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American Symbolism

July 1, 2000

There is symbolism both in American politics and economics. In neither case, is the symbolism positive. First, the spiritual and political symbolism of the Elian Gonzales case. Rescued on Thanksgiving, seized by the Renonistas on Easter Saturday; now to be sent back, as soon as July 4th, to Castro for a life as a propaganda prop against the Gringo Imperialists. Anyone else notice the symbolism here?

The American government uses armed force to show who's really in charge on Christianity's most sacred weekend. The government of the people, for the people and by the people, sends Elian back to a life of slavery on the day dedicated to freedom in general and American freedom in particular. The New World Order moves openly now, without fear or shame. Imposition of the global corporate police state awaits only the final fiat money collapse. Coming soon to an economy near and dear to Americans, ours, this orchestrated economic chaos will be used to solidify the corporate, military and government oligarchy in power. People will gladly vote away what little remains of their freedom, once the choice is framed by the lapdog media as one between a fiat money and debt based "prosperity" and anarchy. The people will chose tyranny over freedom hands down. Just wait till the stock market tanks if you don't believe me.

Whatever else owning gold is about, it's about freedom. Owning precious metals is a clear statement one doesn't trust the system. It's a clear judgment, based upon an equally clear historical record, that all fiat money eventually is debased by inflation. Politicians inevitably inflate non precious metal based paper currencies away to curry political favor and remain in power. Every damn time. I think economic history shows this happens regularly, going all the way back to the Greek writer Polybius. Only precious metals will limit the arrogance and greed of the elite. Only precious metals will protect your personal economy from being destroyed by those in power. Your economic well being will be sacrificed on the altar of saving the status quo. This is the lesson of economic history. A status quo that is corrupt and venal. One that eats the poor, gives free rein to insolent government, predatory corporations, weird Hollywood culture and a dumb the people down educational system.

The child king is reduced to comedian Bill Maher doing the voice of Mr. Clinton's penis in a new audio book. How's that for upholding the prestige of the Presidential office? Some legacy!

The markets are telling us inflation is back. Actually, it never left. The local rag, the Airgonian, tells us that Portland housing prices increased 44.5% during the nineties. All the time the official inflation rates never rose above 1 or 2%. Statistics are even more amazing than fiat money creation in their gymnastic ability. Economy wide there has been a 3 to 5% price increase since January. Those increases will continue unabated for the foreseeable future, despite the governments statistical gymnastics with the CPI. Despite the official misinformation campaign, people are starting to notice a broad range of services and products, gasoline, movie tickets, parking rates etc. etc. etc., are going up.

The Federal Reserve is caught between raising interest rates to protect the fiat dollar and also to maintain inflation fighting credibility; or, keeping rates steady to prevent a devastating recession or worse. If they get it wrong, either the dollar or the economy will be in trouble. The only certainty is the apathetic American public will get screwed in either case.

Speaking of the Fed, one simple piece of historical data was recently observed allowing this peon observer to make a sound judgment on their dollar protecting ability. In their political goal of protecting the New York City elite banking cartel from effective competition, they have prevailed, for a little while longer anyway. As regards to preventing inflation from debasing the fiat dollar, the verdict is in. They have failed and failed spectacularly. A twelve oz can of soda pop cost ten cents at a gas station back in 1970. It now costs sixty cents, for a 500% increase in the last thirty years. Some stewardship! Going back to 1920, I've found even clearer evidence of the Fed's gross mismanagement of the fiat money system. Given the nature of unbacked paper, it's predictable really. Up here in Portland we are rebuilding a trolley system that existed in 1920. Near MacLay Park on NW Thurman Street there is a street maker mentioning the "great penny fare trolley strike" of 1919. It seems the trolley fare was raised from five cents to six and the transit public got upset. People expressed their anger by giving the trolley conductor a dime and requiring him to give them four pennies in change. This caused a massive penny shortage. The beauty of fiat money is this- since it has no substance or intrinsic value, it can simply be mass produced. The Fed simply made more pennies and thus crushed the uppity rabble. Here we have fiat folly in all its simple glory ergo, make it and they will spend it.

When the trolley construction terrorists end their sequential destruction of downtown Portland next year, what do you think the fiat fare will be? How much has the Fed allowed their charge, the United States paper dollar, to be debased in eighty years? 2400% worth of debasement is the correct answer fellow goldbugs. The new trolley fare is said to be $1.25 in modern fiat money. The main bus system up here will raise their single all zone fare to $1.50 in September too. I remember the bus fare in Seattle was 25 cents as recently as 1976, ancient history for you young ones. Let's see here- five cents to one dollar is 1900%, plus the quarter equals 500% for the total of 2400%. The fare may be $1.50 also, which would put the debasement closer to 3000%.

Here is clear, objective evidence, the kind I dearly love, America's Central Bank has allowed the United States dollar to become virtually worthless. I do remember somewhere I read that one 1900 dollar was worth 3 cents a century later. Simply put, the so called keepers of the fiat currency have debased the currency on a massive scale. Sheer incompetence or secret conspiracy? Perhaps just fiat money in action. Like the essay I wrote about Afghanistan, America is just waiting its fiat folly turn. Buy some gold or silver while the price is being artificially suppressed for political reasons. Really.

By the way, averaging over the eighty years gives an annual inflation rate of 30%. Funny, seems the official economic history of the United States missed this Weimar Republic style fiat value collapse. An economic variation on the old raise the temperature slowly so the frog won't jump out of the beaker trick. Next to dissecting frogs, this was the most fun in biology. The alligator the instructor kept in the glass wall display was nice too.

Goldbugs should never be ashamed of our firm commitment to a gold standard. The way gold protects personal freedom is by limiting government monetary debasement. You have as much money as you have gold. None of this Alan the Magician fiat alchemy in the back of the mint stuff. None of this endless supply of paper money from permanently running printing presses either. Alan knew better when he was young; now that he is old he has forgotten. People are thought to become wiser as they age, but I guess Alan the Magician is reversing the process.

The price of gold was $20 an ounce in 1920. Our 2400% inflation adjusted gold price in 2000 dollars would be $480 an ounce, well above the current price of $285. GATA is already asking the right questions; when the answers come they will rock the system to its rotten core.

There is no worse bitterness than to reach the end of your life
and realize you haven't lived. -- M. Scott Peck

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