by Wayne Jett, Classical Capital:
Anxiety continues to peak during the nationally imposed shutdown of commercial and social activities, as Americans weigh potential outcomes and wonder how this health care crisis will affect the long term. Answers we find have more to do with the origin and motives for spread of the disease than with the manner and success of preventing and curing it. By circumstantial evidence, the current coronavirus COVID-19 was created in a laboratory. The lab-designed virus was released as a bio-weapon against us by operatives of the Globalist Cabal which has pursued our destruction the past 120 years. But it is the Globalist Cabal itself which is about to be destroyed.
The Present Crisis In Context
Those familiar with writings here know the case has been made that America elected an Anti-Establishment (i.e., Anti-Globalist) president in 2016 for the first time since 1924 (Calvin Coolidge), or perhaps even since 1880 (James E. Garfield). Ronald Reagan had Anti-Globalist sympathies, but was severely hampered from acting on them by badly compromised personal security protection and by a lethal Globalist Vice President (George Bush). Donald J. Trump is staunchly opposed to globalists’ plans for world domination and is today’s leading proponent of national republics as the superior approach to improving opportunities in each nation for peace and prosperity. New readers are invited to examine earlier reports on the Home page or in the Archives to permit greater brevity here.
Much more is at stake in the Covid-19 attack than “merely” the life and success of one U. S. president. This reportedly viral epidemic has produced a declaration of national emergency and lock-down severely limiting private activities. The vital, precious capability of the great middle class of America to support and sustain itself is presently disabled by government edict. Even state government activities including public education are placed under severe limitations. This imposition by government edict upon human rights can be tolerated only for the briefest possible term of extreme danger to the people subject to restraints on their liberties. We can be sure President Trump will enforce this limitation on government conduct, although globalist opposition is strident.
The COVID-19 Shutdown Edict
The declaration of national emergency issued by President Trump severely limiting normal activities necessary for self-support ought to be terminated as soon as consistent with the well-being of the persons affected. Freedom to work and produce (life, liberty and pursuit of happiness) must be returned to the people as God-given rights at the earliest possible moment.
Government sops proposed as temporary substitute for natural rights to be productive include “free checks” already enacted into law, thanks to additional gifts funded in the same legislation for House Speaker Nancy Pelosi’s political sponsors. Trump knows these payments are no substitute for productive work producing real value. But the checks are stop-gap measures to sustain Americans, whose livelihood has been taken by federal edict due to the attack on the American nation by its globalist enemies. These checks are no free lunch; the debt will have to be repaid, even at the Fed’s current zero interest rate. They are another cost of the war against America by the globalists and their lackeys in the shadow government bedeviling America.
The Federal Reserve Vs. Good Money
As often noted here, the Federal Reserve is a primary bastion of Globalist Cabal power in America. The Fed is well known in other parts of the world as a primary actor in the Rothschild chain of privately owned central banks. The Covid-19 virus crisis has not slowed the struggle between the Fed and President Trump, as the Fed feeds unknown quantities of electronically created “notes” known as dollars to its globalist owners. While the American economy is very nearly stopped in its tracks by the emergency medical shutdown, the ill health of the U. S. monetary system must be carefully attended. President Trump is doing that partly by use of Special Purpose Vehicles (SPVs) giving Treasury closer control over Fed actions.
Neither zero interest rates at the Federal Reserve nor fiat currency issued directly by Treasury is a satisfactory resolution of the existing monetary dilemma facing President Trump and the American people. Zero or near-zero interest rates to Fed-favored borrowers already are hastening devaluation and final failure of the Federal Reserve Note fiat currency. The Fed note is presently on or near its death bed. Other major trading nations (BRICS and others) are rejecting use of Fed notes in their non-U. S. trading relations. This is likely to produce ever increasing floods of Fed currency to buy Treasury bonds and other debt, as well as additional floods of dollars from other countries where they are no longer needed for use in international commerce.
A new U. S. Treasury issued fiat currency would make matters worse, not better. If Treasury begins directly issuing fiat notes, even if the notes are called dollars and Treasury pays no interest on them, U. S. debt problems will grow rather than diminish. In short order, Treasury will become the spender and lender of first resort in nearly every aspect of the American economy. Spending for infrastructure would grow sharply, because “now, without interest expense, it is so much cheaper.” Residential housing and commercial construction would make the same arguments for financing directly from Treasury at no interest, and likely would find their wishes fulfilled. This list of borrowers of no-interest Treasury currency would grow rapidly, with each new beneficiary hastening the loss of purchasing power of Treasury fiat currency.
Observers who champion fiat currency issued directly by the U. S. Treasury as the sufficient and best answer for Americans should reconsider. Central governments should not be enabled to spend the purchasing power of private savings without the consent of each private owner. Fiat currency gives government that capability in such a complex manner that most citizens do not realize what is occurring to produce “inflation.”
Good Money Puts Real Value In Owner’s Pocket
No monetary system design except the gold standard contains a mechanism for putting actual value into the pocket and possession of the person who earned that value. Every other system of currency, including a Treasury-issued U. S. dollar, retains centralized possession of that value. Fiat currency requires the producer of something of value, who exchanges the value for the currency, to trust the government to assure the currency will retain the same value as when it was earned. That trust has never been fulfilled in all history of government issued fiat currencies.
Within 20 years of its creation in 1913, the Federal Reserve ended the gold standard for Americans, and today the Fed note has about 1% of the purchasing power of the 1913 dollar. But that is no reason for workers and producers today to be complacent. The Fed’s note still is subject to loss of 100% of its present value much more quickly than 107 years! The clear alternative is a gold standard for a new dollar – its value measured by a stated weight of gold for which the currency will be readily exchanged. That form of real money can promote and safeguard real economic growth for America and the world by means which are simply impossible using any fiat currency.