The Fears of our Fathers

The Fears of our Fathers

Our founding fathers, Madison, Jefferson, Franklin, et al, did not fear foreign conquest.  They feared unchecked, unlimited power from within, in the form of people or corporations that could gain monolithic or monopolistic control over out government.  In the past such seizures of government power generally came from generals or military commanders whose wealth and prestige enabled them to gain enough aristocratic support to be declared dictator, emperor, king. Czar, or whatever title they chose to claim.  Only a few of the most visionary framers foresaw that unchecked or unrestrained economic power could be the road to serfdom and economic slavery.  Jefferson, Franklin, Madison, and Paine were among them.

Jefferson said, “If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and the corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing [money creation] power should be taken from the banks and restored to the people, to whom it properly belongs.” – Thomas Jefferson, The Debate Over The Recharter Of The Bank Bill, (1809).

Jefferson also said that banks were more dangerous to the American people than “standing armies”.  Today, who would think there was anything wrong with either banks or standing armies?  What has changed us so?  Could it be the persuasive power of money and banking itself?  Could there be a public relations campaign, or even a campaign of propaganda to convince the public that both are now OK?

Who creates and controls our money today?  Was there a reason Amschell Mayer Rothschild (the “Father” of modern banking) held that “as long as he controlled a nation’s money he cared not who created its laws”.  In other words, his “golden rule” was “he who has the gold makes the rules”.

So, who has the gold?  Who makes the rules?  Are gold and money the same thing?  Should they be the same?  Should they be under public or private control?  Does our Constitution say anything about these issue?  How about the views of our founding fathers, or the wisdom they drew from in the founding of our nation?  Where does money come from?  How is it created?  By whom is it created and controlled?  Most people don’t really consider these questions, and go from birth to death without giving money much thought, except perhaps to think they don’t have enough of it, or to figure out how to get more money or additional wealth.  Most people never differentiate between money and wealth.  They seem like the same thing.  Aren’t they?

Not exactly.  And we will try to address these and many other similar questions in this and additional future blogs. Continue reading

The Struggle of the Ages: Government and Economics

The struggle of the ages has been for mankind, the individuals that make up mankind, to find the proper balance between individual and group sovereignty.  Sovereignty includes the power of choice, and of freedom to make choices of thought, word, and deed.  As long as there is just one individual choices can be essentially unlimited, even destructive or fatal choices are permitted, as there is no one else to consider, prohibit or to limit them.

However, as soon as two or three people, or more, become involved, it becomes obvious that some individual choices must be limited so as not to harm or interfere with the choices of the others.  So individuals in a group setting are somewhat different.  Then customs, rules and laws must come into play that allow all fair considerations in the exercise of their sovereignty of choice in relation to all others in the group.  Sensible laws are little more than a formalization of sensible rules and customs.  Customs evolve into common law.

The ideal is that all should exist and co-exist in balance and harmonious association.  Each should pull his/her own weight in contributing to group welfare as well as individual welfare.  When either individual or group consideration become unbalanced, dissonance results and relationships are inharmonious, stressful, and unpleasant.

So it is that all “civilized” government and its accompanying laws and economics have evolved,  This was once a long, slow process, with change (good or bad) coming gradually, over decades and generations, except in times of natural or man-made catastrophe like wars, famines, floods, or climate changes.  These sudden changes introduced chaos, our of which new orders arose, rapidly or gradually, depending on conditions.  Recently, with the industrial revolution, and scientific and technological “progress”, the ways entire peoples get their educations and essential information about their world have been changing.  Communications that once took months and years now are almost instantaneous through modern media, satellites, radio and TV waves, and wired and wireless communications networks.

Societies and civilizations can now have their opinions and behaviors modified for better or worse very rapidly through mass communications.  Our founding fathers, Jefferson, Franklin, Madison, et al, fully realized that a democratic republic could only be maintained via an informed and educated citizenry.  Franklin, when asked what kind of government the constitutional convention had given our new nation, the USA, replied: “A republic, madam, if you can keep it”.

Ben Franklin realized the forces of tyranny and despotism were deep-rooted and pervasive, and that self-government was going to prove a difficult task, perhaps an impossible one.  Most of our founding fathers also knew full well that if our republican government failed, it would be from within, and not from without.  The USA was blessed with natural continental protections that kept it from serious forcible threat from other nations, unlike the nations of Europe or Asia, or even South America.

So, if most of our founding fathers did not believe our nation could be conquered or overthrown from outside our borders, what did they fear, and warn us about?

This will be the topic of our next blog, and future blogs.

Stay tuned.

Jere L Hough

The Hidden Truth About Money

Hi. Thanks for stopping in. I’m Jere L Hough.  Welcome to my new blog.

My current passion is money and economic reform. I hope to help others make the same paradigm shifts in thinking I’ve gone through since I’ve figured out that money really is the “root of all evil”, and why that proverb is more true today than ever before.

Of course the proverb says “The love of money is the root of all evil”, which needs further clarification. What is not addressed, and what I discovered, is that it is the mechanics of money creation and distribution that are currently at the root causes of our worldwide economic and monetary problems.

In other words the fatal flaws are systemic, and have been so ingrained and institutionalized within our culture and civilization that the corrective surgery could be as fatal as the disease, to use a medical metaphor.

This is not generally well-received news, if it is received at all. Most people that hear it immediately disengage, or turn on their processes of denial. If for not other reason, they just don’t want to think about the complexities of money and economics.

Who could blame them after 300 years of deliberate and massive efforts to abscure the subject of economics, and make it seem totally impenetrable to all but the Greenspans, Bernakes, Volkers, Rubins, Paulsons, Rockefellers, Morgans, Rothchilds, and other financial Gurus of modern times, dating from the era of Adam Smith?

In fact, few people who began reading this will still be reading this far. The eyes glaze over, and the 20 or 30 second attention span possessed by most people is already gone. But there are great rewards for those who stick with us for just a while longer.

You see, economics is not the layer upon layer of impenetrable mystery you have been led to believe by the various competing and confusing schools of economics, or economic thought. John Kenneth Galbraith got it right when he said, “The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it (p15). The process by which banks create money is so simple that the mind is repelled.” – John Kenneth Galbraith, Money: Whence it came, where it went – 1975, p29.

Whoa. What did he say? The banks create money? Haven’t you always thought that the government did that? And why would complexity be deliberately used to “disguise or evade the truth” about money? Why would economists want to “disguise or evade the truth”? What process of money-creation would repel the mind? Who benefits from all this intrigue, evasion and deception? Who profits? Who gains? Who loses?

We are going to answer those questions right here, and in a way that any motivated Middle School student could understand within a few hours of guided study. Let the experts figure out the problems of money and economics you say? Do you really think that is going to happen? It hasn’t happened yet, and it is unlikely to happen, because those with huge vested interests in keeping things as they now are will not let it happen.

Yet the USA, and the rest of the world, is caught up in a vortex or whirlpool of downward spiraling prosperity and economic well-being. Poverty is rising worldwide, and even in the wealthiest nations. Mass denial about the seriousness and causation of the economic crisis exists everywhere. People think that if they don’t think about it, it will just go away. People think that it is just a natural self-correcting economic cycle.

But people are generally wrong, and will tragically pay dearly for their denial, and their refusal to take corrective steps or actions.

Coming up! Answers to: “What did he [John Kenneth Galbraith] say? The banks create money? Haven’t you always thought that the government did that? And why would complexity be deliberately used to “disguise or evade the truth” about money? Why would economists want to “disguise or evade the truth”? What process of money-creation would repel the mind? Who benefits from all this intrigue, evasion and deception? Who profits? Who gains? Who loses?”

Stay tuned.