There Are No Words To Describe The Following


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Mr. Stramer is right on. I didn't have the space to go into competing interests vying for currency control, especially, the Chinese, Saudi, German, Japan alliance pushing for an IMF managed basket of currencies. Any of these schemes would relegate the U.S. to "hat-in-hand" status seeking loans to pay for imports. While this issue is vitally important it can be subsumed under remedies that create a new interest free currency used by the government to pay for goods and services. A government without debt has the strongest currency conceivable. But I digress.

Clearly, there will always be a myriad of theories and strategies purporting to solve the issue of money as debt. What may be needed is a different view of government's function, vis a vis the private sector. I posit, in an earlier comment, that political jurisdictions are not for profit entities. In the U.S. private non-profit entities are not taxed, while they service commercial debt, it is likely that they are net beneficiaries; given their tax free status, interest on borrowed funds is, on net negative.

It is not a stretch to put the more than 54,000 U.S. political jurisdictions in the not-for-profit category. They don't, participate as sellers in open markets except for surplus government owned commodities, etc. and then those sales are primarily concessional.

Governments are direct buyers of goods and services for which there is seldom a profit or return sufficient to cover the direct costs of administration. Yet, the People are charged rent for access to these goods and services, because there is a population of creditors, unnecessarily created by the Central Bank, who finance the government's budget. That rent in the form of corporate and individual income taxes siphons off otherwise investable surpluses that could be better used in the private sector.

Since it is not likely that the U.S. government will wrest from the Central Bank the sovereign right to "coin the currency" we get around this constraint by creating entities that serve as de facto lending and depository institutions in service to the public and not just the profit motive.

In a world where political jurisdictions charter non-profit entities to serve as de facto banks, there would be no need for central banks. Central governments would exercise their sovereign right to create currency/credit without debt, distribute same to government agencies and sub units, as well as to all of its political jurisdictions. They in turn would spend and lend money into circulation. The distribution of debt free currency to non-profit entities does not foreclose the necessity to have national and local interest rate policies.

one of the problems is in intermingling the political and economic operations with the foundational monetary system.

whatever the monetary system is based on (gold, PM, fiat), it is how the actors within the economic and political systems utilize the monetary system where the controversy lies.

Any monetary system can be corrupted and fail, history shows the myriad failures most if not all underpinned by a corrupted regime by force or by war.

It is an interesting and healthy debate in regards to monetary systems of the past, what isn't working today or what could work better. However, this does not change the fact that the current US monetary system is mmt based on fiat currency since decoupling initially from the gold standard and in absolute fiat after the 1971 dissolution of the gold exchange. We now have a interest bearing debt based instrument, the FRN.

The problem with our current mmt is not only in the misunderstanding of the system, but the thorough understanding by those who use it with fraudulent intent and corrupting the political stewardship to their advantage.

The Austrian economic principles based on competitive free market sitting on top of a mmt non interest bearing (US Dollar) fiat system would work well, but only when those who are corrupting the system through institutionalizing and legalizing crime and fraud are removed. It is when corruption reaches to the top of our leadership and endemic through our political system of check and balances we are screwed.

Over time the system may evolve into a gold or PM standard, but trying to make a huge leap is only causing polarized arguments, while keeping the current beast in place. However, we can make significant structural changes to restore sound money and fiscal responsibility as a march towards a more perfect solution. Letting the current PE keep system stay in force continues to feed the the beast while it tries to advance to a single world currency...

The debate makes for great intellectual and educational advances, but we need action to demand changes to jolt the system into the right direction.

While I agree with some of the contents given by Potomic Oracle above there is much more to it.
The world's elite bankers and others are now at war amonst themselves to determine who will control the issue of currency after the collapse of the US dollar.

One faction wants and new gold standard and the other wants a fiat but interest bearing new world currency.

Then there is the "Secret of Oz" crew that wants a government issued fiat currency that is non interest bearing and tied to GDP and other economic factors by law. Of course that would depend on who is doing the figuring for those economic factors.

For more on this subject watch the movies and read at:

Click to view link

Dr. Paul is very right about one thing. The Federal Reserve needs to go, and NOT be replaced by any central bank. There needs to be a competitive banking system without fractional reserve lending, controlled by a truly free market.

Congressman Paul,

You're right on all counts. The Fed has failed to achieve the stated objectives of its Charter and the Legislation. When corporations fail so miserably they are forced into receivership to reduce stake holder losses. Who's empowered to do that? Can you get the ball rolling?

As to the liquidation of debt; Yes, let's take say $1/2 the public debt owed to sovereign governments, corp. & individuals, ($8T), and pay it off with a new non-interest bearing U.S. dollar, not interest bearing Fed Reserve Notes. The remaining debt is owed to the Fed and that debt can be rescheduled and amortized over a longer period at the current Fed discount rate 0.025% instead of 3.25%.

Redeemed Treasury paper would not be rolled over into new U.S. dollars. It would be liquidated to eliminate inflationary expectation. There would be no more money in the non-Fed system after the liquidation than before.

To spur employment and investment the Government would then purchase goods and services with interest free currency. After all the Government is not a profit making institution. It's down right silly to have the government pay interest on fiat or hard currency and then confiscate income from earners to pay debt service to bankers who have not incurred, real, lost opportunities in the provision of fiat currency to the government.

Government payments to vendors and service providers would be deposited in commercial banks, credit unions, etc. Those depository entities would charge and receive interest as is current practice. However, to eliminate the threat that banks with toxic assets will continue to constrain lending each state should charter its own publicly owned or non-profit funding entity. It could be capitalized with State funds now being deposited in other banks and currently earning sub marginal returns. Deposited in a state owned bank those funds could be leveraged and lent out for agricultural, transportation and student loan programs that money could earn at least market rates instead of the current near zero to 1% rate offered to state and municipal government. Businesses and individuals could also establish saving and checking accts. These funding entities could operate along the lines of the State Bank of N. Dakota (the only publicly owned bank in America and the most successful with a 25% return on equity last year.)

Our monetary system has collapsed as all Ponzi schemes are wont to do. Escape from this banker's nightmare is a return to Federal and state public/non-profit funding of goods and services benefiting the Commons without financing, and restoring banking to, 100% reserve requirements or something close to it to control the inevitable debasement of our currency in a fiat money system.

For an in depth discussion of these ideas please see: Click to view link or read the book "The Web of Debt" by Ellen H. Brown.

[why bother saying anything to a crazy person who interprets everything he doesn't understand as either being ad hominem or as having some nefarious purpose? a person who claims that everything is maya and illusion is unwilling to consider the implications of that claim when applied uniformly to all people, in particular to Anadianant]

@ Della:

Try this for relevance...

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Peace...

Where is the Public of my rePublic? Where do we stand?

What Once was...

A Public that was for defending and protecting Liberty, that was Of, For and By the Personal Freedom of every Last Sovereign Individual, Be they Male or Female, Old or Young, Rich or Poor, Black or White, Able or Inept.

A re-Public to Secure the Individual's Civil Liberties and Fundamental Natural Rights

A re-Public to Safe Guard against Tyranny, Rulership and Mandated Regulation from Afar

A re-Public as Protectorate of this Land on the Face of the Earth were the Person was established as Sole Sovereign, being the only Naturally Soul Sovereign Being.

A re-Public Domain of Equity, Liberty and Justice for All, Under the Absolute Law of Individually Protected and Non-Lienable Property Rights of Body, Production, Pursuit and Personal Creation.

A re-Public were Property Rights Enforcement could Only be instigated if it was in Response to a Property Rights Violation. To Maintain The Law.

A re-Public that acted exclusively; by, for and under the Authority that the Individuals themselves were limited to Grant.

A Moral re-Public.

We had Declared Independence and Created; A Freed Community of Individual Sovereigns, A Private Society of Personal Liberation

A Land where words, thoughts and ideas could have been created, A Land for sovereign thinking, instead of double thinking.

doublethink v sovereignthink ‒ Words and Nonwords (with; ity, ism, ist)

Commune; Community ‒ Communism ‒ Communist

Individual; Individuality ‒ Individualism ‒ Individualist

Social; Sociality ‒ Socialism ‒ Socialist

Liberal: Liberality ‒ Liberalism ‒ Liberalist

Personal; Personality ‒ Personalism ‒ Personalist

Private: Privatity ‒ Privatism ‒ Privatist

Sovereign; Sovereignity ‒ Sovereignism ‒ Sovereignist

Freedom; Freedomity ‒ Freedomism ‒ Freedomist

doublethink (word) or sovereignthink (nonword)

-sovereignthink

Let's Create Freedom and Libery in our hearts, our circle and Re-Public.

@ Huh

Hmmmmm.... ad hominem when nothing of import to exchange? Not sure (even reading between the lines) of what you are trying to say.
May I suggest a deep dive into the meanings of Objectivism Vs. Subjectivism (Gurdjieff, Tales to his grandson, In serach of the Miraculous et. al.) and a dive also into the actually obfuscatory nature of language.

Meanwhile, for anyone interested, here is an excerpt from Trafficant's speech that got him put in the slammer... and also don't forget Martin Armstrong. The really wise one's or threats to the establishment are either dead or silenced...

" "Mr. Speaker, we are here now in chapter 11.. Members of Congress are
official trustees presiding over the greatest reorganization of any Bankrupt entity in world history, the U.S. Government. We are setting forth hopefully, a blueprint for our future. There are some who say it is a coroner's report that will lead to our demise.

It is an established fact that the United States Federal Government has
been dissolved by the Emergency Banking Act, March 9, 1933, 48 Stat. 1,
Public Law 89-719; declared by President Roosevelt, being bankrupt and
insolvent. H.J.R. 192, 73rd Congress m session June 5, 1933 " Joint
Resolution To Suspend The Gold Standard and Abrogate The Gold Clause
dissolved the Sovereign Authority of the United States and the official
capacities of all United States Governmental Offices, Officers, and
Departments and is further evidence that the United States Federal
Government exists today in name only.


The receivers of the United States Bankruptcy are the International
Bankers, via the United Nations, the World Bank and the International
Monetary Fund. All United States Offices, Officials, and Departments are now operating within a de facto status in name only under Emergency War Powers.

With the Constitutional Republican form of Government now dissolved, the receivers of the Bankruptcy have adopted a new form of government for the United States. This new form of government is known as a Democracy, being an established Socialist/Communist order under a new governor for America. This act was instituted and established by transferring and/or placing the Office of the Secretary of Treasury to that of the Governor of the International Monetary Fund. Public Law 94-564, page 8, Section H.R. 13955 reads in part:

"The U.S. Secretary of Treasury receives no compensation for representing the United States."

But I'm sure most here are familiar with all this deception.

@Anadianant

By your own standards, you too are mostly Deception, albeit wrapped in mystic baloney.

You are just a tool, Anadianant, and you don't realize you are being played as a patsy by the pro-war pro-lies anti-Ron Paul camp.

No false messiahs for you? Huh?? No messiahs for you. Ever. Period.
Messiahs do not exist. They are all patsies. All illusions. How real can false illusions be, Anadianant? Do they exist? Do you exist? Does anything exist outside of your mind, Anadianant?

Is Rand Paul for real? (DB has its doubts)

So many questions, so few answers.

@ DB
Good to know.
And time will tell indeed. Maybe sooner than we are really ready for.

@ DB:

Perhaps I see the world with different eyes. In my eyes, every "creation" of the last century is a maya-ic Cut-out...Gandhi, King, JFK....creations, all. Mouthing or acting out a role. Mostly deception, whether they themselves knew they are patsies or not.

The illusion is stronger now than ever before.
If my comment is disruptive or unwelcome, I can go right back to reading only ;-) All good.

No false messiahs for me though.

Reply from The Daily Bell

You may be right about Ron Paul. Time will tell. If your comments are sincere, as they appear to be, they are always welcome.

@ Huh...

Nope, sorry. Not George whoever.
Why? Is Dr. Paul sacrosanct here?
I sense a lot of ruffled feathers.
The theater of the absurd occasionally needs someone to stand up and shout "We are all naked", ne?

@ Della : Thanks for taking the time and energy to wade through my site. If the good things in life were obvious, life would be easy. But it's not. Between the lines, tangential associations....such is how real sense is made.

I hope the Bell readership is not entirely linear thinking.
Peace.

PS: I will re-iterate my sentiment about His Loftiness Ron Paul. Even the much maligned James Traficante jr. did the courageous thing. Not Ron Paul. I think Eustace Mullins did enough to expose the Fed. And that was decades ago. Ron Paul is in office to do something. Not educate the American People about the Fed and the elusive Gold Standard.

Reply from The Daily Bell

He is still doing more than most ...

Dr. Paul, hopefully with the continued pressure on the FED and to those in congress will attract more to support your efforts to rein in and eventually end the FED.

There is an interesting discussion tread on Pragmatic Capitalism in regards to the FED monetizing the debt.

Click to view link

The discussion is lengthy but the most fundamental revelation was in regards to the US Trsy Bond market. The fundamental point was that the Gov't does not need to borrow (sell bonds) to spend. The gov't can spend money into existence with no restraint. In creating the FED the banking cartel set up the system (law) that requires the UST to issue bonds to account for deficit spending, there is no reason for the borrowing by selling bonds other than that mandate.

I made a few comments in the thread 'obsvr-1' and below is one post.

****

given congress (gov't) can spend without the necessity of a bond market and does not need to (nor should they have to) borrow to spend.

Given no one seems to make a definitive case that QE is either inflationary or deflationary, which in either case is not good, why do it ? What is BB (FED) true objective ?


* End US tsy and bond issuance (gov't is not the debtor to anyone)

* Setup a "Taxes Due" account at the UST, effectively Accounts Receivable which increases with spend and decreases with revenue (taxes). This tracks the deficit spending.

* End the FED, no need to have a CB for monetary control, fiscal malfeasance (QE1) or loss transfer to the gov't (taxpayer) and flip side of that coin wealth transfer to banks/cronies

* UST to take on the operational (clearing), economic monitoring, statistics collection, regulatory functions from the FED

* End TBTF doctrine — Banks on their own, no gov't backstop or bailouts; Enable competitive free market banking system. Market discipline enforced by owners and investors as the risk is retained by the institution. This would constrain or end the massive bank lobby machine.

* Repeal the 16th amendment to eliminate income tax, replace with consumption tax (e.g. Click to view link). This eliminates special interest tax loopholes, deductions and credits and the associated lobby machine. Sets up a real time feedback governor for taxes based on GDP dynamics, change in spending/saving reflected in taxes collected ‒ dampens interest rate volatility and constrains the growth in the "Taxes Due" account (the deficit).

* Eliminate or radically reduce all gov't special interest subsidies — with further reductions in the lobby machine

Seems this would be a good step in restoring faith in a competitive free market and averting the impending disaster.

@Anadianant

Hi there George Sign! Hadn't you left for good? Just as Bill predicted, you are back with a different moniker!!

Reply from The Daily Bell

How do you know it's him?

If the "Donald" was right and Dr. Paul can not get elected to POTUS, perhaps some smart president can replace Ben with Dr. Paul. I'd pay honest money for a seat to that show.

After reading economics since early 2009 Dr. Ron Paul makes more sense than any other Economist or politician. I don't understand people who think Keynesian Economics work when clearly it is not.

Austrian economics is fully understood by Dr. Paul. Most of these so called Economists truly do not understand Keynesian Economics. This is why we are in this Economic hell situation today. Thank you Dr. Paul for not only understanding but to take action. Yes, End the Fed! Find out what they are hiding and manipulating. If you run for President in 2012 you have my vote.

Just a short while ago, after reading your article "Deception at the Fed," I started to read the Post Feedback. I think there were four comments. The first caught me a little offguard because, to tell the truth, I am biased in favor of Dr. Paul and I guess the reason I went to the website noted was to see if there was anything I have missed about Dr. Paul that my bias might have ruled out. The other comments were laudatory.

To: anadianant Thank you for posting your website. Your website said absolutely nothing to confirm the statements you made about Dr. Paul. I probably spent far too much time trying to make sense out of your message. I learned the same language you did, but could make little sense of the message on your website except for a few new words that I can add to my vocabulary. You gave me nothing to change my bias.

Dr. Paul, I can't begin to tell you how much I appreciate your honesty, integrity and perseverance. For as many years as I can remember, I rarely voted on the winning side of an election. I think the reason has been that old question: "How do you know when a politician is lying? His lips are moving." What I've looked for was honesty and a sincere commitment to serious issues.

When you first exposed the Fed to me, I was incredulous. Looking further into how it came into being I was aghast and knowing more about it, I still am. That we as a nation have tolerated it for one moment absolutely mystifies and angers me. Until lately, you have been the lone voice "crying in the wilderness." Now you're the loudest voice. Thank you from the bottom of my heart. I know that if we are ever able to get out from under this insidious monster, it will be because of you.

I have to admit that I am less knowledgeable with regard to economics, but I am working toward greater understanding. I trust your information to the extent that I use your statements as my frame of reference. I have been reading books and articles on the von Mises website. Not all are about economics but then I haven't read them all yet.

I am also reading Tragedy and Hope. I don't know how many people know about this book, perhaps I'm the only one who hadn't heard of it. I only put the title here in hopes that one person who hasn't read it will do so, at least the Introduction. It really puts the Fed into perspective.

You have taken a lot of potshots from political wannabes mostly, the latest being at CPAC by that red-headed guy that owns a lot of buildings. I can't remember his name or what he said, but then, he's just a guy with money. I know the audience loved you, and so do I. Thanks.

Imagine if google and the internet was a source for good, taken over so that whenever someone asks a question about "interest rates", "monetary policy", "Bernake"... the ONLY answer popping up was from Lew Rockwell's crew, with running commentary by DB. Where are my friends from Anonymous now!!??

Can anyone help me with that? Cryptome? Would a tall blonde female stranger walk into the room?

I'll buy you a scotch on the rocks! Where is WikiAustrian? Rushdoonyoogle?

Click to view link

Can you imagine hijacking the algorithms of Cisco Routers to direct all people seeking information on a news story or subject related to politics, economy and politics to a DB-Rockwell webserver (the size of Amazon or Google)? ?

Seems few get the message. Quit thinking of 30 day fixes to the economy and unemployment. Dr Paul is a long term thinker. The cure may be painful in the short term but save the economy and the country in the long term.