02/03/09 Tampa Bay, Florida James Turk of GoldMoney.com has penned “Restoring Sound Money in America”, which makes me cry out in despair when one considers the fraud of the Federal Reserve’s constantly increasing amounts of fiat currency and credit, a corrupt and complicit Congress that condones it, a despicable Supreme Court which allows it all (by negating Article 1, Section 10 of the Constitution mandating that gold will be money), and the legions of people (Wall Street, Congress and the bankers) to whom a sound, non-inflating currency means the end of their loathsome, corrupt businesses and speculative excesses.
So, with that kind of firepower, the prospect of “restoring sound money” is (according to my calculations, charts, graphs and figures) zilch.
And what is “sound money”? It is money that maintains its purchasing power, so that a dollar can buy a dollar’s worth of crap today, and a dollar can buy the same load of crap in the future because prices did not change. Theoretically, prices went down, which would give everybody a higher standard of living, and which was the whole promise of “productivity”!
Instead, we have an “unsound” currency that continually goes down in purchasing power thanks to the filthy Federal Reserve constantly creating so much money and credit so that the federal government could borrow it. And it is all this new money that creates prices that always go up and up and causes everyone to suffer a constantly falling standard of living.
So, naturally, I yearn for “Restoring Sound Money in America” with a fervor that is incomprehensible to my wife and kids, family, neighbors, elected officials and random passersby that I accost on the street by demanding “Do you know that you are a moron for voting into office worthless socialist/communist/fascist trash like Nancy Pelosi, Barney Frank, and Harry Reid, and then compound your stupidity by NOT buying gold, silver and oil to protect yourself from the inevitable inflation in prices?”
But this is not about me, or how I bizarrely accost people on the street, or how I crave a “sound money”, or even how everybody I meet is some kind of mental defective who can’t comprehend the inflationary horror of the damned Federal Reserve constantly creating money and credit so that the damned federal government can borrow it and spend us into, well, just look around you!
And they don’t have to listen to me run my fat, loud mouth about it when they could instead get the same message delivered in the dulcet tones of Howard Katz of The GoldBug.net, who, in commenting on the astonishing amounts of money being created, says, “To put these numbers in context, the U.S. money supply more than doubled during WWII between 1941 and 1945. It almost doubled during the Reagan Administration (1981-89). Here we are threatened with a doubling of the money supply in approximately 1-2 years time. This is the worst money infusion in American history.”
And what is the result of such monetary stupidity? Mr. Katz writes, “Such events have always caused a corresponding increase in prices.”
But this is not about any of that, and instead is about the movement to “restore sound money in America”, about which I am pessimistic, although the essay starts off with the remarkable statement “There is a determined grassroots movement in the United States seeking the restoration of sound money. There are many different groups comprising this movement, but all share the same aim. It is to restore gold and silver to its rightful role as the money of the United States, as mandated by the Constitution.”
Two places (4% of the states!) are New Hampshire and Indiana! Hooray for New Hampshire and Indiana!
And if it catches on, the demand for gold should soar! Whee! This investing stuff is easy!
The Mogambo Guru
Richard Daughty (Mogambo Guru) is general partner and COO for Smith Consultant Group, serving the financial and medical communities, and the writer/publisher of the Mogambo Guru economic newsletter, an avocational exercise to better heap disrespect on those who desperately deserve it. The Mogambo Guru is quoted frequently in Barron's, The Daily Reckoning , and other fine publications. For podcasts featuring the Mogambo, click here.
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A static currency discourages spending and growth, while an inflationary currency ECOURAGES SPENDING AND GROWTH. So a hyperinflationary currency should ecourage fantastic spending and growth! Therefore Mogambo is exactly wrong and the PTB are (you guessed it) RIGHT! So when an ounce of GOLD is worth a trillion DOLLARS, hey no contest, dump the gold for the immense amount of btu’s in the dollars, tons of high quallity fuel for your house and paper burning steam powered car! Ha, this investing stuff is easy!!!
Most of your article makes sense, but this rant does not “Do you know that you are a moron for voting into office worthless socialist/communist/fascist trash like Nancy Pelosi, Barney Frank, and Harry Reid” ?
First of all, let’s try to recognize that the economic problems we are having right now are pretty hard to push onto Democrats alone. As I recall, we’ve had a fascist Republican president for 8 years, with a Republican Congress for 6 out of 8 years, and all we’ve heard about is the chickenhawk Bush croaking about Iraq, Iraq, Iraq – pretty hard to think about the economy in those circumstances. Come to think of it, the Bush war against phony WMD will consume about 3 trillion US dollars (borrowed funds), 3 X the Obama stimulus package (not to mention about 1,000,000 human beings burnt and blown to bits). Of course, Grandpa Bush started the family fortune by dealing with the Nazis during WWII, so it is clear the Bush family have some talent for business.
Why was Article 1, Section 10 of the Constitution quoted with regard to the Federal Reserve’s ability to control credit when it (Section 10) is titled **Powers prohibited of States**? BTW, the Fed does not print money. The US Department of Treasury does.
But I think what is more important is the fact that the Federal Reserve itself is outside the scope of the US Constitution and has no oversight or control by any governmental agency.
I recently signed up for a course at a state college; the course was cancelled, and the state sent me a refund check 6 weeks later. I called a lawyer friend – who is actually a libertarian & was very active in Dr. Paul’s campaign – to make it a test case for Article 1, Sec. 10.
No State shall… make any Thing but gold and silver Coin a Tender in Payment of Debts…
His response? “I would be disbarred for even bringing that case”.
You might note that since I owe considerable money on my house, inflation is my friend.
While inflation is busy destroying your savings, I’m going deeper into debt to buy more gold. I could use that cash to pay back my loan, but why bother when inflation will very soon make my loan worthless too (and that suits me just fine).
Mugambo forgot to include the link to James Turk’s article.
http://news.goldseek.com/JamesTurk/1232989200.php
Related is NH HCR 6 just introduced this January, “Affirming states rights to Jefersonian principles”. The last paragraph reads like a threat of succession.