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Our Treasury Department is supposed to exercise fiduciary responsibility over the nation's treasure, mint coin and print currency exercising good monetary policy to safeguard our national monetary standing. While Treasury currently maintains it's responsibility to mint and print money, most of the rest of it's responsibilities to us have been (un-Constitutionally?) delegated to the Federal Reserve.
Money Supply and Inflation. In all of world history there has never been an event of long term or uncontrolled inflation that was not accompanied by a government increasing the supply of national currency. Printing too much money causes inflation.
Freidman's monetary policy, or "monetarism" ties increase in natural trade to increase in population. Thus monetarism, to keep up with trade, says to increase the national money supply proportionate to the increase in national population, not to exceed some low limit, such as 2.5%, and leave interest rates strictly alone. The free market will automatically set interest rates, labor rates and prices, in accordance with the law of supply and demand. In monetarism, natural booms and busts are fine; in the long run the nation thrives and there is no depression.
Freidman's monetarism sets the bar as the ideal monetary policy.
The gold standard fails in keeping up with increased population and increased trade, simply because the available supply of gold cannot keep up with the increase in population. Shrinking money supply (or fixed money supply with growing population) results in deflation - over-valued national currency.
We have addressed the Fed previously, in Repeal the Federal Reserve Act of 1913 among other places. The Fed has taken over the major functions of what was originally intended by the Framers to be the elected and representative federal government's fiduciary responsibility over and control of American treasure.
It may be argued that if Woodrow Wilson had not gotten away with his violations / side-stepping / ignoring of the Constitution, then FDR never would have gotten away with his. And if FDR had not gotten away with his violations, Richard Nixon and Lyndon Johnson would not have gotten away with theirs. And if they had not gotten away with theirs, perhaps Comrade President Barack Hussein "Kiss my ass because I'm black" Obama, peace be upon him, would not be arrogantly sitting pretty and looking innocent while systematically destroying our Constitution as he is today.
Where did Wilson even get the idea of creating the Federal Reserve system? From item number 5 in Marx's Communist Manifesto, to quote:
It is today difficult to determine which of Wilson's two big achievements were more damaging to the the two core American ideals (of American individual liberty and of fully accountable government) between the creation of the Fed and the creation of the graduated income tax. The idea of the graduated income tax came from item 2 in Marx's Communist Manifesto, to quote:
It actually took a Constitutional Amendment for Wilson to get the income tax, and he was able to do it, in one year. Such were his skills as a masterfully convincing politician. We must remember that, in that era, America was not yet horribly alarmed at Marx's theories, most of which were already being incorporated into the Democrat Party agenda. I know I am digressing from the major point here; but let me point out that we have addressed getting rid of the income tax in Kill the IRS, in recommending the Fair tax and in Fast Tracking the Fair Tax.
Remember this: there is not one thing Karl Marx ever wrote or said that is not antagonistic to and destructive of the American Constitution. The American ideal and the Marxist ideal are absolute polar opposites.
The Federal Reserve System, born December 23 1913, exists completely outside the authority of Treasury, and even outside the authority of the Constitutional American government. The Fed is a completely independent Central Bank whose monetary policies and rules of operation do not have to be approved by the President or the Congress, or anyone in any of the three branches of government. It does not receive any funding from the government, but it profits greatly from being the nation's central bank.
The nation's Founders and the Constitution's Framers envisioned a strict divide between public and private spheres of operation, and our whole American system is designed to keep the public and private spheres of operation separate from each other. With the Fed, we have a private banking consortium in charge of the whole government's (and thus the people's) money supply.
When you mix Marx's theories involving "community" or "collective" property (rather than American Constitutional private property) with Crony-Capitalism, you create an explosive mixture. When powerful private businessmen and powerful politicians collude to share influence, money and power, the predictable ultimate result is Fascistic or National Socialist forms of Marxism. Some of these were historically experienced in pre WWII Mussolini's Italy, and in pre WWII Hitler's Germany. We are seeing a new variant of that here, in the arrogant, condescending superiority of elitist political office holders and bankers who protect, feed and grow the Fed. They control our personal finances.
They are not an exception; they are the norm.
We have already addressed Fanny May and Freddy Mack elsewhere, as well as the more recent Obamunist regime's governmental takeover of the entire Student Loan industry. Through them, the American federal government itself has now become the largest holder of home mortgages on earth, and it now holds an absolute monopoly on all American student loans. To say that this is an un-Constitutional mixture of private and public spheres of operation and an unfair monopoly over major sectors of private finance is a gross understatement. It is an absolute Constitutional abomination.
Think of the political power it involves over the voters.
If Constitutional America herself survives until the next national election or two, just watch what the Democrats do. My bet is they will conveniently "forgive" lots of home mortgates, and/or "forgive" lots of student loans, and thus gain for themselves a serious vote-getting edge, particularly among those members of the moron-vote and the Santa-Clause vote, and many others acting purely on desperate self-interest who are under-water on their mortgages and up to their necks in bills. Watch and see.
The whole idea of the Fed, (as the authors publicly declared, with tongue in cheek) was to artificially smooth out the so-called boom - bust economic cycle and avoid depressions. It has grossly failed in that idea, repeatedly. The first time was, of course, the Great Depression. The Fed made it worse, and extended it, as you can see in the Financial Crisis page. That was, of course, exactly what the real revolutionaries among the Marxists of the Left wanted to happen, and it also was exactly what the opposition to the Left was simply not smart enough to understand.
The Fed, through establishing monetary policy for America, is supposed to:
The federal government is unqualified to do these things, they all interfere with the free operation of the natural law of supply and demand, and the government had no legitimate business delegating the authority to do these things to any unelected and unaccountable private businessmen.
Fatally flawed Demand-Side economic policy is the policy favored by Democrats, many if not most Republicans, Organized Labor, the Mainstream News Media and all other Marxist-leaning factions and groups. It constantly seeks to "stimulate" the economy by injecting money into it, in the theory that the recipients of the "stimulus" money will spend it, causing business to expand to meet the newly grown demand.
The glaringly obvious fatal flaw is that the stimulus money had to be taken out of the economy in the first place. Whatever profit, or "new money" generated by the stimulus, if any, cannot possibly equal, let alone exceed, the amount of stimulus money taken out of the economy in the first place. Of course, the real Marxists all know this; the Useful Idiot Marxists are not smart enough to figure it out, and the Moron Vote is completely oblivious to the whole thing. Demand-Side economic policy is just a Marxist mind trick to get us to spend ourselves to death.
Supply Side economic policy developed under Reagan as a counter to the destructive Demand Side policies spoken of above. It involves a tax strategy and a "Supply" strategy.
The tax strategy says that the lower the tax rate, within certain limits, the more taxpayers there are (because more people are working,) and the higher the national tax revenue goes. Lowering citizen taxes raises government revenue. While it seems counter-intuitive, it works; history proves it.
The Supply strategy seeks to cut strangling government licensing and regulating rules to free existing business and new entrepreneurs to competitively "find a need and fill it," generating new business and expanding old business. It thus seeks to reduce or eliminate incentives for businessmen to not do business. It also seeks to reduce or eliminate incentives for workers to not work, such as unemployment pay, welfare and other government benefits for the fit and able.
But, getting back to Treasury, or actually, getting back to the Fed, which is taking the place of Treasury, we see today entirely new Marxist avenues to our Constitutional destruction. Chief among them is this thing called Quantitative Easing. Treasury still runs the mints and controls the printing of our money (at the direction of the Fed.) But there is a new way of increasing the money supply, called digitizing.
Herein we see why interest rates should never have ever been allowed to be controlled by government action. It always gets worse.
Because the current Obamunism economy is, at best, flat, the Fed feels it needs to keep interest rates artificially low to make easy money availability an incentive for private business to expand. But business is not expanding, because businessmen are not stupid. If artificially low intrest rates are allowed to naturally rise, our flat economy could begin to crash dive. This is the excuse for Quantitative Easing, which is an increase in the money supply without regard to population increase or trade increase. This new money isn't minted or printed; it is digitized, meaning, it is nothing more than mere entries on ledgers and balance sheets, but without any offsetting entries.
In Quantitative Easing, the Fed is simply buying back Treasury notes and mortgage-backed securities. These purchases are all one-sided balance sheet entries with no counter-balancing subtracting entries. What that means is that there is no money to back them up. The Fed is just making up money - call it vapor bucks, or virtual money. There is nothing to back it up, other than one sided entries on a balance sheet.
But the quantity of money is going up, on the books, even though more money has not been created. With this non-existent money, the government purchases treasury notes and securities. The sellers in the transaction - the funds, companies, entities, investors and investment houses, etc. - who get this "money" from the Fed, in purely paper transactions, then invest it in the stock market, again in purely paper transactions. That means that stock is being bought in the market with non-existent money, in strictly paper transactions, with no real money involved.
This is happening currently at an 85 Billion dollar per month clip. So the national interest rate is being artificially held to near zero at the same time that the stock market is being artificially pumped up with virtual money: vapor bucks. The stock market is up; it looks good to investors. But it is artificially up. Normally, when the market it up, that means confident investors are buying stock; but what's happening now is that investors are, unwittingly perhaps, selling securities to Uncle Sam for phony money, and then investing the proceeds into the stock market, by buying stock with that phony, non-existent money.
In effect, the government is investing in stock, in a roundabout way.
It's a growing, gigantic market bubble; it is an economic time bomb.
Whenever the Fed stops Quantitative Easing there will be economic hell to pay. Interest rates will rocket upward because it is a horribly risky time for banks to loan money for business, or anything at all. The stock market will dive, perhaps even crash with great severity. Worst of all, inflation will really get rolling, possibly leading to hyper-inflation as experienced in Europe between the great wars.
When that happens, kiss your 401K or your IRA or your Roth IRA or whatever retirement investment you have goodbye. Say hello to $50 per loaf bread. Everyone - everyone - will be adversely affected.
Well, maybe not Comrade Obama, and maybe not George Soros, and maybe not some crony capitalists and some professional politicians who are in on the game. But everyone else.
The Marxists, the Moslems, and any other America haters will all rub their hands in glee.
We are already seeing inflation. Marcie showed me a loaf of bread the other day - the loaf itself was noticeably smaller than it used to be, almost half the previous size, and the price was higher. My daily lunch sandwiches are obviously smaller. Packages, bottles and containers are somewhat smaller, or have a slightly lower content, and the price is higher. It's almost across the board; everything is going up, and producers are trying hard to make it not obvious; but it is there, and it is unmistakable. What all this means is that the value of the dollar is on the way down.
What to do about all this, assuming, of course, that Constitutional America somehow survives Obamunism. We have already recommended that we Repeal the Federal Reserve Act of 1913 and take all of our money back from the Federal Reserve banks. That is a simple do or die proposition; therefore, I will assume that we will do it.
A new (and real) Secretary of the Treasury needs to set up and supervise multiple secure government depositories, modeled after the one in Fort Knox, in which to secure government held dollars. These are not banks; they do not do business. They are federal depositories. Governments don't "make" money; they only spend it, or save it. Only people make money, when they are free to do it. There must be an absolute divorce between the private sector, which naturally makes money, and the public sector, which only takes in taxes, and spends no more money than it takes in. This used to be known, Constitutionally, as budgeting.
New American dollars should begin being printed saying "United States Government Currency" instead of "Federal Reserve Note." Then, perhaps, we may begin restoring national and international faith in our money, our nation and our people.
If we, the people, do not change, it will all be for nothing. Vast segments of our population have been so effectively indoctrinated, dumbed-down and demoralized (i.e., made immoral) that they - our own population - may pose a greater danger to American national existence than any other national threat described in all of these many webpages. That is what worries me most of all.
When hords of people are excited into frenzy over NFL or college football, and when adult people scream, weep, and jump up and down in excitement over being on some TV game show, or competing in some cup-cake making competition, or some "reality" game - when grown men are seen all tattooed-up, pierced-up, with hats on sideways or backwards, walking around in public with their pants down - as a commonplace thing - is it any wonder that so many are so distracted from important things that this country could burn down around their ears before they even become aware of it?
As Jesus said to Martha, one thing only is important.
When you pay attention to the most important things, everything else falls naturally into place. One thing is most important of all.
Do enough of us still know what it is?
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Date: Wed Oct
From: Vic Biorseth
Changes pursuant to changing the website URL
and name from
Thinking Catholic Strategic Center to
Catholic American Thinker.
Pulled the trigger on the 301 MOVE IT option June 1, 2014. Working my way through all the webpages. .
Never be lukewarm.
Life itself demands passion.
He who is indifferent to God has already forfeited his soul.
He who is indifferent to politics has already forfeited his liberty.
In America, religion is not mere window dressing and citizenship is not a spectator sport.
Do not allow our common destiny as a whole people to just happen without your input.
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The Purpose for this grouping of links is to show, first, the unconstitutional bureaucracies that need to be cut, and second, to highlight ideas toward restoring America toward her original Constitutional design.
The Cut The Spending Pages
Most of this site describes what is wrong; this one describes what to do about it. If we don't get rid of the extra-Constitutional entities we are over-paying for they will eventually economically strangle us to death as a nation.
Shut down unneeded bureaucracy, for budget’s sake. In the name of fiscal sanity, we need to shut down unneeded bureaucracy.
Cut USDA budget, in whole or in part. Is agriculture the constitutional business of the federal government?
Department of Commerce: Cut DOC budget, with a meat axe. Argument to cut DOC; in times like these, no bureaucracy is sacred.
Dept of Defense: Budget cuts here need to be of the scalpel variety. Defense cuts need to be done very carefully lest we harm national security.
Cut the ED budget, in whole. Is education the constitutional business of the federal government?
Argument against Public Education, which is, in fact, Government Indoctrination. Public Education equals State Indoctrination, pure and simple. Education is beyond the scope of government and not what our government is constituted to do.
Cut DOE budget, with a meat axe. Other than nuclear, how is any energy source the business of federal government?
Cut HHS budget, completely. How, exactly, is any Health and/or Human Services the Constitutional business of federal government?
Cut Social Security: Elimination of America’s Largest Budget Expenditure. How to Cut Social Security and begin the return to fiscal sanity.
Cut DHS budget, completely. Homeland Security is the proper domain of Defense, CIA and FBI. We should cut DHS completely.
Cut HUD budget, completely. How, exactly, is Housing or Urban Development the Constitutional business of federal government?
At this moment in time, most Constitutionalists would love to kill the IRS. How do you Kill the IRS? Fast-track and pass the Fair Tax. Very simple; nothing to it.
Cut DOJ budget, with a paring knife, but, radically. We need to cut DOJ unnecessary and unrelated functions to streamline the function of justice.
Cut DOL, completely. The Dept of Labor has no Constitutional reason to exist. We should cut DOL, which, like organized labor itself, was born of Marx's Communist Manifesto.
Cut EPA, completely. EPA has no Constitutional reason to exist. How, exactly, are the environment or natural resources the Constitutional business of the Federal Government?
Cut DOS (State Departement) budget excess fat. Cut DOS unnecessary functions and get back to State business.
Cut DOI (Department Of Interior) with a meat axe. We can eliminate ninety percent of Interior bureaucracy when we cut DOI.
Restoring our Treasury Department to its original purpose for being. On restoring our Treasury from Fascist Crony Capitalism, i.e., the Fed.
If we really need to cut spending, we should cut DOT with a meat axe. We should cut DOT and all these other bureaucracies that are regulating us to death.
Cut bureaucracy, but leave VA alone. In fact, we should build up the VA. In the aftermath of Marxocrat and Republicrat cuts to defense, both defense and the VA need new attention.
"We belong to the Church militant; and She is militant because on earth the powers of darkness are ever restless to encompass Her destruction. Not only in the far-off centuries of the early Church, but down through the ages and in this our day, the enemies of God and Christian civilization make bold to attack the Creator’s supreme dominion and sacrosanct human rights.”--Pope Pius XII
"It is not lawful to take the things of others to give to the poor. It is a sin worthy of punishment, not an act deserving a reward, to give away what belongs to others."--St. Francis of Assisi
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