The headlines out of Europe continue to underscore a painful reality. The present global monetary system, which is built upon fiat money and a distorted application of Keynesian economic theory, has entered the final phase of existence. This phase is marked by loss of confidence in the fiat scheme, reluctant consideration of alternatives, and the decreasing effectiveness of new policy initiatives designed to hold the system together. The economic hardship that accompanies this phase is now evident in Europe. It is only a matter of time before it is unleashed on this nation.
We were warned of this outcome centuries ago.
George Washington’s words to a Rhode Island Senator echo across the centuries.
“Every lover of his country will therefore be solicitous to find out some speedy remedy for this alarming evil. There is no possible substitute for the loss of commerce. Our first grand object, therefore, is its restoration…. But if in the pursuit of the means we should unfortunately stumble again on unfunded paper money or any similar species of fraud, we shall assuredly give a fatal stab to our national credit in its infancy. Paper money will invariably operate in the body of politics as spirit liquors on the human body. They prey on the vitals and ultimately destroy them…. Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.”
This truth is still valid in the 21st century, yet is fully understood by very few. Words such as “ruined,” “evil,” “oppression,” “fraud,” and “injustice” are seen as partisan rhetoric in the battle for control of the Federal leviathan – and the paper money that flows so freely to it via the Federal Reserve. Clueless politicians on both sides of the isle do not recognize that this flow of money will soon cease to exist, along with the power it buys. The vacuum left will create a power grab of historic proportions.
Should we fail to take action now, one need only look at the European Union to see our ultimate fate. The EU is a failed attempt to unite diverse nations under a single fiat currency without a centralized government to administer it. Common sense dictated that this experiment would fail. As predicted, fiscal prudence was not practiced by all member nations. Those practicing restraint resent those who did not, resulting in political and economic instability. Political posturing over proposed solutions has created deadlock. To buy more time, money was printed. The resulting accumulation of sovereign debt has now triggered a crisis that has consumed all of Europe.
Of course, the proposed solution is not to have each nation return to individual currencies overseen by their own government, thereby restoring sovereignty (and responsibility) to each nation. Rather, the solution “preferred” by the bankers and global elite is to create a centralized political power structure that would impose monetary and fiscal policies on each nation. This “solution” is only the first step in what would certainly result in a centralized European government, dealing a death blow to the sovereignty of each nation in the European Union.
As the sovereign debt crisis rolls from Europe to our shores, be assured that the same “solution” proposed for Europe will be “offered” to the United States. Consolidation of the monetary system at an international level (International Monetary Fund) will be touted as the remedy to the economic hardship Americans will soon be embroiled in.
And the price will be the same.
If states are struggling now to exert their sovereignty, as the old saying goes, “you ain’t seen nothin’ yet.” Should we lose control of our monetary policy to an international entity, all state’s rights will be a thing of the past. The Federal government (working with the United Nations and IMF) will impose draconian control over every aspect of commerce.
The best protection we have against such an outcome lies in the hands of the people of the (still) sovereign states. It is codified in Article 1 Section 10 of the Constitution, which says “No state shall… make any thing but gold and silver coin a tender in payment of debts.”
Application of this clause by the states will lay a foundation upon which sound monetary and economic policies may be restored. More importantly, it will create a firewall between the citizens and the globalists, who are intent on destroying our state and national sovereignty once and for all.
We have precious little time to build this firewall. New model legislation and educational materials are being developed at the Tenth Amendment Center just for that purpose, and will be available this fall. They can be used to help pass this important legislation in a number of key states. Each state will require a champion to carry the ball and identify legislators and activists who understand the real and present danger our citizens face today. If that person is you, please contact the director of Sound Money at the Tenth Amendment Center. (doug [at] soundmoneycenter.org) Time is short.