Posted on 02/06/2002 4:39:25 PM PST by agitator
This week on The Agitator Hour, heard Wednesdays at 9pm Eastern/6pm Pacific the guest is Mr. Bernard von NotHaus Chief Economist of the National Organization for the Repeal of the FEDeral Reserve Act and the Internal Revenue Code.
NORFED, the National Organization for the Repeal of the FEDeral Reserve Act and the Internal Revenue Code, is a supporter-based nonprofit organization dedicated to using all its revenue to restore a honest monetary system for all Americans, as required by our Constitution. It is governed by a Board of Directors and a Supporters Advisory Council. NORFED solicits your support to effect a change to our nation's monetary standards.
| Guest: | Mr. Mr. Bernard von NotHaus |
| Date: | Feb. 6, 2002 |
| Showtime: | 9pm EST / 6pm PST |
| Where: | The Agitator Hour - Click here to Listen Live at 9pm |
The toll-free call-in line is 1-800-478-7780
I ask this in all sincerity: Should I lay in a food supply?
Yes it is but not how you are thinking. And I do NOT want a gold only backed dollar.
"HOW ABOUT MONEY OWED TO ME AND MONEY I OWE OTHER PEOPLE? ALL OF THE SUDDEN I AM STUCK WITH A MORTGAGE OF 150,000 IN US DOLLARS BUT NOW WITH THE GOLD DOLLAR, I STILL OWE 150,000 BUT ACCORDING TO YOU SINCE THE GOLD WOULD HAVE SO MUCH PURCHASING POWER THAT IT WOULD BE WORTH A LOT MORE THAN A PAPER DOLLAR, BUT I WOULD HAVE TO GIVE THE BANK 150,000 GOLD DOLLARS."
I look at the "it's unconstitutional" argument through the lense of a lawyer who has argued cases to the Supreme Court--nothing is unconstitutional unless you can get the Supreme Court to say its unconstitutional. Clearly the writers of the constitution intended that only specie would be used as money and that any paper evidencing specie (receipts for gold and silver) would be locally created. The fact that the current money system violates the constitution is irrelevant--we have it; its not going away anytime soon for the reason that it is unconstitutional.
The "there is not and will never be enough gold" argument is a facilicy advanced by people who have a vested interest in being able to control the monetary system and accepted by a body politic that does not know enough about economics to understand why it is not so. There is plenty of gold. It is just a question of how much purchasing power it represents (how many units of whatever your basic gold is divided into does it take to exchange for a ham sandwich).
In a gold monetary system, we will be producing a lot of gold because it will be in demand for use as money--if we dig at less than the rate of expansion of the economy, gold will appreciate; if we dig more, gold will depreciate. Probably there will be incremental appreciation in the 1-3 percent range and that will be positive because borrowers will pay little or no interest.
What happens to XCON and his mortgage? You are worried about a global event where Congress passes a law effectively saying XCON has to pay $300 to retire his $150 mortgage. That won't happen so don't worry about it. What happens in the real world is that a global event eliminates the purchasing power of the paper money and people turn to something else as a medium of exchange. You take a few papers off the top of the pile in your wheelbarrow of paper and pay off your mortgage and forget it. You will get the opportunity to do that fairly soon so pay attention.
Why is our economy so great with such a lousy monetary system? Because the underpinnings have been free market capital. As government grows; as the tax rate grows; as government screws up the money system; fails to provide for the national defense; inhibits the education of our people; and regulates productive enterprises out of existence, our economic engine will be less competative. We can be a lot less competative and still compete with the socialists in Europe, Japan, South America, and southeast Asia. However it is possible to foresee that at some point, the government can do enough damage to put us out of business. It may be that destruction of our money system will be enough to do that.
Maybe it was Harvard that taught him that perspective on currency, which is de facto Monopoly money in this country.
If you really do, in fact, don't think that it's worth anything, then feel free to send what you have to me.
What was that that Greenspan set a month or so ago? DO banks get their money FREE from the FRS. And what price would the FRS pay if they screwed us over on the interest? Can we vote them out? The FRS does not ultimately answer to us or the gov.
That is such a lame line. I have to hand it to the fiat lovers on this site, they are consistent. They all have used the exact same line, worded in almost the exact same way, and it has exactly no relevance to, or bearing on the subject at hand.
More interestingly, never have I seen so many conservatives assert their trust in government rather than market forces. It's strange.
Conversely, much of today's labor is performed to pay for purchases of previous generatons.
Governments enlarge themselves by borrowing far into the future, pledging the labors and wealth of it's citizens as collateral.
Most law is created to insure the repayment. That's how our government became our masters instead of our servants. We're slaves and don't know it.
I demand reparations. Would it be safe to say that if we would have stayed on specie, we would have much smaller government and bureaucracies, less socialistic programs, less laws, and more personal wealth and freedom?
Conversely, much of today's labor is performed to pay for purchases of previous generatons.
Governments enlarge themselves by borrowing far into the future, pledging the labors and wealth of it's citizens as collateral.
Most law is created to insure the repayment. That's how our government became our masters instead of our servants. We're slaves and don't know it.
I demand reparations. Would it be safe to say that if we would have stayed on specie, we would have much smaller government and bureaucracies, less socialistic programs, less laws, and more personal wealth and freedom?
Come to think of it, our currency is WORSE than Monopoly money, since the printing of Monopoly money is limited by the demand for that particular game.
I'm always curious to learn more about this most grand & glorious scam. But, what can we really ever do about it?
They depend on the misseducated masses for market support & it works perfectly as anyone know whose tried to argue logically with "experts"{x=has been + spurt=a drip under pressure}.
Anytime things get shaky they wheel out the Greenspan doll & have him "talk" & then everythings OK for awhile.
I have to admit, he is the best snake oil salesman I've ever seen!
This issue about who controls the printing press is obviously not well understood. Reality in the modern world is that you don't worry about Greenspan and the Fed running the printing press--they may do it but they are a tiny fraction of the overall money supply and not relevant. The problem is privately created credits which wind up in the banking system and then in the market as money. The amount of money created by the derivative market and the securitized equity markets is several thousand times what the Fed creates.
It also represents an overhang of the most significant exposure to the financial system. The dollar is initially exposed because its underpinning is the ability of the US Government to make citizens pay taxes to support its ability to pay interest on the US debt. If the tax revenue disappears, so does the dollar. There is exposure there because if the government is successful in destroying operation of the domestic economy, people who pay taxes will have less money to pay taxes with.
However the secondary exposure is much greater. The credit market created money is dependent on cash flow from debtors--people who pay their mortgage payments, credit cards and on other debt instruments which are the basis for credit money. The overwhelming number of individuals in that group are people whose ability to make payments is exposed at a far earlier point in an economic contraction. And when these people can't pay any more, they bring the house of cards down faster than any other event.
Everyone should look at Doug Noland's articles, posted on PrudentBear.com under the title Credit Bubble Bulletin. There is a section on the site called Bear Library where I believe these articles are archieved. He puts up a new article every Saturday morning--the current article is well worth reading. So are his articles over the last several months (there were a couple of weeks he was on vacation and someone else wrote the article--find Doug's stuff in the archieve). Noland is on a crusade on the issue of private credit money however he is a professional and his work is excellent.
You are certainly at the head of the class in my book.
Brillant work in helping me cope with this crap anyway.
The Eron version of the old Savings & Loan trick is the big boys way escape like all the little bastards are doing now with skipping out on credit card debt with all these intermediary companies whose adverts are everywhere.
Isn't this a big factor straining our golden goose?
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