Daily Archives: January 8, 2013

A Brief History Of U.S. Dollar Debasement

January 8, 2013
by David Ziffer

On the 100th anniversary of the creation of the Federal Reserve, it seems fitting that we should present a brief history of US dollar debasement:

1787: U.S. Constitution ratified. “No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts.”

1792: U.S. Coinage Act ratified. Our first Coinage Act establishes a uniform standard of gold and silver content of U.S. coins, paving the way for over a century of trust in the U.S. dollar that will ultimately catapult the U.S. to world economic supremacy.

1861: Greenbacks and Greybacks: In desperation and in direct violation of the U.S. Constitution, both the north and south issue paper currency with no gold or silver backing. Following the war, the U.S. returns to its constitutional roots, ceasing production of Greenbacks and making efforts to retire them as the U.S. returns to the gold standard. A first-class postage stamp (introduced in 1863) costs two cents.

1913: Creation of the Fed: In the belief that a central bank will prevent future economic panics, the U.S. government forms a banking cartel called the Federal Reserve, a rather facetious name given that the Fed is not federal and it maintains no reserves. In so doing our government ignores the warning of Thomas Jefferson:

If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.

The stage is now set for the collapse of the dollar. A first-class postage stamp still costs two cents.

1934: Gold Reserve Act: After 23 years of dollar debasement by the Fed, Franklin Roosevelt is forced to acknowledge the growing disparity between the century-old fixed price of gold ($20.67/oz.) and its market price. The rift is made painfully obvious by the outflow of U.S. gold into the coffers of foreign nations redeeming dollars for gold at the stated fixed price. In direct violation of the U.S. Constitution, Roosevelt and Congress not only remove gold from circulation but prohibit ownership of gold by U.S. citizens. With the stroke of a pen the dollar is devalued from $20.67/oz. to $35/oz. Despite massive improvements in delivery efficiency, a first-class postage stamp now costs three cents.

1944: Bretton Woods: In the belief that the world requires a unified monetary standard in order to eliminate trade wars that ultimately lead to shooting wars, leading nations establish a dollar-based monetary system in which currencies are valued in terms of the U.S. dollar, which still claims to be gold-backed. This unwarranted trust ironically gives the U.S. yet more license and incentive to continue its debasement, since the world’s citizens now accept newly printed dollars with the mistaken notion that they can be redeemed for a fixed amount of gold. A first-class postage stamp still costs three cents.

1965: Second Coinage Act. In order to finance two very expensive initiatives (the Vietnam War and moon walking) and in direct violation of the U.S. Constitution, Lyndon Johnson signs a new Coinage Act that removes all silver content from U.S. coins. In so doing he provides the following advice to the public, explicitly promising future federal precious metals market manipulation:

If anybody has any idea of hoarding our silver coins, let me say this. Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin. There will be no profit in holding them out of circulation for the value of their silver content. The new coins are not going to have a scarcity value either. The mint is geared to get into production quickly and to do it on a massive scale. We expect to produce not less than 3 1/2 billions of the new coins in the next year, and, if necessary, twice that amount in the following 12 months.

In this same speech Johnson states that scarcity of silver is the motivation for the change. Despite incredible improvements in delivery efficiency that should have dropped the price astronomically, a first-class postage stamp now costs five cents.

1971-75: Petrodollars replace the gold standard: In a repetition of the 1934 crisis, the U.S. gold supply is being decimated by foreign governments redeeming dollars for gold at the stated fixed price ($35/oz.), a completely untenable ratio after thirty more years of dollar debasement by the Fed. In direct violation of the U.S. Constitution, Richard Nixon and the Congress once again stop the outflow, but this time rather than set a new unmaintainable fixed rate they simply eliminate the fixed dollar/gold ratio. Realizing that the collapse of the gold standard will dramatically reduce demand for dollars worldwide, Nixon strikes a deal with OPEC: trade oil in dollars only in return for perpetual U.S. military support. By 1974 gold is irrelevant to the U.S. hegemony, and so as his final act of the year Gerald Ford signs a bill that once again allows U.S. citizens to own gold. The first-class postage stamp now costs ten cents.

2000: Iraq threatens the petrodollar: Shortly after the creation of the Euro, Saddam Hussein makes Iraq the first major oil exporting country to sell oil in a currency other than the dollar, thereby threatening the global petrodollar arrangement. Citing this “weapon of mass destruction” while misleading the public into a preposterous belief that he is really referring to conventional weapons that could somehow threaten the U.S., George W. Bush reacts swiftly by invading in 2003 and quickly reverting Iraq to dollar sales. To make our point exceptionally clear to world leaders, the U.S. (using proxies) hunts down Hussein and executes him in 2006. The first-class postage stamp now costs 33 cents.

2008: Beginning of the end: Under Barack Obama, Fed chairman Ben Bernanke begins a series of bailouts of banks (that are presumably Fed members) and of U.S. debt (both mortgage-backed securities and U.S. Treasurys). The first-class postage stamp now sells for 42 cents.

2013: 100th Anniversary: The master of dollar-printing is 100 years old. The Fed marks its birthday by engaging in the largest debt purchase program in history ($40 billion of mortgage-backed securities and $45 billion of Treasurys per month). Awaiting the collapse of the petrodollar arrangement and the subsequent radical reduction in the purchasing power of the dollar, the price of gold is bid up to over $1600 per ounce. And despite the fact that humans now expend a tiny fraction of the effort to deliver a letter in 2013 compared to what was required in 1863, the price of a first-class stamp is now 46 cents.

Technically the U.S. left the gold standard in 1971, but in reality we abandoned it in 1913 with the creation of the Fed. The two publicly visible gold-standard slippages of the past century (FDR’s repricing and Nixon’s cancellation) were merely necessary adjustments following decades of gradually increasing gold-price inconsistency caused by continuous inflation. Given this, it seems hard to imagine that the Fed was created for any purpose other to create this inflation, i.e. to effectively raise our taxes under the table.

This has enormous implications for today’s long-term investor. Our most constant and predictable financial reality is the continued inflationary policy of the Fed. Given this, and assuming the U.S. is unlikely to pull another rabbit out of the global hat as Nixon and Ford did with the petrodollar in the early 70s, the dollar will almost certainly continue losing purchasing power indefinitely, in terms of both commodities and other currencies. And when the oil-producing nations finally agree to accept payment in currencies other than the dollar, expect a precipitous drop. Invest accordingly.

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Obama Re-Elected without Objection?

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By JB Williams

The American people do not vote for presidential and vice presidential candidates, they vote for electors, who in turn, cast their vote for president and vice president. Electors are sworn to cast a vote only for “eligible” candidates and to certify that all candidates on the ballot are eligible for office and have been duly elected, before casting their ballot before congress.

Twice now, in 2008 and 2012, Electors failed in their sworn duty, certifying and casting their ballot for Barack Hussein Obama, despite knowledge that Obama is not constitutionally eligible for the office of president and that he had won both elections through historic fraudulent efforts.

The law requires that the Electoral College certify the ballot and present its vote to congress for certification on the 6th of January following each presidential election. Because the 6th was a Sunday this year, members of congress bumped the congressional certification to Friday the 4th, without fanfare last Friday.

Earlier last week, The North American Law Center delivered notice to all members of congress, advising them not to become complicit in the fraud by certifying the fraud on Friday. Members of congress ignored that notice and Friday afternoon, the Electoral College and all members of congress affirmed the re-election of Barack Hussein Obama for a second term, each of them becoming complicit with malice aforethought in the greatest fraud ever perpetrated on the American people.

The question is now, what will the American people do about it?

Under 3 USC § 15Counting electoral votes in Congress, objection from only one (1) member from each chamber of congress was enough to stop congressional certification of the 2012 election, returning the matter to both chambers for consideration at which point congress could have opened an investigation into the massive evidence of election fraud.

Sadly, not a single elector or member of congress objected, not even one.

House members like Tea Party darling Rep. Michelle Bachmann could have been the one House member to stop the 2012 fraud. – Or, it could have been another Tea Party Caucus member, or maybe all of them.

One member of the US Senate, Senator Rand Paul, king of the data-mining petition industry and beloved son of “Mr. Constitution” Ron Paul, or maybe Tea Party favorite Sen. Marco Rubio could have taken a stand with American citizens and objected. No, not even a single member of the so-called Tea Party Caucus objected…

Republicans control the House and they could have stopped the most fraudulent election in US history without a single Democrat member. But in the end, not a single elector or member of congress had the decency or backbone to stop the Marxist theft of America despite a mountain of evidence right under their noses and prior notice from The North American Law Center.

So, now what?

The last act of the 112th congress was to roll over and play dead as Obama raised taxes without trimming any spending, throwing the nation off the fiscal cliff with trillions in new deficit spending and taxes. The first act of the new 113th congress was to confirm the fraudulent re-election of Barack Hussein Obama without objection.

Members of congress are clearly not worried about any fiscal cliff, but rather the political cliff they were all teetering on as millions of Obama’s federal dependents awaited congressional approval to keep the gravy train rolling. The fiscal cliff is unsustainable federal spending and skyrocketing debt. What Obama and congress did, shoves the nation off the fiscal cliff.

But even more troubling is the fact that not a single member of congress had the decency or backbone to stand up and object at that critical moment in history when congress had the chance to stop it all and hold those responsible accountable.

The ongoing gutless and anti-American acts of our illustrious public servants explains the mega boom in gun and ammo sales, which brings us to the second act of the new 113th congress, a massive gun and ammo grab.

Despite FBI reports showing a steady drop in gun related crime each year as gun and ammo sales set new records and further FBI stats showing that only 4% of all gun related homicides are connected to “assault rifles,” the gun grabbers want these types of weapons only in their own hands, understandably so, as they become ever more corrupt and tyrannical. In fact, twice as many Americans die from a fist fight each year, than from assault rifles.

Gun violence ranks #15 on the CDC list of causes of death and most of those are not related to assault weapons. They are however, related to inner city crime, most of it in Democrat voting districts and most of that, black on black crime. And, we all know that guns are NOT the cause of the Sandy Hook catastrophe. Yet, it is not these folks they seek to disarm. This is Obama’s “civilian army.”

So, what are the American people to do about the theft of their nation and the coming assault on citizens Second Amendment rights, among others?

In my personal opinion, every member of the federal government has well-earned a public lynching for multiple criminal acts of high treason. But before we lock-n-load and begin any violent act to regain control of our runaway government, it is our duty as American citizens to exhaust every possible peaceful means to a solution as provided by our Charters of Freedom.

Clearly, our Executive Branch thinks they are a dictatorship. Our Legislative Branch is operating as nothing more than a rubber stamp for the Executive Branch and the courts may be the most corrupt branch of our Federal Government, acting only as an enforcer for a corrupt and tyrannical regime.

While it is clear that a major housecleaning should include every elected official in Washington D.C. today, I personally believe that our Founders frame work for self-governance, their Constitutional Representative Republic, is worth saving if possible.

Organizations like The North American Law Center are established for the sole purpose of representing American citizens in broad legal battles necessary to protecting and preserving all of our God given and constitutionally protected rights. Among those right are a right to free, fair and honest elections and the Second Amendment. Without these two rights fully secured, we have no other rights.

The Law Center is calling for donors, volunteers and witnesses for scheduled actions. If all Americans join forces, they can regain control of their country. Until then, nobody can do anything about what is happening to the greatest nation ever known to mankind.

JB Williams

Co-Founder
www.PatriotsUnion.org
www.VeteranDefenders.org
www.ThePatriotsNews.com

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