Former US congressman, Ron Paul, has made the point that a country with sound money* would not go to war very often as it would be prohibitively expensive to do so.
(*Sound money, i.e. not fiat (fake) currency printed out of thin air by the banks.)
We think that Paul has made a profound observation that more Americans must consider and learn from.
Consider: If America had sound money, then each time that the government desired to go to war, at the behest of powerful special interest pressure groups, Americans would have to be told of the war’s true cost to them. The question might be put to the citizens in this way: If the US enters this war, to pay for it, you and everyone you know (including your children) will endure significantly higher income tax rates for the next 30 years or more. Now, that would be full disclosure!
Now, how many jingoistic Americans would be “gung-ho” for going to war if they were compelled to face and pay the true financial cost of such a war? We dare say, that wars would be even less popular than these are now. Even false flag operations might not be sufficient to get Americans to go to war.
Consider: The United States has not yet paid for its participation in World War Two. We Americans have an ever-growing national debt that is composed of all the accumulated previous yearly federal budget deficits. Thus, the US has never paid for the Korean War either. The same can be said for the lengthy Vietnam War, the Gulf Wars, and the ongoing actions in Afghanistan and in every other country in which the US currently has military bases and/or military personnel. We have never directly paid for the wars we allow our government to take the country into. (Of course, we have paid for these in other ways as the debt from these wars burdens the economy, but that is another story.)
Matthias Chang dealt with the military-industrial-banking-government complex at some length in his thoroughly researched classic, Brainwashed for War: Programmed to Kill (previously reviewed here on this blog).
One calls to mind here some of the rock songs from the late 1960s and early 1970s about war and those who glory in it. We can see that for the war mongers, the song really remains the same. (Monster by Steppenwolf, and War Pigs by Black Sabbath are instructive.)
Allow me to offer a rhyme or two or my own.
No more war
No more gore
We no longer buy the lore
Of the political whores
No more war
On yonder shore
To the core
And reject your war
On the poor
There’s the door
how do they get away with it
(Editor’s note: the following paragraphs can serve as food for thought on fiat currency. Others have written on these matters and have done a better job of it than I can. Thus, the remainder of this post may be helpful for some interested readers, but can be considered as supplemental or ancillary to the main theme above.)
Perhaps, we should identify who “they” are before continuing. They are (and we must use euphemisms here) the bankers, moneylenders, and globalists (Stalin referred to them as “rootless cosmopolitans”). It amazes me that these peddlers of a sham fiat currency have been able to kick the can down the road for as long as they have.
The US military industrial banking government complex is able to stay afloat, or stay in business, and that means continuing its war making, largely because of 3 factors.
Printing money (the fractional reserve banking system controlled by the so-called Federal Reserve). The US Constitution gives Congress the power to issue currency, but that power has been given to the bankers who control the Federal Reserve. Thus the money supply is effectively controlled by the bankers. It is no accident that many of the heads of the US Treasury in the past several decades have come from the banking industry. The US Treasury is ultimately at the mercy of the bankers.
This linked piece tells that Americans are on the hook if all these promises to pay (government debt instruments) go bad in the future and the government defaults. Giving the government a no limit credit card is thus risky to all citizens.
The second factor in supporting a fiat currency is the manipulation of and artificial setting of interest rates by central banks. One would think that interest rates would be determined in the financial markets based on the supply of available capital for lending and the demand for credit (loans). Not so. This artificial setting of interest rates distorts market signals and thus causes distortions in the economy. Ever wondered about the amplitude of the booms and busts in the economy and in the stock markets? This is due, in part, to the distortions introduced to the markets by this rigging of interest rates.
The third factor to note is the most powerful. This is the world’s reserve currency status of the dollar (which is now in jeopardy). That the entire world has to pay for its oil and for other commodities in US dollars creates a demand for US dollars that serves to maintain or support some value for the US dollar. But, today, some countries (most notably Russia, China and Iran) are making arrangements with trading partners to allow for transactions using other currencies or even commodities (barter type transactions) in order to escape the dollar hegemony in international trade and commerce.
Be aware that the value of the US dollar vis-à-vis the other major currencies of the world (Euro, Yen, but not the Chinese Yuan as we think China still fixes or assigns an official exchange rate for it) is not a reflection of its true value as these other currencies are fiat as well. The dollar may appear “strong” or “weak” at times against these other currencies, but these are all fiat and thus fake. What backs these currencies? The credit worthiness of the European Union, of Japan, and the US? In truth, the European Union, Japan, and the US are in debt up to their necks, and as in quicksand, they can never escape from these accumulated debts (largely owed to the bankers) that can never be repaid.
A word on the precious metals markets may be helpful. One might think that the lack of value of the fiat US dollar would be reflected in the prices of the so-called precious metals. It indicates the peculiarity of these markets when one recalls that in the summer of 2011, a major news item was the showdown between the US President and the Speaker of the House of Representatives over the budget and the national debt. This turned out to be a non-event in the end. But, the price of gold peaked later that summer and has since retreated to a much lower level today. This is odd as the national debt in 2011 was somewhere between 11 and 12 trillions of US dollars. Today, that debt total is about 21 trillion dollars, yet the gold price is significantly lower today. Clearly, the precious metals markets are not indicating the true value of the US dollar as a more debt ridden nation’s currency ought to have declined in value vis-à-vis the precious metals, especially given the negative interest rates in place for several years. Of course, one can say that the metals prices are heavily manipulated (and suppressed) in the futures markets for these metals. And, who really controls these future markets? The bullion banks like JP Morgan. Do not worry for these banks. If things ever spiral out of control, the government will bail them out. Recall that banks were bailed out in late 2008.
other related thoughts
The financial crisis of late 2008, that rocked world financial markets and caused a quite significant increase in human misery in the less developed world as prices for cash crops and agricultural exports collapsed, was caused by the United States. This is undeniable. The reckless Federal Reserve (in truth, neither federal nor a reserve as it is owned by private banks) with its manipulation and gaming of interest rates in the early 2000s* (can you say Greenspan?) so distorted the housing market that the crisis brought on by the predatory bankers and corrupt federal oversight agencies was made much more serious and extensive. (We addressed this issue back in 2012.) *Interest rates after 9-11 were brought down to historically low levels in part to revive the economy and in large part to mask the true cost of George W. Bush’s wars in Afghanistan and in Iraq.
An objective observer could understand and forgive the rest of the world for being angry with the US over this scandalous financial crisis and the resulting worldwide economic recession.
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