In his first term. President Barack Obama has learned the hard way how difficult it is to maintain the country’s confidence. In an interview during that term with the Today Show’s Matt Lauer, the host suggested that he needed to kick some butt to maintain the country’s confidence.
To restore the country’s and the world’s confidence will take some doing – but it might pay to begin with money. “Money is a collective act of the imagination, and it’s a thing which we have invested our credence in, and it works because we do that,” according to John Lanchester, who wrote Whoops! Why Everybody Owes Everybody and No-One Can Pay.
We have ample evidence that the process isn’t working. Time Magazine’s Rana Forooharhas noted: “The fact is, each recovery since 1990 has been weaker, and taken longer, than the one before. According to the McKinsey Global Institute, in all the recessions from World War II to 1990, U.S. employment returned to prerecession levels roughly two quarters after GDP did. In the three recoveries since, though, there have been lengthening lags. At the current rate of job creation, it will take about 33 more months to restore the jobs lost in 2008 and 2009.” In an interview in TIME Magazine last year, former President Jimmy Carter was asked: “How much can a President do to fix the economy?” His response: “The President’s distant third after the Federal Reserve and the Congress – except when we do something like go into Iraq and have an unnecessary war.”
Well, there are things that can be done if the president and Congress want to act – and stop complaining. Not overnight, but they can begin the process that restores order and discipline to the world’s financial system. It is as much in the world’s interest as it is in the interest of the United States.
Back in 1976, Lewis E. Lehrman wrote in Money in the Coming World Order: “United States citizens are, as the creditors of their government and banks, subject to the authority of their duly constituted monetary authority. Whatever United States citizens may think of the national monetary policy, it is nevertheless, the monetary policy of their own legitimate governmental authorities, in whose election they have participated and over whom their collective opinion must have some influence. But the currency area of the dollar incorporates many nations of the world. And it is quite a different matter of political obligation if one is a citizen of another country. As a holder of dollars, a foreigner objects to the debasing of the value of his asset by an extraterritorial monetary authority, the control of which may not be subject to his vote or influence.”
Time for an American commission to restore monetary sanity to the nation...and the world.
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.
America recently celebrated — well, maybe we didn’t celebrate – the 80th anniversary of Franklin Roosevelt’s action to end to the gold standard. But America is also celebrating – well, maybe not everyone is celebrating – the 100th anniversary of the legislation creating the Federal Reserve System.
As Lewis E. Lehrman...
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...