Henry Ford once said, “It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
Are you confused by all the talk about monetary policy, fiat money and inflation? You’re not alone. Bankers and politicians have worked hand in hand for many decades to obscure their activities from the public. They hide behind elaborate structures designed to inflate the money supply while creating the false impression that they are looking out for our best interests.
Inflation is a very simple concept to understand: More money = less value. It may seem contradictory but it’s very straightforward.
For illustration purposes, join me on a brief journey of the imagination. One beautiful morning, you wake up and realize that you own twice as much cash as you had just last night. Magic money elves entered your home and bank account and simply doubled your entire cash assets. You’re now twice as wealthy (or half as poor as the case may be).
But you soon realize that the same thing happened to everyone else in the country. The money supply (total amount of money) has doubled! It’s just a one-time event and your regular income remains the same… you just got lucky this one time. It’s okay to dream, so stay with me.
What happens next? If you’re like most people, you probably start spending. You buy things you always wanted to buy but couldn’t afford. You pay back some debts. You buy stocks. In other words, you put the new money into circulation. So do most other people in the country.
Demand for many products increases because a lot more people can afford them now. Consumers are buying so much stuff that some shortages occur. To protect themselves against these shortages, shops and businesses decide to increase their prices. They know that once prices go up, fewer people will be competing to buy the same products, and the situation will be back to normal.
As a side effect of these higher prices, shop owners start earning higher profits than usual. They have more money in their bank accounts, which allows them to increase their spending. They will invest in new stock or expand their business. They might pay out dividends to their investors and bonuses to their employees, allowing these people to buy more products as well. This additional demand puts even more pressure on other shops to increase their prices.
A few months later, prices of almost everything have gone up. Suppliers and manufacturers are faced with the same threat of too much sudden demand from their clients so they too decide to start charging more.
You went on a one-time buying spree and look what happened! Your income stayed the same, but after a few weeks you can suddenly no longer afford the products you used to buy all the time because all prices in the economy have gone up.
Naturally, you demand a higher salary from your employer. If you’re self-employed or in business, you have to charge your customers more money just so that you can maintain your standard of living. Everyone else is in the same situation. Higher prices keep spreading throughout the entire economy, and it’s getting more and more difficult to make a living.
Can you see how this lucky one-time incident which at first seemed so exciting was extremely harmful not just for you but for the entire country? You briefly had a good time but now you’re worse off than before. In our story there are now twice as many dollars in circulation, but your income remains the same and each dollar you earn is worth only about half as much as it used to be. You’re really hoping for those money elves to come back.
As a matter of fact, some people, companies and banks have managed to develop an inside connection to the “money elves”, allowing them to receive new money into their bank accounts whenever they want to. The money is officially a loan (credit), but they know they never have to pay it back… they just “roll it over”, i.e. take up even more debt. With all that easy money in their accounts, and after hearing on TV that stocks only go up and that real estate prices will continue to rise forever, they tend to get a bit lightheaded and start making bad investment decisions. They know that if anything happens to their investments they will be bailed out by the government, so they do not hesitate to take huge risks with their new found “wealth”.
Let’s stop dreaming and look at the reality of things. What if I told you that these “money elves” do exist and that they spring into action not just once in a lifetime, but every couple of weeks? And that they repeatedly give money to their closest friends, but not to you? That prices are going up because the total amount of money in circulation increases, but that you’re missing out on all the fun?
Well, that’s inflation at work. Who benefits from inflation? Only those who are at the top of the pyramid and receive all that new money directly from the source. As you might have guessed by now, the source is the Federal Reserve, and its recipients include the government which “borrows” a lot of new money each year, without any intention of ever paying it back. Another beneficiary these days are failed banks that are being “bailed out” for the good of the “economy”, or defense contractors that receive money to build up our military so we can have a constant presence all over the world and fight never-ending and unnecessary wars. There was even a huge number of small-time beneficiaries who received consumer loans and sub-prime mortgages they would never be able to pay back.
What, then, is fiat money? It’s exactly what we just talked about: money that can be inflated or increased at the push of a button at the say-so of a powerful person or organization. Nowadays most dollars are just blips on a computer screen and it’s extremely easy for the Federal Reserve to create money out of thin air whenever they want to.
If our money were backed by gold and silver, people couldn’t just sit in some fancy building and push a button to create new money. They would have to engage in honest trade with another party that already has some gold in their possession. Alternatively, they would have to risk their lives and assets to find a suitable spot to build a gold mine, then get dirty and sweaty and actually dig up the gold. Not something I can imagine our “money elves” at the Fed getting down to whenever they feel like playing God with the economy.
As you can see, inflation and fiat money are very seductive and beneficial to those at the top, and very dangerous to everyone else and the nation as a whole. That’s exactly what Henry Ford was talking about. He knew that every country that relies too much on fiat money is ruined sooner rather than later.
There is only one possible solution to the inflation problem: Stop creating money out of thin air. But we’re already in such a mess that the only way to have a real impact on the money supply is to increase interest rates so that people pay back their loans and borrow less money from the banks, which decreases the amount of money in circulation. However, higher interest rates might very well crash the economy. So the Fed’s current “solution” to overcoming inflation is… creating even more of it.
Fiat money is a dangerous addiction. Even if the Fed found a way to stop inflation, as long as the current system persists the temptation will always be there to resume pushing the easy money button. That’s why we need to get back on the gold standard and eliminate the Federal Reserve altogether.
But that won’t happen “before tomorrow morning”, as Henry Ford said, or even this year. Ron Paul believes that the first step towards monetary freedom is to allow open competition in currencies. Once gold and silver are allowed as legal tender and can be sold without sales tax, everyone can use them to store their wealth and to pay for the things they want to buy. The Federal Reserve will finally have a very compelling motivation to stay honest and maintain the value of the dollar because if they don’t, they will simply lose all their customers.
Ron Paul has been an advocate of the gold standard and open competition in currencies for many years. He is the Federal Reserve’s most outspoken opponent in Congress and has frequently questioned Alan Greenspan and Ben Bernanke about the Fed’s actions.
Join the Ron Paul Revolution and help us put the Fed where it belongs: into the history books and out of our financial lives.
More Information
Thomas Jefferson and Andrew Jackson understood “The Monster”. But to most Americans today, the Federal Reserve is just a name on the dollar bill. They have no idea of what the central bank does to the economy, or to their own economic lives; of how and why it was founded and operates; or of the sound money and banking that could end the statism, inflation, and business cycles that the Fed generates.
Dedicated to Murray N. Rothbard, steeped in American history and Austrian economics, and featuring Ron Paul, Joseph Salerno, Hans Hoppe, and Lew Rockwell, this extraordinary new film is the clearest, most compelling explanation ever offered of the Fed, and why curbing it must be our first priority.
In this 1988 interview, Ron Paul talks about money, banking and the Federal Reserve, and predicts the current financial crisis.
Show: American Power Structure
Date: August 1988
Explanation of Fiat Money:
Here’s an amazing introduction to the history of the US dollar:
The American Dream Film:
Ron Paul Money Lecture Series — “What is Money?”
Gold an silver are measured by weight and atomic power numbers. “”In the modern periodic table, the elements are actually arranged in order of increasing atomic number–that’s the number of protons in one atom of a particular element. Atomic weight almost always increases with atomic number, so Mendeleev’s sequence of elements was almost exactly the same as the one used today,”"
Very usefull items for building or supplementing other minerals. IE==Valuable
Presidents are collectable. Some were considered statesmen in their day. Some were considered traitors. All so far have been men who were photographed and put on designated numbered pieces of paper which is made from a harvestable plant. Money does not grow on trees. Remember that old saying? Maybe those born after about 1980 do not since most did not ever want to here that again.Nor teach it in their schools in this country we call free. After all your teachers would like a raise just to put up with the vast majority of Studants who have no class and no clue. Yet the best thing they could ever do is to work cheaper and bring you into the real world instead of their troubled world.But these words are meant for older than most of you are and that means teachers also.
Few of you will read these words of wit for what they actually imply.Instead you would rather tear down Patriots who waste their valuable time trying to educate morons. The simple fact that what the words coming from the likes of a Ron Paul are so different from what you actually live and expierence should alert you to their own genius in definition. But no you are still suseptable to the nonsense of your controlling parents who were afraid to let you go out at night by yourself since what did they gain from their own expierence but a snotty little leftist whiner that they had to take care of while they missed the greater parts of their young adult lives.
As you grow into maturity you will change your thinking at least every decade depending on your expierences. Most of you will be manipulators because it is the easy way out.Some of you will be individuals of wit and humor and will sell your wares on the stage. Even less of you will be able to extinguish between the two.(the true masters of the world) President Obama now gets his chance to show you what he will do and you get your chance to watch and learn or judge. Depending on your age and your expierence’s in life will tell you what YOU are if you can read it, by how you interpret your countries leader.
Now that trillions have been entered in the market place to supplant the trillions sitting in the pockets of the shorts and only debts to each other remain on the balance sheets what encentive is there for an older non producer of goods and services retired or otherwise to compensate the market for Pensions and promises unpayable and in a continual spiral of rising compensation? Not much you say? Or maybe just be a rider on the storm.
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I voted for Ron Paul as a write in candidate in California out of pure principal. Hope you run in 2012!
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The more I read about Ron Paul, the more I start to love the guys views.
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OK, so this “injecting or creating new money” philosophy intrigues me. If I am understanding this correctly, when the US gov’t needs money it is basically just printing more. However, these days it is done electronically and not with actual printing presses, right? So in a nutshell, this is the same philosophy that damned many Latin American countries in the 70′s and 80′s. Countries like Brazil, Mexico, Argentina, Chile, etc. who constantly had to reset the face value of their currency, because their “print more money” philosophy accomplished nothing but all things costing way more than was necessary. A good example was Mexico’s change over from the PESO to the NUEVO PESO … they merely truncated three zeros off the face value of the PESO, so every 1000 PESOS equaled a NUEVO PESO. And then the inflationary race continued against the US dollar. It may sound harsh, but maybe what the world economy needs is to be based on a totally different currency and not the US dollar, like a precious metal of some sort.
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Nice history of american currency, love the floyd
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This post is from an Indian context, but is relevant everywhere. Simplistic, but does make sense. Check it out
http://memorymaniac.sulekha.com/blog/post/2008/10/in-defense-of-capitalism.htm
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[...] unless youre a economic guru and really knows how it works, I think everyone needs to read this… Our Money | Ron Paul .com GM is in the tank, Ford is down to two bucks a share (was 9.50 a year or so ago) its bad…and [...]
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Thank you Ron!
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Watching the debate, it is comforting to know that the 10th Amendmant is dead!
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There is still a constitutional, though admittedly statistically small possibility of Ron Paul getting into the presidency. If the clueless in charge are unable to maintain the economy (by pumping in trillions $) until one of the chosen stuffed-shirts is picked at the convention, the delegates (Democratic or Republican) may wise-up and vote in Ron Paul, who is the only candidate that understands and communicates what he understands is happening in the financial markets. It would be a small blow to “democracy” in America, but it would be within the legal framework- the choice by delegates as last step was purposefully mandated by the constitution for cases just like this (i.e., people come to realize they are about to elect someone that HAS NO CLUE as to what is going on in a time of dire need).
I would give it 1:1000 of happening, but hey it is possible. If a couple more trillion $’s keep the game going until January, then the sheeple will get the stuffed-shirts.
Ron Paul needs to keep up his campaigning right up to the day of the convention. Everyone needs to contact delegates and make them realize they have this power.
http://www.TakeBackTheFed.com
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I emailed the White House asking them to veto the bailout. I dont’ think it will work, but it is the last resort right now…
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Capitalism died tonight. Hopefully, this movement will make it alive again. WHy does Washington ALWAYS panic? McCain =’s Obama.
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I believe that if Ron Paul did not run for President, and shine the light on monetary policy, this bill would have passed today. This is a tribute to Dr. Paul and the work he has done to provide real change and help our country build an economy on sound economic, free market principles.
Thank you Dr. Paul!
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Hello,
Would you consider:
Is Congressman Ron Paul being solicited for a responsible position in your Administration?
Nouriel Roubini: Bailout benefits only banks and their unsecured creditors
Submitted by cpowell on 06:11PM ET Sunday, September 28, 2008. Section: Daily Dispatches
There were many other options available to Congress RIGHT NOW to structure SOLUTIONS IMMEDIATELY as also outlined by Congressman Ron Paul and Congresswoman Marcy Kaptur.
Read and Weep as “It is pathetic that Congress did not consult any of the many professional economists [Like Roubini] who have presented alternative plans that were more fair and efficient and less costly ways for resolving this crisis. This is again a case of privatizing the gains and socializing the losses, a bailout and socialism for the rich, the well-connected, and Wall Street. And it is a scandal that even congressional Democrats have fallen for this Treasury scam, which does little to resolve the debt burden of millions of distressed home owners.”
By Nouriel Roubini
Roubini’s Global EconoMonitor
Sunday, September 28, 2008
http://www.rgemonitor.com/blog/roubini/
Is purchasing $700 billion of toxic assets the best way to recapitalize the financial system? No. It is rather a disgrace and ripoff benefitting only the shareholders and unsecured creditors of banks.
Whenever there is a systemic banking crisis there is a need to recapitalize the banking/financial system to avoid an excessive and destructive credit contraction. But purchasing toxic/illiquid assets of the financial system is not the most effective and efficient way to recapitalize the banking system. Such recapitalization — via the use of public resources — can occur in a number of ways: purchase of bad assets/loans; government injection of preferred shares; government injection of common shares; government purchase of subordinated debt; government issuance of government bonds to be placed on the banks’ balance sheet; government injection of cash; government credit lines extended to the banks; and government assumption of government liabilities.
A recent International Monetary Fund study of 42 systemic banking crises across the world provides evidence on how different crises were resolved.
First of all, only in 32 of the 42 cases was there government financial intervention of any sort; in 10 cases systemic banking crises were resolved without any government financial intervention. Of the 32 cases where the government recapitalized the banking system, only seven included a program of purchase of bad assets/loans like the one proposed by the U.S. Treasury. In 25 other cases there was no government purchase of such toxic assets. In six cases the government purchased preferred shares; in four cases the government purchased common shares; in 11 cases the government purchased subordinated debt; in 12 cases the government injected cash in the banks; in two cases credit was extended to the banks; and in three cases the government assumed bank liabilities.
Even in cases where bad assets were purchased — as in Chile — dividends were suspended and all profits and recoveries had to be used to repurchase the bad assets. Of course in most cases multiple forms of government recapitalization of banks were used.
But government purchase of bad assets was the exception rather than the rule. It was used only in Mexico, Japan, Bolivia, Czech Republic, Jamaica, Malaysia, and Paraguay. Even in six of these seven cases where the recapitalization of banks occurred via the government purchase of bad assets, such recapitalization was a combination of purchase of bad assets together with other forms of recapitalization (such as government purchase of preferred shares or subordinated debt).
In the Scandinavian banking crises (Sweden, Norway, and Finland), which are a model of how a banking crisis should be resolved, there was not government purchase of bad assets. Most of the recapitalization occurred through various injections of public capital in the banking system. Purchase of toxic assets instead — in most cases in which it was used — made the fiscal cost of the crisis much higher and expensive (as in Japan and Mexico).
Thus the claim by the Fed and Treasury that spending $700 billion of public money is the best way to recapitalize banks has absolutely no factual basis or justification. This way of recapitalizing financial institutions is a total ripoff that will mostly benefit — at a huge expense for the U.S. taxpayer — the common and preferred shareholders and even unsecured creditors of the banks. Even the late addition of some warrants that the government will get in exchange for this massive injection of public money is only a cosmetic fig leaf of dubious value, as the form and size of such warrants is totally vague and fuzzy.
So this rescue plan is a huge and massive bailout of the shareholders and the unsecured creditors of the financial firms (not just banks but also other non- bank financial institutions). With $700 billion of taxpayer money the pockets of reckless bankers and investors have been made fatter under the fake argument that bailing out Wall Street was necessary to rescue Main Street from a severe recession. Instead, the restoration of the financial health of distressed financial firms could have been achieved with a cheaper and better use of public money.
Indeed, the plan also does not address the need to recapitalize those financial institutions that are badly undercapitalized. This could have been achieved by using some of the $700 billion to inject public funds in ways other and more effective than a purchase of toxic assets: via public injections of preferred shares into these firms; via required matching injections of Tier 1 capital by current shareholders to make sure that such shareholders take first-tier loss in the presence of public recapitalization; via suspension of dividends payments; and via a conversion of some of the unsecured debt into equity (a debt-for-equity swap). All these actions would have implied a much lower fiscal costs for the government as they would have forced the shareholders and creditors of the banks to contribute to the recapitalization of the banks.
So less than $700 billion of public money could have been spent if the private shareholders and creditors had been forced to contribute to the recapitalization. And whatever the size of the public contribution, its distribution between purchases of bad assets and more efficient and fair forms of recapitalization (preferred shares, common shares, sub-debt) should have been different.
For example, if the private sector had done its fair matching share, only $350 billion of public money could have been used; and of this $350 billion half could have taken the form of purchase of bad assets and the other half should have taken the form of injection of public capital in these financial institutions. So instead of purchasing — most likely at an excessive price — $700 billion of toxic assets, the government could have achieved the same result, or a better result of recapitalizing the banks, by spending only $175 billion in the direct purchase of toxic assets. And even after the government will waste $700 billion buying toxic assets, many banks that have not yet provisioned for such losses and writedowns will be even more undercapitalized. So this plan does not achieve even the basic objective of recapitalizing undercapitalized banks.
The Treasury plan also does not explicitly include an Home Owners Loan Corporation-style program to reduce across the board the debt burden of the distressed household sector. Without such a component, the debt overhang of the household sector will continue to depress consumption spending and will exacerbate the current economic recession.
Thus, the Treasury plan is a disgrace — a bailout of reckless bankers, lenders, and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown.
It is pathetic that Congress did not consult any of the many professional economists who have presented alternative plans that were more fair and efficient and less costly ways for resolving this crisis. This is again a case of privatizing the gains and socializing the losses, a bailout and socialism for the rich, the well-connected, and Wall Street. And it is a scandal that even congressional Democrats have fallen for this Treasury scam, which does little to resolve the debt burden of millions of distressed home owners.
—–
Nouriel Roubini is professor of economics at the Stern School of Business at New York University.
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I’m So sad that neither canidate even references the Constitution during the Presidential debate…
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I agree with you Al Bombler, the parchment in which our country was founded upon is no longer important to even the highest of political positions. Why do I feel like most american citizens would rather watch tv then understand how they are getting screwed. How do you compare the government stealing your money (which you cannot see) to something like getting poked in the eye with a stick? Sometimes I can’t stand people around me when I ask if they care about the government and they answer “naw, I don’t really care”.
It’s like the few are being punished by the many…I ******* hate it.
Thank you Ron Paul, you are a true leader and a hero of mine for speaking your mind. It sucks that the media cut you off and your own party turned it’s back on you when it was needed. I just fear that it’s too late now.
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If you believe, like I do, that we need to weigh options and look at the risk of bailing out our financial sector, then please consider protesting this effort. In Dallas, I am organizing a protest on Sunday, September 28 at 9am. Find more information at http://dfwsaysno.ning.com/ but also consider organizing an effort in your community. If our legislators do not understand our interests they will never vote in our interest. It is our responsibility to share our beliefs and values so that our representatives can truly represent them. Thank you, Mr. Paul, for sharing your views and your unique viewpoint – views that many share with you but aren’t being represented in Washington today!
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It would be nice if all the government expenditures where tied directly to tax increases. Because we simply borrow all the money I think the country supports a lot of things (ie Iraq War) they would not support if they saw a hard number of how much their taxes would go up. Its the same with government bailouts people dont realize how it affects their bottom line as far as taxes.
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i don’t think that a non-fiat monetary system needs to be based solely on gold. there are a number of other precious metals out there, mainly palladium and platinum, that could be factored into the equation. using those metals, as well as gold and silver, there would be more than enough collateral to cover our assets, as well as provide room for growth. we desperately need to get away from our current system before it spirals out of control. when china is funding the majority of our government by buying bonds each and every quarterly refinancing, something is seriously wrong. one day we’re gonna have to pay up and that day isn’t going to be pretty.
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The USA paid 480 billion dollars in interest in 2007 on borrowed money. That amount required using 37% of every tax dollar collected.
There is no logical reason to pay the private stockholders interest on money they created out of nothing, they actually did not own in the first place.
We could pay for our schools, roads, energy, college funding and provide almost no interest home loans if we eliminate the FED.
Congress has the power to eliminate the FED. We have to insist as a country that this be done. Individual congress and senators will not make any changes alone (it’s surprising Ron’s alive); it will take every state demanding it.
It’s time to get the retired people of this country off their chairs to do the leg work and get this done.
Now is the time to GET RID OF THE FEDERAL RESERVE. Educate your family members. 99% of american’s are clueless about these matters.
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* These are my opinions *
Although I like the idealism of the issue, there simply isn’t enough gold and silver to cover the current tangible assets of the US, so a gold and silver standard would likely result in a stalled economy.
There are other, less extreme solutions that I feel would be more receptive to everyone, such as
*) Expanding his proposed gold and silver standard to apply to a broader range of tangible assets, such as traded commodities (diamonds, rubies, copper, steel)
*) De-privatizing the Fed by either entirely putting it in the control of the Congress or changing its owning interests to include majority control by the states’ congresses.
*) Making it a statutory requirement to get congressional approval before creating money.
*) Making it illegal to profit from or hold any fiscal or controlling interest in any agency that receives credit from the Fed [e.g. via fiat money].
Those are just some ideas, but they’re far more likely to pass executive and congressional approval than ‘going back to the gold standard’.
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If Congress was in charge of creating money, then they would not be allowed to dispense it to the special interests, b/c that would be the conflict of interest.
This could be a perfect solution.
Government favoritism would be apparent and people would topple the government down.
The only way Congress could stay in charge of money and power would be by not showing any favoritism to any groups.
Government would shrink immediately, b/c no one would allow government to print money in order to expand its own ranks
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Fair tax, Sales tax, Gold base, all make sense as they are a return to our basics. However as I read all the comments above I can’t help but wonder if the unseen true plan of the Fed is to enjoy short term lending profits while quietly positioning the American economy to accept the formation of the NAU as a bailout which will then increase the banks grip on a larger economy. When the Russian economy faltered the EU formed, and as Marco said above, things are not better.
Our strong America was built on sound basic policies embraced by individuals, business, and government. Work hard, engineer and produce superior products, lookout for families and neighbors, keep money in the bank, grow carefully with a plan for the future, borrow only when necessary AND only what we can pay back, and VOTE. I work to give my children these values and believe that Ron’s grass roots plan can re-instill these basics nationwide. Perhaps then we will create a voting block capable of fighting all poor policies and make positive change towards sustained economic strength for all Americans.
Our great bear “America” is getting weaker and the wolves are watching.
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I was simply wondering, since you are discussing money, where you stand on the FairTax Bill introduced into Congress by Congressman John Linder.
I’m SURE that you are familiar w/ it…..but just in case you aren’t….or in case you have forgotten the details….I’ve taken the Liberty of outlining it’s basics….
The FairTax Basics
The FairTax has been called the most thoroughly researched tax reform plan in recent history. This section offers a quick introduction to the FairTax and tax reform.
Scholarly research tells us that . . .
The FairTax rate of 23 percent on a total taxable consumption base of $11.244 trillion will generate $2.586 trillion dollars $358 billion more than the taxes it replaces. [1]
The FairTax has the broadest base and the lowest rate of any single-rate tax reform plan. [2]
Real wages are 10.3 percent, 9.5 percent, and 9.2 percent higher in years 1, 10, and 25, respectively than would otherwise be the case. [3]
Disposable personal income is higher than if the current tax system remains in place: 1.7 percent in year 1, 8.7 percent in year 5, and 11.8 percent in year 10. [4]
The economy as measured by GDP is 2.4 percent higher in the first year and 11.3 percent higher by the 10th year than it would otherwise be. [4]
Consumption increases by 2.4 percent more in the first year, which grows to 11.7 percent more by the tenth year than it would be if the current system were to remain in place. [4]
The increase in consumption is fueled by the 1.7 percent increase in disposable (after-tax) personal income that accompanies the rise in incomes from capital and labor once the FairTax is enacted. [4]
By the 10th year, consumption increases by 11.7 percent over what it would be if the current tax system remained in place, and disposable income is up by 11.8 percent. [4]
Over time, the FairTax benefits all income groups. Of 42 household types (classified by income, marital status, age), all have lower average remaining lifetime tax rates under the FairTax than they would experience under the current tax system. [5]
Implementing the FairTax at a 23 percent rate gives the poorest members of the generation born in 1990 a 13.5 percent improvement in economic well-being; their middle class and rich contemporaries experience a 5 percent and 2 percent improvement, respectively. [6]
Based on standard measures of tax burden, the FairTax is more progressive than the individual income tax, payroll tax, and the corporate income tax. [7]
Charitable giving increases by $2.1 billion (about 1 percent) in the first year over what it would be if the current system remained in place, by 2.4 percent in year 10, and by 5 percent in year 20. [8]
On average, states could cut their sales tax rates by more than half, or 3.2 percentage points from 5.4 to 2.2 percent, if they conformed their state sales tax bases to the FairTax base. [9]
The FairTax provides the equivalent of a supercharged mortgage interest deduction, reducing the true cost of buying a home by 19 percent. [10]
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RESPONSE to thenekkidtruth Sept 6,2008:
It is of course unfortunate that thenekkidtruth who obviously cares about this country, had not done enough research before writing the above in orderto fully understand what Mr Paul has been explaining for decades. Let me briefly set the record straight by saying: 1- Dr. Paul does not wish for any bailouts and to do so would invite even greater disasters if one can conceve of a larger one.
2- These bailout schemes are eminating only from the power elite and the fed acting in colusion with the Treasury Dep, large money-center banks and certain priveleged security dealers. By artificially lowering interest rates far below where the free market would tend to set them, the Fed created unnaturally lax credit markets resulting in bankers and others participating in the huge US housing mortgage industry where lenders were willing to lend to buyers who, in rational market conditions, would not have qualified for loans, or who might have qualified under much more stringent terms of repayment. This is what caused the crisis, not free trade or privatization or “lack of oversight” by more government officials. Exactly this type of more oversight and regulations are now being foisted upon us by Secretary Paulson and Ben Bernanke, the Fed. and the Treasury Dept. in the newly organized “Market Stability Regulator” which if we don’t get up on what’s really going on behind our backs, we really will have that “unparalled disaster..” as theneddidtruth mentioned. For more info look into the new Treasury Departments “Prudential Regulator”, a yet unnamed regulatory behemoth which will be in complete charge of all “firms with federal guarantees,” and the “Business Conduct Regulator,” which would “monitor business conduct across all types of financial firms,” including “key aspects of consumer protection such as rule-writing for disclosures, business practices, and chartering/licensing.” TALK ABOUT OVERSIGHT Mr. thenekkidtruth!! We don’t want or need it!!
It gets worse…this new steriod enhanced Fed “will have broad new powers” and “corrective authorities” (note the plural) over the entire financial sector, as well as the means to snoop on any financial activity anywhere- What Henry Paulson is proposing is nothing less than turning the Federal Reserve into a Dept of Homeland Security for financial activities, with the same sort of abuses, controls and institutional incompetence as the latter organization. By the way, this blueprint has been in the works since at least March of ’07, well before the financial crisis broke! The blueprint was, according to the Treasury Depts Fact Sheet, the product of unnamed “industry leaders and policymakers” planning to overhaul our “outdated financial regulatory network.” Additionally, with the ongoing financial turmoil, “market conditions today provide a pertinent backdrop for this study’s release,” the Fact Sheet wryly notes!! Thus we have been treated over the past few months to a series of well-planned, possibly coordinated events preparing the way for a radical new foray into financial socialism. As if no cue, liberal members of Congress, like Senator Charles Schumer, have already criticized the Treasury Depts new plan of not going far enough! WOW! The legislative outcome, therefore, is likely to transform America’s entire financial system into a virtual arm of the government, stifling further innovation, squelching risk, and limiting growth. In the long run, the effect of such a revolution would be devastating: No more double-digit returns on investments, for example, or financial privacy. Buying insurance or a mortgage of any description would become as irksome as paying federal income taxes. Asset growth of all kinds would stagnate as the risk-free environment of total financial socializm, long envisaged by Americas elites and the Fed, slowly but surely suffocated our once-vibrant, risk-dependant free-market system. And it goes on: As financial insecurity continues, expect further innovation on the part of Bernanke’s Fed, and further calls for more government controls. Only principled, concerted, well-publicized resistance from us will stave off Bernanke and Paulson’s financial dystopia, further bailouts (with 100% taxpayers money) and a national & international bust that will make ’29 feel like a mosquito bite. When was the last time you wrote your congressman or woman?
For more info, see Charles Scalingers’ “The money trust’s next move” April 28,2008 TNA
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Well, Ron, people that love the upcoming multi-trillion dollar mortgage bailout will LOVE libertarians like you. It’s an unparalled disaster of historic proportions which was caused by EXACTLY the philosphical thinking which is the backbone of your party – deregulation, privatization, “free trade”, corporate protectionism, and lack of investment in oversight. And while those types of policies could (and did) cause a crisis like this, what do libertarians propose to do when the inevitable happens? There’s only two choices – bail ‘em out, or let everbody go bust. BOTH choices are nightmares which are easily avoided by the obvious – avoiding the libertarian point of view in the first place.
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My research shows that we aren’t even actually on a Federal Reserve System. We are actually on the Special Drawing Rights system passed in 1970. I have only read half of the Act of Congress which created it, because it is over 1,000 pages long. True it is an international monetary system. Why do we go to War? Because the Special Drawing Rights system allows our government to draw on the money we steal from other countries during a time of War. This system allows the Federal Reserve to print money based on that “Special Drawing Right.” This Act of Congress can be blamed for all of the inflation which occurred since 1970. Not only do we inflate our currency with government spending, we inflate it with “Guarantees” which allow Private Corporations who are members of the Overseas Private Investment Corporation to exchange foreign currency for American Currency, but only in a time of War, Riot or insurrection.Can you see now how we bailed out the private businesses in Iraq?
Let us all get off this international system and help Ron Paul to promote the Gold Standard, even it it hurts a little in the beginning.
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I’ve heard that adherence to the Yellow Brick Road (gold standard) may have helped cause the Great Depression, and that the money elves (inflation, Federal Reserve) may have helped get us out of it. I’ll let other people debate that. The reason I don’t like the Gold Standard is what people do in their lust for Gold. Maybe it’s no different than the lust for Green, but we’ve already got conflict diamonds, conflict tantalum, and conflict gold I’m sure. I value children, but not for their ability to dig up elements. People love easy money, so if money becomes hard to create, they’ll just force someone else to do the hard work. We know where the Yellow Brick Road leads. One thing I’m suspicious of when someone (Ron Paul, whoever) claims to have all the answers is that this person wants to make those answers reality overnight. We’ve seen what happens with overnight change. After 9/11, people decided they didn’t want to fly anymore. This is a choice they were free to make, but because they all made it all at once, it was a disaster for the airlines. I’m not a professor of economics, but couldn’t we just make the Federal Reserve more fair? Can’t we just let these banks die when they run out of money (just like you and me are free to die when we run out of money) and just bail out the individuals (FDIC)? I’m not convinced the ability to pull money out of thin air is a totally bad thing. Like any ability, it can be used for good or ill.
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Most of Ron Pauls backers should read THE CREATURE FROM JEYKEL ISLAND, OR THE SHADOWS OF POWER, I personally think were to far gone, EVERY ONE HAS BEEN SLEEPING FOR DECADES!!!!THE INSIDERS WILL
NEVER LET GO ! HAVE A NICE LIFE & WATCH I ONLY WISH RON COULD BAIL US OUT MAYBE WITH A FEW MILLION JOINING IN WE CAN PREVAIL.
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Dear Ron Paul fans,
I think there is also a short term solution to the financial crisis.
I know mortgage bond investors are banking on interest rates of ARMs resetting at higher rates but it seems to me this whole forclosure problem could be mitigated by the financial institutions themselves extending the terms of the loans out a few years or fix them at reasonable rates. ARM extensions could be distributed and graduated out to minimize the risk of exposure to defaulted loans.
This action could be self regulated or government regulated. The bond investors may see lower yields, banks might make slightly less but all would continue to profit. Foreclosure rates would fall dramatically. Business models would stabalize. The government (the people) would not need to save anyone. The entire economy would recover.
Fractional reserve lending laws permit banks to loan out 10 times the value of their reserves. This means if mortgage interest rates are 6% then their actual profit is 60%. That is an extremely good return and does not include other revenue streams. This economy is being crushed by entities who are capable of fixing it with a stroke of their pen and who could remain extremely profitable in the process.
Why not do it. Why not extend out the terms of these ARMs facing default or foreclosure because of interest rate adjustments. Auctioning homes for less than they are worth can not be good business. Bankruptcy, corporate take over, government bailed outs, recapitalization and federalization do not seem like a better alternatives.
We need to publicly make this suggestion to the banking industry. This is how to recover the US economy on the short term.
Interesting note: I was watching an alumni video from one of the nations top ivy league schools. Bernanke was a guest speaker invited to discuss money and debt with graduate level economics students. His main point was, debt is motivation for innovation and without debt, corporations would continue to stagnate on steady streams of income until some event takes them out. Like an environmental change in the market or a new competitor. To motivate officers to innovate and get off the golf courses, CEO’s may plunge corporations (as polititions may lead nations I guess) into debt. This is a tool used to cultivate creativity and nose to the grind stone work ethic. This may also be why we see executives receiving golden parachutes despite their leadership driving companies into financial dispair. It is all about creating ruthless competitors. It is all psychology, like our belief in the dollar or the value of the stock market. Perception is everything and money means nothing to those with the power to print it. It is simply a tool or carrot at the end of a stick.
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ron paul is the last hope for this country without him we are doomed
bush and mccain want to see world war 3 so bad they can taste it
and obama dosent seem to like the american flag not only pinned on himself or on his airplane either so im sorry i cant trust him
RON PAUL 08 OR ELSE WE ARE DOOMED
THANK YOU
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If you are interested enough to get more facts on this exact issue and how it has come to control so much of our wonderful America, read “The Shadows of Power” by James Perloff.
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Ron Paul wrote the prologue for Michael Minns’ book, The Underground Lawyer. In this book, I saw how the IRS treats their targeted victims and why the IRS needs to be reigned in. Just follow the link to find out more. Let’s hope Ron Paul runs again in 2012 and shuts down the IRS!
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I first learned of this issue through Zeitgeist, Part III.
http://video.google.com/videoplay?docid=530806696524042736
Since then, I won’t support a candidate that doesn’t plan on doing something about the Federal Reserve. Which is why I wish Ron Paul was still running. I back him 100% of this and many other issues.
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Hi Charles,
The Zeitgeist movies are powerful indictments of the power elite behind the Fed, greedy monopoly capitalism, Wall Street and many of the Big Govt policies and institutions that limit our freedoms and liberties.
They are responsible for the income tax which is unconstitutional. They are responsible for a failed public education system, raising generations that don’t know our nation’s history and its system of self-governance. They are responsible for a backwards academia that is more Marxist than it is American. They are responsible for a completely irresponsible news media industry that is so corrupt that you can trust very little of what you read in the papers or watch on television.
However, ultimately it is we the people who are responsible for letting ourselves be tempted to follow in their temptations. Until we the people get a spine and a heart, we will get the leaders we deserve.
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Question for Ron Paul: So part of your solution is to raise interest rates and “shock” the economy into an overdue recession. Kinda what Regan did back in ’81. If that occurs, where do we go from there? What’s the way ahead to remove the unlimited government that the baby boomers created? How do you change the likes of Nancy Pelosi, Ted Kennedy, Barak Obama, and the numerous liberal Republicans whose very careers depend of the way things are?
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Let’s compare a mining increase to the increase of speed on the printing press and take a look at the results. Increase of production of gold hey we have more gold. Increase in printing the dollar hey more worthless paper…. gold still has a value and a use, even if it is worth less. I think there are many companies that could still use the gold though devalued. I.E the jewler down the street. Try winning your loves a heart with a devalued dollar fashioned into a beautifull paper ring…..
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The problem with the gold standard is that it would hand control of our economy to the major gold producing countries, Russia and South Africa. By changing the rate at which gold is mined, they could cause inflation or deflation in the U.S. Not very smart!
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I live in Italy, which is part of the euro zone. The tale of Ron Paul fits perfectly what happened here, of course not overnight, but in a span of roughly 3 to 5 years from the advent of the euro (€)in place of the lira (£) in 2002. The euro was fixed by our Gov’t officials at 1937 liras. Everybody was mentally biased to view an item priced at say 35 euros as if it were costing 35,000 liras, while it was really costing almost TWICE as much: we were reading 1 euro as though it corresponded to 1,000 liras, it’s a psycological trick! Moreover, cents were looked down at, as if they were just liras, while they were worth amost 20 times as much (exactly 1 cent = 19.37 liras). On the other hand, salaries and pensions remained stuck to the official exchange. Therefore we Italians now earn the same amount of liras converted into euros, but have to pay everything double, so now our purchasing power is half as it was before that damn euro came to destroy our economy, on top of the frontiers open to China and the like. So, please don’t envy us because the euro is so “fatter” than the dollar: we share your destiny…
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You can debate a Gold Standard all day. As I said there are pros and cons. As long as we have a “FIXED” rate of exchange, everything else will revolve around it. The TRUE FREE MARKET, or the “UNSEEN HAND” of Capitalism, will always be volatile depending Market Forces. Yes, there must be flexability built into the System to allow for EMERGENCIES, but that was why the Government was allowed to print US NOTES at ZERO Interest and then remove the excess in better times trough Taxation and Credits.
What is happening TODAY, by bailing out Private Industry and failing Banks, is ILLEGAL and only STEALS from the future of the Economy. In the long term, Technology should make things cheaper, as that’s the natural way and a strong Dollar saved for a rainy day is the best tool the Economy could have.
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Hi, I’m just wondering if the Fed got back on the gold standard would that eliminate inflation completely?Most economists agree that a good inflation rate is around 2-3%.You definitely don’t want deflation where the dollar gets more valuable to a point where prices go down.In this situation people hoard money as it becomes more valuable over time.This is extremely difficult to stop,actually more difficult than inflation.At the moment if the fed were to reduce interest rates it would make the dollar weaker,exports cheap,imports expensive and contribute to already high inflation caused by food,oil etc.One of the reasons they’ve been reducing rates over the past 10 years is because of cheap consumer goods from China made the fed think that inflation was no problem.If high inflation increases any more,ordinary working people could get it into their heads that inflation for the future will continue and so start making higher wage demands which could increase inflation even more.This happened back in the ’70s and was extremely difficult to stop.Finally the Chinese currency is pegged/fixed against the dollar and so if the dollar gets weaker even more cheap goods will flow into America.
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I read similar article also named ey | Ron Paul .com, and it was completely different. Personally, I agree with you more, because this article makes a little bit more sense for me
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Traditionally, before the federal reserve was created in 1913 banks lent money out based on the amount of precious metals in its reserves. These were gold and silver backed certificates to be used as a medium of exchange. Interest rates would be adjusted based on the amount of these certificates in circulation and the amount in a banks reserves. Then a group of privately owned banks endorsed by our government called the central bank decided that when the banks cut back on the money supply and raised interest rates they would step in and supply more fiat money, hence we have the Great Depression of 1929. Ironically the central bank was initially created to make our economy recession proof. Also quite interesting is that gold and the gold standard somehow came to be the scapegoat for the cause of the great depression. Our government realized that it couldn’t finance all its expenditures in an economy regulated by precious metals. It needs a deficit and it needs inflation. We should just change the name of our country from United States to Welfare States. We are now born into debt and can never truly be debt free. I only see it getting worse if we continue to follow the same economic policy. Our government is going to milk us till their is nothing left. What is the saddest thing of all is that you won’t learn this truth in school and most americans are to busy trying to be good little citizens, paying there bills, and being what our government calls relatively debt free to educate themselves on the flaws of our system. Do your part and tell everyone you know!!!!
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One can debate the Gold Issue forever. There are benefits, but there are consequences, too! The problem is Congress and the fact that they illegally gave the power vested in them to a Private Bank, that manipulates the market, so as to Bankrupt the suckers at will so it can “cleanup” at bargain prices. It’s goals are to OWN everything, even Countries and Governments. By not allowing a Bank to FAIL is to prop up the fraudulent system of ever increasing inflation and the destruction of the Dollar.
A Gold Standard in an expanding Economy will definitely STIFLE opportunity, which is why the Government had the power to print US Notes to allow expandability and without INTEREST which can be taxed out of existance in better times. That is probably why two GREAT Presidents were assasinated. (another debate)
We are at the mercy of a private Monopoly Banking System that creates money out of thin air, lends it to the Government at INTEREST, in exchange for Bonds, backed by the American People which must be paid sooner or later by our children and grandchildren.
What we need is for the Government to do it’s JOB authorized in the Constitution. My advice would be a FIXED monetary system, maybe 3 percent, PERIOD! That would allow the Government to have an income stream and could ELIMINATE the Income Tax. The Economy would adjust quickly and the added income would allow the people to enjoy a better life without Inflation that literally is stealing our wealth like a one armed bandit!
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I have been reading a lot about this perspective and coming to believe it. One of the scary things about returning to the gold standard, is that private central banks now own 2/3rds of the world’s gold, they can and frequently do act in concert because the Rothchilds control 1/2 of the world’s wealth and probably all of the US Fed.
Reagan looked into Fort Knox and allegedly determined the U.S. owned no gold. So did we prosper during Reagan’s terms? I sure used to think so.
Lincoln’s greenback was successful without gold backing.
Wm Jennings Bryan’s slogan about Cross of Gold apparently had lots of merit.
Would the constricted supply of gold adequately allow for economic expansion everyone wants, without illusion?
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We must be carefull to recognize what “Our Money” is. It is not dolars earned per hour or per dollar invested. Our mony is the INTERNATIONAL recognition of our productivity. Manipulation through government taxation, government incentives, monetary policy, are only factors which cloud the true performance of our economic system.
The United States thrived for a long period because of our ability to “out produce” the rest of the world. I believe continued true producivity growth occurred for much of the 20th century. Thus our increasing standard of living. That being said we were sitting on a very high relative productivity level, but also a very high level of entitlement which is basically the funding of our “public sector”.
Inter-National competition is the new factor of the last 20 years affecting our economy. Competition is with natural resources, prodcutive ability, government and monetary policy.
With the EEC established to hide individual euopean country weeknesses, Rusian liquidation of natural resource, Middle east liquidation of Oil, and Asian liquidation of Labor and environment the playing field has changed.
It is a competition for our future expections, which include wealth, environment, and our sustainability. Given the fact that the world economy is now valuing our productivity ($s) less, we must carefully adjust to accept that we must start increasing true productivty again.
Ron Paul’s economic message I will say again can not be a carcophony of dissenters, but a true justifiable economic model which provides us a future with expectation.
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Nice, a paleo-liberaterian fiscal policy right of Margret Thatcher that does next to nothing to secure job oppritunity for the proletariat. Thanks a lot, Pon Raul!
“hey guize, let’s reinstate an abandoned policy of sound money/metal fetishism and have some more lassiez faire, that worked great, didn’t it?”
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Proletariat? You’ve been reading too much Marx. You’re second sentence indicates you need to develop a better understanding of cause and effect.
I’ve been around since 1959. Communism was a disaster for every country that implemented that form of government in conjunction with socialist economic policy.
Read some history. They all fail and devolve into something worse.
Perhaps you think Cuba is an example of success? China? Just about every meaningful progress in the last 200 years has been the result of individual rights and free markets (however tainted they might be).
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All good points. Gold is the only TRUE money in the world. by that I mean gold is excentric which means whatever goods may
cost at any time golds value will always increase with the cost
of the goods. I bilieve that the private owner’s of the Federeal
Reserve have figured this out a long time ago. The authorization to print currancy and just take over the money in this country needs to be taken out of the private owners of the Federal Reserve
Bank and be put back into the hands of our House of Representatives
like it should be. Our country will continue to go in debt as long as the Federal Reserve Bank prints money and charges our Government outragious to pay it back. Which in point puts the burden on good hard working Americans.
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Wow, the govt then controls money supply? Yikes. By the way, what happens if we go on a gold standard and there is a speculative attack? Couldn’t oil and cash-rich nations take dollars, fund countries, and swamp the world with gold, buying all of our dollars for pennies on the non-dollar?
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Jack,
Think about what you just said and lets talk about if. If there are more people demanding more goods and services then the value of those services goes up. The value of the dollar would not go up because it is based on gold. Therefore, you are right in some ways that there would be shortages, but they would even out because only so many people could afford the most in demand services and goods. This has the benefit of creting competition, some one else offers the good for chaeper and more people can buy it, or (heaven forbid) savings:) If you need something bad enough, the way it used to be, you figured out how to save or make enough money to get it, these days you just use credit and that is what has caused a credit crisis.
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Jake, I think you bring up a good question, and the first thing I need to know is what is gold worth and how much does the U.S. have. There may be ample gold in our reserves now to back a successfully valued currency, but in the old days, the only way to maintain the value is to get out there and dig more up.
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How would the gold standard work if there’s increases in population? If the population increased, there would be less dollars and more demand. This would create shortages too, but also not enough currency for people to use it to make purchases. The only answer would be to increase the money supply, which would require some sort of revaluation of the currency or gold. How would that work?
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Who us to say that gold will retain the value against the inflation that will be caused by having more of it? What is gold in this case, is it just something tangable? I don’t care for gold and I imagine that Im not the only one, so if there is no or low demand than how does it retain it’s value to support the dollars that it’s supposed to be backing?
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What you need to see is that it doesn’t matter if it’s gold, silver, or copper. The point is that these natural materials can’t be manipulated so easily as our paper currency. Gold would also decrease in value if there was suddenly twice as much. But the fed can’t just make gold apear out of thin air. This is why the fed is not needed to control our “free” market economy. If our money were in the form of gold (or any other non man made material) the money would regulated itself.
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Gold, like other metals, has worth in it’s industrial applications – it is because of its properties as an element that has made it valuable to us. There are problems with gold: hoarding and a population that outgrows the supply of gold is another. Maybe the latter will simply mean that less will be worth more.
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Be careful what thoughts are implanted intentionally and then spread by the elite. There is plenty on this earth for everyone. The idea of scarcity is created by the elite to make us think there is not enough when really it is their maniuplation and mismanagement of what resources we have available for all to use. These scarcity thoughts are implanted to make us fight one another, to make sure we get our share…must be war! Bullpucky. The elite don’t go to war, but they recruit others to do their dirty work under false pretenses. If we buy into this, we buy into serving them and their plans. Be careful what you think and choose your own thoughts wisely.
If the resources were properly share, if we were friendly with everyone, peaceful and helpful to each other (so opposite the elite who need the haves and have not mentality to even exist as elite), then this would be a prosperous and wonderful world to live in.
My thought is, the elite will self-destruct due to their own insane tendencies. This destruction will spread amongst the groups of them worldwide to leave the rest of us to live in peace and prosperity.
We are evolving into a world were there are no leaders. This tired old system has proven to be corrupt and a ruination of the world. We each and all are our own leader. We are watching their destruction, not ours.
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I have been my own person in life. But, it is very difficult when the many in the world are already brainwashed and they think your weird.
The shadaow government has been trying to destroy the family and our value system for years.
I know that…I know how they have destroyed the men in this country. They decreased mens wages, encouraged and funded the woman’s lib movement, they wanted two incomes in the family, one to bring in more income taxes for the government and two to destroy the marriage. Divorce laws changed, no fault divorce now….how many people to do you know, that have been divorced 2-5 times? I know a few.
And with both of them working, they raised Latch Key Kids, I”ve worked them in the workplace..they are useless.
Kids are taught to look to their peers for help and authority, not to the parents. Or anyone older then they are.
The ACLU took prayer out of the schools. And put acceptance of abnormal sex education into the schools.
For the past 8 years or more the government keeps taxing our staples more and more….yah never know from one day to the next how much gasoline is going to cost or butter or bread or milk…..keeping the people in constant anxiety over day to day operations of the family unit.
Finanically.making the family feel very insecure and not being able to plan their lives, or plan for next week for that matter .these are all brainwashing and mind control techniques…..being used on the masses….that is all it is.
And once the United States see’s it for what it is…they will be better able to cope with our crazy and dysfuntional government……Hopefully anyway….
Right now they are into the “bombarding and overwhelming stage, with us in their mind control techniques..
That is all created too….they love to see us squirm in hopes that when their dictator comes forth that they will be able to get total control of the masses……with one voice.
I wish they would self destruct pretty soon cuz I’m tired of worrying about all this mess.
Just keep praying that the Truth will be Revealed more and more. Once the “jabbing” starts and the “chip’ is in your wrist cuz the dollar crashed and then they tell you in order to buy and sell you must take this chip…
That will be the end of Freedom folks..its over then.
Obama is creating his Domestic Army, and once they get the go ahead to taser or shoot us ..these “power ranger kids” won’t give a damn if they do it to a fellow American.
They got the border patrol and the police and the airport security using those taser now….they could care less about us.
Honey that generation loves war….mine fought against it…..don’t yah think that the government is behind all the rap music and ninetendo games and war games to reeve that generation up……
In Iraq they give those kids headphones and have them listen to horrible rap music..while they are killing people….the kids say they love it man …….aaahhh what are you going to do with the generation like that…..you think your going to change their minds after they have already been brainwashed …….man their messed up…they think what is good is bad and what is bad is good….
After all the dope that this government encouraged them to take ……
All the drugs they advertise on TV for you take…
All the Ritalin they gave those kids……it does the same thing as Cocaine to their minds.
How many kids have they got on Ritalin, Prozac, and Zoloft?
Aahh its sickening ……The War on Drugs made them all rich didn’t it? Yah its working for them isn’t it…..No child left behind is right……
I’ll be damn glad when its all over I’ll tell yah…
this World is being destroyed and I can’t wait to go on and be with the Lord…
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I hear you, Jan. I have seen so many changes over my lifetime. Much damage has been done, but you know, the world needs us sane folks now more than ever! No kidding. This is our purpose. We know the difference between then and now, that it has not been an improvement but a digression from what our world could be like. People are running as fast as they can to keep up and still that is not enough. We’re tired and know inately that this is not the way we were designed to live.
I found out about the contaminated flu vaccine and then researched as much as I needed to know, only to be accused by the gal running the website as a Judas. Right then I knew that the way she was thinking was overtaking her and I didn’t want to go there. We have to have control over our own minds. Jesus calmed people’s minds many times. Why? Because he knew that what you fear, you help come to pass because you are focused on it. Instead, despite how things look, we need to remind ourselves what we are admonished to be in the scriptures. Be peaceful, be calm and good things will come to you. Hold that thought.
Our body chemistry changes radically when we move into fear mode, negative thinking and this inclines us more towards illness and disease plus our thinking is not helping us, but rather helping “them” to tear us down. i don’t want to cooperate with that. I had to straighten myself up here, ask myself what am I doing to myself? I’m letting them rob me of my joy and happiness. They have already taken quite enough.
So I found a video that gave me some glimmer of creative minds that care about the earth and creating a world where it honors our true nature, how we would truly like to live. I have already received some flack about posting the link here, but I am still pursing it and finding out more. Turns out it reflects much of my own thoughts, the ones I’ve already had. They have taken the creativity further than I would know, but truly this movement, if more and more people became attracted to it, it could solve many of the aspects our government says it is trying to accomplish, but really it’s only for their own profit, no sincere integrity behind it at all. I’m tired of that. I want to be a part of something that is constructive, that gets us out of the same ol’ same ol’ problems wtih politics, the economy, all that. Anyway, I don’t see this movement as a threat to my spirituality in the least. It is more of an expression of my spirtuality and a healthy wholeness honoring humanity and the earth, worldwide.
You may already know of it, but there are lots more videos.
They helped pick me up out of the flu vaccine sinkhole I was going in…snapped me right out of it. I’m a creative person myself so I love it when someone uses their own mind towards creating something that does not already exist. We can go on and complain about this and that but it’s not changing anything. We need to evolve past this crapola. I love these concepts and I see a welcomed change.
The Zeitgeist Movement Orientation Presentation – New Zeitgeist – Part 1
http://www.youtube.com/watch?v=bnVi8Rn4FqI&feature=related
This is a lengthy 2-hour presentation and Q and A.
Zeitgeist Day March 15th 2009, NYC LIVE Part 1_1 (Full Version)
http://www.youtube.com/watch?v=CXAhH9o2IKc&feature=PlayList&p=90B1DEDA4551C5D7&playnext=1&playnext_from=PL&index=1
The Q and A session answers common concerns, spells out the definite difference between where we are headed under the current administration and this movement. Granted we are attempting to come out of an era of total disception, lies and unbelievable theft, so trust is something others will earn and we are also learning to trust our own judgements again.
I feel much better after listening to some of these videos + my spiritual teachings always help straighten me out. We know too much because we’ve seen so much go on in our lifetimes, but that is an advantage, not a disadvantage. We KNOW there is a better way to live. Who else can help others out of this mess?
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Thanks Christine for your understanding.
I’ll look at the video’s the first of the week.
Today is Labor Day 2009….and I have been watching
The Jerry Lewis Telethon……
as I see many of these kids and younger adults come up on stage with many diseases that I have never heard of, all with a bunch of intials. that have put them in wheelchairs…..I can’t help but wonder.if their muscle weakness and Lou Garigs diseaes are caused from the 36 vaccinations they got as kids.
It’s pretty sad then isn’t it …they the government uses this show each year to bring in donations for the things they may have caused in these kids…
but they will never admit it…or cure it…they just want more money to pay their researchers who really haven’t found or admitted that vaccines could have caused alot of things and never will….besides that Jerry Lewis gets a million dollars to stay up all night, making faces one night a year!
The entertainers are pretty good but I don’t see them entertaining or even singing or talking to the crippled kids…they just want to get known to the public on TV as it seems to me….lack of compassion like never seen before until this year ..in my opinion.
Muscular Dystrophy used to be caused at birth coming through the birth canal..but these other new diseases, I just wonder if it isn’t really all the mercury,the squalene and live virus’s they injected into them all at once between the ages of 0-5yrs and their immune system is shot or suffering……just a thought….
Oh well that is the system as it is in the USA and it all continues with no cures and lots of money for wheelchairs. The parents crying over what has mysteriously happened to their kids and are so thankful that at least the money will help them with the aftercare.
I set here thinking…..what if it was all caused from those vaccines….I wonder if those parents would stop feeling so guilty and get mad and truly help fight the FDA for setting ungodly immunization criteria for our kids. ( I worked for a Pediatrician years ago and we did not give any immunizations until the age of 3 months and then it was only one shot, the DPT)……now the get the HepB at birth! and six more the first visit to the Pediatrician…even the Health Dept workers when we would go and pick up the vaccines wondered it if wasn’t causing Autism but they said they wouldn’t want the bosses to know they feel it is and loose their jobs)
Its so sad to watch…….as a nurse for 45years I still have NOT seen any cures of any diseases…they still just treat the symptoms with drugs.
Happy Labor Day….should we celebrate
16% unemployment or should we celebrate no cures???
Which is it?
No mention of all the hard labor we have done all of our lives is there?
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Jan, this is the link I posted to the flu group and Jane marked me as a Judas for it. She was wrong to do that. She is not a good judge of my heart. She truly does not know me.
Dr. Andrew Moulden (Interview): What You Were Never Told About Vaccines
http://vactruth.com/2009/07/21/dr-andrew-moulden-interview-what-you-were-never-told-about-vaccines/
As I was reading the article, all I could think is that if this guy is right, then ALL VACCINES have been causing ALL diseasesfor big pharma profit for all these many years. maybe the elite see us coming close to this understanding, like Jenny McCarthy and Autism. That being so, we can stop vaccine programs from birth on up and stop disease, stop big profitting big pharma, stop the governments that depend on that revenu to fight wars, and more. All that money could then go to what we really need it for, to improve the quality of life everywhere! Future generations will benefit, provided they do not take the flu shot. Some say it contains elements that would create infertility.
I am researching to find GENIUNE glimmers of hope just as much as the next person. This awakening process is relatively new to many of us compared to our lifetimes in years. We’ve trusted what we should not have been trusting for so long…medically, financially, politically, the media, all of it, a total control of our minds and belief system about everything and you know, their way is running out of time, and it’s not working.
Now we are waking up to the real truth. It’s difficult to wake up and see how insane our world really is. Very difficult. For compassionate human beings, it is especially difficult. I cry. But for those brave enough to see and admit it are the ones who will then get involved in the transformation into what works for all of humanity.
If the people who are running our government had to undergo a psychiatric analysis, there would be doctor notations in their medical charts. Obsessively controlling, a need to dominate, a self-concept of superiority, lacks the ability to feel compassion, irrational and obsessive thoughts of never enough money even though they have billions and millions, secretive, belief system that it’s ok to lie, steal, and doublespeak to deceive and plot against others, etc. Their minds are corrupted just like a computer file. They never work properly or how they were intended, giving bad results!
The Venus Project sounds very hopeful. There are so many people on this planet who want to get back to our natural nature, to live in harmony with each other and the earth…to be loving and compassionate, caring human beings in a sane world.
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Jacque Fresco Lecture Part 1 – Penn State Allegheny
http://www.youtube.com/watch?v=nuRG2v0Put0&feature=related
The Venus Project – check out videos on youtube.
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What Mr. Paul states makes incredibly easy to understand sense. The big question is why hasn’t our government subscribed to this theory since they mistakenly took the U.S. off the gold standard? That was a mistake that many saw coming, and the results too, so why is it not clearly obvious that they should rethink the need for the Federal Reserve and revert to the gold standard? Mr. Paul may just be the best candidate for this issue for our times, although I do not know his views on domestic or foreign policy, but we seriously need someone who can bring back the power of the “allmighty” dollar.
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Hi Jack,
The reason govt has not subscribed to this is because govt is not in control. The central bankers are. They assassinated Lincoln over this issue. They assassinated JFK and RFK over this issue. So, who’s next?
Until the people wake up to the reality that plutocrats are in charge of both our govt and our corporate monopolies, they will continue to run roughshod over us all.
The hope is that people are waking up and smelling the coffee (it’s now burned.) The greater hope is that God is greater than all these plutocrats. And, He will not be mocked. Amen.
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Forget the gold. Stockpile bottled water, canned food, bath items, pharmaceuticals and essential expendable materials. Oh yeah, don’t forget the ammo.
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amen brother!!!…time to revisit the declaration of independence…
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REVOLUTION!!!Destroy the Untouchables, the unjust, the secret combinations. Our freedoms are being raped this day. Obama is proposes to destroy our way of life, our children, our families. He wants a federal mandate of Same Sex acceptance in all public schools. We will resist. And when he comes to enforce these unjust laws on us, we will use our God given rights to defend our families and our way of life. This movement is gaining momentum. Everyone stock on food, water, and Non detriorating ammunition and weapons. Learn skills to preserve our way of life. Gardening one of many. The voice of the people will be heard! Illuminati will be detroyed. God will be our shield and protector when we put faith in Him.
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The government plays a part. Have you heard of….
You’ll be a little bit surprised maybe of how much the American people have been misled and lied to on top of the secret activities of the FED.
Petrodollar Recycling
http://video.google.com/videoplay?docid=1283250336175505194
Explains why the car companies’ success is so important to keep the USA from going bankrupt, perhaps why the government stepped in to oust and replace the CEO and has % of interest in a private corporation. Why certain wars with certain leaders (Saddam, Iran soon? Afghanistan is building and Pakistan is heating up. How many more wars and deaths for Oil and World Control and Supremacy? which would be unnecessary if we lived within our means and maintained a balanced budget responsibly. We must go back to pre 1913, the FED and the IRS to have a balanced budget.)
Ron Paul of Texas – The End of Dollar Hegemony (Dollar backed by Oil)
Ron Paul elaborates more than the above link, but they are in agreement. The devaluing of the American dollar (created by the FED printing money out of thin air with no gold backing) causes the price of oil to go up.
http://video.google.com/videoplay?docid=-8327695139643041382&hl=en
Ron Paul on the Petrodollar Parts1-4
http://www.youtube.com/watch?v=SxVZ945JR5g
http://www.youtube.com/watch?v=jGWNzlWrzTY&feature=related
http://www.youtube.com/watch?v=Ekdln_NZ-P4&feature=related
http://www.youtube.com/watch?v=LgEfvi2sHQM&feature=related
Petro Dollar Motive Part I Nothing Lasts Forever 9/11
http://www.youtube.com/watch?v=Sb_tDhmE2ms&feature=related
http://www.youtube.com/watch?v=2Ag0h_uUDOc&feature=related
http://www.youtube.com/watch?v=-6CVbFZQQ4g&feature=related
http://www.youtube.com/watch?v=bCBYDzw2onk&feature=related
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What does the term “Democracy” mean?
When our government invades countries and our Presidents speak of trying to form a “Democracy for their people”.
By the way, our states are Republic’s! (remember the Pledge of Alligence To the Flag of the United States of America…”and to the Republic for which we stand, One nation under God, Indivisible etc.”)
Wikipedia says this……….
Democracy can denote either the power or complete rule by the people.
The term is derived from the Greek δημοκρατία (dēmokratía (info)), “popular government”,[2] which was coined from δῆμος (dêmos), “people” and κράτος (krátos), meaning “state” in the middle of the fifth-fourth century BC to denote the political systems then existing in some Greek city-states, notably Athens following a popular uprising in 508 BC.[3]
In political theory, democracy describes a small number of related forms of government and also a political philosophy.
Even though there is no specific, universally accepted definition of ‘democracy’,[4] there are two principles that any definition of democracy includes, equality and freedom.[5]
These principles are reflected by all citizens being equal before the law, and have equal access to power.[6] Additionally, all citizens are able to enjoy legitimized freedoms and liberties, which are usually protected by the constitution.
There are several varieties of democracy, some of which provide better representation and more freedoms for their citizens than others.
However, if any democracy is not carefully legislated to avoid an uneven distribution of political power with balances, such as the separation of powers, then a branch of the system of rule could accumulate power and become harmful to the democracy itself!
The “majority rule” is often described as a characteristic feature of democracy, but without responsible government or constitutional protections of individual liberties from democratic power it is possible for dissenting individuals to be oppressed by the “tyranny of the majority”!
An essential process in representative democracies is competitive elections, that are fair both substantively and procedurally.
Furthermore, freedom of political expression, freedom of speech and freedom of the press are essential so that citizens are informed and able to vote in their personal interests.
for more……http://en.wikipedia.org/wiki/Democracy
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In most things, the elite twist information so what is wrong sounds right. We must be careful of that and use our own minds.
You are right. We are a repulic government, or were founded as one. With incremental changes in our laws through elite holding offices, our government has been perverted into a government where the people are not free. We all are seeing that now.
Democracy is a government ruled by a few over the many, where the many lose any kind of voice and authority over how their country is run.
Thus, with each new war, it has been the plan of the NWO to destabilize the current government of a country, then tout their institution of a new democracy.
I believe if these elite were to undergo a psychiatric evalution, they would be deemed insane, verifiably obsessively controlling.
We were born to be free, with gifts and talents to express for the improvement and the well-being of each other and the planet. When we are oppressed, these gifts and talents are suppressed to…thus the current state of our health and well-being and the planet.
I think of democracy as the first 4 letters…demo. It is destructive to the earth and the people on it…and teaches it’s destructive way to others to spread this destruction worldwide.
Without oppression, living according to our true nature, this world would be an entirely different place. We would live in harmony, friendship, prosperity, health and happiness, taking care of the earth, ourselves and each other.
I hope that a mistrust grows amongst the elite, that they begin fighting amongst themselves for “top dog” positions, so much so that they devour each other with their destructive ways, that will cause the collapse of their plans, that will then leave the planet for the rest of us who will enjoy life once again with the freedom to reconstruct a peaceful and prosperous way of living.
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Hi:
What can be done about the manipulation of markets ( particularly the precious metals markets ) by the Federal reserve and Treasury through Golman Sachs and J P Morgan ( & others ) to cover up the magnitude of the inflationary effects of their current monetary activity ? It is my understanding that over a trillion dollars has been injected into our monetary system to cover the Iraq war and to bail out the sub prime scoundrels in the past year alone. It is criminal that this is taking place and that the standard of living of we Americans is being raped by the Fed and Treasury under the lead of Bernanke and Paulson
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I agree. I heard an Argentinian/Salbuchi say on you tube, that the speculators on Wall Street, and Fannie Mae/Freddie Mac government derivative scandal got us in debt to the tune of $503 Trillion dollars! The One Trillion probably was given for the speculators Bonus’s! Watch World Government on you tube by Salbuchi video #2.
Of course this financial crash has effected the entire world, and there is now way out now, we are too far into debt and always will be. The elites talk about “depoplulating” as a option now. 6 billion on earth,down to 500,000 million. That is probably the number of people who are acturally millionaires or billionaires. In the elites eyes that would solve their problem. So, think twice before you take the Flu Vaccine,enlist in the army,or eat Monsanto’s GMO food products(causes infertility & cancer). Joblessness and government iniated bankruptsies seem to be a tool for more depopulation. Study up on the subjects and resist the NWO as the issues come before us the people.
http://www.youtube.com/watch?v=DvR8GNAYpNs
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http://mises.org/
The Ludwig von Mises Institute is an great website that explains Austrian Economics, the particular branch of economic theory Ron Paul prescribes to.
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My summary of what is going on:
Gordon Brown said he wants a new world order. That was the crazy suggestion that had no chance.
Germany and France said no new spending, France even willing to walk out if there was new spending and no new regulation. That was the other side of the pendulum.
Then compromise, if you want to call it that. The so called compromise was each country can chose to extend more spending and stimulus if they see fit.
Well, that pissed Russia and China off. Why, because by printing more dollars, we devalue the dollars they hold in treasury bonds. So, what do China and Russia do? They demand greater voting rights in the international monetary fund (IMF), which are moneys loaned to emerging market economies (po’ folks, international welfare). China and Russia also demanded we use some of our new printed dollars (which we justified printing for the purpose of funding Obama’s Budget which Biden announced tonight on CSPAN) to fund these international banks. So, U.S. dollars (actually, Federal Reserve Notes) are printed, causing inflation, decreasing purchasing power for you and me (which is a form of taxation), to fund the global monetary fund , and China and Russia benefit from getting more voting rights. See, China is already starting to demand payment on the debt – and China is demanding we make payment to a fund we currently control in order to buy them shares – seats at the table. Talk about a conflict of American Interest.
Americans are paying taxes to let China control our monetary policy. Why, because America is bailing out the Federal Reserve, which is insolvent, which is no better than any other private bank. What does the Federal Reserve hold? Gold? Audit Fort Knox and prove there is gold.
Also of note, we have to give around 250B to go towards trade deficits. Also known as – financially apologizing for benefiting from the system for so long.
Follow me here. If the Federal Reserve is a Ponzi scheme (which it is), Foreign Governments (China Included) are responsible for not doing due diligence into the investments they made. Foreign governments invested in a bad product (unfortunately, that bad product is Federal Reserve Notes, which we all use to buy Big Macs), and those foreign governments should not be bailed out (yes, that is what we are doing – paying taxes to bail out foreign countries so the Federal Reserve can maintain its high credit rating).
Screw the fed, let them fail, and lets get back to letting Congress – the Government – issue the money (with a solid backing) for the people – only as much as we need – no more, no less, – and operating from a balanced budget model with priorities on providing governmental services approved in the constitution – military, a secure border, justice, and welfare for the disenfranchised. And by disenfranchised, I don’t mean lazy.
my 2 cents, adjusted for inflation, 2 pesos.
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Jeremy Dozier:
Excellent article! The gold we HAD in Fort Knox and 2
other places has not been audited since 1954 under Eisenhower. I seriously doubt that it is still there;
or else why won’t they audit the gold now? Speculation says that it has probably been moved to who knows where. The
United States Mint ran out of gold blanks recently, so they halted production of gold coins. Seems odd to me that the
US cannot come up with the gold to mint coins! The
Federal Reserve System has been in control of our gold
reserves, so I can only imagine where it is now;
probably somewhere in Europe. This definately needs to be checked out!
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I think alot of the gold was under the Twin Towers!
No one ever said who found it or who got it! Or if it was removed before they took the buildings down!~
I also have read in China papers that they are buying up as much gold as they can!
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Its free on line…
Check out the Mises Institute’s daily short essays by some of the most quoted writers of this and the past century.
http://mises.org/daily/Album/
AND… you can take online classes if you REALLY want to learn the truth!
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