The fancy of being able to take a worthless substance, such as straw -- or paper -- and transform it into something of real value -- such as gold -- has inhabited the popular imagination from time immemorial. Two German folklorists, Jacob and Wilhelm Grimm, collected tales from among the rural folks, and recorded them as hausmarchen, or, in English, Fairy Tales. And the price demanded by the poltergeist Rumpelstiltskin for spinning straw into gold threatened to prove diabolical indeed. From Children's and Household Tales (1812):
Once there was a miller who was poor, but who had a beautiful daughter. Now it happened that he had to go and speak to the King, and in order to make himself appear important he said to him, “I have a daughter who can spin straw into gold.” The King said to the miller, “That is an art which pleases me well; if your daughter is as clever as you say, bring her to-morrow to my palace, and I will try what she can do.”
And when the girl was brought to him he took her into a room which was quite full of straw, gave her a spinning-wheel and a reel, and said, “Now set to work, and if by to-morrow morning early you have not spun this straw into gold during the night, you must die.” Thereupon he him- self locked up the room, and left her in it alone. So there sat the poor miller’s daughter, and for the life of her could not tell what to do; she had no idea how straw could be spun into gold, and she grew more and more miserable, until at last she began to weep.
But all at once the door opened, and in came a little man, and said, “Good evening, Mistress Miller; why are you crying so?” “Alas!” answered the girl, “I have to spin straw into gold, and I do not know how to do it.” “What will you give me,” said the manikin, “if I do it for you?” “My necklace,” said the girl. The little man took the necklace, seated him- self in front of the wheel, and “whirr, whirr, whirr,” three turns, and the reel was full; then he put another on, and whirr, whirr, whirr, three times round, and the second was full too. And so it went on until the morning, when all the straw was spun, and all the reels were full of gold.
By daybreak the King was already there, and when he saw the gold he was astonished and delighted, but his heart became only more greedy. He had the miller’s daughter taken into another room full of straw, which was much larger, and commanded her to spin that also in one night if she valued her life. The girl knew not how to help herself, and was crying, when the door again opened, and the little man appeared, and said, “What will you give me if I spin that straw into gold for you?” “The ring on my finger,” answered the girl. The little man took the ring, again began to turn the wheel, and by morning had spun all the straw into glittering gold.
The King rejoiced beyond measure at the sight, but still he had not gold enough; and he had the miller’s daughter taken into a still larger room full of straw, and said, “You must spin this, too, in the course of this night; but if you succeed, you shall be my wife.” “Even if she be a miller’s daughter,” thought he, “I could not find a richer wife in the whole world.” When the girl was alone the manikin came again for the third time, and said, “What will you give me if I spin the straw for you this time also?”
“I have nothing left that I could give,” answered the girl. “Then promise me, if you should become Queen, your first child.” “Who knows whether that will ever happen?” thought the miller’s daughter; and, not knowing how else to help herself in this strait, she promised the manikin what he wanted, and for that he once more span the straw into gold.
And when the King came in the morning, and found all as he had wished, he took her in marriage, and the pretty miller's daughter became a Queen.
A year after, she had a beautiful child, and she never gave a thought to the manikin. But suddenly he came into her room, and said, "Now give me what you promised." The Queen was horror-struck, and offered the manikin all the riches of the kingdom if he would leave her the child. But the manikin said, "No, something that is living is dearer to me than all the treasures in the world." Then the Queen began to weep and cry, so that the manikin pitied her. "I will give you three days' time," said he, "if by that time you find out my name, then shall you keep your child."
Unwinding the damages inflicted on the world economy by the straw -- fiduciary paper money -- will not be so simple as posing the question "Perhaps your name is Rumpelstiltskin?"
George Gilder, whose new book publishes today, is one of the original pillars of Supply Side economics. As stated by Discovery Institute, which he co-founded, “Mr. Gilder pioneered the formulation of supply-side economics when he served as Chairman of the Lehrman Institute’s Economic Roundtable, as Program Director for the Manhattan Institute….”
He was the living writer most quoted by President Reagan. And he is back with his most brilliant work yet — one of potentially explosive importance if taken to heart by our political and policy thought leaders. It is a radical guide, with surprising insights on almost every page, to the creation of a new era of vibrant prosperity.
As reviewer Paul Brodsky, a professional investor in New York City, perceptively notes,
"Lewis Lehrman is one of a very small group of contemporary gold advocates able to successfully bridge the gap separating practical conservative intellectualism from fleeting, half-baked idealism. His CV lists great success across many fields including education (degrees and teaching fellowships from Yale and Harvard); industry (past president of Rite Aid); politics (narrow loser to Mario Cuomo in the 1982 New York governor’s race); finance, (past Morgan Stanley managing director); private sector entrepreneur (founder, L. E. Lehrman & Company); public sector advocate (founder, Lehrman Institute); historian (author, Lincoln at Peoria: The Turning Point); and recognized philanthropist (awarded the National Humanities Medal by George W. Bush in an Oval Office ceremony). ... Only someone erudite and elegant in demeanor could hope to pull it off . In an irreconcilably over-leveraged world where irritated bond vigilantes question economic sustainability and angry Tea Partiers protest the immorality of it all, Lehrman’s views are considered and his convictions carry weight. He brings gravitas to his cause, and he does so from within as a member of the club."
Before the Fed: JP Morgan Summons the Bank Presidents
"Finally, on the night of Sunday, November 2, Morgan summoned the presidents of the major New York banks to his new library, at the corner of Madison Avenue and Thirty-sixth Street, an Italian Renaissance-style palace he had built next door to his house to showcase his collection of rare books, manuscripts, and other artwork. Its marble floors, frescoed ceilings, walls lined with tapestries and triple-tiered bookcases of Circasian walnut, crammed full of rare Bibles and illuminated medieval manuscripts, made it an incongruous setting for a meeting of the banking establishment. Once the moneymen had gathered, Morgan had the great ornamental bronze doors to the library locked and refused to let anyone leave until all had collectively agreed to commit a further $25 million to the rescue fund."
— Liaquat Ahamed, Lords of Finance (Penguin Books, 2009, p. 54)
Lately we have been engulfed by headlines reporting financial turmoil on every continent, in almost every nation, large and small. The commissars of central planning who so marred the history of the 20th century have been replaced by central banks in the 21st. In Cyprus, the new leadership now dares to confiscate citizens’ wealth with a one-time tax of up to 60 percent on bank deposits above 100,000 euros. Self-interested prime ministers blame continental monetary policies for instigating the currency wars that they themselves surreptitiously carry on.
Constitution.org provides an extensive and thoughtful Memorandum of Law by Larry Becraft, Esq., of Huntsville, Alabama, on Article I, Section 10, clause 1 of the US Constitution.
Sir William Blackstone courtesy of Wikipedia
One of many interesting matters the Memorandum treats is Blackstone's Commentaries, a book that was a fixture in the...
The value of the yuan has been slowly rising. The value of the Japanese yen has been sharply falling. Abenomics is attempting to reflate the Japanese economic – slowly, slowly. “Japan is back!” Prime Minister Shinzo Abe tells the Japanese.
Coming back isn’t easy. The Financial Times’ Jonathan Soble has noted...