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America Divided, Jefferson & Central Banks, Fiat Currency, and Politics on the Train

In case you haven’t noticed, America is becoming more and more divided these days by politics.  I know this is politically incorrect to say, but I’m happy to say it – that’s a good thing.  People are waking up to what has been going on for decades in Washington, and is currently happening way worse than ever before.  The govt is massively expanding its size, becoming a larger part of our GDP, right as GDP is shrinking in virtually every other area of the economy, even state & local govts.   

Half the country seems to think that it’s necessary for govt to grow because we need to provide services to everyone in the country, for free, even if you’re not a citizen.  They would be called the economically illiterate half. The other half, the SPDBRNR half, think the govt should return to its constitutional roots, stop the rapid encroachment on our freedoms and privacy, and yes, abolish the Federal Reserve, like Thomas Jefferson would tell us to do.  He was kinda smart – don’t ya think?  Read his direct quote below regarding central banks:

“The [privately-owned] Central Bank is an institution of the most deadly
hostility existing against the principles and form of our Constitution…
if the American people allow private banks to control the issuance of their
currency, first by inflation and then by deflation, the banks and corporations
that will grow up around them will deprive the people of all their property
until their children will wake up homeless on the continent their fathers
conquered.”

Doesn’t that sound like exactly what’s happened?  The dollar has lost 96% of its value since the Fed came into being in 1913.  The biggest banks in the land have been given free money by the govt. They pay themselves repulsively large bonuses for jobs done poorly with this free cash, then use absurdly spurious arguments to support this practice.  Meanwhile, the other 95% of us have frozen salaries, belt-tightening, lost jobs, and are bargain hunting…and there’s no end in sight at this point.  Jefferson NAILED IT!!!!

Back to the govt…in case you’ve forgotten, govt is NOT PRODUCTIVE. Govt sucks the resources from an economy; it does not create value and it is MASSIVELY inefficient and fiscally irresponsible.  We are very late in the life of this fiat currency run, as the dollar soon ‘celebrates’ its 38th year being backed by nothing.  I’m guessing the celebration will be yet another dollar printing orgy.  On 8/15/71 Nixon closed the gold window to foreign states as France’s Charles DeGaulle called the U.S.’s bluff at $35/oz for gold.  The average age of fiat currencies is only 35-40 years.  The lure of the printing press becomes too great (like monetizing govt debt…), the public loses faith in the currency, races to buy real wealth-preserving assets with their suddenly shakey currency, and the dolar implodes.  Wealth-preserving…hmmm…like gold and silver for 1,000’s of years now? 

Finally, back to America the Divided (yes…I’ve rambled…sorry).  Tuesday evening on the train, I listened to a man & woman talk about how ‘we are sooooo close to finally having govt healthcare, gee I hope it goes thru’.  I felt like they weren’t even fellow Americans because this crap is so obviously socialistic and unconstitutional.  I kept my mouth shut, since I know if I said a single word, I’d start to get passionate & heated about the topic.  But right as I got up to leave, I laid down a copy of some economic commentary that I’d finished reading, and said ‘here’s some reading you might like’. They were stunned into silence as I walked away. Hopefully they at least glanced at it.

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2 Responses to “America Divided, Jefferson & Central Banks, Fiat Currency, and Politics on the Train”

  1. Update – I mention in the article…”…the other 95% of us have frozen salaries, belt-tightening, lost jobs…”

    Well, today, Friday 8/14/09, 6 people on my floor were laid off…on my birthday…Obama, how’s that stimulus coming along?… you lying, socialist, economically illiterate, tool of the global banking elite!!

    Hope you’re happy that you’re well on your way to burying America, especially if the cap & trade energy bill and healthcare bills pass…


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