Our current lie has been in effect since President Wilson signed the Federal Reserve Act on Dec. 23, 1913.
The anti-banker Democrats overwhelmingly supported the Act, while the pro-banker Republicans opposed it. The Banksters themselves were against it because only one of the seven members of the newly-created Federal Reserve Board could represent them. Could you now correctly identify any member of Congress or the Senate who is opposed to the Federal Reserve? There are only two. Sen. Rand Paul (R-Ky.) and Sen. Bernie Sanders (Communist-Vt.).
The lie expanded on Aug. 15, 1971, when President Nixon announced that the U.S. dollar would no longer be backed by physical gold reserves.
The lie that fiat money has any value at all except as a tool of the elites to control and manipulate the producers and savers as well as prices has been perpetuated ever since then. Paper money is a device for expanding the credit of the issuer. It has no intrinsic value, other than the confidence we have in its exchange value.
In an interview from 1994 on C-Span’s show Booknotes, Milton Friedman explained why he was for ripping the heart out of the lie of debt serfdom called fiat money and abolishing the Fed. “Look, the Federal Reserve started operation in 1914. It presided over a doubling of prices during WWI, it produced a major collapse in 1921 … it undertook actions which led to a recession in 1929-30, and it converted that recession, by its actions, into the Great Depression … Since that time, it presided over a doubling of prices during WWII, it financed the inflation of the 1970s… It’s done far more harm than good.”
Yet here we stand on the brink of more lies in the form of a nationwide miseducation regarding the purpose and reality of government-issued fiat money with the rise of the “Democratic Socialists” and their belief in Modern Monetary Theory (MMT).
They think that government spending increases productivity and consumption among the people. That’s how they justify guaranteed income. Give it to the people and it will come back through consumption and taxes, they say.
They do correctly admit that governments only need to tax to stem inflation. That taxes aren’t for revenue, but to remove money from the system, i.e., regulation of the volume of money, as I have written to you many times before.
An opinion piece in favor of MMT written by Common Dreams and posted on Alternet however goes further and warns us of the socialists’ true intentions: “Early proponents of progressive tax policy knew that it was not just a revenue source … we would do well to remember that progressive taxation is a democratic reform.”
In other words, it’s another in a long line of reforms aimed at furthering the globalists’ goals of a “Democracy” to replace our Republic. The article itself is titled “Alexandria Ocasio-Cortez’s 70 percent tax isn’t about the money.”
How can it be, when taxation, even high taxation, doesn’t raise that much revenue? As Noah Smith points out on Bloomberg: “If you simply calculate the amount of money the [70 percent] tax would raise if the wealthy paid all of the tax, it would yield roughly $72 billion a year … certainly not be nearly enough to pay for Ocasio-Cortez’s Green New Deal, which could easily cost more than 13 times that amount. Wealthy people have eye-popping incomes, but there really aren’t that many of them.”
Representative Ocasio-Cortez’s plan to tax the rich at 70 percent goes against what MMT says. Low taxes grow the economy; High taxes stifle inflation, according to MMT. So, she’s talking out of both sides of her mouth. Why?
Because what she and her Fascist masters want is not tax money, it’s control of the Government’s ability to print endless money and send it out into the economy, expanding credit (which is debt). MMT proponents enjoy the Fed being able to create money. They believe it needs to be created before it can be spent. And the more created, the more spent so that it starts moving around.
It’s not simply control of money that’s desired by those who want power. It’s control of the movement of money. Its importance is why there is a measurement for that. Velocity of money is the ratio of gross national product (or gross domestic product, GDP) to a country’s total supply of money. The supply of money is only important insofar as how fast it moves because that’s how the market makers (and elites, and their parasites) control and make their profits. Some legally, some fraudulently.
Debt isn’t necessarily not good, especially cheap debt. It frees up actual capital. Problems start when the debt is used to speculate.
Coincidentally, speculation is how one of the current main proponents of MMT, Warren Mosler, got rich. A Vice article on the beneficial wonders of MMT relates it this way: “In the early 1990s, Italy was struggling with high debt and low tax receipts; economists and traders feared it was heading for collapse. Italian government bond yields inevitably shot up. Mosler recognized that Italy could not be forced into default: It could print as many lira as it needed. (This was in the pre-euro days.) He borrowed lira from Italian banks at an interest rate lower than Italian government bonds were paying and used that money to buy Italian government debt other investors were dumping.”
Over the next few years, this trade made him and his clients more than $100 million. Italy, meanwhile, crashed and burned, economically speaking and then it was on to America for Mosler.
“In the late 1990s, just about everybody thought the Clinton budget surplus strengthened the U.S. economy. But Mosler realized the Clinton budget surplus meant the government was taking more money out of the private sector in taxes than it was putting in in spending. Mosler reasoned this private sector deficit (the flip side of the government surplus) would inevitably lead to recession, so he bet on interest rates to fall (which they did in 2001) and his hedge fund again made out like bandits.”
The elites, the parasites and the politicians who do their bidding all love to make money when people are trading — buying or selling. They don’t care if your asset collapses in price. They made their money from the movement of your money already. There’s nothing inherently wrong with that, mind you, until you are the policymaker that causes the money to move so you can parasite off it.
One is capitalism, one is fraud. And when you are the person who can control where the money moves to? That’s also fraud.
Now those who formulated MMT and parasited off both Americans and the Italians want to peddle their own version of the lie of fiat money here. Americans who have been dumbed down and had their attention span and recall shortened by Bread & Circus so that they have forgotten or never learned real economics and history are listening.
Ocasio-Cortez is not really a socialist. She wants socialism for everyone else. But she wants to be one of the elites who benefits off her special form of fascism.
The corporatist, globalist elites and their partners in government want you to think that all rights, all economic activity and all power flows from government to you. That you must go to college, learn the ways of the state, and be sent forth from the Ivory Towers as a good little globalist.
The opposite is true. We are the producers. Government is there to steal the fruits of it from us first by creating fiat money, which must go through the government where those in power receive it and use it before it is debased through inflation, and stolen from us again via taxation.
Fiat money is a lie that supersedes political party. It is now outside the law. The only way the dollar — or any currency that replaces it — will lose the power of control is if a currency exists outside of the corruption of the state and government.
This is why I write to you about gold and silver, which have always been rare and precious to humans and have the quality of a store of value and medium of exchange built in. They will always be of use as money and thus, those in power do not want gold and silver to move. They talk it down so the price and desirability stay low. Yes, the government always seeks to control everything around these non-central bank currencies, tries to confiscate them and often attempts to rig the market for them. But gold and silver themselves can’t be corrupted, so they are ideal as stores of value.
Yours for the truth,
Editor, The Bob Livingston Letter™
Let’s do something about that…
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