"The Number One Golden Rule, Never Lie"
Yianni Souleles"If liberty and equality, as is thought by some are chiefly to be found in democracy, they will be best attained when all persons alike share in the government to the utmost." - Aristotle
21 November 2009
Aristotle, over two thousand years ago, knew the fundamentals and responsibilities that governments needed to posses, in order to operate a sound, stable and progressive economy. Today, governments seem clueless as they attempt to revive their death bed economies. It seems the governments are like the defibrillators found in hospitals. Every charge of electricity which passes through the body, with no response, is repeated with a higher charge than the last. The "heart" is a metaphor for the global economy and the defibrillator a metaphor for the stimulus spending. It's the same strategy over and over again with the same outcome. The United States is an 85 year old obese man, with clogged arteries and a bad smoking habit, so what hope is a defibrillator?
Why delay the inevitable, especially at the cost of others? Why is it today, members of the US government operate as puppets for large, private, multibillion dollar companies and not a word is said in the mainstream press? Why is it today, that every individual's liberty and quest for equality has been diminished? Why has the US constitution, the foundation of the country itself, been turned into nothing but a museum exhibit?
A long line of politicians and powerful organizations have undermined the foundations of their forefathers. Laws which were put in place to ensure the well-being and stability of the country have been circumvented. Now the nation is left to hold the full burden of the instability caused by the influence of groups such as the Bilderberg group and the Rockefeller family. Now the country operates and is controlled by a system of debt. Paper money is for those who are controlled and for those who do not understand the characteristics of true wealth. The truth is that demand is the real standard of value, currency is merely paper which represents the demand.
The US Federal Reserve acts as a "sinister force", within the United States of America, dummying down society into thinking money can be printed continuously without consequence. President Obama and Chairman Ben Bernanke do not outline in their speeches that creating stimulus funds for large Corporations, could result in the American people losing everything. The United States Federal Reserve has been given many responsibilities; the most important being the control of the money supply. The main goals of the Federal Reserve are to provide the country with stable employment levels, stable interest rates, a stable economy and a stable and sound currency. It seems like they are failing in every aspect. To make matters worse, they continue to fund a war against "terrorism", when no "terrorists" are left. The United States has military involvement with bases in over 60 counties. In 2008 approximately 25% of the United States federal budget, funded the military and other foreign related operations. Government military expenditure continues as the deception and the lies deepen. The American government continues to destabilise Iraq and Afghanistan, but in the process has managed to destabilize itself even more. The government continues to brainwash society into thinking they are at "war", but really the U.S is at war with itself. People in power within the United States don't want their authority questioned and they will do anything to prevent it.
"The only stable state is the one in which all men are equal before the law." - Aristotle
President Obama has inherited America's mess, created by a series of previous presidencies. When President Obama decides, that the government is going to bail out the banks that caused the problems in the first place, an endless money supply is created, risking the possibility of hyperinflation.
Ben Bernanke has been given control of the outcome and it seems he has taken the long path to the inevitable downfall of an empire. You can draw many parallels between empires of the past and the United States of America. Every empire that rises must fall, and every empire that was built on paper and counterfeit coin must fail.
It must be obvious that a country based on and managed by debt, can't revive itself from recession by creating more debt.
"Even when laws have been written down, they ought not always to remain unaltered." - Aristotle
It is time the Federal Reserve act is reviewed and perhaps scrapped. The Act is nothing but a document which gives the banks supreme rule over the country's money supply.
According to statistics the Federal Reserve of America has approximately 8000 tonnes of gold; supposedly, this is mainly stored in Fort Knox and Federal Reserve Bank of New York. Now, that's a lie and you know it. You think that if the United States had ownership of 6% of the gold ever mined, the price would still be at $1100 an ounce? Think again. It easy to realise that it's been loaned, leased and sold to private individuals and other banks. If it really had that much gold it would be calling the shots and laughing at the Chinese for holding onto US treasuries.
China is faced with the biggest problem of this century, as it is the largest holder of US treasury securities. The reason why China needs to buy US treasuries is due to its exchange rate policies. In order to keep the Chinese Yuan from appreciating versus the dollar, China must buy US dollars in huge quantities so as to keep the dollar's value higher than it otherwise would have been.
So how is it going to start dumping debt?
Simple, Gold, lots of it.
China is the world largest gold producer, overtaking the position South Africa had for nearly 100 years. In 2008 China mined approximately 10 million ounces. Rumours are also gathering that China has stopped all exports of the yellow metal. There is speculation that China is preparing for something.
True leadership is when a government seeks opportunity, to prepare itself for a time when a piece of paper or an electronic stock becomes nothing but waste. China has begun diversifying its investments. By influencing the public through radio and television, the Chinese government has suggested buying into hard assets such as gold and silver. The government has realised, it can't do everything on its own, but with the help of the general public, the country can expand its metal holdings.
The question is how is China going to buy gold without pushing up the price dramatically, and how will it release itself from a dollar reliant on debt without causing damage to itself?
The U.S and China are in this mess together, the question is who will come out on top?
Truthfully China could bring down the U.S. without ever setting foot in the country; it's all a matter of time and actions.
The first step the United States should take if it wishes to survive the recession is to implement the Golden Rule into government policy.
The Golden Rule is used as a guideline for the operation of fiscal policy. The Golden Rule states most importantly, that over an economic cycle, Government will borrow only to invest and not to fund current spending. In essence this means that on average over the ups and downs of an economic cycle, government should only borrow to pay for investments that benefit its future generations. In the United States context, this mean government shouldn't fund armies in hundred of countries, but should invest in the country itself, which includes infrastructure, metal stockpiling and new and innovative technologies. The United States should stop electrocuting itself with the "defibrillator" and perhaps save on energy bills.
For 5000 years civilizations embraced gold and for the past 100 we have largely turned our backs on it. We have abandoned gold and the question is will we give it its true place again before it's too late?
"The basis of a democratic state is liberty."- Aristotle
Secondary School Student, Sydney, Australia
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