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Building A Better Monetary System (Part III)

June 12, 2013

In Parts I and II (   )  of this series, readers were presented with a bleak reality. We live in hopelessly insolvent economies. We live in societies with totally corrupted systems of politics and commerce.

The root cause of all these problems (as previously explained) are the predatory/parasitic economic abominations known as monopolies and oligopolies. Despite the fact it is universally understood in the realm of economics that these mega-corporations should never be allowed to exist; they now saturate the entire global economy.

With the dirty money of these Corporate Oligarchs being the source of all corruption in our societies; it will be impossible to restore either political integrity or economic sanity to our societies unless/until all these entities are smashed into little pieces. Yet with such reform not even mentioned in any current, political agenda; “smashing” the monopolies/oligopolies is not a realistic near-term goal.

Meanwhile, economic reforms (of some sort) cannot wait. The degeneration of our economies and the plundering of our societies is accelerating – not abating. With our public Treasuries already cleaned out; the Fascist regimes who now rule our societies have resorted to openly plundering private accounts, with the Cyprus Steal being their much-hyped “precedent.”

In such a dismal (if not hopeless) context; why have I chosen the monetary system as the starting point in attempting to repair our economies and reign-in the looting/destruction? The answer to that question comes straight from one of History’s most-infamous quotations:

Give me control of a nation’s money and I care not who makes the laws.

Mayer Amschel Rothschild

There is considerable historical debate about whether such a statement was ever made (at least in public). However; two thousand years of empirical evidence makes such a debate totally moot. History shows us that whoever controls the money supply exerts ultimate control over the economy of any nation – and thus (at the least) tremendous leverage if not control over the government.

Understand that this is nothing more than a specific example of one of the oldest and most-primitive military doctrines: he who has the power to destroy something will acquire at least a certain degree of “control” from that capacity – providing one has the expertise (and lack of morals) to wield such influence.

In the case of the money supply and the resulting control over economies (and governments) the parallel should be obvious. Controlling the money supply provides the direct capacity to destroy any economy. Nowhere is this ultimate historical principle illustrated with greater clarity than in a superb documentary, “The Money Masters.”

Boiled down to its nucleus; the equation is simple. Controlling the money supply allows the controlling entity to (literally) blackmail governments into pursuing policies favorable to and approved by the Money Masters. No better illustration of this exists than what is found at the 1:07-mark of this film.

The context is stark, and extremely relevant to the present. In 1836, President Andrew Jackson – one of the few unequivocal “heroes” of American politics – was seeking to cancel the charter of the United States’ current (private) central bank cartel which existed at that time. The response of the head of the central bank of that time, Nicholas Biddle was swift, brutal, and came in two parts.

His actions took the form of cutting-off all new credit to the economy and calling in all existing loans to the bank. In economically strangling the economy in this manner, he set off an immediate depression. This was accompanied by an infamous, public boast/rant:

Nothing but widespread suffering will produce any effect on Congress…Our [i.e. the Banksters’] only safety is in pursuing a steady course of firm restriction – and I have no doubt that such a course will ultimately lead to restoration of the currency and the re-charter of the bank.

Economic blackmail. In this case there is neither any doubt as to the authenticity of the quotation, nor any possible ambiguity about the malice/arrogance behind those remarks.

Think that such heavy-handed economic blackmail couldn’t take place in our modern, 21st century economy? It justdid happen, except to a much more extreme degree, and this economic blackmail has now been permanently institutionalized into our economies, our governments, and our monetary systems: the Crash of ’08.

For those whose minds weren’t numbed by propaganda and/or the “shock and awe” of the bankers’ economic terrorism; events are very clear. At the beginning of 2008; the U.S. economy – and only the U.S. economy – was about to collapse as its fraud-saturated housing bubble had now violently imploded.

The entire U.S. financial system was leveraged by well over 30:1; with most of that leverage concentrated on the U.S. housing sector. This meant that a drop in U.S. housing prices of only 3% would essentially take the entire U.S. financial system to zero.

In fact; U.S. house prices ultimately plunged by ten times that amount  (and would/will fall much farther still when the new U.S. housing bubble implodes). The entire U.S. financial system was/is bankrupted. To conceal the sole destruction of the world’s largest economy; a remarkable event occurred.

All of the world’s largest private banks spontaneously and simultaneously concluded that it was “no longer safe” to extend credit anywhere in the global economy. This was despite the fact that ¾ of the world was in the midst of an unprecedented, global economic boom. This collective act (except on a global scale) was identical to what was perpetrated by Nicholas Biddle; and its effect also (predictably) identical. The Crash of ‘08 was born.

With these very same Big Banks having now been caught colluding to manipulate the LIBOR interest rate – and the $500+ trillion in human commerce based on that rate – claims that the Crash of ’08 was not the result of similar collusion lack any credibility. But that was merely the threat behind the blackmail.

The blackmail came in the immediate aftermath of the engineered crash: “too big to fail.” Translation: publicly indemnify all of the financial losses for these (gigantic) private banks forever, or they will blow up the global financial system. In fact this is well beyond mere blackmail, and is full-fledged economic terrorism. And this economic terrorism has, in turn, now given way to open criminality.

We now have our first and ultimate prerequisite for building a better monetary system: ending the era of central bank (and private bank) blackmail, and restoring direct control of our monetary systems (and money supplies) to our sovereign(?)  governments. Clearly however, this is not enough.

What would happen if we simply took our current corrupt/debauched system of fiat currencies, and put it under the control of our current thoroughly corrupt political systems? The corrupt politicians would simply allow the bankers to continue to dictate their whims – and then hold out their hands for the inevitable pay-offs (can you say “campaign contributions”?).

Not only do we need a new monetary system; we need one which provides minimal flexibility in its administration. Obviously in an era of saturation-corruption; monetary “flexibility” directly equates to the latitude for corruption. Enter the gold standard.

Critics of the gold standard have nicknamed it “the Golden Handcuffs”. Why? Because it forcibly/economically restricts the capacity of governments to borrow, and forcibly/economically restricts the capacity of governments to print money. In fact, it forces our governments to engage in economically sustainable policies – not the serial, live-for-today Ponzi schemes produced by the current cabal.

As originally noted in Part I; nearly all of the actual damage to our economies has been the direct consequence of too much debt and too much money-printing. Forget (suicidal) “Austerity”. What all of our governments (and bankers) really need is a good set of handcuffs – at least until we’ve finished constructing some guillotines.

Note that a gold standard alone is no economic panacea, if left under the control of a banking cartel. Yet another fascinating historical insight from The Money Masters comes with respect to the real history of the American Revolution. Fighting was actually precipitated by going from a fiat currency system to a “gold standard.”

The important distinction was that the fiat currency system was operated by an honest/independent government (the colonial government of the American colonies); while the gold standard imposed on the American colonies (by royal decree) was under the control of private bankers. The result – yet again – was a savage depression.

We must not only re-institute a gold standard at the soonest possible date; that new monetary system must be under the exclusive/total control of our sovereign governments.

At this point it’s essential to acknowledge the numerous suggestions/proposals for “a new monetary system” from other commentators. Almost invariably these pseudo-sages have decided that a gold standard is too primitive for the 21st century.

Their suggestion for “improvement”? Inevitably, it’s some form of open market, “floating currency” system. In a world where all our markets are wholly/absolutely corrupted, 24/7; we’re going to supposedly “fix” the current, corrupt monetary system with something equally corruptible? This is insanity.

Should any of these commentators still be alive when we have restored integrity to our governments and markets (by first smashing all of the monopolies and oligopolies into little pieces); then we will have the luxury of entertaining proposals for some pie-in-the-sky Monetary Utopia. Until that eventuality, the only stop-gap measure which can minimize the harm of our current, cannibalistic system is a good set of Golden Handcuffs.

Those who cannot remember the past are doomed to repeat it.

George Santayana (1863 – 1952)

Learn the history. Learn from the history. Don’t repeat the (same) mistakes. Too big to fail = too big too exist. The global banking cartel must be abolished.


Jeff Nielson

Jeff NielsonJeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers/investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but soon decided this was where he wanted to make the focus of his career. His website is

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