Most of the public is still unaware of that the gold price is currently suppressed by governments and central banks in collusion with bullion dealers. Even fewer realize that suppression of the price of gold has plenty of historical precedence. The following is the story of the London Gold Pool. by Jake Towne, the Champion of the Constitution
Sunday, June 14, 2009
"When gold speaks, all tongues are silent." - Italian proverb
This article will briefly review the history and aftermath of the infamous London Gold Pool. For those unfamiliar with monetary history, let me quickly establish the events framing the London Gold Pool.
In 1933, the FED's monetary inflation caused the Great Depression which was also America's first bankruptcy. FDR plundered the American people's gold and one month later outlawed the private possession of gold, an illegal act that existed until 1975. From 1933 onwards, America was on a "gold bullion standard." A "gold bullion standard" exists when gold coins are not minted and owned by the people, but large international transactions with foreigners are handled in gold bar. However, the FED, America's central bank, continued inflating the monetary supply which debases the currency and likewise increases the foreigner's redemption of gold. (emblem)
Following the chaos of World War II, the heads of the world's 44 industrialized nations gathered in New Hampshire, and made the Bretton Woods agreement. The Bretton Woods agreement made the dollar the world's reserve currency, and stipulated that all member nations' reserves had to consist of either physical gold or currency convertible into into gold (domestically the private ownership of "monetary" gold remained a felony until 1975). These member countries then had a "gold exchange standard" and manipulated their currencies on their national level, often trying to devalue their currencies at the same or slightly higher rates than what the dollar was being devalued, or inflated, at. (photo of the Bretton Woods hotel used for the conference)
The Bretton Woods system began to break down very quickly. In the 1950s, the United States found itself having to redeem vast sums of gold. In the recession of 1958, the FED created $2.25 billion of excess credit, which was redeemed by foreign central banks. This annual loss of 2,000 metric tons of gold still remains the largest known loss of gold in one year by any nation in history - currently, on paper the United States is still the largest official owner of gold at about 8,100 metric tons categorized as "Custodial Deep Storage Gold." (see note 1)
By 1971, President Nixon had declared America's second bankruptcy. The FED had inflated the money supply by too much to fund the Vietnam War and President Johnson's "Great Society," and America was no longer able to redeem foreign-held dollars into gold. The world entered the twilight zone of freely floating exchange rates. In between 1958 and 1971, the several governments and central banks fiendishly created the London Gold Pool to suppress the price of gold.
THE LONDON GOLD POOL
In October of 1960, gold trading on the London gold exchange reached $40/ounce, which was $5 higher then the central bank's target price. Rampant speculation that a Kennedy presidency would lead to more inflation, along with the building of the Berlin Wall and the U-2 spy plane incident, triggered fears about economic stability.
To curtail these fears, President Kennedy pledged in February 1961 that America would maintain the official price to our foreign creditors, and the price of gold fell to $35/ounce. Fearing a relapse, the international bankers of the BIS and the FED-US Treasury secretly formed the London Gold Pool. Each member of the Pool would pledge some of their gold to keep the London market suppressed. The Bank of England would dump their gold on the London market whenever necessary, and at the end of each month the other members would reimburse the BoE in accordance with the percentage of the pool they owned. The members were:
50% - United States of America with $135 million, or 120 metric tons
11% - Germany with $30 million, or 27 metric tons
9% - England with $25 million, or 22 metric tons
9% - Italy with $25 million, or 22 metric tons
9% - France with $25 million, or 22 metric tons
4% - Switzerland with $10 million, or 9 metric tons
4% - Netherlands with $10 million, or 9 metric tons
4% - Belgium with $10 million, or 9 metric tons (Photo)
By acting in secret, the governments hoped to stagnate the market and keep potential buyers away. In 1962, a series of events involving Soviet sales of gold led to a change in strategy by the Pool. They found themselves able to profit off the changes in gold supply, and at one time in 1965 the Pool even reached $1.5 billion, or a five-fold increase over the initial Pool gold. However, the Vietnam War expenses after 1965 combined with the French shipping its' $3 billion in gold from the New York FED to Paris, and leaving the Pool in 1967 led to catastrophic losses.
"The announcement on Thursday, December 7, of a $475 million drop [422 metric tons - auth] in the Treasury's gold stock seemed to have been accepted by the markets as about in line with prior expectations of the costs of the gold rush following sterling's devaluation. What the market did not know, of course, was that only a $250 million purchase of gold from the United Kingdom saved the United States from a still larger loss in the face of some foreign central bank buying... The logistical acrobatics of providing sufficient gold in London were performed with a minimum of mishaps, although the accounting niceties were still being ironed out.
"Of greater concern, however, was the fact that the drain on the pool was accelerating again... the measures taken by the Swiss commercial banks and by some other continental banks to impede private demand for gold worked quite well, although it was clear from the start that such measures could serve only as a stop-gap until some fundamental change was agreed upon. Persistent newspaper leaks--mainly from Paris--about current discussions on this subject and their reflection in gold market activity Monday and today pointed up the need for speed in reaching a decision. " (3-4/107) (photo of then-FED Chairman William Martin)
On page 15/107, the group then discusses placing "restraints on access to the London gold market" and it was commented that Italy and Belgium were "not prepared to stay in the gold pool indefinitely if that would mean continued substantial gold losses." The group did agree to then implement "some program of restraints on demand, particularly in the London market, should be worked out; in the meantime, all of the participating countries were willing to stay in the pool... In particular, the British were concerned that limitations on access to the London market, by diverting demand elsewhere, would work to the detriment of that market which for the past 13 years had been the world's principal market for gold."
These excerpts also serve to remind us all that the central banks love their hold on the money power. However, from some of their perspectives, they may well believe they are simply doing "what's best," blindly disregarding the fact that all of their interventions and controls are only made necessary from their prior meddling with the free market:
"Although the German case was the most striking example of central bank operations following the meeting in Frankfurt, the availability of forward cover into guilders and Belgian francs at reasonable rates had also helped to reassure the [gold] market." (7/107)
"Under Secretary [of Treasury] Deming, who had led the U.S.delegation to Frankfurt, made the necessary arrangements, and the group met with him in Basle yesterday. Meanwhile, representativesof the countries in the gold pool met in Washington last week to make a preliminary review of possible additional measures to keep the gold market situation under control. Not unexpectedly, the gold pool also was the main topic of conversation at the regular Basle [Switzerland, the home of the BIS - auth.] meeting on Saturday and Sunday, and it wasdiscussed in detail by the governors on Sunday evening." (12-13/107) (see note 2)
On pages 13-14, the FED also mentions the "gold certificate plan" which I personally believe is a likely prototype for the emergency fall-back position of today's gold cartel after the price of gold spikes on the modern futures market. A particularly damning passage concerning the erosion of America's sovereignty from Congress to the unelected Treasury Department to the cabal of international bankers is here:
"Governmental structures differed among countries, and the United States was almost unique in assigning to the Treasury sole responsibility for external matters involving gold. In many countries the central banks had primary responsibility in that area, although they often were required toconsult with their governments. Moreover, central bankers commonly felt that they had greater knowledge and understanding of the practicalities of gold markets than did officials of their governments. Accordingly, it was probably the view in most countries that a meeting of central bank governors was the most appropriate forum for discussions of the type in question. The governors recognized, of course, that in the United States the Treasury had central responsibility with respect to gold, and accordingly they were willing to meet with Mr. Deming yesterday." [Deming, of course, was quite literally a FED stooge, just like today's Timothy "Turbo Tax" Geithner, see note 2]
Following these minutes, on Sunday, March 17, 1968, the London Gold Pool collapsed and the global gold markets were closed for several weeks. The central bankers then decreed a "two-tier" gold price for "monetary" gold at $35/oz. and "non-monetary" gold. This system remains in place to this day, although it is clearly just an accounting sham. (see notes 3 and 7)
THE AFTERMATH OF THE LONDON GOLD POOL
On Monday, March 18, 1968, Congress removed the 25% gold reserve backing requirement for Federal Reserve Notes. In April, despite further panicked attempts to suppress it, the gold price reached $44/oz. The price was then kept bottled up by actions by the Swiss, American, and English central banks, including massive gold sales from the Soviets to the Swiss and gold redemptions by America.
By 1971, more than half of the gold illegally stoled by FDR from the people had been delivered overseas, mostly winding up in the vaults of European central banks. On August 15, 1971, President Nixon was forced to declare national bankruptcy and closed the Gold Window. This meant foreigners could no longer redeem dollars for gold.
The world's central bankers and governments rushed to Washington, D.C. and made the Smithsonian Agreement, where, against all reason, all parties agreed to go on pretending as if the gold window had never been closed and merely set new fixed exchange rates. Finally, with the gold price at $90 and the turmoil resulting from the debasement of the dollar leading to a major recession, the system of fixed exchange rates completely collapsed, marking the final nail in the coffin of the Bretton Woods monetary system. From this point onward, all currencies "floated" against each other, opening wide the door to non-stop currency debasement, inflation, and FOREX market speculation. (note 4)
In 1974, New York's COMEX futures market was opened to gold trading, paving the way to the "paper gold" derivatives and ETF's of our modern day. In December 2008, the nominal value of all gold derivative contracts was $395 billion USD, or roughly equivalent to 15,000 metric tons of gold. In 2007, the last reported year, the LBMA, or the London gold market, exchanged over $20 Trillion USD in gold - the 2008-9 annual market turnover will likely dwarf this.
My message is a third American, possibly global, possibly even final, bankruptcy is imminent in the coming years as I first clearly denoted in this series. Similar to the closing of the gold window in 1971 being preceded by the demise of the London Gold Pool, this bankruptcy has been preceded by former Treasury Secretary and current Director of the National Economic Council Larry Summer's gold price suppression plan enacted in the 1990s. (photo) (see note 5 and 6)
The "Summers Suppression Plan" has been bolder, more clever and more clandestine than the London Gold Pool, but may well be on its last legs. Though they may wear Brooks Brother suits and meet in corporate boardrooms and the highest political offices in the land, those who suppress gold are no different than mafia thugs in suits. For in doing so, they also suppress the free market and the prosperity it could deliver if the "money power" once more resides with We the People. More on Summers Suppression Plan in the upcoming parts of the Money Matrix series.
In the meantime, please mark my words. When gold speaks again, the Summers Suppression Plan will be no more. As sure as night follows day, its fate is the same as that of the London Gold Pool.
Lips, Ferdinand. 2001. Gold Wars. New York: The Foundation for the Advancement of Monetary Education. Amazing perspective on gold from an ex-Rothschild banker. The main source for the above information on the London Gold Pool.
Note 1 - The suspicious re-categorization of America's gold hoard as "Custodial Gold," then "Custodial Deep Storage Gold" is a critical topic in its own right and has been left unchallenged save for the efforts of a valiant few, Reginald Howe and the Gold Anti-Trust Action Committee (GATA). See the US Mint's 2008 gold audit, "Howe vs. BIS" and "The "Smoking Gun"" for more details.
Note 3 - The FED's reported "gold stock" of 261 million ounces is currently listed as an asset of $11 billion USD, or $42.22/oz. At current market prices, this gold would be valued at nearly $250 billion.
Note 4 - Even though the government paper of today's fiat currencies are completely unchecked by the discipline of gold, the below quote is from the same above FED meeting minutes. Back then central bankers at least attempted to not drink from the same punch bowl they served the financial markets:
"The excessive demands for goods and services and the accompanying rise in interest rates were, once again, beginning to curtail the availability of funds for mortgage financing. The longer the excessive demands persisted, the more certain it was that a serious "credit crunch" would come. Temporarily pacifying the financial markets by rapid injections of bank reserves, bank credit, and money was no real solution. Continued provision of bank reserves at the recent rapid pace only reinforced the excessive spending and market expectations and induced even more urgent demands for credit.
"Unfortunately... vigorous fiscal action to help reduce total spending, huge credit demands, high interest rates, and inflationary pressures had not been forthcoming. Economic stabilization depended on avoiding further excessive monetary expansion. Both domestic needs and the international balance of payments position of the United States called for the same policy prescriptions. Restraint on total spending was essential to relieve financial market pressures, to foster sound economic growth, and to protect the strength of the dollar at home and abroad. Moderate monetary restraint could contribute to achievement of balanced economic expansion." (54/107)
Note 5 - In his paper "Gibson's Paradox and the Gold Standard" from 1988, Summers realized that when real interest rates are positive, the price of gold declines as people prefer the government's paper currencies. The converse is also true - when real interest rates are negative, the price of gold increases. Therefore, when the government embarked on a lengthy period of negative interest rates, they were aware that the price of gold must be suppressed. This isn't exactly the work of a genius, but Summers is no dummy either.
Note 6 - In the interests of fairness, Summers claims in his June 12 address to the CFR (Council on Foreign Relations) that "we only act when necessary to avert unacceptable -- and in some cases dire -- outcomes... Our objective is not to supplant or replace markets. Rather, the objective is to save them from their own excesses and improve our market-based system going forward." in relation to his actions for the Obama administration.
Note 7 - In the March 14, 1968 FED minutes (page 3/28) "the international financial system was moving toward a crisis more dangerous than any since 1931. The hurricane of speculation that had occurred on the gold market was likely to be succeeded by a similar hurricane on the exchange markets." The FED then made plans to increase swap lines and 'inject liquidity' - or print money and extend massive amounts of credit - to continue the scheme.
We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.
As always, unlike the NFL, the author grants full permission to allow any accounts of, rebroadcasts, retransmissions, repostings of this article to your blog or anywhere else in order to promote the Restoration of our Republic.
Veritas numquam perit. Veritas odit moras. Veritas vincit. Truth never perishes. Truth hates delay. Truth conquers.
Tu ne cede malis sed contra audentior ito. Do not give in to evil but proceed ever more boldly against it.
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
of this article and is not an employee or otherwise affiliated
with Nolan Chart, LLC in his/her role as a columnist.
Posted By: Jake, the Champion of the Constitution
Date: 2009-06-15 17:55:55
An interesting reply received, thought I would repost:
Nice research. Allow me to complete that whole story for you. The development of a free floating debt based fiat currency (and all the evils associated) was an absolute necessity to the eventual development of real-time 100% gold backed digital currency that adheres to the natural laws of supply and demand.
The gold-dollar peg had to be abandoned , not because of gold, however, but because of the pegged relationship that gold had with the dollar. Under the pegged rules of BW, creating more currency meant needing more gold weight with gold being the real money and paper (currency) being the proxy. In other words, increased demand for more money meant a county had to have more gold by weight or claims on gold weight by way of the dollar.
An increased demand for more gold weight, for anyone who understands gold, is unrealistic and unsustainable given the very nature of supply-demand fundamentals for monetized gold. What could be done , however, was to set gold free to float against currency and let the market decide the trade value. This was a good step toward a greater goal, but the goal of monetizing gold in real time would have to wait. Although higher gold prices were permissible after the peg was severed upon the demise of BW, there was no practical way of "splitting the gold weight" who's trade value was allowed to rise on the basis of more currency being created, whether it be through real growth or inflation. Gold became a commodity in regards to its role until such time that a simple and user friendly method could be adopted in order to "split the gold". There were no P.C. computer networks back in the early 1970's. A real time gold money, unfortuately, would have to wait.
Debt based fiat was indispensable to the development real-time gold that we have today. Real time gold solves our financial dilemma. We don't have a design crisis in so much as we have a marketing challenge, one that is only supported by the established order by their role of "carrying the stick".
Real time gold money requires no more gold bullion. It only requires a free floating price. In the meantime, our "friends" at the bullion banks and the COMEX are nice enough to make gold under priced as per fundamentals and are in fact "holding the ship at the dock so that more people can get on board". I only wonder if those people are listening ??????? Gold is a major bargain !
If you now look back on the history of the necessity of fiat's role, everything going back to the formation of the Bretton Woods (for centralization purposes) and the FED become necessary too. God works in mysterious ways, no doubt !
BTW, I am an avid member of jsmineset.com and I'm also a "Gold Comet". I received a pure gold pin from Jim Sinclair back in 2004. I have relayed the above revelation to Jim in the past and although I have always received a response from Jim on the matters of gold discussion, on this particular subject, there was no comment at all. No praise, no critical analysis."
Posted By: Sonic Ninja Kitty
Date: 2009-06-16 20:38:52
WOW! Just WOW! I had never heard of the London Gold Pool before. Nor, well, anything else in this article. My knowledge of the 60s and 70s is limited to JFK, MLK, Vietnam and Watergate (along with the Bee Gees and the normal Micheal Jackson--hey, it was a fun decade--junior high was good to me!).
So, bottom line--let me get this straight--is you think the powers that be are setting this all up for a move to monetized gold and that the value will be way above what gold is traded at today? Or that they are still trying to maintain a suppression strategy but it will just not hold?
If/when this happens, what will happen to all our paper currency, bank accounts, and investments?
Wow. I still have to think on all this--it's all new to me.
What is the role of Obama in all this--is he just a figurehead? And will the central bankers return power to Congress?
Sorry for all the questions but I am just trying to figure out what will happen to 'regular' people (ie, anyone who's not a banker) when this all collapses. Does it really matter if we have gold/silver or not? I cannot imagine such a huge national upset where anything is predictable or reliable for a long time after that.
Posted By: Jake Towne, the Champion of the Constitution
Date: 2009-06-17 05:37:09
Dear Sonic Ninja Kitty -
Thanks for your comment, I will take a stab at replying, but please keep in mind for most of the replies, it's just my opinion.
"you think the powers that be are setting this all up for a move to monetized gold and that the value will be way above what gold is traded at today?"
No, I believe that the BIS/central banking cabal never expected this. crisis I think they believed they could expand their grasp over world resources - ie Middle East oil, and at the same time move towards one world fiat currency - one Ring to rule them all. The Euro was part of that plan, and the Amero - which was intentionally leaked by Canada, the US, and Mexico - was a big second step. They are well aware of gold, but thought they had finally killed it with their paper markets. They are wrong.
"Or that they are still trying to maintain a suppression strategy but it will just not hold?"
In my view, the current suppression plan cannot hold. The cabal can fake all the paper they want -- physical deliveries will destroy them. A silly yellow metal will prove stronger than their strongest aspirations. The Asians will quickly comprehend this - for them, gold never stopped being money, being insurance. It's the American public and my home district that I am racing to educate. Now as to when? I do not know. I hope there is enough time for people to protect themselves and happens quickly enough so this Depression doesn't drag on for the next decade.
"If/when this happens, what will happen to all our paper currency, bank accounts, and investments?"
Well, history teaches that all paper money will go to zero - this time will be the same, all of the Keynesian statistics models on the worlds fastest computers wont save them - because they utterly fail to understand Mises's theory of human action.. Whether this drop is gradual or not, I don't know. In some ways that statistic that the dollar has lost 96-7% of its value is useful. The closer to 100% we get the more chances it loses the rest of its value exponentially - via hyperinflation --- now due to the Treasury market/FED we may actually experience deflation (technically we are still inflating) for a couple years first.
Bank accounts were never "yours" to begin - they are all "promises to pay". This doesnt mean you wont get your money, but when the system goes down, forget about it. Purchasing power lost. The banks lent it out via frac reserve banking, and you have no collateral that they will repay it. (Quite the opposite when the banks lend YOU, eh? :)
As I commented in "Off a Cliff with No Airbag" you will likely eventually get paid with dollars, but the question is how much purchasing power will they have when you receive them??
On investments, I suppose it matters what type. As always if the company collapses, your money is gone. However, during hyperinflationary periods the stock market can be a major site of speculation - like in the Weimar Republic - as long as the chaos keeps the market intact.
"What is the role of Obama in all this--is he just a figurehead? And will the central bankers return power to Congress?"
Obama, poor guy, is out of his league. When he was campaigning he explained he didnt really understand economics - he talks the talk, but he doesnt really quite grasp what he is doing - I think he feels forced along the route (but also believes its for the best). After he selected Summers, Volker, and the FED's stooge Geithner to be his lieutenants, it's game over - all of the advice Obama will receive will be poisoned. A POTUS is pretty isolated from the people, when you get down to it - I am sure he will never google "London Gold Pool" :) (Did you notice Wiki doesnt even have an entry for it?)
I think the central bankers will hold on to the money power unless the People show up and pry it away from their cold, dead fingers. I suppose by reading my articles you are getting a good feel for why I am running for Congress - I truthfully would prefer to do other things, but this is a battle that I cannot turn my back to.
"Does it really matter if we have gold/silver or not? I cannot imagine such a huge national upset where anything is predictable or reliable for a long time after that."
Hey look, the world isn't going to end. If you study history, the world's worst regimes took power because no one was willing to step forward. In the USA, we have a great chance because people here still identify with the founding of our country. It's gotta to be hard to believe that Washington or Jefferson would ever dare run GM if they were POTUS right now. And YES, I do believe it matters if we have gold and silver. Very much so. The more monetary metal owned by the American public, the more educated we all are, the better off we will be.
You might also want to try reading "my prophecy" I wrote back in October: http://www.nolanchart.com/article5324.html
Highly recommend listening to and reading this speech by Lips, plus checking out his book (above) or the 2 GATA links I recommend.
Posted By: Sonic Ninja Kitty
Date: 2009-06-17 12:04:37
You "read a lot"? Well that looks like the understatement of the year! LOL!
Thank you very much for the replies. This is fascinating. I'm pretty sure most people out here know next to nothing about this--even many people working on Wall Street. The fact that LGP it's not on Wiki is creepy. I always wonder how Ron Paul gets traction on anything he tries to do with all the special interests in play. (It's somewhat obvious given the way he was treated by the media last year, but at least they seem to be coming around to him now.) I have this theory that the big guns choose Obama over Hillary in the primary (the voters sure didn't, btw) because he is quite clueless in this area and will go along with whatever. Poor narcissist--he's going to end up a villain, I guess.
Posted By: Apple of contention
Date: 2009-09-09 06:29:04
"What is the role of Obama in all this--is he just a figurehead? And will the central bankers return power to Congress?"
SNK, Obama is a puppet not anything else, unless he be called a traitor. Congress is just a lobbyist organisation put in place BY the banking cartel.
"Obama, poor guy, is out of his league. When he was campaigning he explained he didnt really understand economics - he talks the talk, but he doesnt really quite grasp what he is doing."
Jake Towne, the Champion of the Constitution, you must have voted for the traitor, I cant imagine any thing so stupid/blind as a comment stating Obama did not know what he was getting into. From the very start of his economic Jihad against America he was groomed to be the puppet of the Federal Reserve, and it's unconstitutional laws in regards to "legal tender." Saying that Obama did not know is like Nixon saying "I am not a crook!" Here is just one of many reports stating plainly that Obama got his first first job out of collage from the mouth piece of the cartel, Henry Kissinger.
Posted By: Apple of contention
Date: 2009-09-09 06:46:00
Jake Towne, the Champion of the Constitution,
What are your thoughts about Obamacare having more to do with the transfer of power, personal info, and money to the federal government, and the IRS, than actual health care reform? Obama has openly stated that "We need to give new and sweeping power to the FEDERAL RESERVE!" He is a constitutional lawyer, he is not being led by any other political engine than the FEDERAL RESERVE.
Posted By: Apple of contention
Date: 2009-09-10 09:44:02
"Our health care is simply too important to be left to bureaucrats in Washington, plus it is unconstitutional. I strongly disapprove of the Democrats' Obamacare and also the incumbent Republican's "Medical Rights and Reform Act" as both are simply matching strains of the same disease - socialized medicine."
Dude, that is refreshing. Good for you, I think that your assessment is fairly on the money. (so to speak)
Now that we have covered the easy stuff, lets get down to the real deal. Where do you stand on the issue that no one is allowed to talk about. The Federal Reserve, and the Bernackie printing press?
I think that this issue is of utmost importance to the American people even though no one will talk about it. I think that this issue will grow as the US dollar decreases in value due to the constant printing of money, that's value is based on how much money is actually out there.
Do you think our economy would stabilize if we returned to a silver, and gold, based value system?
Would you ever agree to sign a bill that audited the Federal Reserve? That returned to congress the power to mint coinage, as stated in the constitution?
That is the real issue that we as Americans must face in the very near future We cant live in denial for much longer, Rome is falling before our eyes, and what are we squabbling about... Health care.
"Do you think our economy would stabilize if we returned to a silver, and gold, based value system?"
Yes, but you have to understand, as Mises wrote in Human Action, that stability is a relative term. I do believe that gold-backed commodity money would have much greater stability than the current monetary system to the point that changes in purchasing power (whether inflationary or deflationary) would be insignificant.
I favor a smooth transition period back to commodity money, which in hindsight was obviously possible 10-20 years ago. I am not sure how smooth the trip would be now. I recommend you take a look at my plan spelled out in this ppt.
"Would you ever agree to sign a bill that audited the Federal Reserve? That returned to congress the power to mint coinage, as stated in the constitution?"
I would have written the bill but Dr. Paul beat me to it as I am not elected yet.
I believe that several of the top items the US could do to resolve this financial crisis is open the mint to free coinage, eliminate cap gains taxes on gold and silver, and remove legal tender laws. Also see above link.
"That is the real issue that we as Americans must face in the very near future We cant live in denial for much longer, Rome is falling before our eyes, and what are we squabbling about... Health care. Any thoughts?"
Posted By: Apple of contention
Date: 2009-09-10 14:34:50
Ok, I am on board. But here is my question. How do we, as an up and coming generation of patriots maneuver in to a position to get some one like you in to Congress. The cartel would never allow it. The path is laid out all ready, and they will defend it at all costs. What do we do?
It seems to me that we are so close to being enslaved (if we are not all ready) that despair, and apathy, seem to be the voice of the youth.
My self, I have been thinking about that a lot lately, and I think that I am formulating a plan that my be able to effect change. (for good, not evil)
Jhn 8:32 And ye shall know the truth, and the truth shall make you free. Christians are the answer.
Christians are commanded to obey the Bible, and the bible is very clear about Usury, or (interest on a debt.) The Bible portrays money lenders that collect interest, for any reason, as being parasite's. (I agree) Perhaps there is a way to "enlighten" the "Body of Christ" as to what the Bible said about Usury. It said "don't do it" (paraphrasing of course.)
Look I know that Obama said that we are not a Christian nation but, just to be fair he also said that his top priority is to "bring the troops home", and "Close Guantanamo." Fact of the matter is that we are a Christian nation, and the Body of Christ is MASSIVE. If we could mobilize that force nothing could stop us. Of course this is just the ramblings of an ex-Anarchist, and an equal opportunity drug addict. But hey, it saved me. Maybe it can save our country.
Posted By: Jake Towne, the Champion of the Constitution
Date: 2009-10-06 08:29:17
Dear apple of contention -
Sorry for not responding. Truth be told I missed the notification email completely - been known to happen as this article was published months ago.
Good point on usury. Today's credit card companies would not exist if FED Chairman Paul Volcker had not passed the Monetary Act of 1980 which eliminated the cap of 10%. This enabled the FED to push the interest rate to 19%. While the free market would set its own interest rate, with sound currency, >10% interest would be unheard of. If you study the ancient and pre-modern history of interest rates (Richard Sylla's A History of Interest Rates, 2005) you will find that higher than 10% was unheard of previously as well. It is only with fiat currency its accompanying excessive inflation that we have such issues.
My plan to be elected is really simple - appeal directly to the people and tell them the truth, and provide enough education if they want it. If you have better ideas, let me know, but I am optimistic in the long term. For more info, please read this piece on the "Fourth Turning."
While I don't agree with your statement that the United States is a Christian nation, there are obviously very many of the Christian faith in the USA, and they are free to worship, believe, act, and pray as they wish - as long as their actions don't infringe on the liberties of those who are non-aggressors.
Also, I wouldn't put too much credence into what our current President says. Please do check out Article 11 of the Treaty of Tripoli and note it was passed unanimously.