End of Year Ideas
Don StottFirst things first, OK? Politics aside, it is economics, which governs everything, and especially governments. The Constitution, that most wonderful of all documents, says nothing about a "Federal Reserve" central bank. Rather, in Article I, Section 8, it says, "The Congress shall have Power to coin Money, regulate the Value thereof…" In no place is there an instruction to set up a private bank which prints dollars out of nothing, under their name, (Federal Reserve Notes) sells them to the government on credit, and charges interest on their printing press money, which makes the government in debt to that private bank forever. Man, what a deal! Talk about control of a market! A Bank that is not on a street corner, but a bank, which is privately owned, and for a huge profit, controls the entire nation! What a dream come true.
The income tax and Federal Reserve came on at the same time. The Federal Reserve is not "federal" and it has no "reserves," first of all. The Federal Reserve is a privately owned central bank, which loans money it creates out of nothing to government, and then charges interest on it. Stupid politicians continually spend more than is taken in, and continually borrow more money from the Federal Reserve private bank, which creates money out of thin air, and therefore the interest owed and paid, continues to grow. We are now bankrupt. We owe our souls to not the "Company Store," as Tennessee Ernie Ford sang about, but to the privately owned central bank.
I bought an old dollar bill from a coin shop, because it has an engraving not only of George Washington, but of his wife, Martha, from whom I am descended. Neat to have an engraving of one's ancestor in a piece of money. It is not a FRN (Federal Reserve Note) but simply was issued by the United States Treasury. Nothing was owed to the Federal Reserve, as it was not in existence in the 1800's. No private bank controlled us then.
The idea is to stop using and buying FRN's (Federal Reserve Notes), and begin allowing the Treasury Department to print and issue US Notes. The Bank of England was private, and they printed money and loaned it to the King, as I mentioned previously. The exact same thing is happening now, and has been since 1913. Our dollars are debt instruments. Debt owed to the privately owned central bank, named the Federal Reserve. Why should this continue? Why should not the US Treasury issue US Notes, which can be used to pay debts public and private? Why should we have to use notes from a privately owned bank? Backed by gold? No, because unfortunately, the US doesn't own any. Politicians are cowardly, foolhardy, and ignorant. They haven't the slightest idea of sound economics, not spending more than they take in, going into endless debt, and saddling our kids with huge debts which are impossible to pay. If the Treasury issued the money, and it was never allowed to increase more than the population, and if it became absolutely illegal and a jailable offense for any Senator or Representative to ever vote spending more than income, we might recover without collapse.
Those who have bought US debt, could be paid off in the new US Notes, and never sell any debt again. Maybe they could collect from the soon to be defunct Federal Reserve, (which has no reserves.) That's not all either. Lets get back to the deficit situation, and solve that with tariffs. Suppose every single import had a 50% tariff on it. I mean EVERY IMPORT, regardless of whether it was thread or a Chrysler. 50% tariffs on every import. The Chinese, and every other seller to us of their goods would be outraged. The WTO would say we are in violation. Violation of what? Of the WTO? So what! Get our manufacturing going again. Get out of the WTO, and tell them we are running our own country, not them, and we'll do anything we damned well please. At the same time, order the UN out, and cease all connections with the World Bank and IMF. Then, the IRS could be eliminated, as the total cost of the federal government would be paid for with tariffs. Not enough? Fine, then disband enough of the federal government, till it is small enough to be paid for with tariffs. Boy! Can I think of what to get rid of too. Year ends are wonderful. I can spout off.
We then have a balanced budget by law, or the politicos go to jail. We have no debts to foreign nations, and those in the US who own federal debt, are also paid off with the new US notes, or they can try to collect from the Federal Reserve, (which has no reserves.) No more ever selling debt, going into debt, Federal Reserve, IRS, or dozens of other bureaucracies.
Welfare? Social Security? All welfare of all types would have to be transferred to each individual state to do with it as they saw fit. Obviously, those states who didn't pay welfare, would have the best economies and best citizenry, because the taxes would be so low. The welfare hangers on, would move to the stupid states which had welfare…if there were any left. With no or little welfare, the churches and charitable groups could take care of the needy. If they were hungry, then let them do the work which the illegals are now doing. Either that or starve. Illegals? Oh no! The US would become absolutely neutral, and all the troops would be brought home, with their last duty patrolling the borders. There wouldn't be too many people wanting to get in here, if there were no welfare. If there were temptations, that is easily solved as well. Simply place signs in Spanish on either side of the borders and even have loudepeakers proclaiming the same message, and that is "ANYONE CAUGHT ENTERING THE US ILLEGALLY WILL BE SHOT."
Social Security? Those under the age of 50 would be given a full refund with interest, of all they had put in, and those over 50 would remain on the benefits. In other words, Social Security would be gone in about 25 years. Medicare the same. Those under 50, get full refunds with interest of all they had put in, and those over 50 remain under coverage. The population would then once again learn to plan for the future, save for their old age, and act wisely…or suffer the consequences. The general intelligence and aptitude of the entire population would increase.
It's the end of the year, and time to say it like it is. We are so screwed up with the Federal Reserve, declining dollars, owing everyone, welfare everywhere, not to mention the crime its recipients create, that America is going down a greasy slope to perdition. Can we stop it? Probably not. No civilization in history, has ever self resurrected or stopped its decline. It is not pleasant to realize that one's nation is on an irreversible decline, but who can deny it? Even a current issue of Forbes Magazine has a column, which bemoans the fact that the dollar is wearing out its welcome around the world. Also it says, it is but a flimsy piece of paper with ink on it and has no intrinsic value of any kind. With the dollar being printed and shipped by the truckloads everywhere in the world, and the nation it supposedly represents being the largest debtor on the world, how can that nation's future be secure? More and more nations, and even people are getting uneasy about holding dollars. They are wanting to get out of a failing currency.
Is there any real reason why the Federal Reserve shouldn't be thrown out, and the US print its own notes which numbers would be strictly limited to population growth? Credit card issuers will tell you that when a person buys with a credit card, they will ALWAYS spend a lot more than if they paid with cash. So it has been with the US government. The Federal Reserve Credit Card has always been available for any foolish expenditure a foolish Congress may want to spend on…to get re-elected of course. Is there any real reason why an irresponsible Congress which votes endless deficit largess from the Federal Reserve credit card, should not only be thrown out of office, but go to jail? At the end of the year, as well as during the year, I can come up with all sorts of great ideas. Have a happy New Year. Closed on Friday, but I'll be here bright and sassy on Monday, Jan 1st, 2005. Protect yourself.
December 30, 2004
Don Stott has been a precious metals broker since 1977, has written five books, hundreds of columns, and his web site is www.coloradogold.com
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