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Old 12-05-2012, 02:40 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,053
Financing wars

This is a quote from Ingo Bischoff. He knows way more than me and he states it very clearly.

"We are going to make profound change in this country not because we should but because we will have no choice. There will simply be no more money to finance the kind of insanity that we're engaged in right now, both overseas and at home. We're not going to be able to finance social security, Medicare, Medicaid or the defense establishment in the scale we have in the past."

We have always paid for our wars through a central bank created fiat currency. It was taxation by inflation which paid for the wars.

The War of Independence was paid with the "Continental", a fiat currency created by the Bank of North America chartered by the Continental Congress, and by a fiat U.S. currency created by the First Bank of the U.S. chartered by the Congress in 1791.

The War of 1812 was paid with U.S. fiat currency created by the Second Bank of the U.S. chartered by the U.S. Congress in 1816.

The Civil War was paid with the U.S. Greenback, a fiat currency issued by the U.S. Treasury Department on authorization of the U.S. Congress.

The cost of WW I was paid by inflating the Federal Reserve Note currency by engaging in illegal secondary market sales of U.S. government bonds. When these illegal Open Market Operations caused the collapse of the redeemable Federal Reserve Note in 1933, the Congress created a Federal Reserve central bank as an agency of the U.S. Government in 1935.

The cost of WW II, of the Korean War, the Vietnam War, the Cold War in Europe were all paid through inflation of the irredeemable, legal tender Federal Reserve Note.

After the suspension of the redemption requirement in 1971, the value of the Federal Reserve Note was stabilized when the USD became the world reserve currency used by every country in the world to pay its oil bills.

The first Gulf War, the second Gulf War and to some extent the Afghan War was fought with hyper inflating the Federal Reserve Note through TARP, QE1, QE2... The irony is that the wars in Irag and Afghanistan are actions to maintain the value of the USD by securing the free flow of oil out of the Persian Gulf. However, to try to rescue the value of the Federal Reserve Note is futile.

The only question is how will the value of the FRN collapse... .??? Will it be a slow death, or will it be a sudden death... ???

The preference should be a slow death which will come about by creating a redeemable parallel currency to allow people to rescue at least some of their wealth.

To turn the situation around, the monetary system in this country has to return to the RBD currency under the gold standard as its main currency. This will only happen, if the 16th and 17th amendments are to be repealed.

Once the states have to collect the money to pay for the federal government at the local level, there will not be a bloated U.S. government.

I guarantee it.
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