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Debt-Free Money: NOT a Solution

Sprott Money's picture




 

 

 

..........Jeff Nielson for Sprott Money

 

 

 

Most Canadian readers (in particular) will be aware by now of an extremely important trial currently taking place, a lawsuit by a citizens’ action group against the Bank of Canada: COMER vs Bank of Canada. It is extremely important, both in specific and symbolic terms, which is precisely why the Corporate media has totally censored any/all coverage of this legal challenge, which goes to the very heart of the corruption of our current monetary system.

 

 

For those readers not aware of this current court challenge (because of the censorship by our “free press”), the gist of this trial can be summarized in easy terms. This organization (Committee On Monetary/Economic Reform) is demanding that our corrupt government and the nefarious central bank which rules above it return Canada’s monetary system to the issuance of debt-free money. In turn, the phrase “debt-free money” is relatively easy to define: issuing currency from our central bank, into the economy, without (literally) “borrowing it” into existence – i.e. attaching debt to every unit of currency.

 

 

Again, some readers not familiar with our current monetary system may require some additional clarification (as they discover the horror/insanity of our present system). Back when we had legitimate governments and legitimate economies, we also had (surprise! surprise!) a legitimate monetary system: a “gold standard” where every unit of currency was (at least partially) backed by gold, and was issued free of any debt.

 

 

However, at roughly the same time our (now) now corrupt governments began corrupting our economies, they also totally corrupted our monetary system. The gold standard was abolished (assassinated by Paul Volcker), and our governments began creating their so-called “money” from debt – i.e. our governments forced themselves to “borrow” our own currencies, from these corrupt central banks, as the mechanism for our money-printing.

 

 

The natural consequence of piling all of this additional debt upon regimes whose commitment to fiscal responsibility was dubious (at best) was that all Western regimes (and much of the Rest of the World) began to drown in oceans of debt produced from the creation of their (so-called) “money”. Having seen the consequence of money-from-debt, the demand (by COMER) for a return to “debt-free money” would seem to be unassailable, from any logical/legal/moral perspective.

 

 

Sadly, this “issue” (i.e. the complete corruption of our monetary system) is much too complex and much too endemic to be fixed with any quick-and-easy solution of this nature. Indeed, once readers understand the true dynamics at work here, they will understand that far from being a “fix”, (so-called) debt-free money can only accelerate the descent into the economic hell known as hyperinflation.

 

 

The reason why this is not obvious to other pundits (and COMER itself) is that they fail to make the extremely important connection between the two monetary events previously noted: the end of the gold standard, and the beginning of money-from-debt. It is only once one fully understands the former event that they will understand why it caused the latter.

 

 

What does it mean to have a “gold standard”, or to simply use real money itself (i.e. gold and silver currency)? It means that every currency unit is a “unit of value” (the definition of real “money”). It is backed by tangible wealth. When Paul Volcker assassinated the gold standard, suddenly each and every currency was transformed into a “unit of _____”(?)

 

 

As with all “fiat currencies”, there was no longer anything to give this so-called “money” any value. But while that is the most-obvious deficiency of all fiat currencies, it is arguably not the most-important deficiency. The other reason why (for a thousand years) every fiat currency ever created has been destroyed through hyperinflation (or removed before it could destroy itself) is there is no mechanism to limit supply.

 

 

To understand why these two factors together imply the quick death of any fiat currency can be illustrated through a simple example. Suppose tomorrow that the Harper government declared that Canada’s new “unit of currency” would be a grain of sand. It was the new “fiat currency” for Canada, and thus officially money.

 

 

Obviously, despite the fact that our government had bestowed its “fiat” on this so-called currency, it would quickly (instantly?) become worthless, because of the combination of the two factors previously mentioned. It could be produced virtually for free (since grains of sand, like scraps of paper, have no value), and there would be no mechanism to limit supply – since it is available in virtually infinite amounts.

 

 

This example brings us to a fundamental principle of economics (and thus any/all monetary systems): any “currency” produced for free, and in (near) infinite quantities must be worthless. It must be worthless for two practical reasons, which go entirely beyond the fact that the “fiat currency” has no inherent fundamental value.

 

 

As a practical matter, if one could produce currency (virtually) for free, and in (virtually) infinite amounts, one person/entity would create a near-infinite amount of this “funny money” – and buy every asset on the planet. It is because of this absurdity that we have the second practical reason which such a currency would be worthless: no one would respect such a currency. Thus they would not accept it as payment for goods/services.

 

 

In conceptual terms, a return to (so-called) “debt-free money” would be identical to making sand our official currency. It would guarantee near-term worthlessness of that currency, and thus hyperinflation. This brings us to the (corrupt) “reason” why regimes across the Western world began creating their currencies via borrowing them into existence, in the first place.

 

 

Returning to one of the original deficiencies of any fiat currency, it is nothing but a “unit of _____”, i.e. merely a “unit” with no actual or implied value of any kind. When our governments began to borrow these currencies into existence (after the assassination of the gold standard) they did so to fill in the blank.

 

 

Our fiat currencies (which were no longer units-of-value) became “units of obligation”. Every unit of currency was effectively a mini-IOU from our governments, and that is what has provided the support for our monetary systems over the past 40+ years – not some ridiculous “fiat”. A government “fiat” by itself is insufficient for any fiat currency to retain value as a medium of exchange, even over any medium-term period.

 

 

Note that borrowing our currencies into existence gave them quasi-value in two respects. In addition to becoming units-of-obligation, the mechanism of attaching debt to currency was an effective means of limiting supply. No government (or entity) could create near-infinite quantities of this fiat-paper – because they would have to pay interest on all that currency.

 

 

The return to supposed “debt-free money” would destroy those (only) two supports for our monetary system, and turn our currencies into (literally) something as worthless as sand because we would not have “debt-free money”. We would have debt-free currency.

 

 

“Debt-free money” (i.e. a gold standard) is legitimate, and practical, and sustainable. Debt-free currency is merely another form of paper, financial fraud. There is no rational, legitimate, economically sound manner in which any fiat-currency monetary system can ever be operated. By its very nature, every “fiat currency” must be grossly unsustainable and woefully fraudulent or fatally deficient in numerous, key respects. A thousand years of failed attempts at this ‘monetary alchemy’ attest to this elementary fact.

 

 

This brings us to the reason why this trial has terrified our governments, our central banks, and even the One Bank itself – to the point where they have been frightened into complete censorship of this ultra-important legal challenge. Here readers need to understand the normal manner in which the One Bank (and its Corporate media tentacle) reacts to what it perceives as a negative development. It uses its propaganda megaphone to “explain” the event to us – i.e. put its own “spin” on the event to attempt to influence our thinking.

 

 

Why have the central bankers, our governments, and their “pets” in the Corporate media simply been given a “gag order” by the One Bank on this one, particular subject? That question can ultimately be answered in two words “quantitative easing”.

 

 

By now, more enterprising readers would have already made a logical connection in their own minds. In previously defining a worthless currency, it was noted that any such currency would possess two properties: it could/would be “created for free” and in “near-infinite quantities”. This precisely defines the countless trillions of “QE currency” simply conjured into existence by these criminal central banks, and passively accepted by our puppet-governments.

 

 

There is simply no way for any banker, politician, or media drone to defend currency-from-debt without explaining the obvious, fatal deficiencies of “debt-free currency”. And the moment that any of these Liars began to “explain” this distinction, lots and lots of people would began to connect this to the fraud known as “quantitative easing”.

 

 

Every dollar/euro/pound/yen of “quantitative easing” is not merely worthless, but fraudulent – because our central banks have been cranking-out trillions upon trillions of this funny-money knowing that it was fundamentally worthless in every respect. In monetary terms, “QE” is literally identical to counterfeiting. Thus when our governments began their “QE” fraud, they made all of our currencies effectively worthless.

 

 

There is no way to distinguish a (totally worthless) “QE dollar” from the merely partially worthless “currency-from-debt” which these fraud factories have previously churned out. This is why our governments have always policed “counterfeiting” more seriously than virtually any other crime (except for their own counterfeiting).

 

 

The problem is that large quantities of counterfeit currency entering any monetary system do not simply “dilute” the value of that currency. They DESTROY the value of the currency being counterfeited, because the “integrity” of the monetary system is impugned, and thus the people lose confidence in that (corrupted) currency. One thousand years of history tells us that the moment any fiat currency loses the confidence of the people, it collapses to its true value: zero.

 

 

In many respects, the current legal challenge by COMER against the Bank of Canada can be likened to the quest of “Don Quixote”: while their motivations are sincere/honourable, they are fundamentally misguided. However, being sincere and honourable, any open, public debate about this incredibly important subject would inevitably expose the actual truth here.

 

 

This brings us to the symbolic reason for the absolute censorship of all coverage of this trial. This also represents an example of grassroots democracy: direct action at the level of the citizen. This also terrifies the Tyrants who rule over us.

 

 

As more and more citizens recognize the corruption and illegitimacy of our top-down pseudo-democracies, it is only natural that they begin to resort to more bottom-up activism. While ultimately COMER’s “cause” here is misguided, the activism demonstrated by this citizens’ group must be applauded – and needs to be emulated.

 

 

..........Jeff Nielson for Sprott Money

 

 

 

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Tue, 03/10/2015 - 13:09 | 5873820 VWAndy
VWAndy's picture

Oh one more thing. The courts wont be solving jack. Thats not how they roll.

Tue, 03/10/2015 - 13:06 | 5873806 VWAndy
VWAndy's picture

A measurable real value is what is needed not another way for governments to spend money they did not earn. Dance dance dance. All around the truth.

Tue, 03/10/2015 - 12:56 | 5873732 Fishhawk
Fishhawk's picture

@ Limerick:  please note this statement:  

Every dollar/euro/pound/yen of “quantitative easing” is not merely worthless, butfraudulent – because our central banks have been cranking-out trillions upon trillions of this funny-money knowing that it was fundamentally worthless in every respect. In monetary terms, “QE” is literally identical to counterfeiting. Thus when our governments began their “QE” fraud, they made all of our currencies effectively worthless.

Your comment speaks to the why: the bankers counterfeit worthless currency because it is not worthless to them; they intend to collect interest on that 'debt.'  But the article speaks to the what: the destruction of the currency by infinite counterfeiting.  The author also stipulates that this attack on the 'what' issue is not a solution, as there is still no mechanism to limit the issuance.  True, avoidance of the bankster skim would be an advantage, but debt-free currency issuance would still result in driving its 'value' (a subjective judgement by live people) to zero.

Tue, 03/10/2015 - 12:08 | 5873477 The Limerick King
The Limerick King's picture

Wow...what a wrong-headed article. Private usury attached to all public currency IS THE PROBLEM!!! It's why we have a global Plutocracy and every nation in debt up to it's eyeballs.

Tue, 03/10/2015 - 12:55 | 5873723 silverer
silverer's picture

Usury is necessary for a functioning economy.  Money represents human labor in man hours.  That is what money is.  When inflation is at 3%, and interest rates are at 0%, your work is being stolen while it's stored in savings.  It's that simple.  Interest represents the fee for the lending of this valuable asset.  Just like you'd rent a tool.  Money is a tool.  Charging a nominal and fair fee for borrowing it is necessary.  Our financial system is falling apart because they departed from those basic rules.  Also consider that the private usury that was being charged by the private sector for college loans was transferred to the government by their edict.  Usury is still charged.  So giving the public sector the funds to manage did nothing to help your case.  And now you just feed the monster more, as those funds end up in the non-productive, non-wealth creating public sector.

Tue, 03/10/2015 - 12:02 | 5873463 Atticus Finch
Atticus Finch's picture

Currency Systems

There are really three systems required and they must work simultaneously:

  1. Government Public Loans to individuals and business at low interest rate as paper scrip with no need for gold backing. A national lending bank
  2. Government issuance of currency to fund government spending when there is no loan pay back system requires gold backing but only for the currency issued for government expenditures
  3. No need for income tax

Government public loans of paper scrip at minimum interest rates require no gold backing because inflation is controlled by the loop back system of return payment of the loan to the government. This paper scrip worked successfully in the Quaker colony of Pennsylvania. It stimulated accelerated growth and there was no inflation because the money was continually drawn out of the economy by repayment of the loaned currency. The Pennsylvania bank could expand the currency in an endless amount because the process stimulated continuous growth without inflation.

Government issuance of currency to fund government spending when there is no lending loop back system requires gold backing to control inflation and the government can only increase the amount of currency when it increases the gold supply.The natural consequence is that if the gold supply limits the currency, then government sector currency expands or contracts by the available gold. When the currency contracts because of inadequate gold backing, the government sector contracts or goes into depression, but there is no effect on the business economy. Because of Government Public sector loans, the business and market economy are insulated from the Government ""free money"" problem and the business community continues to prosper on public low interest loans.

Both of these approaches make collection of income tax unnecessary.

Tue, 03/10/2015 - 13:17 | 5873870 collon88
collon88's picture

Finch, Thank you for your well thought out solution.  It answers the problems expressed in the article but identifies you as an economic terrorist and a threat to national (banking) security.

Tue, 03/10/2015 - 12:02 | 5873462 Atticus Finch
Atticus Finch's picture

Currency Systems

There are really three systems required and they must work simultaneously:

  1. Government Public Loans to individuals and business at low interest rate as paper scrip with no need for gold backing. A national lending bank
  2. Government issuance of currency to fund government spending when there is no loan pay back system requires gold backing but only for the currency issued for government expenditures
  3. No need for income tax

Government public loans of paper scrip at minimum interest rates require no gold backing because inflation is controlled by the loop back system of return payment of the loan to the government. This paper scrip worked successfully in the Quaker colony of Pennsylvania. It stimulated accelerated growth and there was no inflation because the money was continually drawn out of the economy by repayment of the loaned currency. The Pennsylvania bank could expand the currency in an endless amount because the process stimulated continuous growth without inflation.

Government issuance of currency to fund government spending when there is no lending loop back system requires gold backing to control inflation and the government can only increase the amount of currency when it increases the gold supply.The natural consequence is that if the gold supply limits the currency, then government sector currency expands or contracts by the available gold. When the currency contracts because of inadequate gold backing, the government sector contracts or goes into depression, but there is no effect on the business economy. Because of Government Public sector loans, the business and market economy are insulated from the Government ""free money"" problem and the business community continues to prosper on public low interest loans.

Both of these approaches make collection of income tax unnecessary.

Tue, 03/10/2015 - 11:52 | 5873443 runes1
runes1's picture

" Our system exists for no reason other than to put power and wealth into the hands of those who control it.  It is the foundation upon which all power of the establishment rests."

amen to that

thank you jaxville.  once this is accepted as the starting point for understanding what is going on, subsequent discussion will at least be on firm ground.

Tue, 03/10/2015 - 11:21 | 5873363 wrs1
wrs1's picture

Gold has no real value of it's own, it's just a metal and as such doesn't have anymore right to the title of money than a piece of paper or a bit in a computer.  Oil and gas and land and timber and agriculture and buildings and things created from human activity all have value and should not be limited in that value by some silly number of ounces of worthless gold.  

Wed, 03/11/2015 - 04:56 | 5876735 Atticus Finch
Atticus Finch's picture

The principal argument is correct to a point. To limit the term gold further to gold coins, gold coins have 5000 years of recognition as a portable recognized store of value and medium of exchange. Hard to take a truck load of lumber and use it to buy groceries. The gold coin is the recognition of the value of human activity and it's easier to put in your pocket, than let say a barrel of oil.

Tue, 03/10/2015 - 12:07 | 5873471 silverer
silverer's picture

Gold or other rare material is the best you are going to do if you want to trade something for something of value.  Gold is defined as a fiat currency.  Disagree?  Look at the definition of the word.  Most have tied the word to paper.  But gold also fits the definition.  It means "let it be".  Right now paper currency is used.  But what makes your timber or buildings worth anything?  What is their claim to value?  Valuable to you, but maybe not me.  Your building has value based on its utility, perhaps?  But the utility must have value to everyone equally, and it will not.  There is no perfect thing out there to represent value, and Ann Barnhardt summed it up best:  the value of any currency exists in men's hearts.

Wed, 03/11/2015 - 04:52 | 5876742 Atticus Finch
Atticus Finch's picture

As long as there is a loop back system to draw fiat out of the system, pieces of paper without any gold backing are successful motivators of economic growth, provided the piece of paper are trusted by the community. Pieces of paper fail when it is a one way street going out with no means to draw them back in. The income tax system exists to draw fiat out of the economy.

The colonies such as Pennsylvania were exhibiting robust economic growth based on loans of scrip (paper) from the government at interest. The loan payback drew the money out of the economy, which controlled inflation. The Quaker Pennsylvania government promised to honor the scrip and that was its backing, no gold. The economy expanded without inflation. AS long as people trusted the government scrip, the market still determined how much scrip was needed to buy products. Buyers and sellers understood that the government would continue to lend them scrip in the amounts that they needed at low interest. The British of course hated this system because the Americans could prosper without the need for British bank loans. The Currency Act prohibited lending scrip and required gold as backing which was owned by the British Banks and the Currency act immediately collapsed the economies of the Colonies and sent them into depression since there was no gold in the colonies. The Currency Act is the fundamental cause of the revolution.

Tue, 03/10/2015 - 11:39 | 5873356 jaxville
jaxville's picture

  Debt free currency (social credit) is far from a satisfactory solution as the money supply can be manipulated for political reasons resulting in debasement.

 

  Having said that, it is infinitely better than the credit based currency now in use.  Our system exists for no reason other than to put power and wealth into the hands of those who control it.  It is the foundation upon which all power of the establishment rests.

Tue, 03/10/2015 - 10:33 | 5873139 Doubleguns
Doubleguns's picture

I have to agree with sprott on his idea. Fiat from debt or debt free fiat is still fiat and the politicians will spend either as fast as they like. Only gold backed currency will keep the politicians from ever spending us blind. This law suit does not fix the problem of over issuance of fiat, it simply removes the debt that provides some teeny tiny level of checks and balance on politicians but is for the most part simply ignored. USA Debt of 18 trillion and growning is simply exibit 1 and is now unpayable by the low level jobs being created in this country. Something will give but the when is the unknown. 

 

Stacking is the only insurance policy we have at hand. 

 

This lawsuit may feel good but it is not the proper solution to the problem. Instead of paying debt on the money they will pay in inflation on the money if it is not controled and controling the politicians is not possible with this system. Gold/silver backed currency is the only solution that puts the brakes on the policitians. Until they lie and print anyway....hmmmmm. Thats where gold confiscation comes in. Shades of 1930's anyone.   

Tue, 03/10/2015 - 11:36 | 5873407 Bullionaire
Bullionaire's picture

"Thats where gold confiscation comes in. Shades of 1930's anyone."

http://www.zerohedge.com/news/2015-03-05/gold-prices-and-real-interest-r...

Tue, 03/10/2015 - 10:25 | 5873100 spartan speculation
spartan speculation's picture

so jeff nielsen believes we have to mine gold to have money so well geta  stable currency ??  debt free money is the ONLY solution to having a just economy. money is only a means of transaction. the gold standard still allowed banks to charge interest for use of money. stop with all this gold standard fallacies. it is the the interest rates / usury of our monetary system that has enslaved people.  Why has QE kept us from going into a full blown depresion where gold and everything else price collapses?? they removed the interest payments due on our government issuing dollars !!  only problem with QE is that the money is going into wall street, the government should have sent tax rebate checks to americans with income under 250,000. and no im not a socialist nut job. but demand is what drives the economy/ jobs.  enough of the hyper-inflation boogeyman stuff.  we just had the great depression II and people are saying were gonna have hyper-inflation, wow just wow.    

Tue, 03/10/2015 - 10:25 | 5873099 spartan speculation
spartan speculation's picture

so jeff nielsen believes we have to mine gold to have money so well geta  stable currency ??  debt free money is the ONLY solution to having a just economy. money is only a means of transaction. the gold standard still allowed banks to charge interest for use of money. stop with all this gold standard fallacies. it is the the interest rates / usury of our monetary system that has enslaved people.  Why has QE kept us from going into a full blown depresion where gold and everything else price collapses?? they removed the interest payments due on our government issuing dollars !!  only problem with QE is that the money is going into wall street, the government should have sent tax rebate checks to americans with income under 250,000. and no im not a socialist nut job. but demand is what drives the economy/ jobs.  enough of the hyper-inflation boogeyman stuff.  we just had the great depression II and people are saying were gonna have hyper-inflation, wow just wow.    

Tue, 03/10/2015 - 12:24 | 5873548 silverer
silverer's picture

If you want to know why the price of gold has stayed down, it's because the price of gold has been severely manipulated by traders on Comex.  Why is physical gold selling right now overseas for higher prices denominated in US dollars than here in the US?  You won't find the explanation in the mainstream media.  The amount of trade done with gold on paper is 60 times that done of the actual physical metal.  Want to see all this total bullshit come to an end in about a week or so?  Pass a law demanding that all gold contracts purchased on the markets be settled with the actual physical delivery of gold, instead of the contract purchaser taking payment in dollars.  Because THAT is what is holding the gold price down.  No matter what it costs to take the loss, they can PRINT whatever paper they need to cover that contract, but only for so long as people accept PAPER, instead of the actual metal.  If you understand this, you'll understand why we are DOOMED with the US dollar.  As the new BRICS countries buy as much gold as they can at artificially low prices (thanks, US FED, politicians and traders for the bargain), they will deliver the crushing blow as soon as they announce a SOUND MONEY SYSTEM BASED ON GOLD.  The worthless paper US dollar will be used to light the cigars of the new owners of the world reserve currency.  And when you look at where the government has taken us with paper, you'll know why they will NEVER pass that law I mentioned above, because the only way they can continue to work this ponzi is to keep the dollar alive at any cost.

Tue, 03/10/2015 - 09:12 | 5872768 commoncourtesy
commoncourtesy's picture

I posted this a few weeks ago:

http://www.bibliotecapleyades.net/sociopolitica/sociopol_globalbanking433.htm

Recently, constitutional lawyer Rocco Galati won yet another round of appeals set forth by The Bank of Canada in a case involving two Canadians who filed an action in federal court to restore The Bank of Canada to its original purpose and operations.

 

The mainstream media and government have blacked out the story for reasons that appear to stem from fear of how the public will react to realizing they’ve been systematically enslaved for decades.

?

The initial federal court filing took place on December 12th, 2011 by  Canadian constitutional lawyer, Rocco Galati, on behalf of Canadians William Krehm, Ann Emmett, and COMER (Committee for Monetary and Economic Reform). 

 

The filing is intended to,

"restore the use of the Bank of Canada to its original purpose, by exercising its public statutory duty and responsibility.

 

That purpose includes making interest free loans to the municipal/provincial/federal governments for 'human capital' expenditures (education health, other social services) and / or infrastructure expenditures."

According to WestCoastNativeNews: (Note: Website may temporarily be down)

The Plaintiffs state that since 1974 there has been a gradual but sure slide into the reality that the Bank of Canada and Canada’s monetary and financial policy are dictated by private foreign banks and financial interests contrary to the Bank of Canada Act.

 

The plaintiffs state that the defendants (officials) are unwittingly and/or wittingly, in varying degrees, knowledge and intent engaged in a conspiracy, along with the Bank of International Settlements (BIS), Financial Stability Forum (FSF), International Monetary Fund (IMF) to render impotent the Bank of Canada Act as well as Canadian sovereignty over financial, monetary, and socio-economic policy, and bypass the sovereign rule of Canada through its parliament by means of the banking and financial systems.

http://www.pacificfreepress.com/news/1/10573-confronting-global-finance-in-canadas-courts.html

The truth is, The Bank of Canada used to issue debt free loans to the government, which meant that the nation would go into debt to private banking institutions.

 

When that changed, private bankers/corporations essentially gained control and ownership of the country.

 

Although not the ultimate solution to the world’s challenges, this is significant because it shows how serious the public is getting about wanting to change the way our current system operates.

 

It also indicates a clear shift in public knowledge about how our system and infrastructures work. The more the people know, the more they seem to be demanding change.

 

This begs the questions: 

  • Why is this information being kept quiet?

  • How has it been hidden for such a long time?

  • Why would our governments be making decisions about things that greatly affect the average person without them having any vote, knowledge, or choice in the matter?

In my view, it goes back to the fact that there are leaders in our world, beyond government, who are systematically manipulating various systems and structures in across the globe to control the population.

 

Once viewed as wild conspiracy theories, this understanding is becoming not only self-evident, but publicly accepted knowledge as well. This latest case helps to illustrate how these ‘elite leaders’ are intentionally making moves that are not beneficial for the people whatsoever.

Tue, 03/10/2015 - 08:31 | 5872690 blindman
blindman's picture

Randy Newman - Louisiana 1927
https://www.youtube.com/watch?v=ED8AxNXwY_U
.

play Music
"Louisiana 1927"

What has happened down here is the winds have changed
Clouds roll in from the north and it started to rain
Rained real hard and it rained for a real long time
Six feet of water in the streets of Evangeline

The river rose all day
The river rose all night
Some people got lost in the flood
Some people got away alright
The river have busted through clear down to Plaquemines
Six feet of water in the streets of Evangelne

Louisiana, Louisiana
They're tyrin' to wash us away
They're tryin' to wash us away
Louisiana, Louisiana
They're tryin' to wash us away
They're tryin' to wash us away

President Coolidge came down in a railroad train
With a little fat man with a note-pad in his hand
The President say, "Little fat man isn't it a shame what the river has done
To this poor crackers land."

Louisiana, Louisiana
They're tryin' to wash us away
They're tryin' to wash us away
Louisiana, Louisiana
They're tryin' to wash us away
They're tryin' to wash us away
They're tryin' to wash us away
They're tryin' to wash us away
.

Tue, 03/10/2015 - 08:39 | 5872667 Bopper09
Bopper09's picture

One solution for us then.  When Comer wins, we'll be resorted to a gold standard.  Done.  I'm prepared.  Oh, but our central bank sold all of our gold in the last 10 yrs.  Fucking retards.  Well.... now we'll be taking a 1/20 oz for a barrel of oil, an ounce for every semi load of lumber, and why not an ounce of silver for a bottle of maple syrup.  Easy for the U.S. right?  Gold is worthless to them anyway and since they claim to have over 8000 tons, why not pay in that?  We'll be needing it to back our currency.  And the whole time I've been thinking the Brics would be the first to the gold standard.

Tue, 03/10/2015 - 08:04 | 5872623 wwxx
wwxx's picture

It may or may not be that Comer has no argument, as some would suggest, but the whole crux of the matter is not how compelling Comer's argument is.  Yeah, rather the whole crux of the matter is and shall be, what the judge decides.

 

It is entirely possible that the judge could find upon a preponderance of the evidence alone, that the Liars have lied, the counterfeiters have produced mega-style.  Need there be an overwhelming argument to that fact?  I should say not.  The crux of the matter is that when Liars lie, they actually believe the shit coming out of their mouths, and it is for the judge to decide just how full of shit, he is.  If Comer simply sticks to the basics, in an honest presentation, they have won their case already...provided the judge is an actual judge, keep it simple, Comer tells the truth, and the defense shall lie, in as complicated a manner as those economic types routinely do.

 

wwxx

Tue, 03/10/2015 - 07:31 | 5872568 bwh1214
bwh1214's picture

This post is a great summary for anyone that is new to the mess we're in: http://www.debtcrash.report/entry/history-and-introduction

If you've been around a while a lot of it is information you already know but how its presented and some other interesting insites make it well worth the read. 

Tue, 03/10/2015 - 07:27 | 5872562 luckylongshot
luckylongshot's picture

While I usually like what Sprott says in this case it is clear they have not done their homework on this issue. If they had they would have discovered that debt free money was the reason that Europe operated for 500 years without a depression during the middle ages and things at one stage were so good that a laborer only needed to work for 14 weeks to care for his family for the entire year. If they had done more research they would have discovered that it was debt free money that transformed the US from a bankrupt colony into the world's leading economy in just four years. If they had done more research they would have discovered that the problems of over supply of money can be controlled by linking its issuance to productivity and by attaching interest to lending on property. But they did not do more research and the result is an article that should not be taken seriously.

Tue, 03/10/2015 - 11:52 | 5873434 mccvilb
mccvilb's picture

60 years ago we were taught in high school economics that our monetary system was founded on productivity. It wasn't a state secret. What was a secret was which government entity was charged with the sacred duty of adjusting the monetary supply and were they immune to outside influence? These were the big questions that were never addressed, because government entities are people too.

When I got to college we were taught in accounting that assets equaled the sum of liabilities and owner equity. We were also taught it was perfectly above board to maintain two sets of books. No one ever taught us why it was legitimate though. Look where that has gotten us.

Tue, 03/10/2015 - 13:01 | 5873768 mccvilb
mccvilb's picture

I've witnessed first hand unprecedented corruption and complicity in government. What has been most amazing to me is the overall acceptance by the general public. We've been conditioned like Pavlov's dogs by the MSM and the two party system for some unfathomable reason we still believe in as beneficial for all. It's frustrating not knowing what one can do to stop it or who to focus on first. Apparently as a people we really are as dumb as a bag of hammers.

 Think about it. Every day we're bombarded with memes embedded in television, movies and advertising telling us that sending our kids to kill or die for Joe Biden's investments in Ukraine or Bibi's landgrab in the ME would be the patriotic thing to do for the country and the American people. All the truly honorable generals in our military have been removed from positions of power and replaced with warmongers like Dempsey and Breedlove. The federal government is about to nationalize all local police departments into a new branch of the military under the facade of homeland security. Legitimate whistleblowers are instantly demonized as nut jobs. There isn't a single journalist in the media willing to speak out because it would mean falling on his or her sword.

This money supply thing has been ongoing for decades. Every time we thought we understood the flow of funds a new paradigm was slipped into the equation, and we were told hey, trust us, this new formula M-99 takes into account the things we should have been watching before. It's too complicated, but you don't need to understand it. Look over there! Cigarettes with filters for your health! Cars with 400 hp engines and power windows and seats! Dukes of Hazzard on Satellite TV! Don't pay any attention to the other hundred satellites orbiting the earth. They're just weather satellites.

Please, could we bring back the good old days when UFOs were just weather balloons.

Tue, 03/10/2015 - 11:14 | 5873337 Stackers
Stackers's picture

Agreed, Lucky.

Debt-free money issued by the state is the solution. It must be done properly though. My thoughts have been that a 4th branch of gov. should be created and strictly firewalled. This branch will determine currency growth needs based on real metrics and not adjusted and tweeked ones, and will then tell the rest of government how much money it is going to give it to spend. No money can be borrowed by the government, any short falls between what it is given and what it spends must be made up for in taxes or spending cuts.

Tue, 03/10/2015 - 11:09 | 5873314 estebanDido
estebanDido's picture

Agree with you. Also it's not the currency system but who controls it. With todays technology it will be easy to know how much currency is needed for the Real Economy. Seems like the article is defending banksters indirectly. Gold standard is a joke: today 100 units for 100 oz, tomorrow 1000 units for 100 oz, but where is the gold, has anybody seen it.

Tue, 03/10/2015 - 09:36 | 5872913 McCormick No. 9
McCormick No. 9's picture

Great comment. Debt-free money is issued into circulation as payment for productivity. This is how Germany recovered from the Wiemar hyperinflation. If you don't work (produce), you don't get paid. But you can create full employment, because the capital is there, debt-free. A productive society will generate money supply with it's productive capacity.

Currently, money is issued into circulation as a debt for consumerism- you borrow the money to buy something. This debt and interest taxes everyone from the moment of issuance.

Debt based money creation is limited only by the ability of society to pay it back. When that limit is reached, the debt-and the money that represents it- vanishes through default. Debt-based money leads inevitably to defaltionary depression. It's a question of when, not if.

Tue, 03/10/2015 - 09:36 | 5872883 Okienomics
Okienomics's picture

Lucky Lucky Lucky.... 14 Weeks, 14 weeks.... is that 14 weeks as in 14 x 7 x 24 = 2,352 hours/year?  Or are you saying they worked only on 14 x 7 = 98 days of the year?  If the former, ok, if the latter, please site your source.  Mine follow:

Juliet Schor's research suggests a middle ages laborer in England worked 2,309 hours per year.  In "The Overworked American, the Unexpected Decline of Leisure" she compared that to the 1987 average U.S. worker at 1,949 hours/year.  In a separate study, Ian Blanchard found an adult male farm laborer from 1400-1600 worked 1,980 hours/year.  On the absolute lowest end of the scale is Nora Ritchie's estimate of 120 days/year at 12 hours/day for a "casual laborer" in 14th century U.K.

Regardless, one could argue that pre-stone age life was the cat's meow, no assigned work hours at all.

Tue, 03/10/2015 - 11:28 | 5873387 luckylongshot
luckylongshot's picture

? 

The source of the 14 weeks comment is 19th century historian Thorold Rogers who wrote that in the middle ages ' A laborer could provide all the neccesssities for his family for a year by working 14 weeks'. There are other sources consistent with this ie  when Winchester Cathedral was built “there were no poor rates, every laboring man in England was clothed in good cloth and all had plenty of meat and bread.” (Corbett,1826).?   The 13th century saw the development of the greatest set of technical schools the world has ever known. (Walsh, 1907). ?  The Catholic Encyclopedia (2003) says during the middle part of the middle ages  there was no semi starvation and poverty as we know it today in any class. 

 

Tue, 03/10/2015 - 11:29 | 5873386 luckylongshot
luckylongshot's picture

x

Tue, 03/10/2015 - 09:20 | 5872840 J S Bach
J S Bach's picture

I concur, Lucky.

The one thing that makes a debt-free currency "work" is trust in the issuer and one's fellow citizens to accept this money as payment for goods or services.  To paraphrase Thomas Edison... he said something like "If the government can issue a bond, then it can simply issue a dollar bill."  By issuing the dollar bill - debt free - the government bypasses the interest part of the equation.  Of course, with this power to create money (as it is their Constitutional duty), there has to be a continuous check on the ligitimacy of the amount.  This "amount" should equally follow the expansion or contraction of the economy, thus maintaining the value of the dollar for years and years.

Tue, 03/10/2015 - 09:38 | 5872923 greyghost
greyghost's picture

debt free money backed by gold/labor/land with tarrifs to level the trading field would go along way to improving this country. luckey you are correct....this author tries very hard to keep debt free money and gold seperate....why....you can have both or any combination of asset backed money. why do people have to make things harder than they need to be?

Tue, 03/10/2015 - 08:38 | 5872714 Cap Matifou
Cap Matifou's picture

^THIS.   Not the material or the print quality defines sound money, but 1. who issues it into circulation and 2. by what conditions.

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