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Keynes, The Great Depression And The Coming Great Default
Submitted by Gary North via Gary North's Specific Answers,
Ideas have consequences, but not in a social vacuum. There are no social vacuums.
Ideas that are held by a minority of fringe academics or polemicists sometimes become the foundations of victorious social movements after existing social institutions are undermined by a social crisis.
OPTIMISM AND SOCIAL REVOLUTION
There seems to be an inherent optimism in the thinking of most members of the human race. It is the source of men's sacrifice in the present for the sake of the future. We think the future is going to get better, and therefore it is worth sacrificing present consumption for the sake of future consumption. This is the basis of thrift. This is the basis of expanded capital in our society.
Basic to the success of every social revolution in the West since 1640 has been the doctrine of progress. Each revolution offers hope for the future. Usually, these have been short on details of the transition between now and the new utopia, but there is hope.
The free market was such an idea. Adam Smith was the major promoter. His disciples extended his vision of the wealth of nations. The timing was perfect: 1776. That was about the time that the Industrial Revolution began its transformation of the West and then the world.
Beginning around 1800, and limited to the Eastern shore of the United States and the British Isles, compound economic growth began. By 1820, the economic transformation was leaving irrefutable historical evidence of this transformation. Economic historians debate as to the causes of this growth, but it had never been seen before. By 1850, the world was very different. A series of inventions transformed modern agriculture, modern transportation, and communications. This was visible to everybody by 1851. That was the year of the great London exhibition. Anyone who attended that exhibition realized that the world had fundamentally changed since 1800.
We are now over two centuries into this process. It is almost impossible for us to think of a society made up of human beings who are systematically pessimistic about the future. What began in the English-speaking world of the Atlantic Coast has now spread into the villages of India and China. There is almost nowhere left on earth in which optimism regarding the economic future is not a fundamental presupposition of every village, every tribe, and every family. Economic reality finally caught up with human optimism, and then raced ahead.
There has been only one period in which economic growth has stagnated for more than a decade since 1800. That was the Great Depression, which was followed by World War II. Output of almost all goods and services declined in the 1930's, and then the war destroyed much of the output of the first half of the 1940's. This destruction was systematic: bombs, armies, and battles destroyed the output of military factories. Both sides were committed to the destruction of any economic growth on the other side. With the exception of the United States, all nations that were involved in the conflict suffered direct economic contraction as a result of the war. But there was full employment for the survivors -- at below-market wages. There was central planning on an unprecedented scale: the ration-book economy.
THE KEYNESIAN REVOLUTION
What was most significant about the 1930's was not the fact that there was economic stagnation for a decade. What was most significant was the transformation of the thinking of Western civilization. The intellectuals changed their minds; the voters changed their minds.
In Nazi Germany and Fascist Italy, in Great Britain, in Japan, and in the United States, there was a shift of opinion away from the free market in favor of government economic planning. The supreme mark of this transformation was the acceptance of John Maynard Keynes' unreadable book, The General Theory of Employment, Interest, and Money, which was published in 1936. A new generation of younger economists adopted this book and its outlook, which prevails today. The fascist economic idea of an alliance between government and business became almost universally accepted.
There had always been a tendency for special-interest groups to seek government subsidies. Mercantilism, 1550-1800, was a manifestation of this worldview. But, from an academic point view, economists after Adam Smith were generally not committed to anything like mercantilism. There were some who were, but they were not dominant.
There was always an appeal in the United States for federal finances and subsidies, and the mark of this was Sen. Henry Clay's so-called American system. Abraham Lincoln was an early convert. But the size of the federal government in the overall economy was so small that these interventions were mainly limited to roads, canals, and transportation projects. In other words, there was a commitment to the government-business alliance, but there was not much government to be allied to. This changed in the 1930's.
I am probably the only person who has ever noticed the following, but it bears repeating. The Macmillan publishing company in Great Britain published three books analyzing the causes of the Great Depression. The first one was written by a disciple of Ludwig von Mises, Lionel Robbins. He was probably the most prominent British economist favoring the free market in the 1930's. He was a colleague of F. A. Hayek at the London School of Economics, who was also a defender of the free market, but who was an Austrian. Both of them at the time were followers of Mises. Robbins' book was titled simply, The Great Depression. It was published in 1934. One year after Keynes's book, in 1937, Macmillan published another economic analysis of the depression, which was also basically a defensive of the Austrian theory of the business cycle. That book was titled, Banking and the Business Cycle. Both of these books are available for downloading or purchase on the website of the Mises Institute. They are both quite readable. Keynes' book was not readable. Yet so devastated was Robbins by the depression that he repudiated his own book in the 1940's. It is Keynes' book that remains in print. The other two books were essentially forgotten by 1940.
The modern fascist economy that dominates the West, meaning an economy sustained by central bank counterfeiting and central government fiscal deficits, was born during the Great Depression. It was conceived much earlier, but it took the Great Depression to provide what we can legitimately call labor pains. Most people today cannot conceive of a world without government intervention, central banking, government guarantees of all kind, and so forth. The Federal Register turns out approximately 80,000 pages of fine print regulations every year. This regulatory order is cumulative. Most of these regulations stay on the books. They are not repealed by the bureaucrats; they are amplified by new rules.
Despite the fact that most economists say they are free marketers, only a handful of Austrian economists favor the shutting down of the Federal Reserve System. Yet in 1900, most economists in the United States were not in favor of a central bank. Institution by institution, crisis by crisis, fascist economics increases its support among academics, and it increases its support among the masses. Social Security and Medicare are simply the most visible manifestations of this outlook. The public is completely in favor of both programs.
I am arguing here that a sustained economic crisis always calls forth radical new ways of explaining the crisis. These new ways are always extensions of previous opinions. But a new generation of economists will adopt the new format of the previous opinions, including errors in some cases. That is the lesson of the Great Depression. Keynes simply baptized what politicians and central bankers were already doing.
Keynesian economics is incoherent. That is our great advantage. The defenders of Keynesian economics, when standing in front of a crowd to explain the system, proclaim its goals and describe its interventions, but they cannot explain how these interventions have in fact created wealth. The system is incoherent. This is why The General Theory is invoked but never assigned. Austrian School economists still assign Mises' 1920 essay, "Economic Calculation in the Socialist Commonwealth." It is readable.
The great advantage Keynesians they have is this: people find it difficult to believe in the theory first proclaimed in the 18th century, namely, that social evolution, including economic progress, is based on individual decision-making within a free market setting. The idea that coherence grows out of individual decisions, and that there is no central organizing entity, is difficult for people to believe. Adam Smith correctly named this system of unplanned providence: the invisible hand.
On the one hand, most people believe in God. On the other hand, most people believe in free will. They trust in God's providence, but they also want personal liberty. They want to believe in the free market, but they also want to believe that there is an overarching coherence to it that is supplied by God. Economists don't believe this, but most people are not economists. Economists believe, as Adam Smith believed and Adam Ferguson believed, that society is the result of human action, but not the result of human design. It takes enormous faith to believe this, and most people are not capable of enormous faith. They want to believe in God, but they don't quite believe that the free market is God's way of bringing coherence to the world. It is easier for most people to believe that politicians and bureaucrats provide this social and economic coherence in general, despite repeated failures of such planning in specific cases. It is hard to believe in the coherence provided by the invisible hand of the free market's profit-and-loss system. People want to see a more visible hand. This has been true down through the ages, from Pharaoh's pyramids to Washington's pyramids.
This quest for a visible hand initially favored faith in socialism, but now that the socialist faith has collapsed, as a result of the collapse of the Soviet Union in 1991, this leaves only Keynesianism. Keynesianism is in fact incoherent, and nobody can really explain it, but that is true of every doctrine of God. It is a question of how much mystery most people can tolerate. At some point, this issue will arise: how much economic pain they are willing to tolerate.
It is easier to believe in the free market than in Keynesianism, but only if you understand economic logic -- causation through competitive bidding. But most people do not understand economic logic. This is why they support tariffs and other interventions by the state into the market.
So, in the back of most people's minds in 1929 was faith in some kind of god. As long as the money kept flowing, and economy kept growing, people believed that the boom would last forever. This was basic to their optimism. They weren't sure exactly why the boom was taking place, but they figured that it was forever. They wanted to believe that good times would last. But good times did not last.
The Great Depression was the great stumbling block for optimism. It undermined faith in Western political liberty and Western economic liberty. The Fascists and the National Socialists took advantage of this. The Fabian socialist movement took advantage of this in Great Britain. The New Deal took advantage of this in the United States. Lenin (Ulyanov) had already taken advantage of this from 1917 to 1924, and Stalin (Djugishvili) was taking advantage of it.
CONCLUSIONS
New ideas alone do not change the minds of most people. This includes intellectuals. There is usually a crisis that serves as a catalyst for changing the minds of millions of people. Ideas that had been floating around in the world of intellectuals then get applied by a new generation of intellectuals, and simultaneously they are also applied by politicians. This is what creates revolutions.
It is the job of those intellectuals who favor a new outlook to work on the details of this outlook until such time as a revolutionary figure gains political support, and some new apologist for the revolutionary worldview comes to the forefront and begins to gain disciples. The power of ideas alone does not produce revolutions. There has to be a social setting to allow the catalyst of revolutionary ideas to produce a social and political transformation.
This is why the Great Default of all of the Western welfare states is going to create tremendous opportunities for new ideas to come to the forefront. It is going to undermine and ultimately destroy the Keynesian worldview. This is a great opportunity for younger anti-Keynesians to stake their claims to what appears to be a played-out mine. That is why I outlined my Keynes project.
The body of intellectual materials favoring the free market is vastly larger today than it was in 1940, 1950, or 1960. These older materials went out of print. But today, because of PDF page images and the World Wide Web, the Mises Institute has posted hundreds of volumes. In addition, there is a constant stream of new materials being produced online. We await only the catalyst of the Great Default to produce conditions necessary for the transformation of these academic ideas into effective political programs, especially at the local level. Decentralization is the wave of the future. True Free trade and the World Wide Web will supply the benefits of internationalism. The global bureaucrats will not.
When the Keynesian medicine cabinet is visibly bare, people will want explanations of why it is bare and why the economy is sick. Most of all, people will want suggestions for how the cupboard can be filled up with something that heals sickness. I am working on this. So are thousands of other writers. It is not 1970 any longer. The print publishing oligopoly is dying.
Ideas have consequences, but not in a social vacuum.
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A book that could use a new widespread audience today...
Ideas Have Consequenses
Fuck Keynes and his yappy little lapdog, Krugman.
Might have to find a teevee tomorrow morn and watch some CNBS. Should be chuckletastic.
Debt that can't be paid back won't be paid back, and dispite what Krugman says, is not a real asset thus debt, at least much of the current debt, can not be viewed as a zero sum game. Debt being ones liability and another asset thus zero sum is a farce if it mathmatically can't be repaid.
Great Default might just catch on as the name for this whole fiasco.
Keynes, Machiavelli, Marx, Gore, ... all promoters of centralized power. All worshipped by corrupt leaders.
Money is "a promise to complete a trade". Thus, it is obviously debt ... and that's not bad. And in a properly managed MOE, it "is" a zero sum game.
A trader makes a trading promise and gets it certified. The certificates (money) then trade as the most desired objects of simple barter because they are accepted everywhere and never lose their value (remember, I'm talking about a "properly managed" MOE).
The trader delivers by returning the certificates as promised and they are destroyed. In the mean time, they have allowed him and others to engage in simple barter trades spanning time and space. Thus, the more trading promises in progress, the more debt, and likely the more vibrant the marketplace.
It's not debt that is the problem; it is DEFAULT. If the trader fails to deliver, the certificates remain in circulation and devalue all the other certificates. They must be reclaimed with a like amount of INTEREST collections which are destroyed along with the delivered certificates. For that trade, and all trades, we start with zero money ... we end with zero money ... a zero sum game, even if there are some DEFAULTs since they are reclaimed with INTEREST collections. INTEREST isn't some number pulled out of elites butts at LIBOR meetings.
The governing relation is: INFLATION = DEFAULT - INTEREST = zero ... guaranteed, all the time ... everywhere.
It is a really rare case that a trader DEFAULTs ... unless that trader is a government. Governments "always" DEFAULT. It shows up in the form of "rollovers". And governments pay very little INTEREST so they finance themselves almost totally through INFLATION. They are truly an insidious parasite.
Oh, and after reading Keynes (6246735) you came up with the idea to create your own set of unworkable theories? That explains a lot.
Two questions:
(1) If what I describe is unworkable, why?
(2) What "is" workable?
wee-weed up,
I agree with you but I do think that Keynes is spinning in his grave with what is purported to be Keynesianism now. I actually feel sorry for Krugman, a man who is not as clever as he thinks he is.
DavidC
Keynes book has little to do with "money and banking"-services to society to facilitate business and livlihood.
The title and subject of his books is a pretext for assumption of power and transformation of society into the servant of "money and banking"
What garbage, you can have all the ideas in the world, but if you don't have resources and energy, you cannot do shit. Precisely why money creation must always be attached to something fucking real. Devolution...
What matters is that money creation does NOT include interest attached. Once interest is attached it's mathematically impossible to pay off and new debt must forever be created to service old debt and delay the inevitable collapse that is built into the system.
If you want to use your wealth as collateral and then lend it for free. Go right ahead... ...sorry, there is no free lunch.
Agreed. The problem isn't interest bearing loans. The problem is debt based currency that allows certain parties to conjure money out of thin air to lend to people at interest.
Free Lunch = creating (debt) money out of thin air and attaching interest. Parasite.
Once interest is attached it's mathematically impossible to pay off and new debt must forever be created to service old debt and delay the inevitable collapse that is built into the system.
This is nonsense from Ellen Brown's "Web of Debt". She fails to recognize that DEFAULTs leave money in circulation, just like INTEREST and repayments remove it from circulation. As long as DEFAULTs and INTEREST exactly equal each other, what you say is absolutely wrong. In a properly managed MOE, INFLATION = DEFAULT - INTEREST = zero.
Note: All governments are huge defaulters. They call them "rollovers".
True only if the entity creating money doesn't have to spend any. But if the entity creating the money needs some for its own upkeep, the interest component on the money created is what keeps it going and the system is stable at any level of debt as long as all the interest paid is recycled back into circulation as spending.
Opportunity, like money, does not grow on trees.
P.S. While Keynes may deserve some significant share of the blame for the monetarist fiascos of the last 100 or so years, it is Hicks that is more rightly to be blamed for the current state of general economic domatism.
Further: most of these problems would be solved if .GOV got the fuck out of it's meddling on behalf of corporate interests and stuck to brutally punishing frauds and theivery of all kinds...
True, he's seaching for the "ideas" that get us back to that thinking.
And todays tyler, activated godwins law like a good shabbos goyim.
Funny, how Germany and Italy printed their own money and didn't need a central bank run by juden.
And yet the world is about collapse and jews are allowed to do it because of he holohoax.
Hitlers was right.
With jews you lose.
What WWII destroyed was the excess population. A minor reset. The debt to support them could no longer be serviced. There's quite a few more souls that will have to be 'removed' this time around...
you guys have it ALL wrong.
Keynes was there to check OLIGARCHY neo-feudalism.
This crisis is about Oligarchy neofeudalism.
We need a balance between state and private enterprise.
Right now we have "inverted totalitarianism" :an alliance between state and private Oligarchs where, unlike Mussolini model; its private enterprise that RUNS THE WORLD; the 1%.
The state is their slave; even FED belongs to its paymasters : the TBTF aka JP Morgan and now GS.
Since Glass Steagall revoke; engineered by the GS squid cabal allowing Investment banks to rule the roost to MAXIMISE shareholder returns, the whole shooting match of supply side deregulated Reaganomics; all based on asset hiking based on short term quarterly reports; has morphed capitalism beyond recognition.
The world of capital changed in 1981...the day all that mattered was shareholder value based on short term steroid pumping that the 1971 "our money your problem" had initiated based on petrodollar hegemony fueled on perpetual DEBT.
The cumulative effect of 1971/1981/1991 outsourcing NWO mantra post Iraq 1 and SU default was what we have spawned today: a three step process where petrodollar debt + FIRE economy oligarchy enrichment+ NWO outsourcing based on cheap oil and cheap labour have built this casino capitalism model now compounded by derivative financialisation toxic shenanigans.
Now tell me WHAT has KEYNES got to do with this monetarist construct based on Friedman's 1971 mantra?
You guys deny the time line of facts and its irrefutable logic all based on petrodollar hegemony, and arms bazar supremacy.
No you have it all wrong. Keynes believed that a small group of super intelligent individuals like himself should get to make choices for everyone. That's what it boils down to. I don't favor the central planning of anything. You say the state is the slave to the 1%, and in the rest of it, you are clearly wanting to give the state more power over us. The state is a THE reason this cabal of individuals have this power over us. Without state mandated monopolies and legal tender laws, these oligarchs you mention would not have such power.
A big exclamation mark !
Another big exclamation mark!
"This crisis is about Oligarchy neofeudalism.
We need a balance between state and private enterprise.
Right now we have "inverted totalitarianism" :an alliance between state and private Oligarchs where, unlike Mussolini model; its private enterprise that RUNS THE WORLD; the 1%.
The state is their slave; even FED belongs to its paymasters : the TBTF aka JP Morgan and now GS.
Since Glass Steagall revoke; engineered by the GS squid cabal allowing Investment banks to rule the roost to MAXIMISE shareholder returns, the whole shooting match of supply side deregulated Reaganomics; all based on asset hiking based on short term quarterly reports; has morphed capitalism beyond recognition.
The world of capital changed in 1981...the day all that mattered was shareholder value based on short term steroid pumping that the 1971 "our money your problem" had initiated based on petrodollar hegemony fueled on perpetual DEBT.
The cumulative effect of 1971/1981/1991 outsourcing NWO mantra post Iraq 1 and SU default was what we have spawned today: a three step process where petrodollar debt + FIRE economy oligarchy enrichment+ NWO outsourcing based on cheap oil and cheap labour have built this casino capitalism model now compounded by derivative financialisation toxic shenanigans. "
+1.
This thinking -that Keynes has been both hi-jacked and maligned- is quite closely aligned with that of Keen, Hudson, et. al.
As a practical matter, and dispite my fervent hatred and deep distrust of bureaucracies both statist and corporate, I cannot fault this reasoning or deny the probable validity of the remedies such as they have offered to our present predicament.
First and foremost the Oligarchy must be unseated/defeated/destroyed and disposessed of their stolen wealth.
Secondly, QE should have been injected at the bottom of the economic pyramid and not at the top. Money doesn't trickly down, it rises.
Thirdly, white collar criminal behavior of all kinds must be brutally punished. There is good reason for the historical precedents of hanging criminal banksters from lap posts. We should employ such remedies as they function to curb further detrimental antisocial activity..
No corporation is capable of accomplishing this. It will either be by anarchistic violence or via transformative statist violence. The choice between a Mad Max free-for-all and a traditional revolution is unavoidable and historically the obvious choice is something basically resembling a traditional revolution.
my divorce taught me u don't know people until the end
on john maynard keynes's death bed, he said he was wrong & adam smith was right
maybe your wife feels the same way and maybe Adam Smith on his death bed said : I am wrong as the free hand is a chimera as morality and capitalism are like Cain and Mabel.
Abel being dead killed by Cain, Cain had Mabel until the cows came home and decided they would stop being sacred and start being Zeus's mistresses. That's how Europe got populated by cows and Zeus; all the while Cain bonked Mabel and spawned Moses who lost his toes in the Red sea.
Thats why Moses could never tap dance. Something Netty cannot do and blames on the Palestinian jazz band. Good tap dancers, who dance in their tunnels...tap, tap tap.
Never laughed so hard!
Never laughed so hard!
".tap, tap tap. "
..& some poetry/humor, too.
Bravo!
The best jewish tap dancer that ever lived was Sammy Davis Jr.
Saaaay whaaaa...?
m
had to nibble on a few eagles while they're still locked at Friday's closing sale price + $2.49 over spot... only about 3 minutes left to grab some lol
Smoke another one dude......
Inherent Optimism My Arse.
It's less than a century ago that the working man was able to vote and a decade less than that for women under 30.
The Dukie of Wellington who was delighted to see the lower ranks of his men carve or be carved up was bitterly opposed to them being given the Vote. He didn't wish for the nasty purges of the French Revolution to infect or rub off on the Riff-Raff.
The Money-Changers adapt to Silly Doctrines of any Type ( like a pic'n mix ) including the BS written from start to finish in this article.
Change is Top Down and NOT Bottom Up UNLESS you cull the Whole Establishment.
"Change is Top Down and NOT Bottom Up UNLESS you cull the Whole Establishment. "
I do not see any problem with culling the whole establishment. It is rotten to the core.
The whole of the 'leadership' and much of the rank and file, from Corporate CEO to Union General Council, from preaetorian to petty bureaucrat, Commercial, labor, public, and ngo: gives not one shit for the people that their establishments and institutions purport to serve over it's own avarice.
Here is one fine example of just why the political and bureaucratic clesses deserve to be destroyed and supplanted:
https://www.youtube.com/watch?v=OwxiRXqH_hQ
I use to subscribe to Milton Friedman.. I was crushed to learn the fundamental flaw in his economic theory. It did not take into account the desire for others to exercise immense and unreasonable power over others. Nor does it take an almost psychotic but pervasive form of greed into account.
Sadly, those who control the means of production exploit their employees for the surplus of labor. Times have changed since the nineties. I attribute it to free trade and the technology revolution. Most companies no longer provide healthcare for their employees and if they do, it is a horrible plan. Most companies no longer offer retirement plans for their employees.
The Walton family has more wealth than the bottom 50% of Americans. They earned it the old fashioned way. They inherited it. They are the
largest recipient of food stamps, Medicaid and the earned income tax credit our country has ever seen. They pay their employees a scant wage, while the middle and upper middle class pay the taxes so they can keep employee wages low by providing the essentials necessary to sustain life.
Meanwhile, the Walton family profits from it. What makes them think they're entitled to the surplus of labor?
Economic theory is not supposed to be a recipe for central control. It is not the purpose of economics to scientifically manage the people. The fact that the State favors one class over the others is not a failure of theory.
Moreover, "greed" is harmless without guns. It is, as always, the evil power of the State that is the central issue.
"What makes them think they're entitled to the surplus of labor?"
Dunno. Mebbe because we let them get away with it?
The supreme mark of this transformation was the acceptance of John Maynard Keynes' unreadable book, The General Theory of Employment, Interest, and Money, which was published in 1936.
Unreadable book: Boy isn't that the truth. I once took it upon myself to paraphrase that book, paragraph by paragraph. Each thing the guy wrote was more stupid and misguided (misguiding) than the one before. I had to give up after about 1/3 through it. I kept throwing up on myself. The guy was every bit as stupid as he looked.
True but i believe he would have been a great actor, up there with Olivier.
You can say that again. I actually read the whole thing - it is appalling nonsense writ large.
Most folks on Z/H can rip the ass off of ANY Doctrine and furthermore no doctrine is a pure science that bases itself on human emotions.
The Left/Right Paradigm has been engineered to suit Financial Opportunists and to manipulate and control simple minds in order to retain wealth and power within the hands of a few BankCorp Families.
While the populace are fed intended prejudices by MSM ( Cabal Communications Inc ) in order to divide possible allegiances among domestic groups or even countries the Aristocracy marry among each other ( as witness the current Duke of Wellington's offspring into the German Aristocracy ).
Only in their Dem/Repub dog-tags is there a difference in the doctrines followed by Barry O and G Bush.
As long as you have the offspring of the Elite attending select collages with automatic entry into the various think tanks and secret societies then a just society cannot prevail.
It's no coincidence that even in my own capacity having met Presidents, untold ministers and investment bankers that i can't name one who is worthy to lead/advise me.
This years crop of degenerates from around the globe, the offspring of current dictators, banana republic despots, inbred aristocratic bavarians, daft paddy's, Wahabeeeeeee decapitators and other Trash will descend upon Oxford, Cambridge, Harvard, Yale, Military Campuses and various other elite minded institutions to begin another 50 year Rule.
Don't give me Keynes or Marx or Adam Smith or Milly Friedman as a distraction to the Ponzi please; it's insulting.
Free markets are a term created by Classical Economists, and Free markets are supposed to be FREE OF RENTS. Neoliberals, funded by usury out of banking sector fought back against Classical Economy and renormed language to make it have new meaning. The term Free Markets no longer has its original meaning.
Neoliberals via the press and various funded organs spoke then, and still speak, with a loud usury funded voice. The hypnosis that the money power’s spew falls along the lines that markets should be free of regulation and control, and thus are free FOR Oligarchial RENT SEEKING. Rent extractions are not freedom, they are stealing. This usury funded theft is considerable, on the order of 40% of the economy. Most economic surplus is vectored away in prices – as welfare for the rich, usually toward finance. This means laboring sheeple are funding their own dispossession. A good parasite must control the brain center, so it engages in propaganda. In the U.S., the mass media is a cross directorate of about 5 owned corporations.
In modern memory, Russia whipsawed through communist statism, and then neo-liberalism, both of which are Jewish money power thought constructs. Russia tried Hayek and almost lost it all.
From Hudson:
http://michael-hudson.com/2015/06/global-financialization-2015-the-state-of-play/
“If private-sector (Western, BRICS or even domestic Russian) financial charges are built into the cost of living (housing) and doing business, it will be difficult for Russia to be competitive. It needs to do what the U.S., Germany and China have done. Every successful economy in history has been a mixed economy. Instead, Russia swung from one extreme to an even worse one – from a statist economy to an extreme Ayn Rand/Hayek/Chicago School economy in 1991, with disastrous consequences – as if there were no knowledge of Western financial history.”
The West got rich on balanced economies; natural monopolies were either regulated or fell under direct government control. Note that Hudson understands that Rand/Hayek and Chicago School are part of the same millieu, despite their apparent dialectical differences. Why? In both Chicago School Monetarism, AND in Austrian Neo-Liberalism, debt instruments are to be held by PRIVATE BANKERS.
If one can create and hold debt instruments on society, then one can control society.
Please note: In a sovereign system, the public has their own money, and regular saving citizens hold debts and credits on each other, as in human natural evolutionary history. This is the superior system where debt instruments and credits are distributed to the citizenry, a true currency system that is to be swept from the public’s view by usury funded neo liberal hypnosis. www.sovereignmoney.eu
Austrian Libertarianism and Chicago School Monetarism have the same root:
http://www.henrymakow.com/libertarianism_as_an_illuminat.html
“Libertarianism and Austrian Economics are not the products of maverick free thinkers. On the contrary, all leading proponents of the movement were highly connected [my addition: Jewish or Shabbos Goy] individuals. In the early years the Volker Fund made available vast sums of money, because Austrian Economics was considered the right answer to communism, to maintain the dialectic the Money Power needs.”
"The West got rich on balanced economies; natural monopolies were either regulated or fell under direct government control. Note that Hudson understands that Rand/Hayek and Chicago School are part of the same millieu, despite their apparent dialectical differences. Why? In both Chicago School Monetarism, AND in Austrian Neo-Liberalism, debt instruments are to be held by PRIVATE BANKERS.
If one can create and hold debt instruments on society, then one can control society.
Please note: In a sovereign system, the public has their own money, and regular saving citizens hold debts and credits on each other, as in human natural evolutionary history. This is the superior system where debt instruments and credits are distributed to the citizenry, a true currency system that is to be swept from the public’s view by usury funded neo liberal hypnosis. "
You will never convince those that benefit from this evil system to abandon it.
Not even the petty coat-tail riders with their meager and illusory 401k 'balances' predicated on it not be supplanted by a stable, honest and holistic system of real sovereign money in which usury has no place.
They have been taught that usury and penury are their lot and they have accepted this lesson as a matter of irrefutable immutable fact.
This is why I must continue to consider violence as a viable and acceptable means of destroying this system.
-It is very likely the only way possible...
Austrian economics has very little to do with Friedmanesque Monatarism. Friedman was a statist, Mises was not. This lying meme that all opposition to Keynes is also a form of Keynes needs to be quashed.
Great article, with two oversimplifications:
society is the result of human action, but not the result of human design.
A set of basic well chosen rules designed by humans can lead to complex outcomes - and I still would call it human design even if you couldn't foresee every detail.
how much economic pain they are willing to tolerate.
Talking about false dichotomies.
Shouldn't the question be willing to tolerate, for what cause?
Yes, Great Depression changed a lot: it questioned Free Markets. Why - because 'unregulated' market fail and cause pain and suffering.
So, I'm surpized that auther didn't mention the most important book about Great Depression, that proves without any doubt, that market failed in 1929 not because of 'no regulation' but exactly for the opposite reason: regulation and manipulation by very young (at that time) Federal Reserve and omnipontent fed chair, Benjamin Strong.
This book was written by prominent Austrian Murray Rothbard and it's called "America's Great Depression" and it's availble for free download from Mises Institute.
Rothbard also proves there that modern QE is not new at all: it was already used in 1920s and it contributed greatly to Great Depression.
I kind of disagree that The General Theory of Employment, Interest, and Money is unreadable It is not complicated book. But it is is digusting, because it has no logic - very similar to Marx' Des Capital. It's disgusting collection of empty statements and pure nonsense. Like digging trenches and filling them is very good for economic progress because diggers getting paid for that. Don't trust me - read it.
Great Depression wasn't a failure of the free market. It was caused by the Federal Reserve by lowering interest rates too low during a time of a boom. It was a credit expansion which was proceeded by a credit contraction that turned a booming economy into a depression but despite that vast majority of people will claim free markets created the depression and offered no solutions to it. Free market is not a solution to most people.
The article is crap and not worth any explanation.
A gold system is inflexible and cannot meet the S shaped curve of all economies. Yes, if one has crops then they grow in a seasonal pattern.
As sure as night follows day, a gold system will morph and then add private bank credit. It has to as metal cannot flex. The transaction medium should match goods and services in flux at that point in time, and this highest form of money is law, and is also scientific. A proper money system is volume and channel controlled.
If money powers get their way, and private credit is riding on top of gold …again, then during engineered depressions, any surplus gold in the money supply will be harvested. In the old days of the Levant, debtors who could not grab metal out of the money supply had to forfeit their lives as slaves. In Greece, so many farmers went into slavery, that it took Solon’s reforms to set things right. And, yes, it was our Semite Friends pushing metal money onto the Greek population. In those days it was Silver Debt’s and silver debts were Generational. It is likely that Judas was in silver debts, maybe incurred by his parents, to the money changers. Greek farmers lost their lives deep in the shafts of silver mines, then owned and controlled by a non Greek “international.” Same as it ever was…when will humanity learn?
Gold or Metal can be melted and spirited away. This happened to England after they kicked out the Jews. The answer was a tally stick system that lasted from about 1100 to 1700. England grew wealthy behind wood tally’s. Tally money could not be counterfeited, melted, or brought under parasitic foreign control.
Tally’s were evidence of debt on the first cycle, but once taxed and reissued by the King, they lost their debt association and became general purchasing power - money.
"In Greece, so many farmers went into slavery, that it took Solon’s reforms to set things right. And, yes, it was our Semite Friends pushing metal money onto the Greek population."
I think you are bit foolish. Becoming a slave because you owed money is really that of law. It's a law system. A lender is a entrepreneur like any other entrepreneur, when they lend, they risk real loss. You are comparing apples to oranges, when you comparing Greeks in antiquity with that of lending.
Credit is not evil. Lenders are loaning time. The time preference for the person asking for the loan is sooner, and the lender does not need the money for immediate consumption. His consumption is set aside for the future. Lenders, you could say have cash, but no income. Lending money creates income. People with no cash and have income isnteadm their time preference can be different. The person with income, but no cash does not want to waste time saving up funds. The borrower pays for time.
Gold is very flexible in terms of value. Value is not fixed. When supply goods in the economy exceeds the growth in the supply of money, goods become discounted in price in terms of money, or gold. Just like a auction of any good. When there is a rare valuable good on auction, prices for that good are bidded up. When money is on auction, goods become discounted against it. This is where purchasing power comes from. If you mean no flexible in terms of printing money, well of course not, but economies do not grow on printed money, they grow on trade. Money has no fixed value. Central banks want a fixed value, they want money to lose continously purchasing power because of fear of deflation, or falling prices, so prices always go on a uptrend. People who are wage workers are always the one losing the most.
Banking and gold are totally separate things. Credit comes from surplus of savings. In case of a fractional reserve bank, they have the savings of their customers, and lend out the savings. This is totally different issue altogether. A loan is just a tool of a entrepreneur, which they are subject to risk of loss. No idea where you got that debt is bad and people endure sacrifices to mandatorily pay if off. Not true at all, and not very free market. This is why government like in the US guarantees loans for certain lenders lending for a specific purpose. Government neutralizes the risk.
With student loansin the US, it's the government that mandates you pay the loan back, again it's a matter of law. Not free markets.
That is a lot of fantasy there.
Blame it all on the imperial wars.
https://biblicisminstitute.wordpress.com/2015/06/25/warmongering-vs-econ...
Great default is the reset we need today and start a new course. https://www.adbusters.org/magazine/120/montreal.html
I'm feared. I'm feared. Thar be nukes attached to the reset button.
Central planning, in all of its forms, is always a bad idea. By definition, it grants an enormous amount of nearly god-like power to an individual or a small group of individuals over the general population and it assumes that he, or they, will wield that power responsibly, wisely, without prejudice, and without favoritism which, of course, never happens. One could even say that central planning is out of sync with, even contrary to, nature as it is the very opposite of evolution. There is no central planning in nature. In nature everything evolves in accordance with need and requirement, not at the whim of an all powerful god.
Humans are insane.
Humans are self-destructive.
Humans cannot be saved or fixed.
However, a few humans can say "I'll have no part of this", move somewhere that is "out of sight, out of mind", and live their own life their own way.
These few may survive purely as individuals, or sometimes as individuals in tiny collaborative groups of individuals with common goals and complementary skills.
Maybe the following is the way to express this:
humans are finished... long live humans.
In other words, humans as the live today, in these insane forms of top-down, central-planning self-destructiveness WILL PERISH. Which means, the vast majority of humans WILL DIE before their time.
Depending on how this plays out, ALL humans may die, including self-sufficient individualists secure in the boonies hideouts.
The only alternative is, some of that tiny minority of humans who think and live like individualists may survive. What happens after that is anyone's guess, but what is already baked into the cake is a mass extermination of human beings, either by the predators-that-be, or by themselves and each other.
This is already baked into the cake. This didn't have to happen, but this DOES have to happen because humans refuse to accept reality and individualism over fantasy and collectivism/authoritarianism.
Frankly, that anyone advocates any form of collectivism or authoritarianism or central-planning is absurd, and plenty of evidence that humans are vastly too insane and stupid to survive.
Young cricket very sad tonight.
You must learn to work for your success if you want to reach the top of the mountain. Only you climb the mountain. Not bankers.
Why does everyone have to die just because the system of slavery collapses? I swear people can't even imagine being free anymore. They can't even imagine enough to ask the question.
Not everyone. I noted how a few humans may escape the carnage... unless some crazed predators-that-be goes thermonuclear or bionuclear.
Those who remain will be those who removed themselves from "society" (any "society"), and established self-sufficient digs in the [extreme] boonies (outta sight, outta mind). That's what I did 3+ years ago, and that's what perhaps 0.0001% of mankind has done. Most of them may survive. They're the ones who rejected slavery quite some time ago (before it was too late).
Another way to answer your question is this. As the predators-that-be and predator-class sink the ship, they will assure they stay on top to the very last, assuring most regular folks go down with the ship.
I don't know. I'm feeling kind of inspired here.
ZeroHedge has the most entertaining writing when the shit is hitting the fan. Not that you want the shit to hit the fan, but at least you will be remembered as the go-to publication that called it (among others, like G. Celente).
It's time for the Pedro Almodovar movie about this. It should be called "Oh Shit" and start with a wrecking ball hitting the New York Fed building or something like that.
Anybody want to put any divs on which bankers are the first to "commit suicide" after the crash? Or maybe which bank will be the scapegoat this time.
I'll go first. Goldman Sachs and their affiliations with US Congress and the POTUS will be exposed as the bank that took the US to the matt and cause the US government to resign.
Kind of embarrassing posting a piece a Christian Reconstructionist moron, isn't it?
This guy believes in stoning people to death.
Is this the best pro-corporate Libertarians can do?
That the comments are more embarassing than the content is a certainty.
It has always been humorous that the people in the US decry fascism while living under a system that is precisely equivalent to Hitler's Third Way.
Naysayers in the comments must be shills working for their pro-fascist masters. I hope those peanuts they are paid taste good.
According to Macquarie Research:
http://personal.crocodoc.com/lHeFs3w
China drama & Greek farce
Are Central Banks at the end of the road?
Greek and Chinese dramas question role of Central Banks…
- The latest developments in China and the Eurozone inevitably invite the question whether Central Banks are coming to the end of the road. Given the limited impact of their policies on real economies with stimulus largely being confined within walls of financial assets, has the time of reckoning finally arrived?
- As discussed in the past (here & here), the only sustainable LT outcomes for the over-leveraged and over-supplied global economy are either: (a) allowing the deflationary cycle to go through, thus eliminating global excess capacity in service and merchandise economies; (b) elimination of excess debt via some form of hyperinflation and/or co-ordinated debt cancellation; or (c) banning capital markets via nationalization. Given that neither of these alternatives is attractive, involving pain for either borrowers or savers; intergenerational transfers or courting sharply lower ROIC, CBs would rather kick the can down the road in the hope that a solution would be eventually found.
…and should CBs place monetary policies in neutral gear?
- PBoC’s half-hearted attempts last week to slow the pace of appreciation of the equity market have inevitably and predictably resulted in severe correction. The double-barrel reduction in interest rates and RRR on Saturday is a belated realization that it is courting a significant economic backlash. As discussed here, we do not believe that China’s de-leveraging is either possible or desirable. Having reached leverage of ~3:1, any debate about the evils or virtue of debt has passed a long time ago, and the only viable choice from now on is to continue leveraging, though perhaps at a somewhat slower and safer pace.
- In order to continue leveraging, PBoC has to make sure that: (a) there is no sharp correction in any of the key asset prices; (b) at least some asset prices are appreciating; and (c) there is no further contraction in nominal GDP. This requires a combination of exceptionally stimulative monetary and fiscal policies as well as trust that a country is not yet in a liquidity trap and that it is capable responding to stimulus in safeguarding nominal GDP. The game is no longer about reaching 7% real GDP growth but avoiding zero nominal GDP.
- The same dynamics are playing out in Europe. The battle is between politicians who have not yet grasped that deleveraging is no longer feasible, and the ECB, which is fully onboard. Whether Greece is allowed to exit does not alter the basic argument that the numbers do not work, unless leveraging continues.
China is at very early stages of stimulus
- We maintain that China is at an early stage of significant (probably the largest globally) stimulative action. We expect that over the next two years, RRRs would be reduced to historic levels (i.e. 5-6%); interest rates would be lowered to zero and fiscal spending would become much more aggressive (including multiple banking re-capitalizations). The only question is whether China would send a massive inflationary pulse through global economy or would aim for more moderate impact. Initially, the PBoC would be aiming for moderate outcomes, ensuring support for asset prices but avoiding more disruptive action. However as we progress into 2016-17, more drastic actions might be needed. In the meantime, we remain O/W MSCI China, as equities remain the least systemic asset class that can be leveraged, at least for now.
When the Great Default occurs, countries won't return to specie or specie-backed currencies, they will move into that idea which hasn't been tested yet on a large scale, debt-free sovereign money. Debt-free sovereign money will lead to hyperinflation in any truly democratic country, but since there are no truly democratic countries anywhere, that likelihood is very slim. Governments, instead of Central Banks and banks, will be in charge of money creation. Banks will be required to operate on cash to reserve ratios of 100% meaning every unit of money they lend has to be borrowed from the Central Bank at an interest, which itself has to pass on all the interest earned to the Government. So all commercial borrowings produce a revenue stream for the government. If the government needs funding in addition to the revenue it receives from all other sources, it simply generates the gap and spends it. So governments will never again have to borrow in their own currency.
AN ASTOUNDING EXPOSURE
What no one recognizes to this day is that the Fed stole America's gold and shipped it to Germany causing bank runs and the Depression.
House Banking Chairman Louis McFadden called on congress in the below speech from the congressional record to join him in the arrest of the Fed for theft and treason.
Congress was scared sh*tless to join him and left him alone to be assassinated two years later on their third attempt.
To this day we have morons like NYT economist Paul Krugman and Ben Bernanke stating the cause of the 30s Depression was the fact that we just didn't print enough
money even though we were on a gold standard and you can't print gold. Just more deception and disinformation from today's United States of Deception.
Even on alternative sites, this truth has not gotten the recognition it deserves. Most Americans believe the Fed is a government agency benefitting them and no one seems to know the cause of the 30s Depression.
The bank runs of 32-33 were caused by this gold theft from American depositors. Amazing that 80 years later this truth is still not out and a great American hero was killed trying to stop this theft and treason and the cowards in congress let it all happen.
For the full speech see
Louis McFadden
http://www.afn.org/~govern/mcfadden.html
His assassination history
Commenting on Former Congressman Louis T. McFaddens's "heart-failure sudden-death" on Oct. 3, 1936, after a "dose" of "intestinal flue," "Pelley's Weekly" of Oct. 14, 1936 says:
Now that this sterling American patriot has made the Passing, it can be revealed that no long after his public utterance against the encroaching powers of Judah, it became known among his intimates that he had suffered two attacks against his life.
The first attack came in the form of two revolver shots fired at him from ambush as he was alighting from a cab in front of one of the Capital hotels. Fortunately both shots missed him, the bullets burying themselves in the structure of the cab.
"He became violently ill after partaking of food at a political banquet at Washington. His life was only saved from what was subsequently announce as a poisoning by the presence of a physician friend at the banquet, who at once procured a stomach pump and subject the Congressman to emergency treatment."
/s/ Robert Edward Edmondson (Publicist-Economist)
Here's some quotes from McFadden's speech from the congressional record.
On May 23, 1933, Congressman, Louis T. McFadden, brought formal charges against the Board of Governors of the Federal Reserve Bank system, The Comptroller of the Currency and the Secretary of United States Treasury for numerous criminal acts, including but not limited to, CONSPIRACY, FRAUD, UNLAWFUL CONVERSION, AND TREASON.
The petition for Articles of Impeachmentas thereafter referred to the Judiciary Committee and has
YET TO BE ACTED ON.
So, this ELECTRONIC BOOKLET should be reprinted, reposted,
set up on web pages and circulated far and wide.
Congressman McFadden
on the Federal Reserve Corporation
Remarks in Congress, 1934
AN ASTOUNDING EXPOSURE
Assorted Quotes
"On April 27, 1932, the Fed outfit sent $750,000 belonging to American bank depositors in gold to Germany. A week later another $300,000 in gold was shipped to Germany. About the middle of May $12,000,000 in gold was shipped to Germany by the Fed. Almost every week there is a shipment of gold to Germany. These shipments are not made for profit on the exchange since the German marks are below parity with the dollar.
"Mr. Chairman, I believe that the National Bank depositors of these United States have a right to know what the Fed are doing with their money. There are millions of National Bank depositors in the Country who do not know that a percentage of every dollar they deposit in a Member Bank of the Fed goes automatically to American Agents of the foreign banks and that all their deposits can be paid away to foreigners without their knowledge or consent by the crooked machinery of the Fed and the questionable practices of the Fed.
[Ed. Note- Problem with next paragraph in original] "Mr. Chairman, the American people should be told the truth by their servants in office."
On Roosevelt's anti-hoarding gold law taking the US off the gold standard.
"The Fed lately conducted an anti-hoarding campaign here. They took that extra money which they had persuaded the American people to put into the banks- they sent it to Europe- along with the rest. In the last several months, they have sent $1,300,000,000 in gold to their foreign employers, their foreign masters, and every dollar of that gold belonged to the people of these United States and was unlawfully taken from them."
The London Connection
"the officials in charge of the Fed unwisely gave Great Britain immense gold loans running into hundreds of millions of dollars. They did this against the law! Those gold loans were not single transactions. They gave Great Britain a borrowing power in the United States of billions. She squeezed billions out of this Country by means of her control of the Fed."
"She abandoned the gold standard and embarked on a campaign of buying up the claims of foreigners against the Fed in all parts of the world. She has now sent her bailiff, Ramsey MacDonald, here to get her war debt to this country canceled. But she has a club in her hands! She has title to the gambling debts which the corrupt and dishonest Fed incurred abroad."
"Under cover, the predatory International Bankers have been stealthily transferring the burden of the Fed debts to the people's Treasury and to the people themselves. They the farms and the homes of the United States to pay for their thievery! That is the only national emergency that there has been here since the depression began."
"Do not deceive yourself, Mr. Chairman, or permit yourself to be deceived by others into the belief that Roosevelt's dictatorship is in any way intended to benefit the people of the United States: he is preparing to sign on the dotted line! "He is preparing to cancel the war debts by fraud!
"He is preparing to internationalize this Country and to destroy our Constitution itself in order to keep the Fed intact as a money institution for foreigners. "Mr. Chairman, I see no reason why citizens of the United States should be terrorized into surrendering their property to the International Bankers who own and control the Fed. The statement that gold would be taken from its lawful owners if they did not voluntarily surrender it, to private interests, show that there is an anarchist in our Government.
"The statement that it is necessary for the people to give their gold- the only real money- to the banks in order to protect the currency, is a statement of calculated dishonesty!
"By his unlawful usurpation of power on the night of March 5, 1933, and by his proclamation, which in my opinion was in violation of the Constitution of the United States, Roosevelt divorced the currency of the United States from gold, and the United States currency is no longer protected by gold. It is therefore sheer dishonesty to say that the people's gold is needed to protect the currency.
"Roosevelt ordered the people to give their gold to private interests- that is, to banks, and he took control of the banks so that all the gold and gold values in them, or given into them, might be handed over to the predatory International Bankers who own and control the Fed.
"Roosevelt cast his lot with the usurers. "He agreed to save the corrupt and dishonest at the expense of the people of the United States."
"He took advantage of the people's confusion and weariness and spread the dragnet over the United States to capture everything of value that was left in it. He made a great haul for the International Bankers.
"The Prime Minister of England came here for money! He came here to collect cash!
"He came here with Fed Currency and other claims against the Fed which England had bought up in all parts of the world. And he has presented them for redemption in gold.
"Mr. Chairman, I am in favor of compelling the Fed to pay their own debts. I see no reason why the general public should be forced to pay the gambling debts of the International Bankers.
Roosevelt Seizes the Gold
"By his action in closing the banks of the United States, Roosevelt seized the gold value of forty billions or more of bank deposits in the United States banks. Those deposits were deposits of gold values. By his action he has rendered them payable to the depositors in paper only, if payable at all, and the paper money he proposes to pay out to bank depositors and to the people generally in lieu of their hard earned gold values in itself, and being based on nothing into which the people can convert it the said paper money is of negligible value altogether."
"At noon on the 4th of March, 1933, FDR with his hand on the Bible, took an oath to preserve, protect and defend the Constitution of the U.S. At midnight on the 5th of March, 1933, he confiscated the property of American citizens. He took the currency of the United States standard of value. He repudiated the internal debt of the Government to its own citizens. He destroyed the value of the American dollar. He released, or endeavored to release, the Fed from their contractual liability to redeem Fed currency in gold or lawful money on a parity with gold. He depreciated the value of the national currency.
"The people of the U.S. are now using unredeemable paper slips for money. The Treasury cannot redeem that paper in gold or silver. The gold and silver of the Treasury has unlawfully been given to the corrupt and dishonest Fed. And the Administration has since had the effrontery to raid the country for more gold for the private interests by telling our patriotic citizens that their gold is needed to protect the currency.
"It is not being used to protect the currency! It is being used to protect the corrupt and dishonest Fed. "The directors of these institutions have committed criminal offense against the United States Government, including the offense of making false entries on their books, and the still more serious offense of unlawfully abstracting funds from the United States Treasury! "Roosevelt's gold raid is intended to help them out of the pit they dug for themselves when they gambled away the wealth and savings of the American people.
Dictatorship
"The International Bankers set up a dictatorship here because they wanted a dictator who would protect them. They wanted a dictator who would protect them. They wanted a dictator who would issue a proclamation giving the Fed an absolute and unconditional release from their special currency in gold, or lawful money of any Fed Bank.
"the people of the U.S. to be left without gold or lawful money and with no currency other that a paper currency irredeemable in gold, and I charge them with having done this for the benefit of private interests, foreign governments, foreign central banks of issue, and the bank of International Settlements"
"having permitted them to exercise control over the gold reserves of the U.S. and with having permitted them to transfer upward of $100,000,000,000 of their debts and losses to the general public and the Government of the U.S., and with having permitted foreign debts of the Fed to be paid with the property, the savings, the wages, and the salaries of the people of the U.S. and with the farms and the homes of the American people, and whereas I
charge them with forcing the bad debts of the Fed upon the general public covertly and dishonestly and and with taking the general wealth and savings of the people of the U.S. under false pretenses, to pay the debts of the Fed to foreigners"
"Whereas I charge them, jointly and severally, with failure to protect and maintain the gold reserves and the gold stock and gold coinage of the U.S. and with having sold the gold reserves of the U.S to foreign Governments, foreign central banks of issue, foreign commercial and private banks, and other foreign institutions and individuals at a profit to themselves, and I charge them with having sold gold reserves of the U.S. so that between 1924 and 1928 the U.S. gained no gold on net account but suffered a decline in its percentage of central gold reserves"
"Whereas I charge them, jointly and severally, with having robbed the U.S Government and the people of the U.S. by their theft and sale of the gold reserves of the U.S. and other unlawful transactiving created a deficit in the U.S. Treasury, which has necessitated to a large extent the destruction of our national defense and the reduction of the U.S. Army and the U.S. Navy and other branches of the national defense; and
"Whereas I charge them, jointly and severally, of having reduced the U.S. from a first class power to one that is dependent, and with having reduced the U.S. from a rich and powerful nation to one that is internationally poor; and
"Whereas I charge them, jointly and severally, with the crime of having treasonable conspired and acted against the peace and security of the U.S. and with having treasonable conspired to destroy constitutional Government in the U.S.
"Resolve, That the Committee on the Judiciary is authorized and directed as a whole or by subcommittee, to investigate the official conduct of the Fed agents to determine whether, in the opinion of the said committee, they have been guilty of any high crime or misdemeanor which in the contemplation the Constitution requires the interposition of the Constitutional powers of the House. Such Committee shall report its finding to the House, together with such resolution or resolutions of impeachment"