It brings to front that I am very biased, but by my availing myself to many hours of research in the federal repository. Mainly I have exposed myself to a rendition of history and fact where the solution to the declining value of the Dollar is already in place. There is a solution to the woes of the Economic Crisis already in place and that is the main reason that the Flat Tax and whatever the link proposed are so unlikely to ever be implemented. The Solution is to
put gold back into the system. (Attached Report.)
That price for gold is still earmarked at $42.22/troy ounce (
Footnotes). The price for this internationally earmarked gold, please notice is tied directly with the public’s recognition of SDR’s (Special Drawing Rights) – The measure of a societies’ (5 currencies) conditioning to blindly endorse the private credit of the local central bank (my definition). This will feel like a Crash. It will be a crash all right, just not a total crash. I have seen a couple threads on StSC lately – one that confirmed that price for earmarking international gold (IMF Trust Fund) is to be found in Title 31 of the USC. Another was a video link I believe that demonstrated how the simpler aspects of economics like accounting are not taught in the universities anymore! That is right. – not taught in the universities. It is nearly beyond belief but it makes sense. The experts like BERNANKE and GEITHNER for example are generating and are generated from an academia where they are trained only to make sense to one another. Well, they make no sense to me in my research where only the things that make sense to me can sink in at all.
Fractional lending, to me anyway is criminal syndicalism that makes an illegal practice seem legal and safe. Its history is simply that in Colorado the not-quite Territorial Governor went rogue by writing script to be drawn on the US Treasury without permission from the vacant and adjourned Congress (March 28, 1861). The merchants were turning in the notes and eventually got paid. This set the stage for a system of thought that under Emergency we could just make up what we like for money – or truly fiat currency became the norm in America. We came upon a new system of thought about money that eventually led to Derivatives, Bailouts, Plunge Protection, Quantitative Easing and other distortions to honest balances that led to finally, as I hear on BBC World News as I write (attached), the US Government suing Standard and Poors for false reporting. (The comment at the end is enlightening – the system is basically flawed.)
The initial distortion was picked up in Washington with Greenbacks and US Notes. However a currency called Crown Dominion Notes (
Footnote 4) in Canada picked up on the new trend and actually began crash testing reserve banking way back then in the 1860’s – something we Americans could not dare do until 1913. It would appear that Congress knew inherently how dishonest false balances are when designing the inter-bank markers (FRN’s) so they allowed banks to get back out easily by redeeming lawful money. When the Fed Bank charters expired in 1933 FDR saved the Fed by opening up the System to private endorsement of salary checks…
Therefore my theories and philosophy in a nutshell is that there is really no Band-Aid solution but the solution built into the reserve system already built in. It is an ugly solution that will likely be a true Crash of the American economy. If people non-endorse their paychecks in enough mass gold will become worth less than 1/20 of what it is worth now. In terminating the Emergency (1976) Congress preserved the ability for the President or Secretary to call a Bankers’ Holiday, that may cushion the Crash for a week… That will cause people with money to run buying up the gold but if there is no more dishonest banking that causes some problem-compounding paradoxes.
I suppose the real question, now that you know what is designed to happen when enough of you non-endorse and redeem lawful money by right is, Will we just pick up fractional lending again in the reformed system? The Insanity!
That begs the question of how such a dishonorable practice, to lend out more script than what you have in the vault, was ever made to appear honorable in the first place? A lot of folks will just say that false balances and greed are human nature but I am of the opinion that this kingdom of heaven we often look forward to is a different paradigm than that. [Then arises the desperation in Israel in Jesus’ time, the longing for the kingdom of David/Solomon, imperfect as it was in contrast to a harsh Roman occupation and Caesar’s administration of the Temple Mount. As imperfect as David’s kingdom may have been, it sure seemed a lot nicer than what they were looking at in the courtyard where the moneychangers were franchising hoarding the shekel Temple Tax coinage.]
