Confidence Game; Commission Time

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 Foroohar has 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.

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The Most Important Thing Holding Up the US Dollar

by Ron Paul

Today’s economic conditions reflect a fiat monetary system held together by many tricks and luck over the past 40 years. The world has been awash in paper money since removal of the last vestige of the gold standard by Richard Nixon when he buried the Bretton Woods agreement — the gold exchange standard — on August 15, 1971.

Since then we’ve been on a worldwide paper dollar standard. Quite possibly we are seeing the beginning of the end of that system. If so, tough times are ahead for the United States and the world economy.

Yellen’s Missing Jobs

March 31, 2014

The new Federal Reserve chairman, Janet Yellen, gave a policy speech today at Chicago, where, in a startling gesture, she mentioned three working individuals by name — Jermaine Brownlee, Vicki Lira, and Doreen Poole. They lost their jobs the Great Recession and have been struggling ever since. It was a refreshing, even affecting demarche by Mrs. Yellen, who has made a return to full employment a public priority. She underscored her sincerity by telephoning Mr. Brownlee and Ms. Lira and Ms. Poole before delivering her speech.

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The Rueffian SynthesisJohn D. Mueller

Publisher's Note: Originally released in June/July of 1991, this detailed report discusses Jacques Rueff's economic theories and applies them to modern economic events.

By John D. Mueller

Who Was Jacques Rueff?

... Trained in science and mathematics at the Ecole Polytechnique, Rueff devoted his first theoretical work to showing that the same scientific method applies to “moral” or “social” sciences like economics as to the physical sciences (Des Sciences Physiques aux Sciences Morales, 1922). In both cases, he pointed out, individual acts can be “indeterminate,” but the pattern of large numbers of individual acts can be predicted as a matter of probability. And so in economics no less than physics, as he later wrote, “A scientific theory is considered correct only if it makes forecasting possible.”

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Excerpts From:

by Lewis E. Lehrman

"Forerunners of man lived upon the planet several million years ago. But the unique, modern, social order of man – civilization – emerged only four to five thousand years ago. Historical and archaeological evidence suggests that the institution of money evolved coterminously with civilization. From the standpoint of the 100,000-year history of Homo sapiens, civilization and money are but young and fragile reeds. Today their very existence is threatened by financial disorder."

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Turkey’s Cut-rate Expectations

Kathleen Packard  |  Apr 18, 2014
There is a lot of bad behavior in the global political and monetary world. Much of it comes in countries that should know better. Recep Tayyip Erdogan’s Justice and Development Party (AKP) easily won municipal electons in Turkey but the party’s candidates won far short of the nation’s votes. The Wall...
Hostility toward gold has a long pedigree.  19th century depiction of Pliny the Elder courtesy of the Library of Congress Gaius Plinius Secundus, commonly known as Pliny the Elder, in his The Natural History, Book 33, section 3, writes: Would that gold could have been banished for ever from the earth, accursed by...
Jacques Rueff, a key figure in European economic circles from the 1930s until the 1970s, was, first and foremost, an...
Oct 05, 2012
Key Monetary Writings
Lawrence H. White

Myth 10: Fiat Money is Necessary to Have a Lender of Last Resort

Barry Eichengreen (2011) writes: Under a true gold standard, moreover, the Fed would have little ability to act as a lender...
Prosperity Through Gold
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