Financial Independence Day

by Andy Hoffman, Miles Franklin: Today, we’re going to start with two extremely powerful quotes, regarding the history of monetary destruction… “An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense…that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire, and that each implies and requires the other.”

…and what we can, and must do, to stop it…

“It’s time for us to declare our independence from an oppressive government that seeks to control our money and our lives in ways unimaginable to those who rebelled against the British Crown in 1776.”

The first is from Alan Greenspan’s 1966 opus, Gold and Economic Freedom; when, as a very public disciple of Ayn Rand, he was one of the world’s most brilliant, and pragmatic, economists. That is, before he sold his soul for power and wealth – in the process, catalyzing the creation of history’s largest, most destructive fiat Ponzi scheme. Which, since the day he ceded his printing press “launch codes” to Ben Bernanke; and in turn, Janet Yellen; he has vocally denounced – without blaming himself, of course.

The second, is from Ron Paul, yesterday; about not only the monetary rights stolen from Americans since August 15th, 1971 – when Richard Nixon reneged on the last gold standard the world will ever see (as after the current regime inevitably fails, governments will NEVER again be trusted to print and/or manage “money”); but collectively, our civil rights.

On this day after the celebration of America’s national independence; amidst one of the most egregious gold Cartel attacks to date, it’s time to consider, broadly speaking, just how much damage fiat currency has done to our lives – in terms of a skyrocketing cost of living; the countless basic freedoms we have lost; the taxation that continues to strangle us (see, State of Illinois; and shortly, countless other States) – with nothing to “show” for it but a Big Brother government that has transformed America into a global pariah; an economic outlook for our children that, for the first time in three centuries, is worse than our own; and the inability to save our hard-earned wages, knowing full well that the inflation that will only get worse as said Fiat Ponzi implodes, will unquestionably take it away.

Fortunately, there are ways of defeating the financial “Barbarians at the Gate” that have transformed America from the world’s largest, most entrepreneurial economy to a hollowed out, low value-added Banana Republic, supported principally by fraudulent economic statistics; market manipulation and propaganda – to engender “belief” in such lies, and “confidence” in those that tell them; and the largest debt edifice in global history – itself, supported solely by the Fed’s overt and covert suppression of interest rates. Which, combined with similar actions by the world’s other “leading” Central banks, has temporarily pushed rates to their lowest ever-level (in nominal and real terms). And conversely, stocks, real estate, and other “favored” asset classes to history’s highest-ever valuations, amidst what can best be described as a Great Depression economic outlook. While at the same time, suppressing Precious Metal prices to their lowest-ever inflation adjusted levels – at a time when the irreperable damage “the Cartel” has done, has ensured dramatically declining mine production for years to come.

Equally “fortunately,” all thousand or so previous fiat currency regimes ended exactly the same way – via the hyper-inflation that defines their existence. And now that the current version is in its terminal, malignant stage – as evidenced by the historic global debt explosion, and equally unprecedented economic stagnation; as well as the unprecedentedly destructive methods Central banks have been forced to resort to; equally draconian government actions (see: India); and rising, widespread social unrest; it won’t be long before something forever shatters confidence in a scheme that has already destroyed much of the second and third world; and inevitably, will “climb the monetary totem pole” to eviscerate all worthless scrip – culminating in the end of not only the dollar’s “reserve currency status,” but in its current, cancerous state, its ability to backstop America itself.

Yes, I know that that’s quite a “start” to a post-holiday article – which in this case, I’d like to deem an honorary RANT, given that what got me started in the blogosphere was my previous alter ego – bestowed on me by Bill Murphy – of “Ranting Andy.” However, after watching the “pre-Independence Day destruction” raid Monday; on one of the year’s thinnest trading days, when the only major “news” was the “unexpected” plunge in motor vehicle sales and construction spending; the Cartel viciously attacked PM prices, despite them already being heavily oversold, whilst the COMEX “commercials” continued to aggressively cover their (naked) shorts. Which, as frustrating as it was to watch – not to mention, this morning’s “follow” up raid, despite stocks, bonds, and the dollar sitting idly, in a virtually news-free environment – only makes the case for owning physical metal stronger. Which, care of the “historic valuation anomalies” such unprecedentedly egregious suppression tactics have created, have in my very strong view, provided one of history’s truly great investment opportunities.

This, as the world’s “leaders” meet at a “G-20” summit – where they will discuss further ways to destroy the purchasing power of your “money,” via exponentially increased spending on all manner of destructive projects and schemes; whilst the “minutes” of the Fed’s June 14th meeting are released, in which it will try to convince a nation drowning in debt, and mired in recession, that higher interest rates will be the cure – even if “rate hikes” are infinitesimal, undertaken over a very long period of time. That is, until the first sign of the inevitable, historic economic crisis that must follow the equally historic post-2008 “reflation” attempts, causing the Fed to turn on a dime, and start hyperinflating in a manner never before seen in the “first world.”

I mean, America is supposedly the world’s strongest “superpower”; so much so, that according to the Fed, it can tighten monetary policy (if a 1% Fed Funds rate and $4.5 trillion balance sheet can be considered “tight”) whilst all others inexorably loosen. And yet, this is what has occurred over the past decade; a decade in which, even the government’s own rigged statistics purported “growth” to be no better than the Great Depression. When, I might add, the nation had essentially no debt – compared to the $10 trillion (excluding far more “off balance sheet”) accumulated in the past decade alone!

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