Evolution of Dispossession

Evolution of Dispossession
How to Steal a Country?

Sunday, February 24, 2008

Recession, Depression, or Abolition

I did not understand all of the economics in this piece, but some of it made sense. The author is clearly fluent in "Greenspeak" but the basic point is that the US is in serious economic trouble, and the Federal Reserve bears much culpability.


wdporter said...

I think the problems we face is less a function of the existence of the Federal Reserve than it is the function of the Federal Reserve.

One could argue that it will take the Federal Reserve (a less active, less "Faux Keynesian" and more consistent Federal Reserve) to get us out of this mess, even though that same argument could include the very simple corollary that we could have done without it in the first place.

For a good article on the obvious connection between the value of the dollar and our financial woes:

click here.

My favorite quote is the conclusion:

"As Keynes so famously wrote, “There is no subtler, surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose.” We know what ails us, and it’s the falling dollar. If we halt its decline, spirits will improve as they always do when we strengthen and stabilize the value of the money we earn."

One sure long-term solution is to make sure that our elected politicians have as much economic knowledge as they do legal and procedural knowledge--the dear Senator McCain being the prime example.

The freshman orientation at Congress should be 6 weeks of study of "Wealth of Nations", "Tract on Monetary Reform", "General Theory on Employment, Interest, and Money", "Road to Serfdom," and "Capitalism and Freedom"

And there should be an exam...and if they fail they should go the f*** back home.

scottie said...

If there is a central bank in the future, one maqnaged by Congress, I have no problem with that.

But a private consortium which manipulates interest rates as a controlling mechanism I will always be opposed to.

That article was fantatstic by the way, and debauching the currency is what is happening.

It is interesting that the dollar slide started in 2001 ...

Hussein's conversion of the petro-dollar to the petro-euro could have easily influenced global demand for dollars.

wdporter said...

Managed by Congress?


Dude that's downright cute. You'd have to agree that until our Congress follows actual sound economic FISCAL principles, it would be comically ill-advised to have them manage something as complex as MONETARY policy, right?

And the consortium isn't "private" per se...it's simply "independent" which is in itself good and bad.

scottie said...

Read "The Creature from Jekyll Island" which traces the origins of the original member banks.

Tell me afterwards it is not "private per se"

Congress has the Constitutional authority to print our currency and regulate its value. It's stated in black and white in that document Butch. Whether or not they should be entrusted with that power is altogether a different consideration. Unless the Constitution is amended, it is their duty to do just that.

wdporter said...

No NO...we're completely in agreement here.

100% in agreement--(now let's soak in that reality and enjoy it for a second)

As usual, I'm just bogged down in practicality...and the sheer terror of the thought of handing over Monetary policy to our current Congress...just scared the beJesus out of me.

But you're ABSOLUTELY right. It should be their responsibility, I'm just not confident that they have the tools now.

scottie said...

The Democrats have no plan to restore sound currency. McCain is clueless on this issue as well. Paul brought up this issue every chance he could, and he got laughed at.

The situation will not go away, and will only get worse. Bernanke playing games with the rate cuts is pure window-dressing.

wdporter said...

yeah, all the remaining candidates are clueless and none of them have a plan for restoring the currency...

And they're all in the Senate...you see what I mean?

Ron Paul is severely in the minority. If you had to guess (I couldn't even attempt it) what percentage of our 535 members of Congress have the knowledge and ability to effectively oversee monetary policy (since that is part of their Constitutional responsibility)?

scottie said...

Only man in Congress that has the background to do it is Ron Paul, and that is not me on the political pulpit, just an observation based on his comments at the debates in this election cycle, which I have followed very closely, maybe to the point of being ridiculously obsessive.

wdporter said...

aw c'mon...ONLY Ron Paul. He can't be the only one. Out of 535 there has to be more than only ONE. There should be 8 or 10...at least 5?

Not that I have a clue in hell who they could be (and obviously that was the original point), but there just HAS to be more than just one.

samadams said...

As for Representatives smart enough to manage monetary policy, Paul introduce HR4683 the "Free Competition in Currency Act of 2007" on Dec 13th of last year. It has yet to gather any cosponsors and is sitting in the House Judiciary Committee. I doubt it will see the light of day.

Remember, it was Congress in charge of monetary policy that made the messes of the late 19th century which gave rise to the Federal Reserve in the first place.

And by the way, Congress DOES NOT have the power to 'print' money. They have the power to 'coin' it. That is a very significant distinction which our founders understood all too well. If we do not study their experiences with fiat currency in the early years of the Republic, we will be doomed to repeat them - again. (we are experiencing those problems now. I dare hope we don't compound the situation by failing to resort to the only known and proven successful remedy of sound money)

"Here, here!" on wdporter's assesment of qualifications for Congress.

Although I'm sure von Mises is glad to be vindicated by recent events, I'm also sure he would rather we had learned our lesson without all the pain and mayhem which is shortly down the road.

If you'd like an excellent analysis of Oil and the Petro-Dollar, Google "Robert Newman's History of Oil" in their video section. His peak oil theory has as of late been proven wrong and I don't care much for his eco-warrior bent, but his assessment of our present insanity in our choices, is nonetheless accurate. Unfortunately he does not include the history of the Dollar BEFORE the 1971 Breton Woods collapse to give a framework for WHY the Saudis agreed to the Petro -Dollar in the first place. That aside, he is quite entertaining and informative.