The revolutionaries gained control over the money, the banking institutions and the issuance of credit. It was the beginning of the end for real money, the Dollar had long been honored as the secure monetary unit but it was to be gradually transformed into an unredeemable scrap of worthless paper.
There are times when we must look beyond the smoke screens, the political labels, and the propaganda and view the reality behind the distractions. Fabian Socialism, like Fascism, promotes The State as the central force in the lives of each and every individual within society.
In this country in particular, since the advent of FDR's New Deal, which was not only lauded by Fabian Socialist like H.G. Wells, but also heavily influenced by the Fabians, we have seen the drastic increase of the Centralized State. The expansion of bureaucracy under the New Deal exposed this country to the ideals of Fabian Socialism in a way that it would not have otherwise been able to accomplish without the New Deal. It was as though the Great Depression was made to order. It was, in every sense of the word, revolutionary and foreign in concept to the traditional American foundations of government. Timing was everything, the right combination of trouble and distress were necessary to complete this revolutionary coup d'etat. It was a sequential revolution, each step planned in detail to achieve the most consistent results. It was a well-ordered revolution that provided solutions to the problems that the revolutionaries caused themselves with their monetary policies and foreign intrigues. The problem with such solutions is that once one has been achieved it must be followed by yet another and another, each solving the problem caused by the last solution provided. It was to be America's first real taste of Marxist/Leninist doctrine and they didn't even realize it, they still don't for that matter: FDR stated, in regards to his grand Fabian revolution: “It is to the eternal credit of the American People that this tremendous readjustment to our national life is being accomplished peacefully.”
While we rarely consider the facts, FDR was pretty clear about his intentions for a very broad restructuring of our form of government and the economy used to support it when he said: “Strictly speaking, the banking crisis lasted only one week. But the full meaning of that word emergency related to far more than banks; it covered the whole economy and therefore the whole social structure of the country. It was an emergency that went to the roots of our agriculture, our commerce, our industry. It could only be cured by a complete reorganization and measured control of the economic structure. It called for a long series of new laws, new administrative agencies. It required separate measures affecting different subjects; but all of them component parts of a fairly definite broad plan.”
That definite broad plan began with the closure of all banks in the country by Executive decree. In that same decree, it was forbidden, under threat of imprisonment, any dealings in the transfer of credit or foreign exchange. This was, of course, a necessary measure to keep those with the wherewithal to escape the country with their fortunes. Perhaps the most alarming step was the March 4th Act of the President and Secretary of the Treasury which was completely written by the White House and, without much dissent, passed Congress and essentially allowed the Executive a free hand in all matters relating to the emergency. It was the ultimate rubber stamp for the Executive.
It authorized sweeping powers even to the point that the government could use public funds in private banks, thus essentially nationalizing the capital stock of those banks. It was also essential for such a revolution to confiscate as much private gold as possible, for without such confiscation there would remain a challenge to the monetary plans implemented to ensure complete government control over the country and its People. The economist Benjamin Anderson said: “Gold needs no endorsement. It can be tested with scales and with acids. No act of faith is called for when gold is used in payments, and no compulsion is required. Gold is an unimaginative taskmaster. It demands that men and governments and central banks be honest. It demands that they keep their promises on demand or at maturity. Gold was old-fashioned and it was honest.”
Of course, for such a ruse to succeed, the People were lead to believe that eventually the ban on individual ownership of gold would be lifted, but nothing was ever told the American People that a massive debasement of the American Dollar would be instituted or that the gold redeemable Dollar was to be a thing of the past. Gold was such an obstruction to the plans of FDR that it was imperative that it be eliminated. In a the bill called the Agricultural Adjustment Act set before Congress there was also an insidious amendment attached called the Thomas Amendment, also known as the Inflation Amendment for it allowed the President to inflate the money supply, at his sole discretion, by 3 Billion Dollars without any backing whatsoever, and to simultaneously devalue gold by half. It was an effective legislative instrument and few dare challenge its legitimacy by calling it was it really was and that was outright theft.
In 1934, FDR proposed the Gold Reserve Act; this Act stated that the U.S. Treasury would seize all gold held by all banks. The banks would then receive mere receipts for the gold that was confiscated and FDR began the first in several devaluations of gold for foreign exchange. Basically, the government repudiated all obligations of the U.S. government that were previously made for the redemption of gold. Everything that involved gold was declared void by the government, even private contracts, and corporate bonds. Additionally, the government now had sole discretion over the manner in which private banks could lend and the types of collateral that were acceptable risk. This, of course, was not acceptable to anyone in the lending business and for a while they resisted by drying up credit but under the new Federal Reconstruction Finance Corporation, they simply fell into the trap laid for them by the Fabians traitors. Instead, the government became the lender of choice giving loans to farmers, individuals, railroads, businesses, industry, and banks and even to foreign borrowers. Private debt was effectively converted to public debt and the game began in earnest.
Murray Rothbard correctly said: “Before 1933, there was an important shackle upon the Fed's ability to inflate and expand the money supply: Federal Reserve Notes themselves were payable in the equivalent weight of gold. …The government cannot create new gold at will. But Federal Reserve Notes can be issued at will, at virtually zero cost in resources. In 1933, the United States government removed the gold restraint on its inflationary potential by shifting to fiat money: to making the paper dollar itself the standard of money, with government the monopoly supplier of dollars.”
Of course, there were a few who realized what was happening. Julius Smith of the American Bar Association realized it and said: “Is there any labor leader, any businessman, any lawyer or any other citizen of America so blind that he cannot see that this country is drifting at an accelerated pace into administrative absolutism similar to that which prevailed in the governments of antiquity, the governments of the Middle Ages, and in the great totalitarian governments of today? Make no mistake about it. Even as Mussolini and Hitler rose to absolute power under the forms of law. So may administrative absolutism be fastened upon this country within the Constitution and within forms of law.” Indeed, under the color of law, with all proprieties in order the country was surrendered without a shot fired for why should the American People not trust their government?
As in just about every case, the greatest expansion of Fabian Socialism is through, and under the guise of Anti-Socialist Nations, such as the United States. Unlike the Communist, Stalinist or Maoists, the Fabian Socialist never use a frontal attack against a free people; it is always under the cover of free institutions and the machine of a free economy.
If we think that because a system appears to be Capitalistic that it has never been used to the benefit of the Fabians then we are severely mistaken. In order to undermine the total system of free enterprise the Fabians use it to the best of their ability to achieve the goals their Socialistic agenda. They have continually moved in the same direction, using the methods of capitalism as means to subvert and ultimately convert that system into Socialist Serfdom.
In terms of the Federal Reserve, the primary purpose of the system is to gradually transfer wealth, no not to transfer it from the haves to the have-nots, but to transfer it to a ruling class who can direct and dictate the manner of life for each individual in this country and eventually globally through its sister institutions of the IMF and the World Bank (originally the International Bank for Reconstruction and Development).
President Truman later appointed Harry Dexter White, an avowed Communist Party Member, as the U.S. Director for the IMF in 1946 after he served as Assistant Secretary of the Treasury under Henry Morgenthau and engineered the “Morgenthau Plan” for the defeated Germany. The Morgenthau Plan proved to be a major victory for the Soviets. Dexter, along with Keynes played decisive roles in the development of the Bretton Woods agreement and thus implemented the IMF, World Bank and a stand-alone fiat currency. All of which follow the same pattern of Fabian Socialist construct.
The history of the IMF should provide enough evidence that there has been collusion between the Keynesian-Fabians, international Finance, and Internationalism. The IMF is a highly specialized agency that operates contrary, not only to morality, but also to the ideals of Individual Liberty and Freedom.
Although Keynes is widely regarded as a capitalist economist, there is nothing about the ideals of Keynes that support that view, indeed the evidence is quiet the contrary. Keynes work called the General Theory of Employment, Interest and Money is nothing if not a brilliant work of Fabian political tactic used to advance the cause of Socialism under the guise of saving a seemingly failing capitalist system. That was the opinion of the former Professor of Economics at Harvard, Dr. Joseph A. Schumpeter.
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