Inflation

In The Economic Consequences of the Peace (1920), John Maynard Keynes observed: “Lenin (the founder of the former communist Soviet Union) was certainly right.  There is no subtler, no 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 does it in a manner which not one man in a million is able to diagnose”. Many people do not realize that inflation is an extremely destructive hidden tax, especially on the poor of all nations of the world.  Inflation reduces the buying power of your money, so you become poorer, even if you have the same amount of money in the bank or in your pocket.

Suppose, for example, the inflation rate is 3.5%.   If you have $30,000.00, in ten years it will only buy $20,550.00 worth of goods.  If the inflation rate is 5.5%, (which is closer to reality, as inflation is often underestimated by the government’s measurements), your $30,000.00 is worth only $16,650 in ten years.  This should be enough to scare anyone.  Let us explore what inflation is and why it is occurring.

WHAT EXACTLY IS INFLATION?

People believe that inflation is rising prices.  That is not quite true.  Inflation means there is more money out there chasing the same number of goods and services.  As a result, the value of the money is diluted.  One result is higher prices.  There are also other negative consequences, as we will explore below.

Inflation is like if a person were to slowly add water to our gasoline.  You might not notice the difference at first.  But after a while, the gas would not power your car as well and eventually it would not work at all.  Your gasoline would no longer have the value it had before.  Another common analogy is that it is like adding a little water to the milk that is sold in the store.  For a while, no one might notice at all.  However, the milk is less nutritious, and won’t taste quite right.  Eventually, the people wake up and realize the milk is not nearly as good, although it might still look okay.

Since the money is diluted, it does not work as well and it takes more of it to buy things.  For example, good, solid money 100 years ago could buy a nice house for about $20,000.00.  Today, with the diluted money, it takes $200,000.00 or more to buy the same house.  Higher prices are just a way we express the fact that the diluted money of today does not buy as much.

INFLATION AS A HIDDEN TAX

Inflation is actually an old, secret method of taxing the people without their knowledge.  This may sound strange because no one talks about inflation as a tax.  However, I will explain.

When extra money is printed up and put into circulation, it costs the government very little.  The only cost is that of printing.  Each paper bill of any denomination from $1 To $1,000 or more costs less than fifty cents to manufacture.  So it is almost free money for the government.

They just run the printing press and it suddenly exists.  It seems like they can create value out of nothing.  It is wonderful for the government, which is why most governments do it all the time.  Most nations, by the way, do it far more than the United States.  We are not used to inflation, but in other nations of Africa and Asia, it is business as usual.

The government can then lavish the money on all their favorite projects without worrying about the people complaining, because the money seems to be “free”.

However, it is not free.  What it does is to slowly dilute the money that is in existence already, like diluting the milk in the analogy above.  So all the money the people already have, including all their savings, salaries and all the rest, slowly start to be worth less.  In this sense, inflation is a very hidden tax, or way the government confiscates the people’s real wealth.

If the government gave its new printed money to each of us to spend, it wouldn’t be so bad.  Then at least we would all have more of the diluted or less valuable money.   But they never do this, as a rule.  They give it their favored friends and projects.  Everyone else is just cheated out of some of their wealth.  This is indeed a sneaky way to tax people because:

  • It happens so slowly that few people see it.
  • It is hidden, as there are no tax forms to fill out or taxes added to your purchases or bills.
  • Unlike other taxes, no one seems to force you to pay up on April 15 or any other day
  • People actually feel richer because often their salary and the price of their house goes up.  In fact, many actually have more money, but of course all that cash is worth less.
  • Inflation does not require any new laws that people could debate and vote down. Thus it happens silently and secretly.

WHY, THEN, ARE SOME PRICES LOWER TODAY?

Inflation has caused the price of land, cars, houses, energy and other things to rise dramatically over the past 50 years or so. However, a few items seem to be getting less inexpensive today, like computers and even clothing.  This is occurring for several reasons:

  1. New technology has dramatically reduced production costs in some areas. This helps keep some prices low.
  2. Innovationreduces the cost of certain items like electronics. For example, today’s computers are simply much more advanced than those of 10 or even 5 years ago.  We get more for our money.
  3. Lower wages that are paid to workers in nations such as China, India, Vietnam and others also help keep prices down.
  4. Our trading partners such as China, Japan, Canada and Europe are all inflating their currencies.In fact, some are doing so faster than we are in the United States.  We are in a curious situation with competitive destruction of the currencies by a number of nations.  This keeps the cost of many foreign goods lower, as well.
  5. As more nations become developed and join the family of industrializing nations, more goods and services are being offered.In this sense, the larger amount of printed money is not chasing the same number of goods and services.  Instead, the number of goods and services is also increasing.  This also offsets some tendency for inflation.
  6. A deceptive reason for some lower prices today is the goods are not as high quality.For example, I have some older bed linens, for example, and even coats that were left to me by my parents when they died.  They are much better made than most linens today, and have lasted far longer.  This concept is sometimes called planned obsolescence.  It is a fancy way of saying that things are made cheaply.  It is not all bad, because it enables us to buy the most energy-efficient new things, for example.  However, it wastes a lot of resources and creates a lot of extra garbage, at times, as people throw away equipment that breaks quickly, for example.

THE DARK SIDE OF INFLATION

Printing paper money that is not backed by gold and silver has many other negative effects connected with ever-higher prices and price instability.  Here are just a few:

  • Businesses and individuals cannot plan for the future nearly as well.  They simply cannot depend on stable raw material and other prices.  Instead, they are forced to hoard goods, buy things they may not need but can use as bargaining chips and do other things that are costly and often counterproductive.
  • Businesses are often far more afraid to take risks in inflationary times.  They simply don’t know what the future will bring.  This is terrible, because businessmen taking risks is critical for innovation, research and development of new products and new technologies.
  • People lose faith in the government and in each other.  Everyone has a tendency to believe that everyone else is cheating them.  This causes social unrest, crime, violence, and other social problems.
  • Because planning is so difficult, maintaining a business or even a household becomes far more difficult.  This causes many more bankruptcies, foreclosures, loss of homes and businesses and other very disruptive effects on society.
  • As social unrest grows, strikes, protests and riots occur more frequently because so few people understand inflation and how to cure it.  Anger mounts and civil society disintegrates.
  • Inflation encourages people to go into debt.  After all, when the time comes to repay your loan, you can do it with inflated and less valuable dollars.  It is like borrowing good quality gasoline and being allowed to repay it in diluted gasoline.  This favors those who are not the productive people in society and it punishes those who save their money.  This is not at all healthy for society.
  • It is very tough for the working and middle classes in particular.  They often depend on their labor, which is just not bringing them as much money as it did before.  They don’t have assets that appreciate with inflation such as large homes and some stocks.  Thus the poor people are hurt the most.  Even beggars and those on welfare are hurt badly as they find their limited means just won’t buy as much as before.
  • People who are used to saving some money find they cannot save money or the money they have saved is worth much less.  They also feel cheated and become angry and fearful.
  • Basically, it impoverishes the people and ruins the health of society.
  • It also tends to destroy democratic principles and substitutes a welfare type of state that rewards its friends and punishes its enemies by withholding money.  This leads to distrust, anger and often revolution and decay of society.

PREVENTING INFLATION

Inflation is really the most terrible of crimes.  The American founding fathers knew this well and did their best to prevent it.  The United States of America, among all nations, is perhaps the only one that has written into its Federal Constitution that “no state shall … make any thing but gold and silver coin a tender in payment of debts”. – Article I, Section 10.

This was put into the Constitution specifically to prevent inflation.  Unfortunately, this intent was violated almost 100 years ago.  The American people need to find Supreme Court and other justices who actually understand the intent and the wisdom of the original Constitution so as to prevent the government from violating this important clause concerning the nation’s money.

All paper money in America, by law, must be redeemable in gold or silver.  This was the case for years.  Old dollar bills printed before 1913, or perhaps even later, all were required to state “Redeemable in Silver”.

You might ask, how is it possible that our government can just ignore the Constitution?  It is largely because the people are totally ignorant of the Constitution.  It is taught poorly if at all in public school.  Also, there is a prevailing attitude that the Constitution is just an old piece of paper.  Judges have ignored its intent, often at whim, and their understanding of it is limited.

Finally, there is much corruption in the government.  We have elected many representatives who care more about money or power than they do about following the law.  I hope this will change as more people understand inflation, and that our leaders need to be held accountable for their actions.

The only way to prevent inflation, as far as I know, is to have an honest government that is not permitted to print endless amounts of money.  The best way to do this is to have a gold standard, or something similar, so that the government is forced to put some value behind their paper money.

WHAT CAN A PERSON DO ABOUT INFLATION?

            Live healthfully.  The reason for this is that when inflation really hits, the health care system will be cut back.  This is especially the case if it is a government-run system.  Costs will rise and the government usually just cuts back services to save money.  This website is full of articles on how to live healthfully and prevent most diseases.

Call and write your representatives in the state and federal governments.  Tell them:

  • They must stop spend so much money.
  • They must work to get the nation out of debt.
  • They must not print more paper money, or just create electronic book entries, also called “monetizing the debt”.
  • They must return the nation – all nations – to a precious metal standard, like the gold or perhaps a silver standard.  This would effectively prevent the government from just printing money because all the paper money would have to be backed by some precious metal.  This means that anyone could turn in their paper dollars for real gold or silver coins that cannot be faked or just ‘printed up’ at random.

Inflation hedges. These are investments, basically, that tend to hold their value in a time of inflation.  They include any tangible items that are useful to people, such as cars, houses, tools, equipment, land or real estate, electronic devices that don’t go out of date quickly, even good clothing, shoes and other real goods.

Another inflation hedge is to own some gold or silver in some form, since its value usually goes up with inflation.  Finally, if someone has extra money to invest, one could talk with an accountant or financial counselor about other investments that are likely to increase in value if inflation gets worse.  These might be selected stocks or other things.  Be very careful with investment advisors, however, as many are not honest.

Also, do not live beyond your means.  Save some money in the form of coins or other tangible goods.

THE ACTUAL SITUATION TODAY

Today’s inflation is unique, in a way, because almost all nations are inflating their money.  It is like a competitive race to see who can destroy the currency fastest.  This is horrible.  However, it has some interesting consequences.  If only one nation inflates its money, that nation would be doomed.  Many people say this about the USA, for example.  However, today most nations are inflating their money and the USA is just starting to ‘go with the crowd’.

Therefore, I believe the doomsayers are somewhat wrong about the downfall of the USA.  I am guessing that all prices will rise slowly, most likely, although gold and silver prices could climb faster.  In fact, they have tripled since around 1991, along with a few other prices like health care costs and land values in some places.

Worldwide inflation tends to “spread the misery” somewhat, and it will be the worst in the nations that are most fiscally irresponsible.

BENEFITS OF INFLATION

Inflating the money is a horrible crime.  However, as with most things in life, it can have a few hidden benefits:

  • It is bringing many people back ‘down to earth’, so to speak, forcing them to think about their purchases, their investments, and what is real and what is fluff in their lives.  This is actually a spiritual benefit that unfortunately usually requires some pain and deprivation.
  • Inflation often follows a period of prosperity where people get lax and allow the government to violate the law, as has happened in America.  So it is a wakeup call for many people that eventually is helpful for society if it can return to sound monetary and governmental policies.
  • It is good for some businesses that borrow money.  They can repay with cheaper dollars, so at least it seems like a benefit.  Unfortunately, interest rates usually rise in inflationary times, so borrowing tends to cost more, offsetting some of the benefit.
  • Inflation tends to teach a good lesson, which is not to trust the government.  This is a lesson I think most Americans and others around the world need to learn.  It was clear to the founders of America, but liberal teachers and leaders have convinced many people that government is benign, when it is never the truth.  To paraphrase George Washington, I believe he stated that “Government is force.  It may be necessary, but government is never good.”  Thomas Jefferson expressed the same idea when he wrote “that government is best that governs least”.

Source: https://drlwilson.com/Articles/INFLATON.htm

See Also: Inflation Is Not A Social Policy

Chronological History of Events Related to Inflation

CIA Whistleblower Warns The Fed “Is Out To Get President Trump”

CIA Whistleblower Warns The Fed “Is Out To Get President Trump”

Former CIA Officer and whistleblower Kevin Shipp thinks the Fed rate-hikes throughout Trump’s two and a half years in office are a way to “get the President.” Trump has been highly critical of the Fed, and he says it is to blame if the economy tanks. Shipp explains, “God bless Donald Trump because he is the first President to call out the Fed like he is doing.” “He has got the Fed shaking in their boots. When the Fed gags its board of directors and its members, that is not good. Something not good is going on. Perhaps they ...
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Great Depression

A US economic depression that began soon after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and rising levels of unemployment as failing companies laid off workers. By 1933, when the Great Depression reached its nadir, some 13 to 15 million Americans were unemployed and nearly half of the country’s banks had failed. The economy would not fully turn around until after 1939, when World War II kicked American industry into high gear. Writing in “The United States’ Unresolved Monetary and Political Problems”, William Bryan describes the carefully contrived market crash by the intentional failure of the Federal Reserve to aid the banks not owned by the oligarchy:

“When everything was ready, the New York financiers started calling 24 hour broker call loans. This meant that the stockbrokers and the customers had to dump their stock on the market in order to pay the loans. This naturally collapsed the stock market and brought a banking collapse all over the country because the banks not owned by the oligarchy were heavily involved in broker call claims at this time, and bank runs soon exhausted their coin and currency and they had to close. The Federal Reserve System would not come to their aid, although they were instructed under the law to maintain an elastic currency.”

The investing public, including most stock brokers and bankers, took a horrendous blow in the crash, but not the insiders. They were either out of the market or had sold “short” so that they made enormous profits as the Dow Jones plummeted. For those who knew the score, a comment by Paul Warburg had provided the warning to sell. That signal came on March 9, 1929, when the Financial Chronicle quoted Warburg as giving this sound advice:

“If orgies of unrestricted speculation are permitted to spread too far the ultimate collapse is certain … to bring about a general depression involving the whole country.”

Sharpies were later able to buy back these stocks at a ninety percent discount from their former highs. To think that the scientifically engineered Crash of 1929 was an accident or the result of stupidity defies all logic. The international bankers who promoted the inflationary policies and pushed the propaganda which pumped up the stock market represented too many generations of accumulated expertise to have blundered into “the great depression.”

Congressman Louis McFadden, Chairman of the House Banking and Currency Committee, commented:

“It [the depression] was not accidental. It was a carefully contrived occurrence… The international bankers sought to bring about a condition of despair here so that they might emerge as the rulers of us all.”

From Eustace Mullins ‘Secrets of the Federal Reserve’ (Ch.12):

The revelation of the Federal Reserve Board’s final decision to trigger the Crash of 1929 appears, amazingly enough, in The New York Times. On April 20, 1929, the Times headlined, “Federal Advisory Council Mystery Meeting in Washington. Resolutions were adopted by the council and transmitted to the board, but their purpose was closely guarded. An atmosphere of deep mystery was thrown about the proceedings both by the board and the council. Every effort was made to guard the proceedings of this extraordinary session. Evasive replies were given to newspaper correspondents.

Read more in History pages…

Smith, Adam

(1723-1790) An 18th-century Scottish economist, moral philosopher, and author (known for ‘The Wealth of Natons‘ in 1776) who is considered the father of modern economics. The recorded history of Smith’s life begins at this baptism on June 5, 1723 in Kirkcaldy, Scotland; his exact birthdate is undocumented. He was raised there by his widowed mother. Smith attended the University of Glasgow in Scotland at age 13, studying moral philosophy. Later, Smith enrolled in postgraduate studies at the prestigious Balliol College at Oxford University.

After returning to Scotland, Smith held a series of public lectures at the University of Edinburgh. The success of his lecture series helped him earn a professorship at Glasgow University in 1751. He eventually earned the position of Chair of Moral Philosophy. During his years spent teaching and working at Glasgow, Smith worked on getting some of his lectures published. His book, “The Theory of Moral Sentiments,” was eventually published in 1759 book.

Smith moved to France in 1763 to accept a more remunerative position as a personal tutor to the stepson of Charles Townshend, an amateur economist and the future Chancellor of the Exchequer. During his time in France, Smith counted the philosophers David Hume and Voltaire and Benjamin Franklin as contemporaries.

In Smith’s day, people saw national wealth in terms of a country’s stock of gold and silver. Importing goods from abroad was seen as damaging because it meant that this wealth must be given up to pay for them; exporting goods was seen as good because these precious metals came back.

So countries maintained a vast network of controls to prevent this metal wealth draining out – taxes on imports, subsidies to exporters, and protection for domestic industries. The same protectionism ruled at home too. Cities prevented artisans from other towns moving in to ply their trade; manufacturers and merchants petitioned the king for protective monopolies; labour-saving devices were banned as a threat to existing producers.

Smith showed that this vast ‘mercantilist’ edifice was folly. He argued that in a free exchange, both sides became better off. Quite simply, nobody would trade if they expected to lose from it. The buyer profits, just as the seller does. Imports are just as valuable to us as our exports are to others.

Because trade benefits both sides, said Smith, it increases our prosperity just as surely as do agriculture or manufacture. A nation’s wealth is not the quantity of gold and silver in its vaults, but the total of its production and commerce – what today we would call gross national product.

The Wealth of Nations deeply influenced the politicians of the time and provided the intellectual foundation of the great nineteenth-century era of free trade and economic expansion. Even today the common sense of free trade is accepted worldwide, whatever the practical difficulties of achieving it.

Smith had a radical, fresh understanding of how human societies actually work. He realised that social harmony would emerge naturally as human beings struggled to find ways to live and work with each other. Freedom and self-interest need not produce chaos, but – as if guided by an ‘invisible hand’ – order and concord. And as people struck bargains with each other, the nation’s resources would be drawn automatically to the ends and purposes that people valued most highly.

So a prospering social order did not need to be controlled by kings and ministers. It would grow, organically, as a product of human nature. It would grow best in an open, competitive marketplace, with free exchange and without coercion.

The Wealth Of Nations was therefore not just a study of economics but a survey of human social psychology: about life, welfare, political institutions, the law, and morality.

It was not The Wealth Of Nations which first made Smith’s reputation, but a book on ethics, The Theory Of Moral Sentiments. Once again, Smith looks to social psychology to discover the foundation of human morality. Human beings have a natural ‘sympathy’ for others. That enables them to understand how to moderate their behaviour and preserve harmony. And this is the basis of our moral ideas and moral actions.

Some people wonder how the self-interest that drives Smith’s economic system can be squared with the ‘sympathy’ that drive his ethics. Here is his answer:

How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it except the pleasure of seeing it.

In other words, human nature is complex. We are self-interested, but we also like to help others too. Smith’s books are complementary: they show how self-interested human beings can live together peacefully (in the moral sphere) and productively (in the economic).

The Wealth Of Nations is no endorsement of economic greed, as sometimes caricatured. Self-interest may drive the economy, but that is a force for good – provided there is genuinely open competition and no coercion. And it is the poor that economic and social freedom benefits most.

Sources:

War on Cash

a concerted campaign to shift consumers towards a digital mode of commerce that can easily be monitored, tracked, tabulated, mined for data, hacked, hijacked and confiscated when convenient. According to economist Steve Forbes, “The real reason for this war on cash—start with the big bills and then work your way down—is an ugly power grab by Big Government. People will have less privacy: Electronic commerce makes it easier for Big Brother to see what we’re doing, thereby making it simpler to bar activities it doesn’t like, such as purchasing salt, sugar, big bottles of soda and Big Macs.

Much like the war on drugs and the war on terror, this so-called “war on cash” is being sold to the public as a means of fighting terrorists, drug dealers, tax evaders and now COVID-19 germs.

Digital currency provides the government and its corporate partners with the ultimate method to track, control you and punish you.

In recent years, just the mere possession of significant amounts of cash could implicate you in suspicious activity and label you a criminal. The rationale (by police) is that cash is the currency for illegal transactions given that it’s harder to track, can be used to pay illegal immigrants, and denies the government its share of the “take,” so doing away with paper money will help law enforcement fight crime and help the government realize more revenue.

Despite what we know about the government and its history of corruption, bumbling, fumbling and data breaches, not to mention how easily technology can be used against us, the campaign to do away with cash is really not a hard sell.

It’s not a hard sell, that is, if you know the right buttons to push, and the government has become a grand master in the art of getting the citizenry to do exactly what it wants. Remember, this is the same government that plans to use behavioral science tactics to “nudge” citizens to comply with the government’s public policy and program initiatives.

It’s also not a hard sell if you belong to the Digital Generation, that segment of the population for whom technology is second nature and “the first generation born into a world that has never not known digital life.”

And it’s certainly not a hard sell if you belong to the growing class of Americans who use their cell phones to pay bills, purchase goods, and transfer funds.

In much the same way that Americans have opted into government surveillance through the convenience of GPS devices and cell phones, digital cash—the means of paying with one’s debit card, credit card or cell phone—is becoming the de facto commerce of the American police state.

Not too long ago, it was estimated that smart phones would replace cash and credit cards altogether by 2020. Right on schedule, a growing number of businesses are adopting no-cash policies, including certain airlines, hotels, rental car companies, restaurants and retail stores. In Sweden, even the homeless and churches accept digital cash.

Making the case for “never, ever carrying cash” in lieu of a digital wallet, journalist Lisa Rabasca Roepe argues that cash is inconvenient, ATM access is costly, and it’s now possible to reimburse people using digital apps such as Venmo. Thus, there’s no longer a need for cash. “More and more retailers and grocery stores are embracing Apple Pay, Google Wallet, Samsung Pay, and Android Pay,” notes Roepe. “PayPal’s app is now accepted at many chain stores including Barnes & Noble, Foot Locker, Home Depot, and Office Depot. Walmart and CVS have both developed their own payment apps while their competitors Target and RiteAid are working on their own apps.”

It’s not just cash that is going digital, either.

A growing number of states are looking to adopt digital driver’s licenses that would reside on your mobile phone. These licenses would include all of the information contained on your printed license, along with a few “extras” such as real-time data downloaded directly from your state’s Department of Motor Vehicles.

Of course, reading between the lines, having a digital driver’s license will open you up to much the same jeopardy as digital cash: it will make it possible for the government to better track your movements, monitor your activities and communications and ultimately shut you down.

So what’s the deal here?

Despite all of the advantages that go along with living in a digital age—namely, convenience—it’s hard to imagine how a cashless world navigated by way of a digital wallet doesn’t signal the beginning of the end for what little privacy we have left and leave us vulnerable to the likes of government thieves and data hackers.

First, privacy not only refers to the things that you don’t want people to know about, those little things you do behind closed doors that are neither illegal nor harmful but embarrassing or intimate. It also refers to the things that are deeply personal and which no one need know about, certainly not the government and its constabulary of busybodies, nannies, Peeping Toms, jail wardens and petty bureaucrats.

Second, we’re already witnessing how easy it will be for government agents to manipulate digital wallets for their own gain. For example, civil asset forfeiture schemes are becoming even more profitable for police agencies thanks to ERAD (Electronic Recovery and Access to Data) devices supplied by the Department of Homeland Security that allow police to not only determine the balance of any magnetic-stripe card (i.e., debit, credit and gift cards) but also freeze and seize any funds on pre-paid money cards. In fact, the Eighth Circuit Court of Appeals ruled that it does not violate the Fourth Amendment for police to scan or swipe your credit card.

Third, as commentator Paul Craig Roberts observed, while Americans have been distracted by the government’s costly war on terror, “the financial system, working hand-in-hand with policymakers, has done more damage to Americans than terrorists could possibly inflict.” Ultimately, as Roberts—who served as Assistant Secretary of the Treasury for Economic Policy under Ronald Reagan—makes clear, the war on cash is about giving the government the ultimate control of the economy and complete access to the citizenry’s pocketbook.

Fourth, if there’s a will, there’s a way. So far, every technological convenience that has made our lives easier has also become our Achilles’ heel, opening us up to greater vulnerabilities from hackers and government agents alike. In recent years, the U.S. government has been repeatedly hacked. In 2015, the Office of Personnel Management had more than 20 million personnel files stolen, everything from Social Security numbers to birth dates and fingerprint records. In 2014, it was the White House, the State Department, the Post Office and other government agencies, along with a host of financial institutions, retailers and entertainment giants that had their files breached. And these are the people in charge of protecting oursensitive information?

Fifth, if there’s one entity that will not stop using cash for its own nefarious purposes, it’s the U.S. government. Cash is the currency used by the government to pay off its foreign “associates.” For instance, the Obama administration flew more than $400 million in cash to Iran, reportedly as part of a financial settlement with the country. Critics claim the money was ransom paid for the return of American hostages. And then there was the $12 billion in shrink-wrapped $100 bills that the U.S. flew to Iraq only to claim it had no record of what happened to the money. It just disappeared, we were told. So when government economists tell you that two-thirds of all $100 bills in circulation are overseas—more than half a trillion dollars’ worth—it’s a pretty good bet that the government played a significant part in their export.

Sixth, this drive to do away with cash is part of a larger global trend driven by international financial institutions and the United Nations that is transforming nations of all sizes, from the smallest nation to the biggest, most advanced economies.

Finally, short of returning to a pre-technological, Luddite age, there’s really no way to pull this horse back now that it’s left the gate. While doing so is near impossible, it would also mean doing without the many conveniences and advantages that are the better angels, if you will, of technology’s totalitarian tendencies: the internet, medical advances, etc.

To our detriment, we have virtually no control over who accesses our private information, how it is stored, or how it is used. Whether we ever had much control remains up for debate. However, in terms of our bargaining power over digital privacy rights, we have been reduced to a pitiful, unenviable position in which we can only hope and trust that those in power will treat our information with respect.

As I make clear in my book Battlefield America: The War on the American Peoplewe have come full circle, back to a pre-revolutionary era of taxation without any real representation.

Cash may well become a casualty of the COVID-19 pandemic.

As these COVID-19 lockdowns drag out, more and more individuals and businesses are going cashless (for convenience and in a so-called effort to avoid spreading coronavirus germs), engaging in online commerce or using digital forms of currency (bank cards, digital wallets, etc.). As a result, physical cash is no longer king.

Yet there are other, more devious, reasons for this re-engineering of society away from physical cash: a cashless society—easily monitored, controlled, manipulated, weaponized and locked down—would play right into the hands of the government (and its corporate partners).

To this end, the government and its corporate partners-in-crime have been waging a subtle war on cash for some time now.

Source: Rutherford Institute

Bretton Woods Conference

After World War II left the world’s financial system in disarray, political leaders and financial gurus met at Bretton Woods, New Hampshire, from July 1-22, 1944, to plan the post-war economic order. Economist John Maynard Keynes and the British government proposed the creation of a world currency called the “bancor,” and the U.S. government proposed a world currency to be known as “unitas.” But for a lot of reasons, mostly American reluctance, the schemes never took off. Instead, the Bretton Woods agreement resulted in the U.S. dollar — its value at the time tied to gold — being crowned “the” world reserve currency. (Read More…)

Chronological History of Events Involving Bretton Woods

Vietnam War Ends but the Socially Engineered Hippie and Drug Culture Live On

Vietnam War Ends but the Socially Engineered Hippie and Drug Culture Live On

On April 30, 1975, the Vietnam War ended with the capture of Saigon by Communist forces and the surrender of General Duong Vanh Minh and his cabinet in the Presidential palace. As troops of the People’s Army of Vietnam marched into Saigon, U.S. personnel and the last American marines were hastily evacuated from the roof of the U.S. embassy. Years later a fundamental question still remains ...
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The Watergate Break-In: A CIA Coup to Overthrow US President Richard Nixon

The Watergate Break-In: A CIA Coup to Overthrow US President Richard Nixon

On June 17, 1972, a group of burglars, carrying electronic surveillance equipment, was arrested inside the Democratic National Committee offices at 2650 Virginia Avenue, NW, in Washington, D.C., the Watergate building complex. The men were quickly identified as having ties to the Nixon reelection campaign and to the White House. Though at the time the incident got little attention, it would snowball into one of the ...
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Bretton  Woods Conference: A Step Towards Global Currency and a New World Order

Bretton Woods Conference: A Step Towards Global Currency and a New World Order

After World War II left the world’s financial system in disarray, political leaders and financial gurus met at Bretton Woods, New Hampshire, from July 1-22, 1944, to plan the post-war economic order. Economist John Maynard Keynes and the British government proposed the creation of a world currency called the “bancor,” and the U.S. government proposed a world currency to be known as “unitas.” But for a ...
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