Prelude and Source List to a Series on Global Monetary Policy of Control and Explaining Big Government's Finances by Jake Towne, the Champion of the Constitution
(libertarian)
Friday, August 1, 2008
Dear Reader,
This series will seek to explain what I've nicknamed the Money Matrix. We will first discuss what money really is or should be, then educate ourselves on why the current global monetary system is intrinsically flawed. As we proceed, taboo topics or not-well-understood time-bombs like the Federal Reserve, financial derivatives, and hyperinflation will be discussed. The last part of the series will seek to provide basic understandings of US big government finances such as the national debt, social security, the income tax, the trade deficit, etc. My goal is to explain this as simply as possible and how the current global monetary policy is morally wrong, so please ask any questions as probably both you and I will learn something further.
However, anything I write will just be tidbits of a greater truth, what I write will not be a substitute for thorough understanding. With that end in mind, I've included an online source list with comments at the end of this letter for you, the Reader, to peruse.
For your reference, this column really started with my outrage and personal search for truth concerning the morally wrong American wars of invasion or the "War on Terror," but in a way I now believe I have been treating just a particularly egregious symptom, not the disease itself. Like Neo choosing the pill of reality, I believe I have at last come in contact with the walls of this 'Matrix', and having ripped a hole in it, and at long last can peek out and gaze at a reality for the first time from the outside in. I see how this Matrix has enslaved (or controlled, take your pick) all, and constrained mankind from our full potential. I see how this Matrix has enabled more wars and strife for our world, and I will now oppose it, rid of my ignorance. However, make no mistake, history is littered with battles of free men against this Matrix, and the wreckage of defeat is strewn throughout the sands of time, as well as the modern day. (To clarify the 'Money Matrix' idea, I believe it just consists of people and groups with their own motives, ideas, beliefs, resources, and desires, not some type of wacko conspiracy. These people (just like I) are just acting out life in their vision which may include "for the greater good of all" or for more self-centered reasons.)
I stand on the shoulders of giants like Thomas Jefferson, Andrew Jackson, Murray Rothbard and Ludwig von Mises, and follow in the footsteps of modern-day heroes like Dr. Ron Paul, Chris Powell, John Williams, and Lance Detweiller, so what I will write is not a brand new way thinking, but it certainly will be new for many. However, let's see if I can interest you, Reader, with anything I write. Although the evils of this Matrix are depressing and will likely result in tumultuous times, especially for America, I will include my thoughts on what could be a very bright future - the name may very well be Austrian economics although there are other possibilities. It is your decision, Reader, not mine, on whatever you do next, thanks for reading.
However, the main purpose of this series is simply to interest and educate. Knowledge truly is Power. It has also been my discovery that Liberty comes as a package, of economic freedoms, personal and civil freedoms, or freedom from war. A free society cannot just have one part without the whole, just as a keystone needs the rest of the arch. I urge all Readers to ask any questions or leave any comments in the articles, or send me an email at jaketowne AT gmail DOT com.
Fortunately, if my version of freedom is what you want, it is yours for the taking. Let's get started.
The Money Matrix - What is Honest Money? (PART 4/15) Published: August 7, 2008 "If You Don't Know Who the Sucker Is, Then It's You!" The Money Matrix series rolls on by asking 'What are the Types of Money?' and 'What is the "Best" Currency and Why?'
The Money Matrix on the Grand Deception of Seigniorage (PART 5/15) Published: August 24, 2008 "Do not give in to evil, but proceed ever more boldly against it." The Money Matrix explores Seigniorage as Legalized Silent Plunder with an introduction into medieval and modern banking.
The Money Matrix on "Credetary" Inflation and Deflation (PART 9/15) Published: April 7, 2009 Many followers of the Austrian school have made a critical error in forecasting the future. For, although Austrian Monetary X-flation plays a part, Austrian Credetary X-flation must be understood as well.
The Money Matrix - What the Heck Are Derivatives? (PART 10/15) Published: December 9, 2008 This article seeks to define financial derivatives and why they are so important. Future and spot market basics are also examined so the Reader understands how the price of gold and silver is determined.
The Money Matrix - Bring Light to Dark Derivatives! (PART 11/15) Published: April 7, 2009 July 24, 1998, was an epic day for the global financial system. Federal Reserve Chairman Alan Greenspan stood before Congress's Banking and Financial Services and testified. This article and the next part will focus on these two testimony excerpts concerning derivative regulation and the gold market.
(if any links don't work send me an email and I will email you the pdf file, with the exception of the link to Anthem, which has copyright issues)
Rothbard, Murray N. "What has the Government Done with Our Money?" (1990) A 50-page document that describes Austrian economics. This is the critical key to everything in this series. Rothbard has written a host of other great sources as well, like the 1994 work "The Case Against the Fed."
Detweiller, Lance. "Fractional Reserve Banking as Economic Parasitism." (2002) Simply a powerful modern comparison to how the current global monetary system is stealing from the people. Strongly recommended for anyone with an elementary knowledge of the banking systems, or can be read after the Federal Reserve articles in this series. Detweiller's views of the future are quite interesting, whether it is a "full-reserves" system, or "honest money." For those who may be put off by his scientific correlations to the Ideal Gas Law, thermodynamics, electrical currents, etc. just press through, these are meant as food for thought, not literally. The rest of this 60-pager is worth your while.
Bastiat, Frederic. "The Law." (1848) Takes an hour to absorb, it is so key to understand his concept of how the government can "legally plunder." Bastiat describes why the force of the state used to rob or redistribute wealth from the populace is a major moral wrong. Bastiat wrote this in France as the socialists drove the country to ruin. This source and the Ayn Rand novella below are best to read before the latter part of the series on the massive US government finances.
Rand, Ayn. "Anthem" (1938) A short 25-page novella set in a future of totalitarian government control. Just as elegant as Bastiat, Rand was warning the world to be on guard against the evil side of socialism, or the sacrifice of yourself for the good of all, many elements of which are present in the United States today.
Williams, John. "Hyperinflation Special Report." (2008) Great reading on worst-case scenario for the dollar. I myself delved into Weimar hyperinflation in a previous article here.
Paul, Ron. "Pillars of Prosperity." (2008) A 400+ page compilation of Dr. Paul's writings. After reading these, one realizes that Dr. Paul did very little recent work in putting together his best-selling "The Revolution" as most of this book was written 20+ years ago.
Anonymous. "Silent Weapons for Quiet Wars." (1979?) Whether the author was an individual or a government is fairly moot. The crux of this document is the idea for a weapon system unlike all others that stealthily takes over and controls society. The idea that this is possible is important to grasp. See also the Detweiller article. One concept, that of economic shock treatment, is similar to Naomi Klein's theory in the new bestseller "The Shock Doctrine."
Jackson, Andrew. "Why the United States Bank was Closed." (1832). President Jackson outlines the evils of central banking and explains why he closed the country's central bank, which was a predecessor of the Federal Reserve. Fueled by an indomitable will, Jackson succeeded.
McFadden, Louis T. "Congressman McFadden's Speech on the Federal Reserve Corporation." (1934). A passionate plea to Congress to impeach the Fed Board of Governors and the Secretary of the Treasury. McFadden was probably assassinated. His name is blackened by anti-Semite charges per Wikipedia, although there is no mention of this in his speech. A refutation of his speech is here, in my opinion it is toothless.
America, Were Michael Phelps' Eight Olympic Gold Medals Worth Winning? Published: August 24, 2008 Michael Phelps and other American athletes are bringing back loads of Gold, Silver, and Bronze Medals from the Beijing Olympics. A young libertarian economist asks if it was worth it.
Save Ron Paul's Voice - A Money Matrix Addendum Published: September 28, 2008 Learn how by reading. Article is intended as a poke-in-the-eye for members of the Ron Paul Revolution who complain about the bailouts and the financial, banking, and housing crises and do not realize that they may in fact be hypocrites.
MY PROPHECY - The Federal Reserve Will End! A Money Matrix Addendum Published: October 29, 2008 Many of the Prophecies of Ferdinand Lips from 2005 are becoming true. "Right now [the FED] is creating the biggest housing bubble in history. This may lead to economic collapse. I expect that a revolution will one day take place against the Fed. It must be abolished. After all, its founders were not that intelligent but rather stupid men. Or they were devils. It is a tragedy. Not only that: It is the biggest tragedy in world history, even worse than wars. Yes, worse than wars. It made most people poor. It damaged America. It caused wars and then helped to finance them."
Police State Invades Mayor's Home & Kills His Dogs Published: August 1, 2008 "It was inconceivable to me that my government would be coming through my door." - the Mayor of Berwyn Heights, Maryland, or a recent police raid on his residence
The views expressed
in this article are those of Jake Towne, the Champion of the Constitution only and
do not represent the views of Nolan Chart, LLC or its affiliates.
Jake Towne, the Champion of the Constitution is solely responsible for the contents
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with Nolan Chart, LLC in his/her role as a columnist.
I read through your Matrix material one day and found it to be a plodding, stifling, almost worthless experience. You seem to think that there is no good reason to say in 1,000 words what you can say in 10,000! Get a little brevity, my man! Take a breath every now and then. You write like a man who's in prison for life, and wants to use every minute of it filling up paper.
Every question that's been raised about the Fiat money system has been answered concisely and accurately in my articles. I intend to write at least one more to put to rest some of these lingering complaints that people have. There seem to be lots of complaints, but no real accusations; like going into court and telling the judge and jury "This man is guilty" without even offering any evidence as to why.
So, why don't you stick to your long, drawn out, monologue, windbag approach and keep tallying up the articles you've written while the rest of us have discussions.
Posted By: Jake, the champion of the constitution
Date: 2008-10-06 15:30:49
Dear Master C -
Thanks for writing back. Appreciate your point about the brevity and shall we say pessimistic tone? but am already aware. I suppose its a weakness, but as far as brevity goes I am just trying to what I think is valuable information. Its a little strange as I am actually a very optimistic person.
I've read your articles and respectfully disagree, but thank you for supplying an alternative viewpoint.
It was interesting reading your article about how fiat money forces you to put risk all your money in the stock and bond markets to make more money. I agree but think that investing (or speculating) in stock and bond markets is not saving at all.
“Whatever money you may need for the next five years, please take it out of the stock market right now, this week. I do not believe that you should risk those assets in the stock market right now.” - Jim Kramer, Mad Money, 10/6/2008 http://www.msnbc.msn.com/id/27045699/
