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History
See other History Articles

Title: Hitler's Monetary System
Source: Rense
URL Source: http://www.rense.com/general77/hitn.htm
Published: Jul 15, 2007
Author: Rense
Post Date: 2007-07-15 00:50:08 by robin
Keywords: None
Views: 1259
Comments: 85

Hitler's Monetary System 7-14-7

"We were not foolish enough to try to make a currency coverage of gold of which we had none, but for every mark that was issued we required the equivalent of a mark's worth of work done or goods produced. . . .we laugh at the time our national financiers held the view that the value of a currency is regulated by the gold and securities lying in the vaults of a state bank." -Adolf Hitler, 1937 (CC Veith, Citadels of Chaos, Meador, 1949.)

"And it proved sound. It worked. In less than ten years Germany became easily the most powerful state in Europe. It worked so magically and magnificently that it sounded the death knell of the entire (Zionist) Jewish money system. World Jewry knew that they had to destroy Hitler's system, by whatever means might prove necessary, or their own [system of usury] would necessarily die. And if it died, with it must die their dream and their hope of making themselves masters of the world. The primary issue over which World War II was fought was to determine which money system was to survive. At bottom it was not a war between Germany and the so-called allies. Primarily it was war to the death between Germany and the International Money Power." --William Gayley Simpson, 'Which Way Western Man' (p.642)

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#1. To: All, Eoghan, Cynicom (#0)

comments?

Ron Paul for President

robin  posted on  2007-07-15   0:50:46 ET  Reply   Trace   Private Reply  


#2. To: robin (#1)

We were not foolish enough to try to make a currency coverage of gold of which we had none, but for every mark that was issued we required the equivalent of a mark's worth of work done or goods produced. . . .we laugh at the time our national financiers held the view that the value of a currency is regulated by the gold and securities lying in the vaults of a state bank

Actually this is a good and valid system...far far better than any gold standard. It is completely anti-inflationary and the basis of a fiscal rather than monetary economy.

Far superior to a monetarist manipulation system.

IMNSHO

JCHarris  posted on  2007-07-15   0:59:33 ET  Reply   Trace   Private Reply  


#3. To: robin (#1)

P.S. This is a capitalist rather than a monetarist system !!!

Look where monetarist economics took US !!

JCHarris  posted on  2007-07-15   1:00:49 ET  Reply   Trace   Private Reply  


#4. To: JCHarris, robin (#2)

but for every mark that was issued we required the equivalent of a mark's worth of work done or goods produced. . . .

Problem: Who's gonna make them accept a "mark" for their labor or goods? What if they don't want any marks?

The premise is that Germans would willingly trade their labor, which has value, for marks, which upon first exchange from the government to the laboror, have no value.

I'm curious, JC, what kind of monetary system you actually favor since you hold a gold backed currency in such contempt.

Pinguinite.com

Pinguinite  posted on  2007-07-15   1:52:14 ET  Reply   Trace   Private Reply  


#5. To: robin (#0)

equivalent of a mark's worth of work done or goods produced.

There's the rub...work done, quality, quantity is total arbitration. You'd think the guy who supposedly wrote about and figured out the 'who and what' about the Big Lie could understand this general economic principle?

"And it proved sound. It worked. In less than ten years Germany became easily the most powerful state in Europe.

There's no real something from virtually nothing....I'd call it a Rothschild gold injection ceremony....

“Yes, but is this good for Jews?"

Eoghan  posted on  2007-07-15   2:33:23 ET  Reply   Trace   Private Reply  


#6. To: robin (#0) (Edited)

A cursory glance at our current system causes us to see a close similarity to Hitler's ... only he was not paying interest to the international bankers ... we are. Our currency has the same basis for existence ... work and production ... which production is being intentionally lessened causing a proportionate lessening of the value of our currency.

A gold standard isn't necessary if the currency is controlled by the governmental agency prescribed (Treasury), and any interest, if found necessary, would be paid to the treasury. Of course a transparent monitoring system should consist of an elected citizen panel to keep politicians and treasury officers honest.

If gold were to be made the standard ... the same folks that are fucking us today would be fucking us tomorrow. All commodities are "tradeable" for the value perceived by the traders.

Contemplate the mangled bodies of your countrymen, and then say 'what should be the reward of such sacrifices?' Bid us and our posterity bow the knee, supplicate the friendship, plough, sow, and reap, to glut the avarice of the men who have let loose on us the dogs of war to riot in our blood and hunt us from the face of the earth?

If ye love wealth better than liberty, the tranquility of servitude than the animated contest of freedom, go from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, and may posterity forget that you were our countrymen!”

noone222  posted on  2007-07-15   6:57:52 ET  Reply   Trace   Private Reply  


#7. To: robin (#0)

the NAZIs had a fiat system just like we have a fiat system - not backed by gold, money is just made out of thin air & spent. But the difference is that under the NAZI system the government created the money and did not charge interest for it. And in our system the bankers make the money and charge a large amount of money for it.

I advocate that the government should create the new money and use it to pay government expenses. In this way taxes could be reduced dramatically. and government could pay for infrastructure projects and other worthwhile endeavours without taxing the people to do it.

People are reluctant to say that this concept is good because they've been taught to think that government will increase the money supply so fast that it will cause inflation. If they increase it too fast, then this will cause inflation or debase the currency, that is true. But today the private sector bankers have a profit motive for creating money. and they have increased the money supply maassively to cause inflation. The great run-up in the stock values and the real estate values is a form of inflation itself. I contend that government would do better than these bankers at controlling the money supply responsibly. As long as there's no corruption where officials are taking money themselves, then there's no profit motive for government to run up the money supply too rapidly. but the private sector bankers inherently have a profit motive especially since they charge so much profit to make money.

People don't realize that 8-10% of our entire economy is spent each year to compensate one bank, the Federal reserve, for its money-creation services. That is like an 8-10% tax that we pay each year and strictly for the benefit of private wealth concentrated in a very few hands.

Galatians 3:29 And if ye [be] Christ's, then are ye Abraham's seed, and heirs according to the promise.

Red Jones  posted on  2007-07-15   7:31:40 ET  Reply   Trace   Private Reply  


#8. To: robin, all (#0)

I'm sorry, I don't know alot about this, but what about the insane amount of inflation they had?

"They must find it difficult... Those who have taken authority as the truth, rather than truth as the authority." ~ Gerald Massey

wudidiz  posted on  2007-07-15   7:51:21 ET  Reply   Trace   Private Reply  


#9. To: wudidiz (#8)

The insane inflation experienced in germany was in the 1920's. the NAZIs came to power in 1932. The NAZIs very quickly brought great prosperity to ordinary germans. The innovations they had in money creation were enormously successful.

another period in history where this same thing was done is in pre-1750 America. back then each colony created its own money from thin air. but it was the colony's government that did it, not a private bank. they would lend the money out for home-building and business-building. and then whoever borrowed the money had to pay it back, but paid it back without interest. In this way the Americans were able to build real prosperity & wealth for the people very quickly. It is this innovation that allowed the Americans to win the Revolutionary war. Just as the same type of innovation allowed germany to build itself up very quickly and do so well in the war as they did against so many opponents.

Galatians 3:29 And if ye [be] Christ's, then are ye Abraham's seed, and heirs according to the promise.

Red Jones  posted on  2007-07-15   8:28:05 ET  Reply   Trace   Private Reply  


#10. To: Red Jones (#7)

advocate that the government should create the new money and use it to pay government expenses. In this way taxes could be reduced dramatically.

Actually, taxes are an important way to ensure that a fiat currency is valued by the populace. If you could go to jail, or have your house seized, unless you have enough of that cabbage, you will make certain you keep some cabbage. Then your neighbors also need cabbage to keep their homes. Thus, taxes ensure that a floor demand exists for said cabbage.

As long as there's no corruption where officials are taking money themselves, then there's no profit motive for government to run up the money supply too rapidly.

The only way to purge public officials of corruption is to remove their power to regulate most aspects of human life. There is no prospect of avoiding corrupt public officials under our current governmental structure.

The U.S. Constitution is no impediment to our form of government.--PJ O'Rourke

DeaconBenjamin  posted on  2007-07-15   8:39:47 ET  Reply   Trace   Private Reply  


#11. To: Red Jones, All (#7)

But the difference is that under the NAZI system the government created the money and did not charge interest for it. And in our system the bankers make the money and charge a large amount of money for it.

That's a huge difference.

People don't realize that 8-10% of our entire economy is spent each year to compensate one bank, the Federal reserve, for its money-creation services. That is like an 8-10% tax that we pay each year and strictly for the benefit of private wealth concentrated in a very few hands.

That's insane.

Ron Paul for President

robin  posted on  2007-07-15   8:45:21 ET  Reply   Trace   Private Reply  


#12. To: noone222 (#6)

A cursory glance at our current system causes us to see a close similarity to Hitler's ... only he was not paying interest to the international bankers ... we are.

That's what Red posted too. So, usury rates of interest are a large part of the problem. Also the Federal Reserve.

Ron Paul for President

robin  posted on  2007-07-15   8:47:13 ET  Reply   Trace   Private Reply  


#13. To: robin (#12)

I'm not myself in favor of doing away with usury completely. I think that if a bank or other financial institution actually has money they'd like to lend out for interest, then i think they should be allowed to do it. But the problem is that bankers charge interest on money that they create out of thin air. they don't have the money to lend, they create it in order to lend it and then they charge interest on that. I don't think they should be allowed to do that.

It is not difficult for our economists and bureaucrats to come up with a target growth figure for the economy each year and then for government to increase the money supply by exactly that amount of money. This would keep inflation low. and if government decided to inflate, then it would be a public decision that everyone would be able to see. and we should be able to vote against our leaders who advocate the inflation. But the way it is now we have no control at all over the money supply growth. Because today it is a private sector group that controls our money supply and they don't even tell us any more how fast they increase the money supply.

Today the Federal reserve takes about 400 billion dollars each year from the US federal taxpayers alone. and then it takes a similar (slightly larger even) amount of cash each year from the 12 member banks who in turn squeeze it out of our economy through private lending. Private lending on money that was created out of thin air.

IMHO whoever creates the money out of thin air that is accepted as legal tender is the real ruler. and it is not the government who does that, it is a privately owned banking system. and it is not just any bank. Only the Federal Reserve and their 12 member banks are allowed to create US dollars.

There is the exception that recently in the last few years (under Bush actually) a new system has developed. In order to keep the government's debt to the Federal Reserve down the US government is now borrowing US dollars from foreign banks. the foreign banks have so many US dollars that are excess and they have to use somehow. This seems to be a means of rewarding these foreign banks for going along with the system.

It is a foolish presumption to think that the goal of our economic & monetary policy is to help the Americans or to facilitate anything good for us Americans. the goal is obviously to benefit a clique of private bankers. I believe the federal government spends 15-20% of all its revenue on servicing debt. Through a series of polices over a long period they've literally transferred the retirement money for tens of millions of Americnas to rich people. and on top of that they've brainwashed a very large portion of Americans into thinking that this is good.

I say they've taken the retirement money from us to give it to rich bankers because they have. Remember, they take 16% from every paycheck under 80 thousand a year. and then they take 40% of that money and use it on general revenue. they literally divert the money from the retirement fund it was intended for and put it in the 'general' fund. Which means it is used to service debt and to fund the war.

Galatians 3:29 And if ye [be] Christ's, then are ye Abraham's seed, and heirs according to the promise.

Red Jones  posted on  2007-07-15   9:05:22 ET  Reply   Trace   Private Reply  


#14. To: robin (#0)

The best book on the economy of Nazi Germany is the recent Wages of Destruction. Because of Hitler's big rearmament program, the Nazi government ran increasingly large deficits. Finally, it was obliged to invade other countries to seize assets and find a temporary fix to the problem.

Sound familiar?

To reason, indeed, he was not in the habit of attending. His mode of arguing, if it is to be so called, was one not uncommon among dull and stubborn persons, who are accustomed to be surrounded by their inferiors. He asserted a proposition; and, as often as wiser people ventured respectfully to show that it was erroneous, he asserted it again, in exactly the same words, and conceived that, by doing so, he at once disposed of all objections. - Macaulay, "History of England," Vol. 1, Chapter 6, on James II.

aristeides  posted on  2007-07-15   9:15:00 ET  Reply   Trace   Private Reply  


#15. To: aristeides, Red Jones, noone222 (#14)

Yes it does! So that needs to be factored in also.

Of course, Smirk and Cheney started with a surplus (however cooked in the books) and have brought us record deficits and an unpopular and evil war.

Whereas Germany had enormous debt/inflation and economic woes that were mostly fixed (I thought) and then invaded Poland etc.

Ron Paul for President

robin  posted on  2007-07-15   9:23:16 ET  Reply   Trace   Private Reply  


#16. To: Red Jones (#13)

But the problem is that bankers charge interest on money that they create out of thin air. they don't have the money to lend, they create it in order to lend it and then they charge interest on that. I don't think they should be allowed to do that.

Reminds me of something similar in my world; the sales team sells vaporware to unsuspecting clients. Then once it's been partly paid for and promised we're supposed to make it happen in an absurd amount of time.

Ron Paul for President

robin  posted on  2007-07-15   9:26:06 ET  Reply   Trace   Private Reply  


#17. To: robin (#12) (Edited)

Also the Federal Reserve.

The Federal Reserve Bank is not federal (it's private), it has no reserves, and it's not a bank. Try to open an account there.

Chickenhawk: the weakest link that squeaks the loudest.

YertleTurtle  posted on  2007-07-15   9:29:24 ET  Reply   Trace   Private Reply  


#18. To: YertleTurtle (#17)

Red's last post looks at this private club and what they're doing.

Ron Paul's the next best thing to Andy Jackson.

Ron Paul for President

robin  posted on  2007-07-15   9:34:16 ET  Reply   Trace   Private Reply  


#19. To: aristeides, historian1944 (#14)

An excellent read and a salutary reminder for people who, like myself, tend to focus on the political and military aspects of WW II, that there were other powerful forces at work as well. Tooze clearly shows that even absolute dictatorships just can't afford to neglect the balance of payments. He argues, convincingly, that Speer's "armaments miracle" wasn't much of a miracle after all, but to illustrate the point he seems to overstate the achievements of the German arms producers in the first three years of the war somewhat. For instance, it may be, as he states, that the number of "combat-worthy medium tanks" doubled from May 1940 to June 1941 (page 433), but this was an increase from a very small base (not much more than a thousand). Moreover, many of these tanks were Czech, and rather than being 36- and 38-ton tanks as Tooze states, they were in the 10-ton class, and clearly unsuited for the medium tank function they were expected to fulfill. The fact that the Germans were forced to keep the Czech TNHP tank, which did not have one single part in common with German tanks, in production (as the Pzkpfw. 38t) to make up the numbers already says a lot about the relative impotence of the German tank industry at that time. Medium tank production in June 1941, the month the Soviet Union was invaded, was 38 Mark IVs and 133 Mark IIIs (plus 65 Czech 38ts), decidedly unimpressive compared to US tank production, which starting from scratch reached one thousand per month in little over a year, or compared to Soviet tank production which soon reached comparable levels under unimaginably difficult conditions. Even taking into account reduced steel quotas for the army and other constraints, there still seems to be something of an "armaments mystery" for the first half of the war, even if there was no real "miracle" in the second half.

One Amazon review. Looks good, as does the commentary, thanks.

Ron Paul for President

robin  posted on  2007-07-15   9:36:40 ET  Reply   Trace   Private Reply  


#20. To: Red Jones, robin (#9)

The insane inflation experienced in germany was in the 1920's. the NAZIs came to power in 1932. The NAZIs very quickly brought great prosperity to ordinary germans. The innovations they had in money creation were enormously successful.

This prosperity was due to the exertions of Dr. Schacht the German Finance Minister. After Hitler came to power, the world banks were trying to force their way in but Schacht kept them out.

In 1938 when Hitler was intent on using his armaments for aggressive war, Schacht refused to go along with it and was sacked. In 1943 Schacht was imprisoned on orders from Hitler.

After WW2, I was friends with Dr. Schachts Godson for many years. He had lived with Schacht during the 1920s and 1930s.

Cynicom  posted on  2007-07-15   9:37:43 ET  Reply   Trace   Private Reply  


#21. To: Cynicom (#20)

After Hitler came to power, the world banks were trying to force their way in but Schacht kept them out.

In 1938 when Hitler was intent on using his armaments for aggressive war, Schacht refused to go along with it and was sacked. In 1943 Schacht was imprisoned on orders from Hitler.

He must have been a good man, Schacht.

Ron Paul for President

robin  posted on  2007-07-15   9:40:51 ET  Reply   Trace   Private Reply  


#22. To: Cynicom (#20)

After WW2, I was friends with Dr. Schachts Godson for many years. He had lived with Schacht during the 1920s and 1930s.

thank you for your almost-first-hand view of history.

I wish school-children all over the country would learn these lessons. They would too if the people who rule us would consent for it to be allowed in our schools.

Galatians 3:29 And if ye [be] Christ's, then are ye Abraham's seed, and heirs according to the promise.

Red Jones  posted on  2007-07-15   9:52:20 ET  Reply   Trace   Private Reply  


#23. To: robin (#21)

He must have been a good man, Schacht.

Indeed he was.

Dr. Schacht was the only one found not guilty at Nuremburg.

His Godson emigrated to the US after WW2.

Cynicom  posted on  2007-07-15   9:57:53 ET  Reply   Trace   Private Reply  


#24. To: robin (#21)

Some history of the Weimar hyperinflation.

In November 1923, a currency reform was undertaken. A new bank, the Rentenbank, was created to issue a new currency--the Rentenmark. This money was exchangeable for bonds supposedly backed up by land and industrial plant A total of 2.4 billion Rentenmarks was created, and each Rentenmark was valued at one trillion old paper marks. From that moment on the depreciation stopped--the Rentenmarks held their value; even the old paper marks held stable. Inflation ceased.

What was the secret of the "miracle of the Rentenmark"? After all, the new currency was not redeemable in anything. Its backing by real property was a fiction, since there was no way by which property could be foreclosed or distributed. Further, there we have the government distributing a vast new supply of money--2.4 billion trillion in terms of the old mark. Ought that not have led to a new wild inflation?

To understand this, we must recall that the real value of the money circulating in late 1923 was small--equal to a mere 168 million pre-war gold marks. The continued depreciation at this point was due to utter lack of confidence--to the belief that the printing presses would run indefinitely. But actually there was a great shortage of and need for money. New money could be introduced without price inflation if only people had confidence in it. How was confidence developed?

First, the government announced that the new currency would be "wertbestaendig"--stable in value. In their hunger for usable money people accepted this, at least until it should be proven false. Then the property backing seemed to give the currency value. True, the Assignats of the French Revolution, backed by fixed property, had depreciated, but still the backing helped.

Second, and certainly most important, the government limited strictly the amount of Rentenmarks which could be issued and it halted the issue and discounting of notes and the creation of paper marks. Finally, after April 1924, the Reichsbank stopped the expansion of credit to businesses which had been stimulating inflation. Businessmen were required to repay loans in gold marks, equal to the original value of the loan. Thereafter, incentive was gone to borrow except for legitimate needs.

Thus, the Rentenmark replaced the Papiermark. Due to the economic crises in Germany after the Great War there was no gold available to back the currency. Therefore the Rentenbank, which issued the Rentenmark, mortgaged land and industrial goods worth 3.2 billion Rentenmark to back the new currency. The Rentenmark was introduced at a rate 1 United States dollar = 4.2 RM.

The Rentenmark was only an intermediate currency and was not legal tender. It was, however, accepted by the population and effectively stopped the inflation. The Reichsmark became the new legal tender on 30 August 1924, equal in value to the Rentenmark.

The monetary policy spear-headed by Hjalmar Schacht - the Central Banker - together with the fiscal policy of German Chancellor Gustav Stresemann and Finance Minister Hans Luther brought the inflation in Germany to an end.

The Rentenbank continued to exist after 1924 and the notes and coins continued to circulate. The last Rentenmark notes were valid until 1948.

The U.S. Constitution is no impediment to our form of government.--PJ O'Rourke

DeaconBenjamin  posted on  2007-07-15   9:57:56 ET  Reply   Trace   Private Reply  


#25. To: DeaconBenjamin. everyone (#10)

The only way to purge public officials of corruption is to remove their power to regulate most aspects of human life. There is no prospect of avoiding corrupt public officials under our current governmental structure.

The U.S. Constitution is no impediment to our form of government.--PJ O'Rourke

Join the Ron Paul Revolution

Lod  posted on  2007-07-15   9:59:29 ET  Reply   Trace   Private Reply  


#26. To: DeaconBenjamin (#24)

The monetary policy spear-headed by Hjalmar Schacht - the Central Banker - together with the fiscal policy of German Chancellor Gustav Stresemann and Finance Minister Hans Luther brought the inflation in Germany to an end.

His full name...

Dr. Hjalmar Horace Greeley Schacht

Cynicom  posted on  2007-07-15   10:04:46 ET  Reply   Trace   Private Reply  


#27. To: DeaconBenjamin, aristeides, Red Jones, noone222, Cynicom (#24)

Most informative post and easy to follow. Thank you!

Ron Paul for President

robin  posted on  2007-07-15   10:07:30 ET  Reply   Trace   Private Reply  


#28. To: Red Jones (#22)

I wish school-children all over the country would learn these lessons.

Dr. Schachts Godson was a mentor to me.

He passed history to me that he had experienced first hand, without rancor, without an agenda, just hours spent recalling his life during the time after WW1.

He was probably the best educated person I ever had the privilege of knowing, plus an innate intelligence to match.

Cynicom  posted on  2007-07-15   10:13:43 ET  Reply   Trace   Private Reply  


#29. To: Cynicom (#23)

Papen was acquitted at Nuremberg. So was Hans Fritzsche.

Perhaps there were others who have slipped my mind.

To reason, indeed, he was not in the habit of attending. His mode of arguing, if it is to be so called, was one not uncommon among dull and stubborn persons, who are accustomed to be surrounded by their inferiors. He asserted a proposition; and, as often as wiser people ventured respectfully to show that it was erroneous, he asserted it again, in exactly the same words, and conceived that, by doing so, he at once disposed of all objections. - Macaulay, "History of England," Vol. 1, Chapter 6, on James II.

aristeides  posted on  2007-07-15   10:48:45 ET  Reply   Trace   Private Reply  


#30. To: aristeides (#29)

Papen was acquitted at Nuremberg. So was Hans Fritzsche.

True...However neither were major players as was Schacht.

No one ever understood why Papen and Fritzsche were ever charged.

"Hjalmar Schacht - Why Hjalmar Schacht was included in the list of defendants is unclear. In fact, the only charges brought against him were: contributing to Hitler's, and the Nazi Party's rise to power and promoting preparations for war. His dislike of the Versailles Treaty, his belief that the German military should once again be strong and his support of the Anschluss were well known, but these are hardly "war crimes." He was never in a position to exercise significant influence in any of the planning and preparation for war. Likewise, Schacht had never concealed his antisemitism and his agreement that Jews should be excluded from governmental and civil service positions"

Hjalmar Schacht was acquitted.

Cynicom  posted on  2007-07-15   10:57:44 ET  Reply   Trace   Private Reply  


#31. To: Cynicom (#30)

Papen had been the object of anti-Nazi propaganda works like Devil in a Top Hat during the war. Fritzsche was a stand-in for the dead Goebbels.

As for Schacht, I suspect the Soviets insisted that he be tried. Their theory was that Nazism was hypercapitalism.

To reason, indeed, he was not in the habit of attending. His mode of arguing, if it is to be so called, was one not uncommon among dull and stubborn persons, who are accustomed to be surrounded by their inferiors. He asserted a proposition; and, as often as wiser people ventured respectfully to show that it was erroneous, he asserted it again, in exactly the same words, and conceived that, by doing so, he at once disposed of all objections. - Macaulay, "History of England," Vol. 1, Chapter 6, on James II.

aristeides  posted on  2007-07-15   11:07:12 ET  Reply   Trace   Private Reply  


#32. To: aristeides (#31)

As for Schacht, I suspect the Soviets insisted that he be tried.

After the war, much of what was written concerning Dr. Schacht was his "anti-semitism", when in reality his first confrontation with Hitler was because Schacht had several Jews in his Ministry.

Hitler demanded they be thrown out and Schacht refused, telling Hitler to his face that he was in charge of the Finance Ministry and as long as they did their jobs they would stay. Hitler never forgave him for that.

Cynicom  posted on  2007-07-15   11:18:53 ET  Reply   Trace   Private Reply  


#33. To: Pinguinite, IndieTx, Red Jones, HOUNDAWG, Fred Mertz, Minerva, christine, Zipporah, farmfriend, Eoghan, wudidiz, wbales, Former Lurker, Jethro Tull, Yertle Turtle, robin, Diana (#4)

I'm curious, JC, what kind of monetary system you actually favor since you hold a gold backed currency in such contempt.

I just told you. Fiat based on fiscal, not monetary parameters, with a "storehouse of value" being savings of the excess productivity, released during the slow business cycle to be re-cycled into infrastructure and productive employment in rejuvenating the infrastructure. This and this only. Dedicated funds by Constitutional LAW.

Think of a farmer working his ass off in the summer and Fall and making one helluva lot of money and socking a portion of it away to grow 10% more crops the next year and pay his help over the slow winter months ( starving time) to fertilize and sow green manure ( rye grass) and fix the equipment for the next year so they can get off to a running start.

Imagine a factory with its own internal chits good for anything you want...all that is personal.

When times are booming and output is maximized so the employees are paid and the company profits to the maximun, the excess profit ( this can be an agreed upon tax base that is spent only to the X% level, i.e. the fiscal constraint, to support the factory's current obligations with the balance "saved" e.g. stock buybacks...) is saved then purposefully spent during a cyclical downturn to renew the factory's infrastructure, build new facilities, repair machinery, update systems and machinery, plan for the fiscal upturn etc employ the workers within the factory for meaningful CAPITAL REJUVENATION, i.e. infrastructure great for consumerism and the good of the work force) ...the excess profit is released during a slow time fo0r infrastructure rejuvenation and capital replacement and work force re-training/meaningful work.

For a company this would be internal, for a nation it would be release of excess funds for highway/bridge construction boom, Building and office upgrade/replacement, National/state Park expansion/updating, arts and humanities support, release of study funds, mineral/resource exploration and development, power grid updating, energy construction ( nuclear to hydrogen) ...

i.e. about every five years instead of a painful slowdown, there would be a cycle of renewal as the storehouse of value because this would put the nation, and its component parts, in position for the next boom and rather than a grinding start up, the new cycle could be maximized and thus more "value" saved to plow into more urgrading the next slow cycle.

This makes far more sense than basing a nation's weal on how much metal is extracted sometime somewhere then manipulated by the various international bankers, like gold and diamonds.

This is a fiscal rather than a monetary storehouse and release of value system of capitalism that makes productivity the driving force of economics, as it really is and should be, without the manipulations of bankers. Deficit spending is held strictly within limits set by productivity...i.e. YOU may buy a $300,000 home on credit IF and ONLY IF you make at least $75,000 and do not already owe much money.

JCHarris  posted on  2007-07-15   11:30:56 ET  Reply   Trace   Private Reply  


#34. To: Cynicom (#32)

Hitler demanded they be thrown out and Schacht refused, telling Hitler to his face that he was in charge of the Finance Ministry and as long as they did their jobs they would stay. Hitler never forgave him for that.

and I would say that you likely got that direct from your old friend who lived in Sschacht's house. That was likely not printed in any newspaper or book.

I'm not sympathetic to the NAZIs, but we should remember that the Germans had a lot of good people among them, and that what happened to germany was a horrible thing.

Galatians 3:29 And if ye [be] Christ's, then are ye Abraham's seed, and heirs according to the promise.

Red Jones  posted on  2007-07-15   11:39:06 ET  Reply   Trace   Private Reply  


#35. To: cynicom (#33)

Cynicom ping

sorry missed you

JCHarris  posted on  2007-07-15   11:40:52 ET  Reply   Trace   Private Reply  


#36. To: JCHarris (#35)

manipulated by the various international bankers

Therein lies the crux of the problem.

Bankers and speculators are the ruination of society.

For instance, the increased cost of producing one barrel of oil does not reflect the huge increase in the cost of gasoline.

I read your epistle without a ping. Thanks.

Cynicom  posted on  2007-07-15   11:48:55 ET  Reply   Trace   Private Reply  


#37. To: DeaconBenjamin (#24)

Great explanation. Please see my post 83 which actually folds into this fiscal system over a strictly monetarist manipulation, which includes gold held by bankers as a standard , and easily, correction, USUALLY manipulated by the international bankers.

JCHarris  posted on  2007-07-15   11:49:35 ET  Reply   Trace   Private Reply  


#38. To: All (#37)

typo

33

JCHarris  posted on  2007-07-15   11:50:14 ET  Reply   Trace   Private Reply  


#39. To: Cynicom (#36)

I do not have time to write a hundred page treatise on it, but think the system through and tell me what you think. This was first proposed by an economist, capitalist and America-loving man by the last name of Lennox during the 1920s. Notice the similarities to Ayn Rand's thinking although she had not published when he did publish this book ( I have a copy somewhere but the exact title escapes me...'A system of Infrastructure Renewal and Capital Replenishment as a Storehouse of Value to Replace the Gold Standard and Lessen the Deleterious Effects of the Business Cycle' ....close but not exact ) His son George Lennox married Cyrus Hall McCormick's great granddaughter and was himself an accomplished economist.

JCHarris  posted on  2007-07-15   11:56:35 ET  Reply   Trace   Private Reply  


#40. To: Red Jones, Cynicom (#34)

Hitler demanded they be thrown out and Schacht refused, telling Hitler to his face that he was in charge of the Finance Ministry and as long as they did their jobs they would stay. Hitler never forgave him for that.

and I would say that you likely got that direct from your old friend who lived in Schacht's house. That was likely not printed in any newspaper or book.

Most interesting.

Ron Paul for President

robin  posted on  2007-07-15   12:04:42 ET  Reply   Trace   Private Reply  


#41. To: Robin, Jethro Tull, Christine, Honway, Aristeides, Diana, All (#0)

Hmmmm! So that's where the "Fed" got the idea.


SKYDRIFTER  posted on  2007-07-15   12:16:50 ET  Reply   Trace   Private Reply  



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