Robert Welch Predicted Keynesian Armageddon of Massive Currency Devaluation, Increased Gov't Taxes as Response in 1958 and in 1974

smartknowledgeu's picture

For all those smug PhD economists educated at the University of Chicago, Princeton and Harvard that prescribe fiat currency devaluation to toilet paper valuation as the solution to our global monetary crisis and then feign disbelief at the current state of affairs worldwide, Robert Welch predicted your favored Keynesian nightmare as early as 1958 and once again in 1974. One of his multi-part suggested solution in 1974? "We must once again make our money freely redeemable in gold at some realistic price."


According to Welch, "both the U.S. and Soviet governments are controlled
by the same furtive conspiratorial cabal of internationalists, greedy
bankers, and corrupt politicians. If left unexposed, the traitors inside
the U.S. government would betray the country's sovereignty to the
United Nations for a collectivist New World Order,
managed by a 'one-world socialist government.'"


Though this speech is decades old, most of Welch's points are eerily still relevant today.


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mjv's picture

"For all those smug PhD economists educated at the University of Chicago, Princeton and Harvard"


Please don't lump UofC in with Princeton and Harvard.  Obama was a prof in the law school, not the b-school or econ dept at UofC.  Friedman is UofC, not the BS policy regime running the U.S. right now.

dark pools of soros's picture

Keynesian is flawed but even all the detractors would admit the fools kept the game playing way longer than they thought possible.. so you have to give them credit since they all got sick rich and did it this long.. and still doing it..  


I mean it would be pretty sad to have sat around for 60 or so years complaining while everyone else enjoyed prosperity, albeit a totally fake one that ruined the country's future..


as long as the naysayers have their pile of gold, their kids will be able to start whatever new economy comes next.. so there is some good in that

ddtuttle's picture

This guy was considered COMPLETELY crazy by most people in the 1950's. However, these speeches are much more sensible from today's perspective.  Having said that, you really have to distinguish between is ideas about monetary policy, which are semi-rational, and his political philosophy which was PROFOUNDLY paranoid. The McCarthyism of the 1950's (Of which Bob W was a patron saint) was well and truly disgraceful.

Communists were idiots and have proven that beyond all doubt. JFK was just as anti-communist as old BW, he just wasn't paranoid.  He knew a rational system would prevail if we could just prevent war until the Soviets and Chinese figured it out (which we did, and they did).

We are now left with a weird hangover of leftist nonsense, that's almost harmless compared with outright communism.  The real danger lies elsewhere, which Bob seems to be aware of, but can't untangle from his paranoia about communists.  The problem isn't the left wing "world government types", but the bankers that have been running things long before Karl Marx came along.  We do need to reform the international banking system, but good luck getting that done in the next 1,000 years!  In the meantime we haggle between watered down leftism and infantile-fascism, which is totally beside the point. The bankers happy to use either to cover their long standing and increasing power and wealth.

Before you imagine this guy is a visionary, you might want to find out a little more about the unsavory aspects of the John Birch Society.

doggings's picture

loved this line..

"what on earth is wrong with the United States simply minding it's own business?"


papaswamp's picture

fiat currency devaluation to toilet paper valuation

I think TP is worth more...certainly in the barter world it is.

UncleFester's picture

Communism, Fascism, National Socialism, State Socialism, Fabian Socialism, etc, etc...  Different flavors of the same ice cream.  Net result is a few self-proclaimed, self-appointed, self-annointed elites control everyone else.

"The combination is here to stay.  Individualism has gone, never to return." -JD Rockefeller

The dollar is not the only worthless paper, your constitutions have stains on them.

Brother Revegend Magoun's picture

and continuing .. Consumerism, Democracy, Freedom, Tolerance, Political Correctness. How many idiots in the world really believe that ideology/concept matters! How many of that plancton in _all_ countries we need to enlighten to get the situation changed? ZH, answer!

AnAnonymous's picture

Where did individualism go?

Where did individualism go from?

crosey's picture

Welch is dead-on.  It's the way of the world.  Thank goodness there are no more populated planets (aka, developing markets) that we can screw up.  Yep, it will all stop here on the big blue marble.

Buckaroo Banzai's picture

Of course it is socialism. National Socialism. You know, like they did in Germany for a while in the 30s and 40s.

Bitch Tits's picture

I don't understand the cries of "socialism" that so many on this forum seem to see happening everywhere around them when the facts don't bear this out. I saw billions and trillions of dollars going to mend the balance sheets of banks and businesses who took big risks and profited like mad for a while, before losing everything except their own personal fortunes. I saw government reduce taxes for the wealthy, and work hand-in-hand with Big Business to bail them out at the expense of the taxpayer. I see laws being broken by the wealthy and connected, while the whistleblowers go to jail without a hearing. I see the right to privacy disappearing so the government can increase earnings and accelerate their own growth. I see fraud and corruption running rampant due to lack of government oversight. I see many things happening for which there are never any rational explanations, but the one thing I don't see among the millions of unemployed, minorities, the poor, and the middle classes is any sort of socialism working in their favor.

What world are you seers of Socialistic take-overs living in, anyway?

I wouldn't even know how to classify what is happening in this country, but trust me, it isn't Socialism.


theprofromdover's picture

In socialism, some are more equal than others.

(er, we would be the others)

WaterWings's picture

Socialism comes in many flavors. People I know that advocate socialism and rant, "fie! capitalism, fie!", cannot seem to define either one. They are like pinning Jell-O to a wall. They don't want to debate how 40,000,000 ended up on welfare, they just "know its a good thing".

If you have wealth removed from one group of individuals and given to another for social reasons, well, I can't think of a better title. If on the other hand personal property is protected, i.e. honestly earned wealth from sweat, then you can have free markets.

Two problems with socialism in the US today, which are classic problems whenever someone advocates wealth redistribution:

  1. you always run out of other people's money
  2. it is taken with a gun pointed at you

Nonsense? Don't pay the IRS and your property taxes and see what happens. We live in a police state. Check out this batshit crazy police lady with an ASP baton. She really likes her job:

Here she is again. Making sure the bad guys get punished:

Unmarked vans and cops. Scary!

Ripped Chunk's picture

Corporate Oligarchy

The US has held up the "right to vote" as this "true sign of freedom and democracy" for a very, very long time. We conveniently set up new governments around the world proclaiming that the citizens are now free because they now have "the right to vote". Of course we do that while our corporations pillage their natural resources and cheap labor.

The vote here in the US is no different that WWE wrestling because the outcome is known and the show is for the masses to make them feel that they are somehow part of the outcome. Both sides of the aisle are under corporate control. The left right game is the wrestling show. It does not matter.

What's next?





DosZap's picture


Call it what it is, it's dead simple...........


macfly's picture

They are totally caught up in the left/right, Pepsi/Coke, Punch & Judy illusion that the banksters who control the system are sponsoring to create the illusion of freedom while the stealing the country and our real freedoms from us in an ever more severe, restricive and repressive manner.

Those who are hating the socialists are just being whipped up into the same frenzy that Hitler and Musolini used so effectively to align the people with their will.  Honestly I am amazed how unaware the average person is about cleverly this 'system' is manipulating them.

History really is repeating itself, but so many remain so blind.

Carl Marks's picture

Who needs fiats when you gots gold?

MarketTruth's picture

"In the absence of a gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good and thereafter decline to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as claims on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to be able to protect themselves.

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."

The above was said by Alan Greenspan, 'Gold and Economic Freedom' in 1966.

MisesFTW's picture

A gold standard is not the answer. Governments have debased commodity money always. What is needed is a seperation of state monopolized money. We need PRIVATE MONEY, whether it be gold or whatever else that satisfies the characteristics of a useful medium of exchange. Will it ever happen? With history as our guide. Probably not. But never say never.

Conrad Murray's picture

Truer words are seldom spoken.

Sudden Debt's picture

"We must once again make our money freely redeemable in gold at some realistic price."

1 cm² of goldleaf 0.002 micron thick for  2000$ sound realistic for ya?!

pezhead's picture

The society opposed aspects of the civil rights movement in the 1960s because of its concerns that the movement had communists in important positions. The society opposed the Civil Rights Act of 1964, saying it was in violation of the Tenth Amendment to the United States Constitution and overstepped the rights of individual states to enact laws regarding civil rights.

Vix_Noob's picture

MLKs FBI records were sealed at the request of his family.  The only reasons why I can think of was that he was either a) a pervert b) funded by commies.  If I was a commie in the late 40s or early 50's stirring up racial tensions in the US is what I'd do.

stev3e's picture

MLK was a tool along with that dimwit, Rosa Parks.

Reality Monger's picture

Batshit-crazy like a fox.

I can find no fault in anything he has to say other than

his persistent use of the word "gradually". The time for gradual

measures has long since passed.


PeterSchump's picture

Remeber?  The soviets used to send political dissidents to insane asylums.  The collectivists way of proving they are correct.

sumo's picture

Yep. Soviet Psychiatrists resigned from the world body before they could be expelled for those abuses:



twotraps's picture

Could be a presidential speech today.  Hope the country is not like the GM and Auto Industry Saga....blowing the biggest lead in the history of leads due to stupid-bloated management, inflexibility, inability to leverage tech advantages/creativity, unsustainable contracts for pensions/benefits, borrowing sick amounts of money rather than restructure and work out profitably from problems.

MarketFox's picture

Incredible find....

This man is needed TODAY !!!!!!!!!

mephisto's picture

Ah, Bob Welch.

Since the end of communism you just cant get the same class of batshit-crazy fruitcakes any more.

AR15AU's picture

Who the fuck are you? What works have you done?

DosZap's picture


End of Communism??........we just busted 10 of the Bitches in a 500k shack?

Pukin, is aghast,the thug from the KGB, riding shirtless to show his Arnold physique NOT(like some kind of Tard).....sheeesh, nothing has changed except the names and dates, and faces..........we still have a Russia that wants us DEAD.

macfly's picture

So I'm going to guess that you're working in one of those CIA/NSA web-pools keeping a beady little gestapo eye on us here.

mephisto's picture

Actually this is a CIA/NSA web-pool. That's why the servers go down so much.

LeBalance's picture

put forward your contribution to alternative constructive thought and we will compare it to Mr. Welch.  Until then go eat some batshit covered fruitcake.

Also state point by point your assessment of the material discussed in the speech provided.

As you did not do either, you are a Nazi Punk.  NPFO.

"You'll be the first to go unless you think." - DK

MayIMommaDogFace2theBananaPatch's picture

Until then go eat some batshit covered fruitcake.

I was going to say that.

mephisto's picture

Thanks for the Venona project link which was new to me.

I believe we have seen collusion between big banks, the fed they own, large institutional investors (bondholders) and the government who saved all the above with our money.

I believe Eisenhower was not communist.