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The First Political Disorder

Political infirmities of the world dollar standard are:

1.  It violates the constitutional order as defined by the Founders.

2.  It leads to a loss of legitimacy and lack of respect for the Congress and president.

3.  It creates international animus toward the holder of the "exorbitant privilege."

The world dollar standard violates the constitutional order as defined by the Founders.

Those who, literally, wrote the Constitution had just lived through a terrible period of inflation.  The colonies, to help fund their revolutionary war, had issued paper currency called the “Continental.”  Continentals became so worthless that for a long time there was a catchphrase, “not worth a Continental.”   The delegates to the Constitutional Convention took steps to prevent this from happening to the United States of America.  One example from the record of the Debates, August 16, 1787, from the notes of James Madison:

 

Mr. Elseworth thought this a favorable moment to shut and bar the door against paper money.  The mischiefs of the various experiments which had been made, were not fresh in the public mind and had excited the disgust of all the respectable part of America.  By witholding the power from the new Governt. more friends of influence would be gained to it than by almost any thing else.  Paper money can in no case be necessary.  Give the Government credit, and other resources will offer.  The power may do harm, never good.

One dismisses as antiquated at peril the work of world-historical savants like Copernicus and Newton in establishing the classical gold standard, men whose wisdom brought centuries of prosperity to the world.  Newton's Three Laws cannot be repealed; neither can the natural laws governing monetary policy.  For the presidents who destroyed the gold standard, Lyndon Johnson and Richard Nixon, to have styled themselves, as they did, intellectual superiors to Washington, Franklin, Madison, and the many greats who wrote the Constitution is deplorable.  The American people, rising up as Tea Party Patriots, are disgusted by the inexorable decay of the value of the dollar — by 80% since Mr. Nixon closed the gold window.  The American people now are demanding return to a Constitutional monetary policy.  Self-respecting officials will meet the demands of the citizens for monetary integrity, and sooner rather than later.

 

Kathleen M. Packard, Publisher
Ralph J. Benko, Editor

In Memoriam
Professor Jacques Rueff
(1896-1978)

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