The Constitution versus the Dollar/Debt Crisis

The extent to which the federally licensed media and tax-funded school system has come to control the minds of the public is staggering. The term "government" has become synonymous with politics - even in libertarian circles. The majority of the American public of 300 million has come to trust the politicians so much that they do not even bother to read the Constitution to verify that the federal government is in compliance.

It clearly isn't. Not by a long shot.

For one, had the federal and state politicians been required to observe the gold standard - which is still enshrined in the U.S. Constitution - there would be no debt or dollar crisis. Among the few powers granted to Washington, Article I Section 8 gives Congress the power "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures." It doesn't grant Washington the authority to print money, grant a monopoly to any bank or superbank, or to regulate banking or the economy in any form other than the value of its own coins and the standards of weights and measures. This implies that banking is to be free and competitive, and that coins may be produced freely by anyone who wishes to do so. Washington may endorse coins that are in keeping with its standards, but may not prohibit the use of those which are not. Further, according to Section 10, "No state shall ... coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts ..."

The paleomedia has the public worked up into a frenzy about the Armageddon that will occur if Congress DOESN'T raise the debt limit. Stop and think about this. Is the public so gullible? In a word, "yes." But it's not that they are stupid, most of them aren't. The intellectual campaign has been well orchestrated and well funded. And the art of intellectual and financial monopolization has been developed over thousands of years. Not too long ago, the average person believed that Caesar was god. They were no less intelligent than us. But the politicians had the reigns on the flow of information. It was to be expected. Of course, the extent to which information is still bottlenecked is less than it was, but the monopolists make up for this in their ability to print paper money, and distribute it to whatever voices they wish.

When the dollar crashes - which it will - it will be nice for the public to have at its disposal some safe haven currencies into which it my weather the storm - particularly commodity-backed currencies. Were the politicians truly concerned about the welfare of their constituency, they would see to it that no ill would come to them. But we do not live in such a fairy tail land. To entrust the politicians with one's wealth is indeed suicidal. One must learn from history.

In the real world, to the extent of free competition, there is market discipline. To the extent of monopoly (which can only survive in an atmosphere of politics), there is inevitably corruption (to the extent of monopolization). In banking, as in any other industry, politics is not merely an evil, it is an unnecessary one.

This article first appeared on Blogger