The single most important section of the Constitution of the United States may be Article 1 Section 10 Clause 1 which declares in part, “No State shall . . . make any Thing but gold and silver Coin a Tender in Payment of Debts.” The modern significance of this clause flows from the fact that in A.D. 1933 the federales removed gold from domestic circulation, and then stopped coining silver coins in A.D. 1964, stopped redeeming Silver Certificates with silver dollars in A.D. 1968, and in A.D. 1971 stopped redeeming paper dollars held by foreign countries for gold. As a practical matter, our dollars lost all domestic gold or silver backing by A.D. 1968. Once that happened, the States of the Union may have been rendered insolvent, inoperable and virtually destroyed.
Monthly Archives: July 2008
The one thing the courts of “this state” seem willing to enforce is “procedural due process”. As I understand it, procedural due process consists of two elements: 1) Notice and 2) Opportunity to be heard. With that understanding of “procedural due process” in mind, I asked myself Why has our government—and therefore our country—become bilingual or even multi-lingual?
In his recent article, “The Global Economy is at the Point of Maximum Danger,” English commentator Ambrose Evans-Pritchard wrote:
“The world’s two biggest financial institutions have had a heart attack. The global currency system is breaking down. The policy doctrines that got us into this mess are bankrupt. No world leader seems able to discern the problem, let alone forge a solution.
“The International Monetary Fund has abdicated into schizophrenia. It has upgraded its 2008 world forecast from 3.7pc to 4.1pc growth, whilst warning of a “chance of a global recession”. Plainly, the IMF cannot or will not offer any useful insights. Its “mean-reversion” model misses the entire point of this crisis, which is that central banks have pushed debt to fatal levels . . . .”
When the former Soviet Union died in A.D. 1991, the Russian people were plunged into a horrific economic and social collapse. Something very similar might be coming towards the U.S..
Some people (including me) suspect that an all-upper-case name (like “ALFRED ADASK”) may signify an estate, an account or some sort of legal fiction that is an entity completely different from that of a man whose proper name is capitalized (like “Alfred Adask”). This theory has been around since the early 1990s (I should know, I started it with the “evil twin” series in the AntiShyster News Magazine). However, the theory has never been proven. Nor has it been disproven. The issue remains unresolved.
However, if the upper-case vs capitalized name hypothesis were proven valid, it would shatter much of the foundation for modern, non-constitutional “government”. After all, virtually every government ID is issued in an all-upper-case name (like “ADASK”) rather than the proper name of a man (“Adask”). If it was proved that the upper-case names (“ADASK”) were fictions and the licenses and other ID were being issued to such fictions, then we’d have proof that, as men (who were not engaged in commerce), we might have no obligation to obtain such licenses or ID.
On Wednesday, July 16, A.D. 2008, Texas Congressman Ron Paul has warned the U.S. House of Representatives that he is “convinced the time is now upon us that some Big Events are about to occur,” that will cause liberty to go “into deep hibernation“. Paul told the House:
“Madam Speaker, I have, for the past 35 years, expressed my grave concern for the future of America. The course we have taken over the past century has threatened our liberties, security and prosperity. In spite of these long-held concerns, I have days—growing more frequent all the time—when I’m convinced the time is now upon us that some Big Events are about to occur. These fast-approaching events will not go unnoticed. They will affect all of us. They will not be limited to just some areas of our country. The world economy and political system will share in the chaos about to be unleashed.
This last week’s most revealing commentary on the economy might be the New York Times’ “Sharp Fall for Stocks Amid Angst in Lending”. According to that article,
“Half an hour was all it took for a dreary day on Wall Street to turn dire. . . . Widespread fear about the health of the mortgage industry took hold . . . investors could not shake the jitters. . . . Freddie Mac, the big buyer of home mortgages, was the worst performing stock in the S.& P. 500. Its shares dropped 23.8 percent. Fannie Mae tumbled 13.1 percent. These numbers were nearly unimaginable just weeks ago. But recent reports forecasting poor outlooks for the lenders have ignited a round of selling among investors, who feel less and less confident that Fannie and Freddie will be able to guarantee big loans. Ryan Larson, senior equity trader at Voyageur Asset Management in Chicago said, ‘A lot of this was just basically fear’.”
While the prices of some investments (oil, gold, commodities) are going up, up up–the prices of other “investments” (stocks, bonds, mortgages, cash) are going down, down, down. Several newsletters dealing with the economy have tried to explain this seeming anomaly of rising and falling prices by advancing the theory that we are experiencing simultaneous inflation and deflation.
For example, just this week the Daily Reckoning reported:
“The war continues. The unstoppable forces of inflation continue to smash into the immoveable lines of deflation. . . .Yes, dear reader, we are getting shot to pieces from both directions. Prices are rising. And prices are falling. Mr. Market marks down prices for housing and stocks. Mr. Federal Reserve System pushes up prices for oil and food.”
I believe the author’s claim that we are experiencing simultaneous “inflation” and “deflation” is not merely mistaken but impossible. Read the rest of this entry »
In his recent article, “The United States Fiat Money & the Federal Reserve System,” author Darryl Robert Schoon declared in part, “Fiat money is an oxymoron. Traditionally, money has been both a storehouse of value and a medium of exchange. Fiat money exists by mimicking both; but when its ability to do so ends, fiat money exposed for what it is, reverts to what it is—government issued coupons with expiration dates printed in invisible ink.” Mr. Schoon’s description of money as a “storehouse of value” illustrates that while price is all in the “now,” value is a function of time.