Paper Money and Inflation – Golden Age Economy

Alan Greenspan on “Gold and Economic Freedom”

In 1966, long before he became chairman of the U.S. Federal Reserve, Alan Greenspan wrote an article titled “Gold and Economic Freedom.” Here are a couple of excerpts:

An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense — perhaps more clearly and subtly than many consistent defenders of laissez-faire — 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….

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.

Greenspan also includes an analysis of the causes of the Great Depression. Mainstream economists blame the gold standard, but Greenspan demonstrates that it was actually by attempts of the Federal Reserve to manipulate the economy (as Ben Bernanke admitted in 2002).

Here is the whole article: Gold and Economic Freedom – Alan Greenspan

The dangers of fiat currencies

Here is an opinion piece from the Sydney Morning Herald proposing new look at gold standard. The article is entitled “It may be struggling now, but you can be certain the greenback will be the last to go.” The author, a professional money manager, points out the inherent dangers of fiat currencies.

Predictions of the imminent collapse of the US dollar are unfounded, writes Michael Trifunovic.

Source: It may be struggling now, but you can be certain the greenback will be the last to go

Auditing the Federal Reserve

June 19, 2009

Dear Friends of Saint Germain,

If you have been following the news in recent weeks, you may be aware that a bill calling for the comptroller general of the United States to audit the Federal Reserve System is gaining widespread support in Congress. To date there are 124 representatives who have added their names to the list of co-sponsors. And the list is growing amongst both Democrats and Republicans.

This effort has been spearheaded by U.S. Rep. Ron Paul, from Texas, who in February this year introduced H.R. 1207, the Federal Reserve Transparency Act of 2009. This bill requires an audit of both the Fed’s Board of Governors and the Federal Reserve Banks. The plan is that the audit be completed and reported to Congress before the end of 2010.

A companion Senate bill known as the Federal Reserve Sunshine Act, S. 604, is sponsored by Sen. Bernard Sanders, I-Vt. It currently has no co-sponsors and was referred to the Senate Banking, Housing, and Urban Affairs Committee on March 16.

Let’s consider why this bill is so important at this time. Ron Paul has been seeking to abolish the Federal Reserve, which is a private money-control system. The Constitution gives Congress “the authority to coin money and regulate the value of the currency.” This is not the role of the private Federal Reserve. Ron has urged Congress to “reassert its constitutional authority over monetary policy.”

Ron Paul has been eloquent and persistent in his opposition to the Federal Reserve. He has said that every problem in the economy, “from the Great Depression, to the stagflation of the ’70s, to the current economic crisis caused by the housing bubble,” can be traced to Federal Reserve policy. He is on record as saying: “Throughout its nearly 100-year history, the Federal Reserve has presided over the near-complete destruction of the United States dollar. Since 1913 the dollar has lost over 95 percent of its purchasing power, aided and abetted by the Federal Reserve’s loose monetary policy. How long will we as a Congress stand idly by while hard-working Americans see their savings eaten away by inflation? Only big-spending politicians and politically favored bankers benefit from inflation.”

Rep. Paul and many other concerned citizens feel that the oversight of the Fed is long overdue. As Ron Paul says, “Since its inception, the Federal Reserve has always operated in the shadows, without sufficient scrutiny or oversight of its operations.” Many believe that it is time for this to change.

Saint Germain in 1980 called the Federal Reserve System “the ‘non-reserve’ of the nation’s money system.” He said that the deplorable state of the economy “calls for a massive education of the people, the overturning of the most cherished systems because they are not of God, and a banding together of those who see through the seed of the serpents who have gone forth to destroy the souls of the people through the destruction of their economic base.” (Pearls of Wisdom, vol. 23, no. 7, February 17, 1980)

Please study the attached material on the Federal Reserve and become informed. Then make the calls and allow the Archangels and Hosts of the Lord to perform their perfect work. It is so important that we do our spiritual work on this subject, as it is the head of the beast that we are dealing with.

My beloved brothers and sisters let us keep on keeping on! The call compels the answer.

My heart is full of hope. From the beginning we were winning!

God bless you in the flame of truth,

Rev. Gene Vosseler