Free Market Capitalism Or Corporate Fascism

By: Douglas V. Gnazzo | Thu, Oct 2, 2008
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"The time is near at hand which must
determine whether Americans are to be free men or slaves."

Decisions are about to be made that reach far into the future. The destiny of the little ones, here, and not yet come, lay in the balance. We must choose wisely or suffer the consequences, both to ourselves and to the innocent who know not from whence this comes.

On the right hand path walks freedom and liberty; on the left hand path walks slavery and fascism. The choice should be easy; it has been made to appear hard and confusing.

"The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it."

Our forefathers were guided by a powerful beacon - the light of truth. Theirs is a message of freedom and liberty to endure for the ages. We must carry on and pass the torch, not allowing it to go by the wayside - the side of the left hand path.

There are those that seek to take us down the wrong path, do not hearken to their false prophesies and idle banter - they know not from whence they speak.

Since time immemorial men have fought over trade routes: control trade routes and you control trade. Control trade and you control profit - lucre: the idol of those who seek false gods to worship - for a price. Everything has a price, including price itself - the weighing in the balance.

Today many of the trade routes remain the same as they were during the days of the ancients; however, they are now crossed by computer and satellite communications in nanoseconds.

Money is a funny thing, as few really know just what it is and isn't. Even Mr. Greenspan when questioned before Congress on what money is replied:

"We do know that inflation is a monetary phenomenon but we don't know exactly what money is. We have great difficulty identifying something we can call true money."

From the actions in the credit markets the past couple of weeks it appears that Mr. Greenspan is correct. One minute the experts chimed in that the worst is behind us, and a week later they claim the entire system is coming apart at the seams.

Obviously, they were wrong with one if not both assertions. Are these the "experts" you want running the system that your grandkids are going to have to live with the consequences of - for decades to come?

Just what takes place in seconds that allows deals to be made from one side of the world to the other? Are goods and services delivered that quickly? No, of course they are not. Then what is exchanged? Promises: promises for delivery and promises for payment.

This is where money comes in: money is the medium of exchange that facilitates the movement of goods from production to consumption.

International trade takes place now in seconds, because money is moved electronically in seconds, at least money made up of simply promises - marks upon the ledger and nothing more.

We live in a system of paper fiat money, a system of promises. The promise to pay something is not the same as the payment thereof. The promise may be honored and the transaction completed; or it may be reneged on or defaulted on and the deal falls through.

Our forefathers stipulated in the Constitution that only silver and gold coin were money; and that no bills of credit (paper money) could be used between the states as legal tender.

Yet, what do we have today: a world drowning in promises to pay: Federal Reserve Notes or dollar bills; and silver and gold coin is not circulating as the currency. Why isn't the Constitution being adhered to?

We hear that the credit system has "frozen up". What exactly does that mean? It sure sounds like a lot of banks are unwilling to accept other's promises to pay.

Now, imagine that - they don't trust each other to make good on their promises to pay. This is proof that the promise to pay and payment are two different things; otherwise why would the system freeze up?

It sounds like there is an inherent flaw in the system. That flaw is paper fiat debt-money. Federal Reserve Notes are a form of debt - noninterest bearing debt, but debt nonetheless. They are secured by Treasury bonds, which are interest bearing debt.

Our system has interest bearing debt backing noninterest bearing debt circulating as the currency: promises for promises; and we wonder if there is something wrong with the system?

Yes, it is the system itself - the fact that the national debt is monetized and allowed to circulate as the currency is the problem. This is why our forefathers wrote in the Constitution that only silver and gold coin are money; and no bills of credit (paper money) are allowed as legal tender.

Paper money is DEBT in a system such as ours that allows debt to be monetized. This is why the national debt keeps expanding - it has to or it will die.

It is now an overgrown beast that has taken control away from its handlers - isn't this obvious as each passing day another handler is fed to the beast, as if a sacrifice to the money-god is being made?

The bankers have always pushed for a paper fiat money system, as it allows them to create money out of thin air: the very act of extending credit (loans) creates the money that is loaned.

"Bankers own the earth. Take it away from them, but leave them the power to create money and control credit, and with a flick of a pen they will create enough to buy it back."

Now these same bankers that lent money they did not earn and did not have on deposit have finally pushed the envelope too far and they want the self-same people they have fostered this scam on to come and bail them out. If nothing else they are not shy. Those without honor never are.

If we choose to take the wrong path at this juncture there will be dire consequences to pay for decades to come. A great debt is about to be hung around the neck of those not yet born, guaranteeing them a life of debt servitude they had no choice in choosing. This is not freedom - this is corporate fascism. This is what our forefathers warned us against:

"Hence I contend, sir, that a funding system, in this country, will be highly dangerous to the welfare of the republic; it may, for a moment, raise our credit and increase the circulation, by multiplying a new species of currency; but it must, in times afterward, settle upon our posterity a burthen which they can neither bear nor relieve themselves from. It will establish a precedent in America that may, and in all probability will, be pursued by the sovereign authority until it brings upon us that ruin which it has never failed to bring, or is inevitably bringing, upon all the nations of the earth who have had the temerity to make the experiment."

The above quote was written hundreds of years ago yet it could appear in today's newspaper and be current. Think about what that means and then email, fax, or call your representative and tell them how you want them to vote on the passage of the bailout bill. It is our privilege and right - to do right.

Lastly, much has been heard about borrowing, loaning, credit, and debt in the news during the ongoing debates on the bailout. Ask your Congressman or financial expert this question: The Constitution grants Congress the power to borrow money:

Article I, Section 8, Clause 2: "The Congress shall have Power... to borrow Money on the credit of the United States." The government borrows money by issuing Treasury bonds.

Why would Congress be granted the power to borrow money if they had the power to create money or to create a Federal Reserve that in turn creates the money (Federal Reserve Notes)?

Why bother to borrow money and pay interest on the money borrowed if one has the power to simply create it?

So, why would the Federal Reserve want to loan the government money? Because they get to make it appear out of thin air and they get to charge interest for the loans that actually create the money; and they know the government has the power to tax - that is what is meant by the full faith and credit of the U.S. government - its power to tax us - the people. It is our labor that backs all government debt.

As Congressman Patman once stated before the House:

"I want to show you where the people are being imposed upon by reason of the delegation of this tremendous power. I invite your attention to the fact that section 16 of the Federal Reserve Act provides that whenever the Government of the United States issues and delivers money, Federal Reserve notes, which are based on the credit of the Nation - they represent a mortgage upon your home and my home, and upon all the property of all the people of the Nation--to the Federal Reserve agent, an interest charge shall be collected for the Government."

Doesn't sound very nice - does it? We have a chance right here and right now to stand up and say: no more. We owe it to the little ones to come.

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Douglas V. Gnazzo

Author: Douglas V. Gnazzo

Douglas V. Gnazzo
Honest Money Gold & Silver Report

Douglas V. Gnazzo is the retired CEO of New England Renovation LLC, a historical restoration contractor that specialized in the restoration of older buildings and vintage historic landmarks. Mr. Gnazzo writes for numerous websites, and his work appears both here and abroad. Just recently, he was honored by being chosen as a Foundation Scholar for the Foundation of Monetary Education (FAME).

Disclaimer: The contents of this article represent the opinions of Douglas V. Gnazzo. Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Douglas V. Gnazzo is not a registered investment advisor. Information and analysis above are derived from sources and using methods believed to be reliable, but Douglas. V. Gnazzo cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. This article may contain information that is confidential and/or protected by law. The purpose of this article is intended to be used as an educational discussion of the issues involved. Douglas V. Gnazzo is not a lawyer or a legal scholar. Information and analysis derived from the quoted sources are believed to be reliable and are offered in good faith. Only a highly trained and certified and registered legal professional should be regarded as an authority on the issues involved; and all those seeking such an authoritative opinion should do their own due diligence and seek out the advice of a legal professional. Lastly, Douglas V. Gnazzo believes that The United States of America is the greatest country on Earth, but that it can yet become greater. This article is written to help facilitate that greater becoming. God Bless America.

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TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/