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70 Years Later - Warren Buffett's Dad Is Proved Right (About Everything)

Tyler Durden's picture




 

Authored by Benjamin Weingarten, originally posted at The Blaze,

Warren Buffett has famously supported the Obama administration and other Democrats, even lending his name to the so-called “Buffett Rule,” which calls for raising income taxes on high earners. As such, it may surprise you to learn that a key person in Warren Buffett’s life was an ardent proponent of political views diametrically opposed to those of the “Oracle of Omaha.”

111 years ago today, Warren’s father Howard Homan Buffett was born in Omaha, Nebraska. Buffett, like his son Warren, worked in the investment business, but also served four terms in the U.S. House of Representatives from 1943-1949 and then again from 1951-1953, as an anti-New Dealer, anti-Fair Dealer and overall anti-interventionist of the Republican “Old Right.” Politically, it could be said that Buffett was the Ron Paul of his day.

Buffett even corresponded with leading libertarian Murray Rothbard, asking Rothbard in one letter where he might be able to procure a copy of his “The Panic of 1819,” so that he could pass it along to his son.

Unlike his son who has lauded the Federal Reserve and in particular its former chairman Ben Bernanke, along with others who intervened during and after the financial crisis of 2008, Howard Buffett was an outspoken proponent of laissez-faire economics and sound money. In a 1948 article he wrote:

Is there a connection between Human Freedom and A Gold Redeemable Money? At first glance it would seem that money belongs to the world of economics and human freedom to the political sphere.

 

But when you recall that one of the first moves by Lenin, Mussolini and Hitler was to outlaw individual ownership of gold, you begin to sense that there may be some connection between money, redeemable in gold, and the rare prize known as human liberty.

 

Also, when you find that Lenin declared and demonstrated that a sure way to overturn the existing social order and bring about communism was by printing press paper money, then again you are impressed with the possibility of a relationship between a gold-backed money and human freedom…

 

The subject of a Hitler or a Stalin is a serf by the mere fact that his money can be called in and depreciated at the whim of his rulers…

 

Under such conditions [of depreciating currency] the individual citizen is deprived of freedom of movement. He is prevented from laying away purchasing power for the future. He becomes dependent upon the goodwill of the politicians for his daily bread. Unless he lives on land that will sustain him, freedom for him does not exist…

Buffett argues that the lack of a gold standard meant that Congress was unrestrained in spending money to cater to various interest groups, stating “With no bad immediate consequence it becomes expedient to accede to a spending demand. The Treasury is seemingly inexhaustible. Besides the unorganized taxpayers back home may not notice this particular expenditure — and so it goes.” Further:

Far away from Congress is the real forgotten man, the taxpayer who foots the bill. He is in a different spot from the tax-eater or the business that makes millions from spending schemes. He cannot afford to spend his time trying to oppose Federal expenditures. He has to earn his own living and carry the burden of taxes as well.

 

But for most beneficiaries a Federal paycheck soon becomes vital in his life. He usually will spend his full energies if necessary to hang onto this income.

 

The taxpayer is completely outmatched in such an unequal contest. Always heretofore he possessed an equalizer. If government finances weren’t run according to his idea of soundness he had an individual right to protect himself by obtaining gold.

 

With a restoration of the gold standard, Congress would have to again resist handouts. That would work this way. If Congress seemed receptive to reckless spending schemes, depositors’ demands over the country for gold would soon become serious. That alarm in turn would quickly be reflected in the halls of Congress. The legislators would learn from the banks back home and from the Treasury officials that confidence in the Treasury was endangered.

 

Congress would be forced to confront spending demands with firmness. The gold standard acted as a silent watchdog to prevent unlimited public spending.

Buffett ends his column with this warning:

Because of our economic strength the paper money disease here may take many years to run its course.

 

But we can be approaching the critical stage. When that day arrives, our political rulers will probably find that foreign war and ruthless regimentation is the cunning alternative to domestic strife. That was the way out for the paper-money economy of Hitler and others. In these remarks I have only touched the high points of this problem. I hope that I have given you enough information to challenge you to make a serious study of it.

 

I warn you that politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it. Also those elements here and abroad who are getting rich from the continued American inflation will oppose a return to sound money. You must be prepared to meet their opposition intelligently and vigorously. They have had 15 years of unbroken victory.

 

But, unless you are willing to surrender your children and your country to galloping inflation, war and slavery, then this cause demands your support. For if human liberty is to survive in America, we must win the battle to restore honest money.

 

There is no more important challenge facing us than this issue — the restoration of your freedom to secure gold in exchange for the fruits of your labors.

We’ll leave it to you to judge the merits of Buffett’s words.

 

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Thu, 08/14/2014 - 18:20 | 5094548 Latina Lover
Latina Lover's picture

Were Howard Buffet alive today, he might say of his son that the apple fell very far from the tree.

Thu, 08/14/2014 - 18:21 | 5094560 Confused
Confused's picture

Well played. Just a second too late for me. 

Thu, 08/14/2014 - 18:42 | 5094636 AssFire
AssFire's picture

Fuck that crony Warren Buffett.

Buys R.R. knowing his money bought both Obhole's XL pipeline veto as well as his "medal of freedom".

6x as costly and 10x as dangerous shipping that oil by rail.

Thu, 08/14/2014 - 18:43 | 5094644 linniepar
linniepar's picture

Dear Warren,

 

     Fuck you.

 

Love,

 

Pops

Thu, 08/14/2014 - 18:53 | 5094697 knukles
knukles's picture

Did Howard know Becky's mom?

Thu, 08/14/2014 - 19:45 | 5094864 Helvidius
Helvidius's picture

You mean did he know her, or did he *know* her.  Makes a big difference.

Thu, 08/14/2014 - 19:58 | 5094926 max2205
max2205's picture

So 1800's

Thu, 08/14/2014 - 20:24 | 5095040 Elvis the Pelvis
Elvis the Pelvis's picture

The real problem is demographics.  The world is teeming with aging baby-boomers who need the government to pay for their diapers.  All the money's gone, and there's nowhere to go.  Bitchez.

Thu, 08/14/2014 - 19:46 | 5094865 Helvidius
Helvidius's picture

*damn dupes*

Fri, 08/15/2014 - 06:49 | 5096467 BigJim
BigJim's picture

Warren is to Howard what Rand is to Ron.

Thu, 08/14/2014 - 18:44 | 5094650 Bay of Pigs
Bay of Pigs's picture

Ditto for his buddy Charlie "the Fucktard" Munger

Thu, 08/14/2014 - 19:00 | 5094719 linniepar
linniepar's picture

Mr. Barbarous Relic himself.

Thu, 08/14/2014 - 20:07 | 5094964 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

We need to tell Munger to "suck it up"!!

Thu, 08/14/2014 - 20:12 | 5094988 Ness.
Ness.'s picture

We need to dig a hole for Munger.  

Thu, 08/14/2014 - 18:28 | 5094598 Relentless101
Relentless101's picture

"Sound money" just makes sense to me. Yet it has never been a priority in my lifetime. By the time it again becomes important, it will be too late.

Thu, 08/14/2014 - 19:41 | 5094851 aminorex
aminorex's picture

We are doing it with bitcoin, while most punters just whinge.

Fri, 08/15/2014 - 06:57 | 5096471 shouldvekilledthem
shouldvekilledthem's picture

Bitcoin is the first "sound" digital money.

Built by the peasants for the peasants.

Fri, 08/15/2014 - 09:00 | 5096761 N2OJoe
N2OJoe's picture

And backed by nothing but faith in itself. Sound indeed...

Fri, 08/15/2014 - 09:37 | 5096957 funthea
funthea's picture

And no more unique than the infinite number of alt coins you could create with the exacte same properties. Most bitcoiners fail to grasp this concept. In their utopian end game view, bitcoin to the moon... however, why would I play with bitcoin at $10k when I could jump on an alt coin at the ground floor. And even then, once an infinate number of alt coins compete, you have infinate dilution of value. Usefull in aplication, but useless as a store of value.

Fri, 08/15/2014 - 13:16 | 5098406 TheRedScourge
TheRedScourge's picture

You can try to jump in on the ground floor of some altcoin, but what if it never takes off? That has much higher risk than Bitcoin, and most rational people can and do recognize that.

The difference between the altcoins and Bitcoin itself is that the altcoins have to actually win acceptance to gain in value, which means they have to offer vastly better features than Bitcoin to justify that, and since Bitcoin is already "pretty good" and pretty popular, Bitcoin is light years ahead of the others, and will be the beneficiary of the "network effect". The value comes entirely from demand and circulation, as the supply of Bitcoin is nearly fixed, and the demand of the others is not, in that more can be created, and the risk in the others is largely unknown whereas Bitcoin has been around for a while now, most of the altcoins will never have much of an impact. Most of the others will not take off, costing speculators lots of money, and will act to level out the normal boom and bust cycles, by constantly weeding out the greedy and gullible.

 

The only real problem comes in if Bitcoin is one day obsoleted, and everyone tries to get out of it at once and into some new coin, they will realize nobody wants to take them off their hands, and the value will drop to zero. However, it may be argued that the rate of loss of wealth that occurs here might be dwarfed by the constant rate of inflation that centralized fiat currencies always seem to experience.

Fri, 08/15/2014 - 10:01 | 5097140 goneYonder
goneYonder's picture

The faith in gold is also completely subjective. That being said, I think I'll go with the 5,000 year history on this one.

Fri, 08/15/2014 - 13:08 | 5098390 TheRedScourge
TheRedScourge's picture

Better than faith in the present system, and better than things that can be punted by derivatives and notes.

Thu, 08/14/2014 - 18:36 | 5094618 Supafly
Supafly's picture

It's like the 3 generation rule:

First- work hard, gather fruit

Second- eat fruit

Third- starve

How are Warren's kids doing anyway?

Thu, 08/14/2014 - 18:50 | 5094685 greatbeard
greatbeard's picture

>> How are Warren's kids doing anyway?

Warren's son is a pretty cool guy.  He's a farmer who's into teaching the poor how to farm without being obligated to agribusiness.  Just the opposite of shitbags like the Gates.

Thu, 08/14/2014 - 18:57 | 5094711 Supafly
Supafly's picture

As soon as I posted, I knew what I said was flawed.  But if we were talking about the Hilton's...

Fri, 08/15/2014 - 13:20 | 5098468 TheRedScourge
TheRedScourge's picture

"From shirtsleeves to shirtcollars to shirtsleeves in 3 generations."

Thu, 08/14/2014 - 19:56 | 5094917 Vendetta
Vendetta's picture

Warren has crapped on the memory of his father, he should be ashamed.

Thu, 08/14/2014 - 20:55 | 5095175 Freddie
Freddie's picture

His son is a Satanic as*hole.

Thu, 08/14/2014 - 18:20 | 5094550 Seize Mars
Seize Mars's picture

Warren Buffet got threatened by the Men In Black with some SEC bullshit. (Anyone want to help me find the news story? I'm running on memory here.) Right after he plea bargained, suddenly he is one Righteous Statist Dude. Righteous. I'm assuming they used the carrot and stick in combination.

 

Thu, 08/14/2014 - 18:48 | 5094670 Relentless101
Relentless101's picture

Are you talking about the shit show with Salomon?

Thu, 08/14/2014 - 19:50 | 5094890 Seize Mars
Seize Mars's picture

Yeah maybe that was it.

Thu, 08/14/2014 - 20:09 | 5094972 Atlas_shrugging
Atlas_shrugging's picture

Perhaps the Sokol / Lubrizol fiasco... nothing ever happened there and 2 weeks later he was Obama's hand puppet, ignoring the double taxation of dividends in his garbage argument against a 15% tax rate and this stupid "buffett rule"

Thu, 08/14/2014 - 19:17 | 5094774 ChooChoo
ChooChoo's picture

Ain't it always the story? 
Whoever isn't with us is against us? good ol george bush jr ;ppp 

Thu, 08/14/2014 - 18:20 | 5094556 Confused
Confused's picture

So in some cases, the apple DOES fall far from the tree? 

 

 

Thu, 08/14/2014 - 18:21 | 5094559 Robert.Paulson
Thu, 08/14/2014 - 18:26 | 5094577 RaceToTheBottom
RaceToTheBottom's picture

Apparently the Baby Buffett learned pretty well how to profit from the panic.

The Baby Buffett continues too eat the buffet very well at the Government trough.

 

 

Thu, 08/14/2014 - 18:27 | 5094586 NOTaREALmerican
NOTaREALmerican's picture

Who can doubt a PATRIOT who says:  Never bet against Merica?

(Cue:  Slow motion eagle flying in front of a slow motion flag waving behind a slow-motion Uncle Warren;  and worshipping peasants worshiping the slow-motion images with slow-motion tears in their eyes)

Thu, 08/14/2014 - 18:28 | 5094595 royal
royal's picture

The Gold standard will be brought back out of necessity.

 

Thu, 08/14/2014 - 18:29 | 5094597 jmcadg
jmcadg's picture

Warren Buffet was very much behind his dad's thinking, he had a huge physical silver position, until he was 'forced' to give it up.

Thu, 08/14/2014 - 18:29 | 5094599 Not My Real Name
Not My Real Name's picture

Off topic: Lending in China practically stopped in July -- down 86% from June.

From Breitbart: "The collapse in Chinese credit from $320 billion in June to $44.3 billion in July is causing panic across the nation ..."

http://www.breitbart.com/Big-Peace/2014/08/14/China-Faces-Credit-Crunch-...

Thu, 08/14/2014 - 18:48 | 5094667 SWRichmond
SWRichmond's picture

Ho Li Fuk

Sum Ting Wong

Thu, 08/14/2014 - 18:29 | 5094603 Kaiser Sousa
Kaiser Sousa's picture

one of my favorite essays...
i use it all the time in speaking with the non-believers, brainwashed and lost ones...

and they still refuse the light...

Thu, 08/14/2014 - 18:50 | 5094678 TVP
TVP's picture

They will go to their graves before they accept reality.  Implicit acceptance of the leaders' illusions runs rampant among the psychotic herd.  

 

Stop wasting your energy attempting to "wake people up".

 

It only serves as a divide & conquer tactic, utilized best by provocateurs like Alex Jones

Thu, 08/14/2014 - 19:05 | 5094737 Seasmoke
Seasmoke's picture

I've tried. Gotten pissed off. And have given up trying any more. 

 

At parties. I basically say buy Gold or Silver or die, I don't care. Where's the beer ?

Thu, 08/14/2014 - 19:23 | 5094783 negative rates
negative rates's picture

Show me the money, and i'll show you the beer.

Thu, 08/14/2014 - 18:33 | 5094614 Ewtman
Ewtman's picture

No August Elliott Wave Gold update available yet, but this July chart is still on track...

http://www.globaldeflationnews.com/gold-elliott-wave-update-for-july-2014/

Thu, 08/14/2014 - 18:35 | 5094616 ebworthen
ebworthen's picture

"Far away from Congress is the real forgotten man..."

Raises hand.

Thu, 08/14/2014 - 18:37 | 5094623 Life of Illusion
Thu, 08/14/2014 - 18:37 | 5094626 Z_End
Z_End's picture

Yeahhh Warren was definately adopted...

Thu, 08/14/2014 - 18:44 | 5094654 GooseShtepping Moron
GooseShtepping Moron's picture

I was watching Charlie Rose the night Warren Buffet announced that he would be donating his entire fortune to the Bill and Melinda Gates foundation upon the event of his death. After I recovered from the shock, I concluded that the "Oracle of Omaha" knew nothing about reality, didn't have a prudent bone in his body, and must have acquired his wealth through fortunate birth and accident. From then on I've ignored everything he had to say.

Thu, 08/14/2014 - 18:50 | 5094681 NOTaREALmerican
NOTaREALmerican's picture

Re:  After I recovered from the shock

What's he supposed to do with his money "upon the event of his death"?  He'll be dead.

Thu, 08/14/2014 - 21:16 | 5095280 Freddie
Freddie's picture

Charlie Rose is another mega douchebag lefty.   Buffett's old man was a Senator and Warren probably was told how the game was played.   Buffett was also really chummy with Time Warner aka Fortune magazine and was a major shareholder in WA Post and GEICO so he has been a govt insider for decades.

Thu, 08/14/2014 - 18:46 | 5094660 lasvegaspersona
lasvegaspersona's picture

I found this to be a far better way to look at this issue:

http://fofoa.blogspot.com/2011/05/return-to-honest-money.html

Thu, 08/14/2014 - 18:51 | 5094691 william114085
william114085's picture

Come sit on Uncle Warren's lap....and don't tell mommy

 

the cum drunk sac-o-shit of omaha

Thu, 08/14/2014 - 18:59 | 5094713 seek
seek's picture

Warren's political positions on virtually everything changed overnight during the 2008 collapse -- so either he made a bargain with the devil to save himself, the the devil made a bargain with him to not feed him to the wolves.

Either way, he needs to grow a pair.

Thu, 08/14/2014 - 19:01 | 5094729 GrinandBearit
GrinandBearit's picture

Warren is definitely not a chip off the old block.

How much money does someone need?  How much power does someone need?  How greedy can someone be?  Gates, Buffett, Munger, Bezos, Ichan, etc... these people are psychopaths

The quicker Warren leaves this earth, the better.

 

Thu, 08/14/2014 - 19:18 | 5094778 Oldrepublic
Oldrepublic's picture

The article is correct, he was indeed the Ron Paul of his day.

A quote from that gentleman:

Even if it were desirable, America is not strong enough to police the world by military force. If that attempt is made, the blessings of liberty will be replaced by coercion and tyranny at home

Fri, 08/15/2014 - 08:04 | 5096555 Raging Debate
Raging Debate's picture

Old Republic - Howard Buffet sure was prescient about the quote you just reposted from the article about liberty suffering and tryanny forming at home when attempting to police the globe. He surely must have understood observing the British empire that being reserve currency host means global police becomes that nations job.

Now it will be China, with the BIS still on top as silent partner. I suspect a gold standard to restore confidence and if I live long enough, the model will become liquidity only after 40 years. That is if WW3 doesn't alter the model more dramatically.

Easy money created by low interest rates and debt bubbles creates bad politics and social habits. The political system when faced ultimately with harsh correction delays making the bust worse as Mises understood. Then they must use draconian measures to fix it like inflating a third of debt away like we have seen already, hard cuts in medical benefit expenditures and soon to come offering social security and pensioneers 40% of what is promised. The treasury got looted and laws are for the little people, delivered in spades as taxation. Hypocricy reigns supreme.

Like the Soviet Union, I suspect the Uncle Sam to be renamed and the above announcement on government programs to ensue. Probably a false flag used. Maybe EMP or this Ebola scare with a couple month quarantine I don't know. What I do know is that the entitlements can't be met without drastic cuts or hyperinflation, the latter being a major risk to politicians so dont see that happening and we do see tapering occuring now in any event.

Since politicians are used to a particular method of doing things the easy way relying on monetary and military policy that is what the culture becomes near the end of the 80 year reserve peg cycle. Rothbard, Hayek, Lord Acton and other bankers understood these things long ago and concluded a host nation peg isn't worth the boom/bust cycles and societal damage including large scale wars at reserve currency shifts.

Floating currencies with no peg as Milton Freidman suggested is the way to go but old habits die hard, a peg is too tempting to resist and insiders make far more money on imbalance, boom and bust. The current model is a pyramid, 3D. We need a 4D model with far wider management distrubution in government/banking.

Perhaps since nations compete in the bust phase and betrayels happen ultimately another nasty world war unfolds and changes the model. I certainly hope not but I don't see how a planet of debt slaves can consume enough for growth (which has stalled globally) so something is going to give and why I hedge.

Thu, 08/14/2014 - 19:25 | 5094788 Spungo
Spungo's picture

We can't call warren stupid. It's actually very intelligent to praise the people who have the most power.

Fri, 08/15/2014 - 00:09 | 5095966 orez65
orez65's picture

"We can't call warren stupid."

No replies have called Warren stupid.

Where the f--k did you read that in the replies?

Most of the replies have called Warren what he is, a fu--ing thief!


Fri, 08/15/2014 - 03:23 | 5096310 CHX
CHX's picture

He (WB) is just a master at gaming and making use of the system for is own personal interests. He's in bed with the gobbermint, so that's the eff-ing part, the thief part... well that's debatable (and I say this as being really no fan of his), but certainly one heck of a crony (which one can debate if this qualifies as being a thief or not).

Fri, 08/15/2014 - 02:36 | 5096249 BeetleBailey
BeetleBailey's picture

Actually, Warren's a liar.

Smart - but a liar.

 

Thu, 08/14/2014 - 19:31 | 5094807 SelfGov
SelfGov's picture

He stole all of that from Hazlitt!

 

https://mises.org/books/economics_in_one_lesson_hazlitt.pdf

Thu, 08/14/2014 - 20:02 | 5094952 AgeOfJefferson
AgeOfJefferson's picture

Just hope WB will live long enough to see it all come crashing down. Then hear his stupid studdering babbling in the wind. Having a wise father like he did but selling out like he did makes him an ignorant accomplice to cronyism. "L" to the forehead you LOSER!

Thu, 08/14/2014 - 20:48 | 5095150 Sick
Sick's picture

I would like to believe but the father's letter looks like modern typeface generated from modern computer software.  In 1962 it would most likely be a manual typewriter or perhaps and IBM Selectric but this does not look like either.  Sorry.

Thu, 08/14/2014 - 21:48 | 5095381 Radical Marijuana
Radical Marijuana's picture

That was a very interesting historical article. However, it displays the typically preposterous notions about "money," which presume "honesty" without looking at the paradoxical problems regarding how that "honesty" is supposed to be enforced.

Money is measurement backed by murder. Money backed by gold is the measurement of gold, backed by murder. The problem of having any "honest" money is surpassed by the deeper problem of how to have an "honest murder system" to back that monetary system up.

By and large, it was always true that the debt controls were backed by the death controls. The refusal to deal with those facts directly, but rather, the critical collapse to rely upon the apparent "ring of truth" found in the principle of the conservation of matter, manifested through the physical existence of gold and silver, profoundly fails to deal with the deeper issues. The ideas that we could resolve any of our problems now by going back to "honest and sound money," again backed by gold or silver, or any other commodities, are absurd in a world in which the existing systems have become globalized electronic frauds, backed by the threat of the force of atomic bombs.

Indeed, it is now probably impossible for the human species to cope with the consequences of the industrial revolution, based on science and technology that became orders of magnitude more powerful, being injected into social pyramid systems, which had developed for thousands of years to control societies with systems of enforced frauds. What we ought to be doing is making a monetary system which is consistent with general energy laws. However, instead, the vast majority of people do not have a clue what that sentence means, and do not want to know. Meanwhile, reactionary revolutionaries continue to advocate that we should go backwards, to some old-fashioned religious ideologies, as the basis for resolving the problems created by the enforced frauds found in the current runaway fiat money systems.

In order to more systematically apply the understanding of general energy systems to human systems, one has to go through a series of intellectual scientific revolutions, which result in understanding how and why civilizations necessarily operate according to the principles and methods of organized crime, while governments have actually become the biggest forms of organized crime, controlled by the best organized gangs of criminals, or the biggest gangsters, who currently happen to be the banksters.

THE REAL PROBLEM WITH PROPOSING AN "HONEST MONEY SYSTEM" IS THAT WOULD HAVE TO HAVE AN "HONEST MURDER SYSTEM" TO BACK THAT UP.  Pretending that the "solution" is some straightforward returning to any gold standard, or other kind of commodity backed money, is a disingenuous position that deliberately ignores the real problems: throughout American history, the best organized gangs of criminals have been able to dominate the political processes more and more, while the controlled opposition has responded by promoting impossible ideals, which always actually enabled the opposite to happen in the real world.

I guess it is now too late to fix those problems, although it is theoretically more and more possible to base a monetary system upon understanding energy better, American society is still too dominated by old-fashioned religions and ideologies in order to be able to do that. Therefore, it is typical for various sorts of reactionary revolutionaries to propose returning to some gold standard for money, or something similar, without addressing the first and second deeper levels of the real situation, which are the best organized gangs of criminals now control the country, and that only better death controls are theoretically sufficient to deal with that.

Of course, in the real world, one could not reasonably expect any progress, since the paths we are actually on are for the runaway systems of debt slavery to continue to generate numbers which become exponentially worse manifestations of debt insanities, which then provoke death insanities, as those numbers finally cause collapses into crazy chaos. It is almost impossible to imagine how that process will permit genuine progress through enough people understanding general energy systems better, so that they could understand monetary systems better.

Articles like the one above continue to wrongly imply that an "honest money system" could exist without an "honest murder system" to back that up. However, in fact, the real problems we face are way worse that any oversimplified notions that money conforming to the laws of nature, manifested through the conservation of matter, could be sufficient. In fact, nothing less than an monetary system conforming to the laws of energy might be adequate. However, in order to do that would require embracing the paradoxes that there could not be any reliance upon false fundamental dichotomies, and their related impossible ideals, but rather, accepting that governments are based on death controls, which back up the debt controls.

Any genuinely operational democratic republic, with a functional rule of law, would require that enough of its citizens understood that their status as citizens meant that they were members of an organized crime gang, that was their country. As long as too few people understand that, then they will continue to be tricked by the best professional liars and immaculate hypocrites to perceive the world through mistakenly presumed dualities. By and large, all of the most publicly significant controlled opposition groups continue to do that, which means that the basic systems are Wolves in Sheep's Clothing, fooling enough of the Zombie Sheeple, enough of the time, while the various groups of Black Sheeple try to lead those Zombie Sheeple backwards. The profound paradox regarding the enforcement of any rule of law has always been that "nobody guards the guardians." The suggested solution that We the People should guard the guardians has failed to function, as the People were successfully brainwashed to not want to understand what that meant. Instead, America became a country ruled by wolves who appeared in sheep's clothing, who were more and more only opposed by the controlled opposition groups that were mostly sheep, promoting the bogus bullshit solutions that everyone should become better sheep, while the reality was that everyone should become better wolves.

That has been getting worse and worse, for so many generations, while the consequences of those enforced frauds were driving runaway social polarization, and destruction of the natural world, aided and abetted by a fundamentally fraudulent financial accounting system, that there is no reasonable hope for the future, especially since it still continues to be the case that the most significant publicly projected opposition promotes naive ideas about "money" which are so superficial as to be stupid, because they continue to promote notions about what "money" should be that are based on deliberately ignoring how and why "money" became what it actually is now!

Thu, 08/14/2014 - 21:58 | 5095483 Liberty2012
Liberty2012's picture

RM, You are correct about a specific case. You are wrong in general.

Money that is required to be used by force of government monopoly is that specific case. Not all money has those same requirements.

When force becomes the dominant factor in a system, that system no longer functions in the same manner. It becomes a different system. In the case of money, it becomes a racket.

Thugs are the problem, not "money".

Fri, 08/15/2014 - 03:16 | 5096296 CHX
CHX's picture

Yes, that's the mechanics of Gresham's law 101, in action as we speak. The game is to kill the measuring stick (gold, and to a lesser degree silver), so all appears to be good, when it's NOT.

Fri, 08/15/2014 - 11:25 | 5097789 aka_ces
aka_ces's picture

Liberty2012, I wish that RM were wrong in general, but if you've read some of his many postings, you'd know that his perspective is that natural selection from the neolithic onwards favors sociopaths, which over time increasingly dominate ruling classes. That will not change, unless evolution stops being the mechanism that governs the paths of biologicial species, or unless the current spiral collapses us back into pre-neolithic hunter-gathers.  The later path will be more problematic than in its first instance, in that the environment will be polluted with the detritus of industrial civilization, e.g. 500 smoldering Fukushimas.  The only "hope" per RM is that the ruling sociopaths adopt more enlightened death systems, i.e. ones that do not destroy the physical world, but per RM the ruling sociopaths have not shown interest in doing so, and indoctrinate the sheep not to mind.

Fri, 08/15/2014 - 08:24 | 5096634 Raging Debate
Raging Debate's picture

RM - A system based on physics need not to be energy, although I can envision one based on an AC power generator like design. Man is beggining to think more in 4D, the tools being built are a reflection of our evolution. Banking should become a 4th branch of government. Having it remain private results in toothless governments that serve bankers rather than citizens.

As to what you consider murder systems, they are force to police trade and over time become increasingly corrupt, to become murder systems as trade flows to the top of the pyramid, growth ceases for the population and that force used to create barriers-of-entry to keep competition out.

At this point in human evolution, using that force to focus on health, waging war on death itself is what I see as the only way out. A global competition for winning that war creates a lot of advances and new competitors which we drastically need at this time to reduce cost.
At the root level physics shows us the way there too. But it likely will have to crash and burn first to awaken minds that doing this is possible and worthwhile.

Thu, 08/14/2014 - 23:23 | 5095840 thetruthhurts
thetruthhurts's picture

....one of the first moves by Lenin, Mussolini and Hitler ( AND Roosevelt!) was to outlaw individual ownership of gold......

 

Executive Order 6102 is a United States presidential executive order signed on April 5, 1933, by President Franklin D. Roosevelt "forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States". The order criminalized the possession of monetary gold by any individual, partnership, association or corporation.

 

Don't forget Roosevelt liked both fascism and communisim as a method of ruling.

Fri, 08/15/2014 - 00:47 | 5096082 pachanguero
pachanguero's picture

TFMetals is running a crappy website that is really a religious website maskeraiding as a metals site.  I was banned for negitive stuff about the POPE!

Fri, 08/15/2014 - 01:00 | 5096109 pachanguero
pachanguero's picture

The guy has been really off on his gold calls. I think he cracking up at TFmetals.com

Do NOT follow this link or you will be banned from the site!