Take 10 minutes of your life and read the passage below several times. Then let the message sink into your rational mind and tell everyone about your magic epiphany.
DECEIT #1: Paper money created by central banks will sustainably increase in value and purchasing power.
TRUTH #1: Paper money is guaranteed to decrease in value and purchasing power over time and its downward collapse is accelerating. The history of the world is littered with failed paper currencies that have always returned to their intrinsic value of zero. Tragically, the reckless money creation, i.e. inflation, has been an “inside job” committed by the world’s hand-picked central bankers. Today’s untested central bank decisions to implement Zero percent Interest Rate Policy (ZIRP) and Negative Interest Rate Policy (NIRP) will only accelerate the decline of the paper money purchasing power.
VISION #1: Sound money must be restored and be backed by gold. Gold has served as enduring money for the last 5,000 years. Prior to 1933 when gold was confiscated from the American people through Executive Order 6102, the paper dollars were redeemable “in gold coin payable to the bearer on demand.” Gold is durable, portable, divisible, uniform, limited supply and acceptable. It is time to restore the gold backing of our green paper currency and abandon the destructive printing press.
“Money is gold, and nothing else.” – JP Morgan
“Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world.” – Henry Kissinger
DECEIT #2: Chronic deficit spending by governments is a sustainable fiscal policy.
TRUTH #2: Chronic deficit spending is an unsustainable policy that will ruin society’s morality and production in the end. As debts continuously increase, the Law of Diminishing Marginal Productivity holds true. See the previous GPR blog #3 (One Final Attempt at Morality) for further discussion about the predictable damage of extreme debts. The early outcomes of additional debt can be positive. However, the later stages of growing debts do far greater damage by actually decreasing productivity and greatly harming the overall economy. The siren song of debt is like a shiny red apple. The shiny apple is very appealing to everyone, but the final bites into its rotten core will be lethal.
VISION #2: Balanced budgets must be restored and implemented by elected government officials. The fiscal outcomes of the past and current policies of reckless deficit spending must consider both the immediate and long-term effects, and must consider the effects on all groups of people. Treat taxpayers equitably and reward the productive workers, the savers, the investors and the entrepreneurs, while taking care of the sick, needy and youth.
“If you find yourself in a hole, stop digging.” - Will Rogers
“The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.” - Henry Hazlitt (Economics in One Lesson)
DECEIT #3: Governments and bankers provide monetary (money printing) and fiscal (deficit spending) stimulus because they care about the well-being and future of the masses.
TRUTH #3: Governments go to the printing press and stimulus checks because they want their servants to continuously pay taxes to them. Their generous giving is not as benevolent as it appears. Governments create and produce nothing except policies (often failed and dangerous ones), audits and wars, yet it is the creative and productive people that pay taxes to them? For example, raising the minimum wage creates higher prices for all and in turn, higher taxes. One more question….what does every government do with the increased tax revenues? Answer: Strengthen their military. I’ll leave it up to the reader to figure out the great risks to themselves and their communities if they ever decide to pursue any peaceful civil disobedience movements that resist self-proclaimed government policy.
VISION #3: Governments must respect the U.S. Constitution that was founded on limited government and individual freedoms. They must have limited interventions and do no harm. Throughout history, great nations have thrived and dominated when free markets have been allowed to function without interference. Governments are notoriously horrible “money managers” so we cannot continue trusting them with such important matters.
“The care of human life and happiness, and not their destruction, is the first and only object of good government.” - Thomas Jefferson
"The nine most terrifying words in the English language are: I'm from the Government, and I'm here to help. " - Ronald Reagan
“I prefer dangerous freedom over peaceful slavery.” - Thomas Jefferson
“There are a thousand hacking at the branches of evil to one who is striking at the root.” - Henry David Thoreau
These three visions may sound familiar. They summarize Ron Paul’s “Pillars of Prosperity”. We must act now to change our values, behaviors and actions before our great people suffer unnecessary harm. Thank you Dr. Ron Paul, retired U.S. Representative!
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