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#1 In 1913 the Federal Reserve replaced the national bank system, and Federal Reserve notes were issued with a promise to redeem them in gold on demand (at about $35. per ounce). *Parenthesis my entry
Then, in the year 1933, the United States abandoned the gold standard. These were the circumstances:
1.On April 5, 1933, one month after his inauguration, President Franklin D. Roosevelt declared a national emergency and ordered all gold coins, gold bullion, and gold certificates to be turned in to the Federal Reserve banks by May
1. This order applied only to those residing in the United States. It did not apply to foreigners living abroad. Within the United States, only those who had special gold collections or needed the gold for industrial or professional use were allowed to retain quantities of the yellow metal.
2.As gold coins, gold bullion, or gold certificates were turned in, the American people received Federal Reserve notes redeemable in silver.
3.On May 22, 1933, Congress enacted a law (48 Stat. 31) declaring all coin and currencies then in circulation to be legal tender, dollar for dollar, as if they were gold. It also empowered the President to reduce the gold content of the dollar up to 50 percent.
4.On June 5, 1933, Congress enacted a joint resolution (48 Stat. 112) that all gold clauses in contracts were outlawed and no one could legally demand gold in payment for any obligation due him.
The price of an ounce of gold on Friday's market was just over $1707. A circulated Morgan Silver Dollar is worth about $34. From the FDR era until today, the correlation between gov't borrowing and repayment with programmatically devaluated currency is inescapable. All of this might explain the challenge "The Forgotten Man" currently has with..... saving paper dollars (which earn no bank interest) for retirement. With the scheme loaded against us, it really is remarkable we've done as well as we have.
Posted by Besoeker 2012-12-10 03:11||
#2 Fred's right. Tax increases will not solve the debt. The public sector knows that the end is near and will want to do whatever it takes to keep the gravy train going, willfully avoidning thoughts about complete system collapse. Furthermore, it is now apparent that they have no conscience about how much financial damage they are willing to do to private businesses and their workers in order to maintain the magic checks. What happened in Greece is only presaging what is happening here.
How to stop the madness? Ten years of hard work and change.
Pubs cut taxes. Dems raise them. It is the spending where things must change. That means millions losing their jobs and some services being scaled back. We MUST do this and bull through the consequences or we lose it all. Times will be ugly, but the cost of not doing so will be worse.
Deport every illegal alien, decrease the size/cost of the public sector workforce by 40-75% (Charles Murray has been advocating this for years) and have them do those jobs, roll the regulatory burden back to what is was in 1980, and let the prime rate rise to a number that represents the actual cost of borrowing money.
Immediately disband departments of education, EPA, ATFE, NMFS, and TSA and the like at the federal level. If the states or municipalites wish to do those things, let them. Cut other alphabet agencies to a ghost of what they are now.
Pass laws to the effect that public workers belonging to or organizing unions amounts to treason (conspiring against the public interest) and apply the law accordingly.
While this is happening, phase out the home mortgage interest deduction over a ten year period and privatize all student college loans. Also move to a consumption vs a productivity tax. And pass a balanced budget amendment that only allows borrowing in the case of a declared war or natural disaster (a "war" on poverty will not qualify). Simultaneously pass an amendment making it unlawful to pass any law or regulation that is unfunded at the level of the legislature and executive who pass it (no unfunded mandates on states/ municipalities/ businesses/individuals from the feds).
Raise the minimum age for SS to 70 immediately. If lifespan continues to increase, raise it more. When people go on SS, everyone should get what they put in plus interest. When that point is reached, means test every recipient. If they have plenty of assets/ income drop them from SS. If not, continue to pay them what they have been getting but have the honesty to call it what it is at that point - welfare - and fund it accordingly, from the general welfare fund. Make the penalties for trying to cheat this system by misrepresenting or hiding wealth extremely severe. Whatever money is not disbursed to someone because they die before they go on the program or during it before they use up what they put in will be used to administer the program. Revisit the rules for SSI and throw the bums off of the rolls.
We may not be completely fixed at the end of those ten years, but we will be well on our way out of this mess.
Posted by no mo uro 2012-12-10 07:09||
#3 That's SSDI.
Posted by no mo uro 2012-12-10 07:14||
#4 We will not deport the illegal aliens. They are here illegally, to be sure, but we will not deport them.
How could you?
And would you want to live in the kind of country where the federal government, led by Barack Obama, could make that happen?
Not me, thanks.
Posted by Steve White 2012-12-10 08:22||
#5 Some say that if you end welfare for illegals, and free medical (except in immediate life-threatening situations) and education bennies and they will self-deport.
Also go after businesses and individuals hiring them - make it *much* more expensive (in penalties) to hire them.
Posted by CrazyFool 2012-12-10 08:52||
#6 "And would you want to live in the kind of country where the federal government, led by Barack Obama, could make that happen?"
-Yes, I would. As it is his job to uphold the laws of the country. Not just the ones he agrees with. I took an oath of office, he took an oath of office. We could deport many more folks, our leaders lack the will.
In all fairness, I have read that BHO has deported more illegals in the same amount of time vs GWB.
Posted by Broadhead6 2012-12-10 09:22||
#7 Here's a thought. Confiscate the goods owned by illegals to pay for back taxes. The IRS does this to citizens all the time. Do it to 1 out of 500 and the rest will scamper.
Same principal that California applies to businesses.
Posted by Iblis 2012-12-10 09:24||
#8 Please bring the last three years of your United States Federal Income tax returns, copies of your last three months of earnings statements and we will discuss your eligibility to remain in the US.
No can do? No problem, hit the border, scram!
Posted by Besoeker 2012-12-10 09:30||
#9 Under the YJCMTSU - if you wish to marry a foreigner [or sponsor their children and families] and import them to the country you have to sign an agreement, I-864, with the State Dept [the Feds] that you're financially responsible for them and they will not become a 'burden' upon government support.
Yet, if one violates the law and the immigration processes and comes in illegally, you're entitled to exactly those welfare and support programs.
Posted by Procopius2k 2012-12-10 09:51||
#10 That's 100% true Proc. I had to do it when I brought over my Fiancee. And I believe its for 10 years (40 quarters) after they become self-sufficient.
And if they go on welfare or any un-earned support - the feds can come after their sponsor for repayment.
Yet the illegals get free medical, free education, in-state tuition, welfare and SSI for nothing. On and under Obumbles nothing prevents them from voting themselves more of the same.
We. Are. So. Screwed!
Posted by CrazyFool 2012-12-10 10:36||
#11 It costs a lot to make a democrat CF.
Posted by Besoeker 2012-12-10 11:59||
#12 #4 We will not deport the illegal aliens. They are here illegally, to be sure, but we will not deport them.
How could you?
Simple: any employer that cannot prove his working is a citizen is fined $100K. start by checking hotels, food chains, construction companies. As the jobs dry up the illegals will deport themselves. and by the way as the jobs open up US unemployment will go down as folks are moved off the 99 week program.
Posted by airandee 2012-12-10 12:35||
#13 Oh. Wait. We're already there. I mean until a $3.69 hamburger costs $15.95.
Keep going Fred. Don't let imagination let you down. Think Wiemar or Zimbabwe.
Posted by tipper 2012-12-10 13:20||
#14 Meh, Peek Oilz and Global Warming will kill us anyway. Why worry?
However, I look for the Singularity and the Rise of the Machines. This is why I always change the oil regular and keep the HD defragmented.
Posted by Shipman 2012-12-10 16:39||
#15 How could you?
Easy. Put 'em on a bus. Put 'em on a plane. Put 'em on a slow boat. Just get 'em the hell outta here before they take over the government. Oh, wait...in California they already have. Too late.
Posted by Ebbang Uluque6305 2012-12-10 18:15||
#16 Under OWG + proposed NAU, etc. related, IFF ANYTHING TO EMPOWER THE SAME IMO THE US JUST-UNDER-$16.4 TRILYUHN MUST UNFORTUNATELY GROW HIGHER, NOT LOWER.
INTER-STATE protractive, common = shared chaos + mutual survival, just in case one or a number of sovereign nations don't want to voluntarily give up their state-specific sovereign power-n-authority to the desired future OWG + "Global Federal Unions".
THERE IS LITTLE TO NO SIGN THAT THE US + INTERNATIONAL COMMUNIY ARE N-O-T WORKING OR PUSHING TOWARDS OWG = GLOBAL GOVERNANCE INCLUDING REGIONAL OR TRANS-REGIONAL "UNIONS".
The Pols can deny, whitewash, or spin things all they want, but they're not fooling anyone.
Posted by JosephMendiola 2012-12-10 20:19||