASI) were already once nearly exhausted in 1982. From the very inception of the program, the Social Security Administration has always been concerned with the depletion of future funding to meet future redemptions. Where have we heard that song and dance before? See Honest Money.

Social Security is not sustainable over the long term at the presently existing benefit and tax rates. Within 14 years the program will begin paying out more benefits than it collects in taxes. Hence, any political posturing by the administration regarding privatization has little meaning in regards to the soundness of the social security system. By 2042 the trust funds will be exhausted – if they are not already.

THE TREND

Federal Outlays versus Receipts

As they say on wall street, the trend is your friend, however, some trends aren’t all that nice – a case in point being the below chart.

Notice in the bottom left corner that Federal expenditures were well below 5% of the gross domestic product prior to 1930, down to approximately 3% for several years.

Then notice how after 1933 the trend took off upwards, hitting 5% in 1935 and 10% by 1942. Suddenly, there is a huge spike up during the 40’s to 45%, but this is attributable to the war and the cost to feed the dogs of war.

After the ravages of war subsided, the feed bill more or less dissipated, and Federal expenditures dropped to 15% around 1950, which was still 5 times or 500% of what it had been prior to 1933.

Since then the ratio has run as high as 25%, and hardly ever below 20% since the late 1970’s. Two things stick out on this chart and scream – “look at me.”

The trend of a 20% ratio of federal expenditures to gross domestic product seems to be entrenched into the economy. This is not good, as will be explained.

A 20% trend or rate is 7 times or 700% greater than it was prior to 1933. Why does the year 1933 seem to be so decisive for the financial health of the country. Now let’s take a look at another chart.

Notice down in the left hand bottom corner how prior to about 1930, that total combined government spending went from a 12% consumption rate of the total national income to over 50% during wartime, and now sits at about 43%.

This means that the government now controls or eats up about 3.5 times the national income than it did prior to 1930 and the trend has been steadily rising.

This is why the blue line, which is the private sector share of the total national income, is declining directly downward.

The private sector capacity has been diminished from 88% in 1929 to about a 57% share of the economy presently, and continues to head downward. This represents a 31% decrease of private sector capacity. Not a good trend.

THE LURE OF DEBT

The information that has so far been revealed begs a few questions

• How is a paper fiat monetary system directly related to the issue of social security?

• In turn, how is money and social security related to our countries’ financial soundness?

• What policies have led us down this path and who is responsible for making the decisions?

As we have seen, there’s a whole lot of debt being issued that is causing important trends regarding the financial health and soundness of our nation - all heading in a downward spiral. The Social Security Administration itself questions its own financial health and solvency.

Perhaps Krugman got it right when he said that the markets pay attention to good old fashioned debt. If they do, they sure as hell should be sitting up on the edge of their seats and paying very close attention right now.

The years 1930-1933 mark a huge turning point in the economy, strongly intimating that some major event occurred that changed the economic landscape of an entire nation for decades to come. Yet we find that many of the intelligentsia of the elite collectivists try to hide the event, and the path it has put us on to lead us to where we are today – not to mention who or what caused the event.

Both paper fiat debt money and Social Security are part of “the event”, and are major players in determining the nation’s financial soundness. A paper fiat monetary debt system is the matron of the socialistic welfare state system that Social Security is the cornerstone of. And remember well - Social Security is but one of many similar socialistic programs of Roosevelt’s New Deal Program, which swept large brush strokes across the canvas, forever changing the portrait of the landscape. A most undesirable rendering.

We have seen the huge turning point in the economy, as shown on the charts and graphs, which occurred around 1933. We have asked the question as to who is responsible for implementing the policies that initiated The New Deal, which in turn has lead us to our present financial condition.

We know that President Roosevelt declared a National Emergency, and then implemented the Emergency Banking Relief Act of 1933 to confiscate all public holdings of gold. He then declared it illegal for any citizen of the United States to own gold.

Thus a basic right of the Constitution was declared illegal - the right to the ownership of not only private property, but to the ownership and use of hard money as mandated by The Constitution of The United Sates. To not follow the Constitution some call treason, especially if one has taken an oath of elected office not only to follow the Constitution, but to protect and defend it as well.

And the above was done without passing a constitutional amendment, which according to The Supreme Law of The Land, is required to authorize any such drastic action of total disregard. How did Roosevelt get away with such draconian measures?

He used the War Powers Act and the Trading With the Enemy Act to authorize and justify his national emergency. So what was the emergency? The bankers were going bankrupt. Who was the enemy? We The People of The United States ..?

Title IV Sec. 401 of the Act amended the sixth paragraph of Section 18 of the Federal Reserve Act. As amended, the act created a national credit system where debt is legal tender money, and is circulated and accepted, as the currency. This equates money with debt, which is not the best of ideas for enabling the public to create and save wealth.

House Joint Resolution 192 made it impossible to be able to lawfully pay off a debt. It is now impossible to lawfully own anything. One can only tender in transfer of debts, to offset one debt with another, to transfer debt from one owner to another. The debt is now perpetual – it can never be paid off under the present system. To believe otherwise is to believe in fairy tales, fairy tales that suddenly turn into – nightmares.

Even Lord Keynes occasionally got some things right:

"By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some....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." [John Maynard Keynes Economic Consequences of the Peace, 1920]

SOCIALISM

This was as far from free markets as one could get. The New Deal ushered in an era of government intervention that permeated not only the economy, but all aspects of public life. The end result approached State control and dominance over the American ideal of private property, freedom, and individual rights – the cornerstones that our country was founded upon.

The New Deal was socialism pure and simple, not a constitutional republic of free-enterprise and liberty that places individual rights as sovereign over the delegated powers of the State.

One example of government intervention and control into what is supposed to be a free market was the establishment of the AAA, which gave federal control of the planning and running of the entire agricultural sector of the economy over to the government.

Other examples of governmental intervention and control included a new federal regulatory agency to oversee the stock market: the Securities and Exchange Commission (SEC); and the reform of the banking system that included a system of insurance for deposits (FDIC). Why our money needs to be insured speaks volumes if one takes the time to listen.

Alan Greenspan new from whence he spoke when he stated:

“This is the shabby secret of the welfare statists' tirades against Gold. 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. If one grasps this, one has no difficulty in understanding the statists' antagonism towards the Gold Standard." [Alan Greenspan - Gold and Economic Freedom 1966]

COLLATERAL FROM BIRTH TO DEATH

The year 1933 represented a major financial change in our country – a New Era had indeed been entered – the era of bigger government, more intrusive government, more laws and regulations, and especially more government debt. The State had become dominant, its powers of control filtering throughout the economy, and through the people as well.

Socialism’s dominant signature is the emphasis of the State over the individual, an ideology diametrically opposed to the ideal behind our Constitution – the importance of the individual, for whom the State has been created, in order to better serve the needs of the people.

Because the bankers and The Federal Reserve had bankrupted our monetary system within twenty short years of taking control of the money issue, the State in cahoots with the bankers had to resort to confiscating the people’s gold to save the national banking system from a total collapse.

But even with the advent of the programs of The New Deal, including the confiscation of the gold currency of the people – such was not enough to pay the price tag the elite collectivists had placed on The New Deal. All of which meant that someone had to come up with a lot more money. The question was – who? The answer was and is always the same – We The People.

The solution to the bankers problems of insolvency and bankruptcy was to collateralize and use the people for credit. But how could such be done without the people realizing it?

There are those who believe that by registering the people into the world of international commerce and law, and then by issuing bonds secured by the people; that the public then becomes the surety on the bonds, the pledge, as all people represent future tax paying citizens, and hence a potential revenue stream into the future.

But there are others that would say that such beliefs are nothing more than mere conjecture and the misguided reading of the tea leaves. The reader is left to weigh the evidence or lack thereof, and to decide accordingly. Listen to the inner voice within.

MORE EVIDENCE OF DEBT

What happens right after we are born, as regards to the State, and our part therein?

First we get a birth certificate, after which we become certified members of the body corporate, by receiving our very own identity number of certification – our social security number. We are now certified and registered members of the corporation – none of which is mentioned in the Constitution.

It almost sounds like a form of collateral by and from birth until death, and even thereafter, if inheritance tax is thrown into the mix. Specters of cattle and chattel swirl about, with visions of sugar plum fairies dancing without - thought for others on a cold winter’s night.

THE NATIONAL DEBT

Annual Historical
National Debt Outstanding

As is clearly evident from the above chart, war is very expensive, as the debt skyrocketed up over 300% in just 4 years during the Civil War, and by 1912, the year before the Fed took over, the debt had increased by 350%.

The raison d’etre for the creation of the Federal Reserve was to provide a keeper of the gate to the money temple, to protect and assure that the national treasure remained in safe and secure hands. As the chart shows, the Fed was great at keeping the debt under wraps, as in 22 years it only increased by 1300%. Try that at your job, and then ask for a raise.

By the early 1900’s the government had sold a lot of bonds, too many bonds. A group of very wealthy families had been buying up most of the government bonds. They came to the government and said, “we want to redeem our bonds”.

The U.S. Treasury is obligated to make good on the bonds, and they probably wanted to, but there was a slight problem, there wasn’t enough money in the Treasury to pay them off. So the heads of these families meant with some government officials and offered them a deal they couldn’t refuse. The key players took a little vacation to Jekyll Island, a Morgan retreat, to iron out the details – which came to be known as The Federal Reserve Act.

The bankers said, “You let us start our own private central bank, and we will print up as much money as you like, you can issue all the bonds you like, as there will be plenty of money for everybody. We’ll even call it Federal, making it sound like the government owns it, not us.” And so it was done. Elastic supply they called it. Ever seen a rubber band over-extended? It snaps, sometimes right in one’s face.

As Spencer had occasion to remit:

“That laws interfering with currency cannot be enacted without the reversal of state duty, is obvious; for either to forbid the issue, or enforce the receipt of certain notes or coin in return for other things, is to infringe the right of exchange—is to prevent men making exchanges which they otherwise would have made, or is to oblige them to make exchanges which otherwise they would not have made.” [Herbert Spencer]

THE CONSTITUTION AND TRUST

The preamble of the Constitution contains two sets of words, one at the beginning, and one at the end that evidence two different and very important issues. At the beginning we have:

We, the people of the United States;

and at the end we have:

Constitution for the United States of America.

Please note the following very important point. There are two different documents representing two different entities here. The first, is:

The Constitution for the United States of America, it is a Trust.

The Second is the Constitution of the United States of America, and it is a contract between the officers of government and the beneficiaries of the Trust, We The People.

Our founding fathers, and particularly Thomas Jefferson, understood that We The People had created the government and the Constitution. He also knew that the created United States government cannot define the rights of its creator – We The People, who can and do define the limited powers of the government.

We The People come first. The government comes second, and is by the people, for the people – as in to serve the people’s needs. The people are Sovereign. The State only exists by the power and decree of We The People.

The Constitution places individual rights and freedoms far above and superior to the delegated powers of the State, which has received its authority to govern by the permission of the people. The People’s unalienable rights are sacrosanct according to the Constitution, all else is derived there from – all else is in pursuance thereof.

Although the Constitution creates a trust and a contract between the officers of the government and the beneficiaries of the trust - We The People, The United States Code states that United States means:

 (A) a Federal corporation, or other entity of the United States, or an instrumentality of the United States.

It appears that the Constitution and the United States Code are referring to different entities, which if true, implies some ramifications and implications of considerable consequence. As a matter of fact, it appears that the US Code itself is referring to other entities besides the Federal Corporation even within its own internal definition.

It would clear up a lot of issues if the government would print a little hardcover book entitled something like: Understanding Your Country’s Laws and Government by whoever understands it well enough to write such a book.

The book could explain all the issues concerning the Constitution that have been raised thus far, issues concerning whether there is a legal corporate financial structure or “body” of the government, which is different from the day to day running of the Nation according to the contract and trust the Constitution established between the elected officers of the government and the beneficiaries of the trust – We The People.

Perhaps it could even explain all about executive orders and privileges from a constitutional point of view, and whether a constitutional point of view can be different from a legal point of view, and if either can be different from a lawful point of view, and just what jurisdiction would handle each. In other words, does lawful, legal, and constitutional all mean the same thing?

And even if we couldn’t fully comprehend it, wouldn’t it be awe-inspiring to hear a complete and fully disclosed discourse on the War Powers Act, and The Trading With The Enemy Act, and The Lieber Code, and other such Emergency Acts; and what exactly happens, or can happen during such Acts – from a legal, lawful, constitutional point of view.

Perhaps another chapter in the book could explain The Federal Reserve Act; Roosevelt’s Banking Emergency Act; Nixon’s closing of the gold window, etc. Shouldn’t the public be aware of, and understand its most important past historical events? Isn’t a good idea to educate the citizens about the workings of their government?

Why, I wouldn’t be surprised if the book became so popular that they could make a new hit realty TV series about it – something like: America Explained, or The Truth Factor. Imagine the viewer ratings of a national special on a live audit of gold reserves in Fort Knox or wherever they are keeping our gold.

Wouldn’t you like to see a live audit summary of the nations books, both those funded and unfunded parts – and to see the pertinent individuals sign off on the audits as is required of private CEO’s in the public domain. Should not our elected officials meet at least the same, if not even higher standards than those in private business?

THE INTERNATIONAL RULE OF LAW

We have seen that the 1930s was the time of Roosevelt’s New Deal, of a plethora of socialistic programs supposedly intended to bring our country out of the Depression, one of the worst socio-economic events to befall our nation, which occurred within 17 years from the establishment of the Federal Reserve, whose prime mandate was to prevent just such devastating occurrences.

Obviously the Fed hadn’t done its job too well, yet we saw that it was the Federal Reserve who wrote and had a midnight emergency letter delivered to the President, outlining the actions that they, the bankers, felt were needed to save the banking system, which equates to saving themselves.

And how did the President respond to a private group of bankers telling him what to do – he did exactly as they recommended. Well not quite. He actually did even more than they had outwardly asked for, all of which was favorable to the banking system, while being deleterious for the average citizen, who had his personable property of gold coin confiscated and given to the banking system. Truly an unbelievable occurrence if weighed in the balance against the Constitution of our country.

Then soon the dogs of war were unleashed again. The world was at war once more. Many died. Most became poorer. A few became richer. The proof is in the pudding. Follow the money trail. A most interesting Wall Street banking firm was closed down in the 1940’s for trading with the enemy, it is in the Congressional Records – they were literally closed down under The Trading With The Enemy Act. You might be quite surprised at just who or what family ran the company.

Next came another new era, the era of internationalism; of globalism; of worldism. Suddenly all things needed to be done not on an individual level, not even on a national level, but now on an international and global world-encompassing level. The international monetary fund was born. The world bank was brought forth. The United Nations came to be.

In a less than 200 years, our fledgling nation has gone from non-existence to being cast as the entire world’s big brother, leading many of these new international and global institutions that are involved with not only the government of the world, but especially with the control of the financial and monetary systems of the world.

Our nation's founding fathers are not rolling over in their graves, they are probably spinning at the speed of light, as witnesses to such actions that are at the very least easily questionable from a constitutional point of view of the American ideal.

Internationalism and globalism are a far cry from the cornerstone of individual freedom and liberty that our country was founded upon, as stated in the Constitution of The United States of America, which places the rights of the individual as far superior to any delegated powers of the State.

THE PAYOFF

So what have we gotten in return from all the marvels of the wizards of State and finance that brought us The War Powers Act; The Lieber Code; The Trading With The Enemy Act; the Federal Reserve; The New Deal; Social Security; The Emergency Banking Act that confiscated and outlawed the people’s ownership of gold currency and coin; The United Nations; The International Monetary Fund; and The World Bank, to name but a few of the specters brought forth?

We have an international investment position that is a negative –3 trillion dollars, which is equal to 25% of the dollar value of our yearly gross domestic product total. This begs the question – who is buying and owns our country?

Within a few years time, if the present rate of financial decline continues, our negative international investment position will amount to 50% or half of the gross domestic product of our nation. This is not progress – plain and simple. To think otherwise is mere illusion and delusion, the stuff of fairy tales that turn into nightmares – recurring nightmares.

The Bottom Line
The U.S. International Investment Position

Presently –3 Trillion Dollars [2005]

The above chart does not paint a pretty picture, as it’s declining direction is almost straight down toward the land of misery and woe – not towards the land of milk and honey. Where has the American Dream and ideal gone to? Why does it now take two income earners in one family just to make ends meet, when in the past it took but one to provide a good life for their family? Is this a sign that the standard of living is going up, or down?

SOCIAL SECURITY

The reader must decide for themselves, based on the evidence presented within the series, along with their own due diligence, as to just what the truth is regarding Social Security.

Many of the points and issues raised are based on data and statements from the pertinent government agencies, documents, and departments as sited and linked in most instances.

Some of the facts:

• The Social Security Trust Fund Purchases Special Issue Bonds

• The special issue bonds are non-marketable, they can’t be sold in the market

• Any way that one looks at it, we the people are paying, and will pay – all costs of SS

• Since its inception The Social Security Administration has questioned its solvency

• The Social Security Administration has stated “Within 14 years the program will begin paying more in benefits than it collects in taxes. By 2042 the trust funds will be exhausted.”

• Total outstanding public debt is $7.6 trillion dollars

• Total outstanding debt of all segments of society is $40 trillion dollars

• Total outstanding un-funded debt is another $44 trillion dollars

• The trend of a 20% ratio of federal expenditures to gross domestic product seems to be entrenched into the economy

• A 20% trend or rate is 7 times or 700% greater than it was prior to 1933

• Since 1930 total combined government spending had gone from a 12% consumption rate of the total national income to about 43% presently

• The government now controls or eats up about 3.5 times the national income that it did prior to 1930 and the trend has been steadily rising

• This is why the private sector capacity has been diminished from 88% in 1929 to about a 57% share of the economy presently and is steadily declining

• This represents a 31% decrease of private sector capacity, not a good trend

• President Bush has stated that “Now, you probably think—some of you may think there's what they call a Social Security trust: the government collects the money for you, we hold it for you, and when you retire, we pay it to you. But that's not how it works. You pay your payroll tax; we pay for the people who have retired, and if there's any money left over, we spend it on government. That's how it works. And what's left is an empty IOU, a piece of paper.”

• Former Treasury Secretary Paul O'Neill has stated that: “...because the Social Security trust fund does not consist of real economic assets, we are left to rely on the federal government's future decisions to either raise taxes, reduce spending, or increase borrowing from the public to finance fully Social Security's promised benefits."

WHAT DOES IT ALL MEAN?

I wish I knew for sure, but I don’t. I do know, however, that there are some very disturbing trends taking place, which are not good for the health or wealth of We The People. The mega trend is that the wealth of the world is being concentrated within fewer and fewer hands. Be it noted, control of the world’s wealth amounts to control of world power. Be not deceived.

Approximately ½ of 1% of the world’s population own 95% of everything. What this means is that a very elite few are getting wealthier, while the majority of the people are getting poorer. So the question naturally arises: why is this occurring, and what causes it to occur?

Well, since we are talking about wealth, let’s define exactly what we mean by wealth. Man has certain basic needs that have to be meant in order for him to survive: he requires food, water, clothing, shelter, heating from the cold, and cooling from the heat, medical services, and many other such needs.

After basic needs of survival are satisfied, many will tend toward more luxurious items, goods that are not mandatory for survival, but add more comfort and convenience.

The commodities and services that man requires to survive are valuable to him, as such they are to him – wealth, as without them he would perish, with them he survives, with excess production accumulated and saved he prospers.

PRODUCERS AND CONSUMERS

There are two basic types of “the economic man”: there are producers, those that make and supply the various commodities and services that supply the market, and hence mankind; and there are consumers, those that provide the demand and then consume the supply of the goods the producers bring to market.

Each individual is either a net consumer or a net producer, they either produce by their own labor more than they consume, or they consume more than they produce. When man produces more than he consumes, he saves the excess production. The excess production that is accumulated is called savings or the accumulation of wealth.

But how does man acquire these commodities or services? He must work, to either directly collect, grow, make or provide goods; or he must exchange his labor to another man that has the goods he needs, or goods that he can use to exchange for the particular goods he requires.

A house does not itself make, it takes hard work and the skill of a carpenter to build a sturdy structure. A garden does not plant itself, it requires the labor of man to prepare the soil, plant the seed, tender the sprout, and harvest the crop.

Man’s labor is the ultimate unit of wealth, as it is only by labor that anything of value can be had; including the intelligence of a wise mind; including the singing of a beautiful voice; including the talent of placing pen to paper, be it by the written word or by the stroke of art.

All is had by labor in the physical world.

THE GAME

There are those that understand the way of the markets, the way of man, his weaknesses, his strengths, his greed, his generosity. They also know how to take advantage of man’s weaknesses if they so desire, to manipulate and exploit them for their own personal gain and advantage. Such is not a good thing, it is the way of the bad seed, the way of the left hand path.

The True Way does not pit man against man, but man against himself – in an inner Spiritual quest to balance the pairs of opposites in all their myriad forms. So what does any of this have to do with money? Plenty.

Man has awoken and found himself to be incarnate within a physical body. He now has physical needs to be fulfilled to survive, needs that he did not formerly have when not incarnate. This is a story seldom told, but its time has come.

Man has not evolved from lower forms of life, man has devolved from higher “forms” of “life”, meaning non-physical non-incarnate forms. Such are the stories of “the fall of man”, ‘the garden of Eden”, of “higher selves”, of “guardian angels”, etc.

If truth exists, then it follows that truth is the ultimate standard for all things that are manifest – truth implies a cosmic or all-encompassing basis for right and wrong, which would be based on what is either in accordance with the truth, or that which is in discordance with the Truth.

That which seeks to be in accordance with truth is good, that which seeks to go against truth is bad.

If truth exists it is perfect, it does not change – it Is. When the perfect comes, the imperfect shall cease to be. That which is perfect is real. That which is perfect is the Truth.

If man’s purpose is to realize and be the Living Truth, that Thou Art That, then it is obvious that for man to seek to go against his fellow man for monetary gain would be to go against the law of right and wrong – to go against truth. To murder or rage war unless in self-defense is to consciously choose evil over good.

If one understands how paper fiat debt money and fractional reserve banking work together in order to provide a wealth transference scheme that enriches the very few elite at the cost of the rest of mankind, then one will see that such is the left hand path, the way of evil, the course that darkness and night afford.

Such is the ways and means that enable most, but not all, of the ½ of 1% that own 95% of everything to have what they have. Make no mistake about it – it does not occur by accident. It is most intended and attended. Be ever vigilante and watchful, a witness thereto. There are those very few honorable men who have helped mankind and amassed great fortunes, but their number is few, while the number of those on the other side is legion.

TOWARDS A NEW THEORY OF MONEY

There are those today that are trying to help the world out of a most precarious position that it has got itself into – it is on the edge of the abyss. The power of the elite collectivists has collectively forced the world to this point – the point of unbalance, in all its myriad forms and expressions.

Some are writing on the Spiritual level, others are writing on the geo-political level, and others on the economic level, etc. There are some very great minds and souls at work here, you can tell them by the fruit they bare.

Professor Fekete has provided the greatest work to date on the most sensible and consistent monetary theory regarding the implementation of Honest Money. Why do we need Honest Money? – take a good look around.

Included in this global high wire act of trying to maintain balance, is the ageless problem in the mid-east that has been going on since day one – the fighting over the Holy Ground or Sacred Temple, the said to be seat of the future would-be ruler of the world that some equate with the anti-Christ; then there is the China and North Korea conundrum; and of course the war on terrorism, to use the popular vernacular. And these are but a few of the hot spots.

Incestuously wedded with these geo-political problems is a world filled with paper fiat debt currencies that are nothing more than wealth transference mechanisms, which are making the few elite collectivists extremely wealthy, and the rest of the world mired in debt. Such a forced life of debt servitude is fertile breeding ground for all kinds of socio-economic problems and abhorrent behavior.

Last, but far from least, is the appalling condition of many of the third world countries that have been raped and pillaged by the elite powers – Africa starkly provides a most telling example. There is no need for such, there is plenty for all - if all is left to free enterprise and free markets.

As stated, Professor Fekete has provided the greatest work to date on the most sensible and consistent monetary theory regarding the implementation of Honest Money. His theory includes the return to gold, and possibly silver as the main stay of Honest Money, accompanied by the use of real bills to facilitate short term (90 day) credit to move goods from production to consumption, as well as gold bonds and other gold backed securities for longer term debt instruments.

Such a theory is honest, as it allows for the removal of paper fiat debt money that is but an albatross of never ending servitude about the necks of the people. This is not a free market system of savings and wealth accumulation that can be had by all or even most, it is a system designed for the elite few to prosper on the backs and labor of the majority.

The new theory of money emphasizes the quality aspect of money – its purchasing power, over and above the quantity theory of money that stresses more units of money. If the quality or purchasing power is going down, as exemplified by the 95% loss of the purchasing power of the Federal Reserve Note since 1913, it renders the money nothing more than a tax claim coupon receipt in drag.

What I would like to offer towards a new theory of Honest Money, is a grounding of the theory, a reason and purpose for such to be had. If, as discussed earlier, there is a purpose to life, and that purpose is for the progression of the human race, not only physically but Spiritually as well, then Honest Money, and honest dealings between honest men, must be part and parcel of such progression.

Money is at the foundation of our physical existence, as such - greed, one of the seven deadly sins, allows money to be a misused tool in the hands of the greedy – a most powerful tool that engenders pure power, raw, unleashed, and unabated.

With power comes responsibility, if responsibility is not accepted and practiced, the result is an unbalancing, the unbalance seen all about.

There are those that believe that man did not evolve from the lower animals, but that man devolved from a higher Spiritual being, reminiscent of the stories of the fall of man, of the garden of Eden, of fallen angels; of beings from another world that walked the earth before man; of a Golden Age that knew no strife, no want, no need, no war, no commerce – and hence no money – there was no need for such, as there was no need – no want.

Perhaps what waits ahead in man’s future is a return from whence he has come, to a state where after Honest Money he will not need any money, as the purpose of life will be fulfilled, the Spiritual purpose of life. But first a return to Honest Money is needed as a stepping stone along The Way.

THE GOLDEN AGE

"Behold what manner of race the fathers of the Golden Age left behind them! Far
 meaner than themselves! but you will breed a viler progeny! Verily wars and cruel
 bloodshed shall be unto men and grievous woe shall be laid upon them."
 [Dike to the men of the Silver Age. Aratus, Phaenomena 123]

 Don Quixote: "Happy the age, happy the time, to which the ancients gave the name
 of golden, not because in that fortunate age the gold so coveted in this our iron one
 was gained without toil, but because they that lived in it knew not the two words
 'mine' and 'thine'!" [Miguel de Cervantes, Don Quixote, Part I, Chapter XI]

 [255] "What we call birth is but a beginning to be other than what one was before; 
 and death is but cessation of a former state."

After contemplating the many faces of change, he also writes:

 [259] "Nothing, I feel sure, lasts long under the same appearance. Thus the ages
 have come from gold to iron ..." [Ovid, Metamorphoses]

Perhaps the point becomes the circle, and the circle remains unbroken. Perhaps not. Perhaps there is no perhaps.

SOCIAL SECURITY REVISITED

As you have assuredly noticed, much of this series has been about a bit more than just Social Security, which is due to the fact that Social Security is about much more than just itself.

If one is going to study the Crusades, they will find that the Crusades are just part of a much larger story. Such is the interconnectedness of all aspects of life. Our bodies for example, have star dust within, and without – as above, so below.

Social Security is just one of many bricks in the wall, the wall of a monetary system of paper debt-money, a system that distributes and transfers wealth from the many to the few. Social Security was the cornerstone of Roosevelt’s New Deal, but the question not often asked is – did Roosevelt think up the New Deal all by himself, or did he have help?

Well, remember who sent Roosevelt the letter explaining what actions should be taken by him regarding the banking system’s state of virtual bankruptcy – The Federal Reserve – the bankers.

Make no mistake about it, monetary policy starts with the bankers, which uses the government as it’s shill; and we are not talking about central bankers, we are talking about the elite international bankers and financiers that invented central banking, as another one of their tools of collection.

After Roosevelt confiscated the people’s gold, and handed it over to the bankers, he needed something to calm the masses – hence his New Deal: don’t worry, be happy: the government will now take care of you.

But where was the money to come from to pay for all these New Deal Programs? The bankers were more than happy to loan the government the money, but where was the government going to get the interest rate stream to pay the bankers off with? Voila – a new tax to go with the new deal – Social Security, just enough to keep the bankers happy, at least for awhile.

As has been covered in the previous parts of the series, the name Social sums it all up quite well – as Social Security is pure socialism through and through, as were all the New Deal programs.

Notice how well Social Security goes with paper fiat debt money – both are just another form of taxation: one makes it seem like you are contributing to your future needs, as well as to other less fortunate and needy souls; while the other is a stealth tax, more deadly than all others combined, as illustrated by the loss of 95% of the Federal Reserve Note’s purchasing power since the Fed took control in 1913. If the government taxed you at that rate, what would you say?

Well, guess what? – They are.

MONEY AND THE STATE

Money should not be an instrument of the State, nor at best what amounts to a quasi-government sponsored entity of the State – The Federal Reserve. Both are but incestuous lovers that thrive off of one another in a symbiotic relationship reminiscent of the whore of Babylon and her suitors.

History has shown that government controlled systems of paper fiat debt money do not last, as they are inherently inflationary, which eventually debases them into worthlessness; when they are no longer accepted by the people as a viable medium of exchange.

Why? Because they loose their purchasing power – that is what inflation is – the loss of purchasing power, which is all that money is good for, to purchase or exchange for other goods.

The cost or price of goods do not go up of their own accord, prices go up because the purchasing power of the money goes down. Remember, when one buys goods with money, they are selling their money. When one sells their goods, they are buying money.

Money should not be controlled by the State by declaring legal tender laws, as this subjects money to the game of politics and self-interest, and special interests – and the lust of power and greed that such engenders and feeds.

Money must be allowed to be free, to work within free markets according to the natural laws of supply and demand; not according to the whims of the Federal Reserve to add or delete money from the economy when they so desire.

To believe that a committee of 13 men can know better than the collective forces of the entire economy, how to administer the monetary system to the economy, boggles the mind. Such is nothing more than megalomania at best, pure collectivism at worst.

It is time for the establishment of a nonpolitical monetary system, run by and for private enterprise in a free market.

The Constitution states that no bills of credit are to be issued. Congress followed this mandate for its first 70 years of existence, as only gold and silver coin were minted for private owners of the gold and silver, who would bring the precious metals to the mint for minting.

Then came the Civil War and the greenbacks, the first federally issued counterfeit money. It has been all downhill since.

Counterfeit money allows the government to run budget deficits to their heart’s content, pandering to all special interest groups that pony up. By ever increasing the amount of money in circulation, the government and the bankers use the quantity theory of money to fool the public into believing that prosperity is being had – that wealth is on the increase.

Nothing could be farther from the truth, as such a proliferation of currency, as compared to the actual demand for it, causes nothing but the debasement of the currency, and rising levels of concomitant debt.

In truth, there is no “real” deficit, as the inflation or debasement of the currency is the tax that goes to fund the deficit, just as the debasement of the currency is what has enabled the Social Security Trust Fund to be funded by special issue bonds, bonds that are non-negotiable – that cannot be sold in the market. Paper promises for other paper promises – debt to offset other debt, such is the way in paper fiat land.

WHAT IS THE ANSWER?

Social Security is a socialistic system, as was all of The New Deal. There are only minor differences between socialism, communism, and fascism – all favor the State over the individual.

The Constitution of The United States favors the individual over the State, such is the ideal our country was founded on. It is time we return to that ideal, and to the Constitution. The welfare state is a seductress that entices with the promise of wealth, without having to work for it. Such is but illusion and delusion, it cannot be had or sustained.

Our Constitution states that no bills of credit are to be issued; only silver and gold coin is to be minted – precious metals that are owned by the public and brought to the mint for coining.

The Constitution did not delegate the authority to the government to create or issue money, but to simply mint and coin silver and gold as money, according to a standard for the monetary unit, and a system of coinage based on that unit. Nothing less, nothing more

Once the State usurped the control and power of the money issue, a whole New Era had been entered – an era of debt, debt, and more debt – until the currency is no more. Such is inevitable when the State is allowed to intervene and control the basis of the economy and all finance – the unit of money, the money issue.

What is the answer? The answer is to return to free enterprise, to private enterprise, to private issue of money. Return to the ideals and principles of The Constitution. Return to freedom in all aspects of our life – before it is too late.

Ode to Gold

“Whenever destroyers appear among men, they start by destroying gold money, for it
 is man's protection and the base of a moral existence. Destroyers seize gold and
 leave to its owners a counterfeit pile of paper. This kills all objective standards and
 delivers men into the arbitrary power of an arbitrary setter of values. Gold was an 
 objective value, an equivalent of wealth produced. Paper money is a mortgage on
 wealth that does not exist, backed by a gun aimed at those who are expected to
 produce. Paper money is a check drawn by legal looters upon an account which is not
 theirs: upon the virtue of the victims. Watch for the day when it bounces, marked:
 "account overdrawn".

 When you have made evil the means of survival, do not expect men to remain good.
 Do not expect them to stay moral and lose their lives for the purpose of becoming
 fodder for the immoral. Do not expect them to produce, when production is punished
 and looting rewarded. Do not ask, "who is destroying the world?" You are.

 You stand in the midst of the greatest achievements of the greatest productive
 civilization and you wonder why it's crumbling around you, while you are damning its
 life-blood - money. Throughout man's history gold was always seized by looters of
 one brand or another, whose names changed, but whose methods remained the
 same: to seize wealth by force and to keep the producers bound, demeaned,
 defamed deprived of honor. So long as production is ruled by force and wealth is
 obtained by conquest, there is little to conquer. Yet through all the centuries of
 stagnation and starvation, men exalted the looters and despised the producers. The 
 rotter who simpers that he sees no difference between the power of gold and the
 power of the whip, ought to learn the difference on his own hide - as I think he will.

 When gold ceases to be the tool by which men deal with one another, then men
 become the tools of men. Blood, whips, and guns - or gold. Take your choice - there
 is no other - and your time is running out.” [Ayn Rand]

Chronos

The transient

"Time does not efface what noble men leave behind, and their prowess shines forth even when they are dead." [Euripides, Andromache 775]

"Pythagoras, when he was asked what time was, answered that it was the soul of the heavens. For time is not an attribute or accident of any chance motion but cause and potency and principle of that which holds together all the things that come to be ..." [Plutarch, Moralia: Platonic Questions 1007b]

“We are not sure of sorrow,
And joy was never sure;
Time stoops to no man's lure;
Today will die tomorrow"
[Algernon Charles Swinburne 1837-1909, The Garden of Proserpine]

© 2005 Douglas V. Gnazzo