There was a time in this country when those who advocated a Fiat Monetary Standard

were considered certifiable crackpots, monetary quacks and dangerous

interventionists set on domination of both the political and economic processes in
this country, the roles have been reversed and those who advocate sound money are
assigned such epitaphs of derision. Fortunately, that will change and at this
point in time, change rather rapidly as the true nature and inherent problems of
fiat money become evident to the people themselves.

At one time, Classical Liberalism promoted the ideals found within the principles
of a sound monetary unit that not only provided stability economically, but also
provided for the spread of real prosperity and liberty. The cornerstone of
Classical Liberalism was private property rights and the cornerstone of all
private property rights was, and is sound money, money that is actual real
property, solely owned by the individual who labored either by the sweat of his
brow or the sharpness of his creative mind. Such money was not owned or controlled
in any significant way by government except in trust through the regulation and
verification of the fineness of coinage in purity, weight and measure. Otherwise,
money was the property of the individual, or legal corporation, just as any other
property of which legal title may be held.

Along with the ideal of private property rights, Classical Liberalism, which could
just as easily be called Jeffersonian Liberalism, promoted a confidence in the
market economy, as free as possible from all interventions, especially from the
government. They held, and still hold that private property rights, in all
aspects, provides for the best means of production and distribution of prosperity
within society with a system of economic organization organic in both concept and
operation. It was, and is, the best system to secure the broadest means of
prosperity and individual protection within a society for it assigns the
individual consumer the power to choose which producers provide the best quality
at the lowest possible price for the consumer's needs and desires. The principles
of sound money and free, unencumbered markets were just some of the foundation
stones that help create this wonderful and I might add, successful experiment in
the broadest spectrum of individual freedom and liberty the world had experienced:
These united States of America under an mutually agreed Constitutional Compact
between the people and their government.

The Founders of our country realized that the main challenge facing such a liberal
system of government and society was how to control the only real danger that
would ever face the country, the government itself. The goal of the Founders was
to institute a government so cumbersome, so divided in function and authority that
all power would be distributed between the general government and the independent
State Republics; the best description could be called a Republic of Republics,
functioning in a cooperative compact. Then, of course, they implemented further
divisions within the general government itself, once again dividing function and
authority to ensure that power could not easily be concentrated or consolidated.

In essence, the general federal government was simply a reflection of the will of
the people through the agency of their respective State Republics. So, the main
problem, in the minds of the Founders, was how to prevent those who are entrusted
to govern by consent from becoming despots, endangering and enslaving the
citizenry in their stewardship. The layers of defense for individual liberty was
obviously the primary goal in the institution of our system of governments and the
focus of each layer of defense was the broadest application of individual freedom
and liberty possible within such a system. What an absolute shame that we have
allowed ourselves and our country to devolve far from such a very workable, very
efficient ideal.

Today, there are few who seem to realize or understand that within all the
defenses for individual freedom and liberty laid out by the Founders, was the
principle of sound money. It is absolutely impossible to understand the full
meaning and import of sound money without understanding that one of the primary
purposes of sound money is the protection of individual freedoms and liberty,
private property rights, as well as a protection against government intrusion.
Sound money is politically and ideologically in the same strata as our
Constitution and our Bill of Rights, and it is just as important to our freedom
and liberty. It was, and should be considered, the most essential restraint upon
arbitrary government expansion and the potential for unbridled consolidation of
power.

The principle of Sound money has a dual purpose, one positive, one negative; in
the positive aspect it provided for the greatest degree of individual freedom and
liberty while providing for the broadest spectrum of free market choices. On the
negative side, its aspect was one of governmental restraint, an abutment of
reckless expansion, potentially dangerous debt aggregation and of course eventual
despotism. In such a system, only actual coinage was to be considered loose legal-
tender, all tokens, scripts and types of "paper-money" were to only represent the
real money and only served as fiduciary mediums, which upon demand of the holder,
were completely redeemable in lawful real money. "Real money", it definitely has a
wonderful ring to it, doesn't it?

I wonder how many in our government, or in the Federal Reserve for that matter,
finds the term "Fiat Money" as oxymoronic as I do? Money, by definition, is a
store of value; fiat, by definition is simply a decree without intrinsic value.
Fiat money is an impostor, giving the impression of value without retaining a
store of value as a medium of exchange. With the dedicated assistance of the
Federal Reserve, this country is in now in a state of irreversible collapse,
technically bankrupt for several years, it will absolutely be unable to climb out
of the horrible pit these criminals, both in the Federal Reserve and the
government, have share in taking this country to the precipice of disaster and
they are still pushing.

"... the U.S. government has a technology, called a printing press (or, today, its
electronic equivalent), that allows it to produce as many U.S. dollars as it
wishes at essentially no cost. By increasing the number of U.S. dollars in
circulation, or even by credibly threatening to do so, the U.S. government can
also reduce the value of a dollar in terms of goods and services, which is
equivalent to raising the prices in dollars of those goods and services. We
conclude that, under a paper-money system, a determined government can always
generate higher spending and hence positive inflation." –Ben Bernanke 2002

Today, we are so far-removed from the concepts of sound money that it is totally
foreign to our understanding; we have been convinced that the only monetary system
that is acceptable or applicable is the one we current have imposed upon us and
that is the fiat monetary system. Sound money is an alien concept, so much so that
we don't realize just what we are missing, it doesn't enter our minds, for the
most part we are totally unaware of the benefits of a sound monetary system. Of
course, a fiat monetary system requires ignorance, equalized with confidence, in
the general population to function properly, without widespread ignorance or
confidence, the system fails, as we will see.

The fiat system not only relies upon widespread ignorance and misplaced
confidence, but it also relies heavily upon government intervention and
regulation. A sound money system, on the other hand, doesn't rely upon such
numerous variables in order to function; actually it is extremely simply and
straightforward in both functionality and application. A sound money system can
easily operate independently of all government policies and the pressures of
political intrigues, including very divisive party politics. Such a system also
helps to prevent government officials, and representative assemblies, from using
various tricks to elude their budgetary and fiscal responsibilities to the people
and the country.

Since the rather subversive introduction of the fiat monetary system in this
country, there has been little room for the consideration of a sound monetary
system. The proponents of the fiat system have for the most part, effectively
exiled it from economics and serious monetary studies for good reason, for it
poses the greatest danger to the fiat system and those who enormously benefit from
that system. The various proponents and schools of economic thought have yet to
consider the precarious position they are in because they have failed, utterly
failed to contemplate that all their theories are based upon a monetary system
inherently doomed to failure. Such a foundational flaw will always ultimately
distort all conclusions associated with it, especially when the flaw is not
considered to exist. Today, our country is fraught with what could only be
considered "Crypto-Despots", eager to maintain their position as well as their
power, the prime impetus of which has been the introduction of a system of fiat
money for it provides them with medium of control over society that they crave.

So, there are few questions asked and the questions that arise are based upon
incomplete assumptions because the foundational structure of the economy is
completely based upon a system that contains two divergent fault lines, which
will, in time converge in disaster. The first fault line consist of the inherent
terminal life span of all fiat monetary systems due to the systemic inflationary
depreciation, the second fault line consist of requirement of absolute widespread
public confidence in fiat money itself.

Eventually, these two fault lines converge and the system collapses. Such
collapses are not preventable any more than the system itself is sustainable
without massive government and central banking interventions. The system lends
itself to those who require the benefits of inflationism, this trait, of course,
is welcomed and enhanced by both government and central bankers who are all too
eager to utilize such a trait to their best advantage. What need is there to
operate within budgets, to maintain expenditures by within tax revenues since,
according the a former Chairman of the Federal Reserve of New York: "taxes for
revenue are obsolete", and indeed they are obsolete within a fiat monetary system.
I have found that the full import of that statement has yet to be realized,
especially within the minds of the majority of economists and their feeble schools
of economic theory fashioned around the fiat monetary system, a system that is
inherently flawed.

Eventually, of course, the people, the economists and the politicians will become
painfully aware of just how flawed the fiat monetary system really is as the very
harsh reality rises into view, affecting everything and everyone within this
country. Like all fiat monetary systems, ours is destined to go through the same
stages of failure as all others before it, and our economy will, at that moment,
collapse under the inflationary pressures of an enormous expanding government.

Inflation is an easy tool in the hands of the government as long as they can
maintain it at gradual incremental increases over long periods of time, but the
moment a rapid increase occurs, the ruse becomes far more difficult to maintain.
In the first stage, the people will begin to witness the rapid increase in prices
for both goods and services. While at that point they simply believe the
government when it states that commodity prices are rising for various reasons;
the government of course, always has a plethora of reasons on hand to justify such
price increases, all in the hope of maintaining the charade.
At this stage, there will be a few people who actually realize just what is going
on in the economy, but unfortunately the majority will remain true to their
conditioning and while they may gripe, will not question the true cause of their
financial pain or the culprit behind it. The majority will continue living their
daily routines as though the inconveniences of higher prices will be a passing
phenomena, continuing to misplace their trust in a government that was in on the
damnable ruse from the beginning as it shifts all blame to something or someone
other than itself.

While, at this stage, people may wish to make certain purchases, they think that
prices will eventually retreat so they put off the purchases in the short-term
until a later date. This common attitude is relatively short lived because as
prices continue to rise, at unprecedented levels over longer, consistent periods
of time, people will begin to think that because prices are so high that they will
then put off a purchase for a year or two, perhaps then prices will once again
subside to more normal and manageable levels for their income. The last stage
abruptly hits and the entire system then faces catastrophic collapse when the
people begin to think that they had better make a purchase, any purchase
immediately because they realize that the purchasing power of their fiat money is
rapidly loosing its value of exchange.

So, the people, in a panic, will withdraw, if they are allowed, their bank
deposits, cash in their stocks, redeem any bonds for cash to exchange for
commodities or merchandise they feel will retain value even if they have no real
needs for the commodities or merchandise they are buying. As the panic spreads,
shortages being to take shape, manufacturing slows to a halt, unemployment
skyrockets, and public services breakdown and in the last stages chaos ensues. The
government seeks to assert itself, but to no avail for even the government under
these circumstances, in this present age will prove to be as impotent as the fiat
money they so ardently promoted, to solve the problems faced by the country and
the people.

While it is easy to see the conclusion of such a system as a failure, the truth of
the matter is that entire system, and the polices created to sustain it, were
failures from the beginning. The purpose of the system is not, nor has it ever
been throughout history, for the benefit of the people; its sole purpose is to
provide the government with unlimited, unrestrained finance and the central
bankers with an incredible profit machine without much oversight or regulation to
impede their government authorized monopoly.

So, the system of government and central banking fiat money, dependent upon
intentional deception of the population to remain viable comes to an abrupt end,
it is no longer a manageable system of exchange, nor will it provide the
government with a free financial reign. There are no solutions to the problems
inherent within our government's fiat monetary regime even though the government
economists continue to heap unabashed praise on both the system and the polices
required to maintain it, that will become more and more difficult as the system
reaches its terminal point.

Historically, fiat inflation was realistically deemed extremely dangerous to the

economic, social and political safety of a country, but as usual, the temptation
for the unleashed power and the ability to use the fiat system to convert the
labor of a population to unlimited wealth for those in charge of the money has
always proven far too great to resist. Of course, the campaign to demonize sound
money has been unrelenting, primarily from those who benefit the most from the
fiat monetary system, and those who have been duped into believing it was the
source of all economic troubles prior to the advent of the Federal Reserve System,
of course, it wasn't. Those pro-inflationist, those fiat-philanderers have vowed
to forever prevent sound money from raising its head in this and other countries
again, but their faith will be shaken soon enough.

In Liberty and Eternal Vigilance,

Republicae