Constitution In Peril
Gordon D. Long
Gordon T. Long
It can not be overstated the importance SOUND MONEY plays in protecting the public’s Constitutional Rights, the control of relentless government spending and the limitation of political ‘reach’ and growth of socialist programs. This fact was well understood even before the founding of the US Federal Reserve.
The Austrian Economist Ludwig von Mises wrote in 1912 in ‘THE THEORY OF MONEY & CREDIT”, the year prior to the creation of the Federal Reserve that:
“It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically, it belongs in the same class with political constitutions and bills of rights.”
Unfortunately, these wise tenets to protect human freedoms have been relegated to the dustbin of history by modern day Monetary Malpractice. Our forefathers warned us sternly, what we must be vigilant to if we were to safeguard the liberties entrusted to us.
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered ….
The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
THE OLD GAME OF POWER: You Must “Create Crisis”
Unfortunately, an unelected body of academics at the US Federal Reserve are mistakenly taking ‘we the people’ in a direction our forefathers were furvently opposed to.
This quasi-public institution, owned by the banking institutions themselves, has followed a path of Monetary Malpractice stemming from Misinformation, Manipulation, Malpractice, Malfeasance, Mispricing and Malinvestment which resulted in Moral Hazard, Unintended Consequence and Dysfunctional Markets.
We have reached the stage where market Mispricing and Malinvestment is so rampant that a market clearing crisis is the only solution.
Ludwig von Mises was quite clear in spelling out what results from the Monetary Malpractice of Unsound Money:
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
UNSOUND MONEY JEOPARDIZES CONSTITUTIONAL RIGHTS
Why Sound money is a necessary protection of civil liberties:
- It reins in the growth of government.
•When a government prints money without the restraint of competing currencies — even if the restraining “competition” is a gold standard — runaway bureaucracy results.
•Wars are financed; indeed, it is difficult to imagine the extended horrors of World War II without governments’ monopoly on currency.
•A white-hot printing press can finance the soaring numbers of prisons and law enforcement officers required to impose a police state.
2. Floods of currency can prop up unpopular policies like Obamacare or the War on Drugs.
•That is why government holds onto its monopoly with a death grip.
•“The gold standard did not collapse. Governments abolished it in order to pave the way for inflation. The whole grim apparatus of oppression and coercion, policemen, customs guards, penal courts, prisons, in some countries even executioners, had to be put into action in order to destroy the gold standard.”
3. Permits government to monitor virtually all transactions through the financial institutions with whom it maintains an intimate partnership.
•Total surveillance is a prerequisite to total control, which is what the government wants to establish as quickly as possible. For example, prior to establishing the Suspicious Activity Report (SAR) in 1996 — a form that financial institutions submit to the U.S. Treasury — banks were required to automatically report any transaction over $10,000. Now any activity deemed “suspicious” is vulnerable.
•The monopoly facilitates a vicious attack on privacy and has become a main building block of the American surveillance state. As libertarian Mark Hubbard stated, “Civilization is a movement toward privacy, a police state the opposite, and tax legislation has become the legislation of our new Big Brother states.”
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