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A Historic Day For America’s Economic Collapse

June 5, 2012 by  

A Historic Day For America’s Economic Collapse
PHOTOS.COM
Roosevelt signed the Gold Standard Act on June 5, 1933.

Today is one of great historical importance for anyone who is interested in the ongoing economic collapse of the United States.

On June 5, 1933, the United States Congress and President Franklin Delano Roosevelt unConstitutionally abrogated the use of gold for the payment of public and private debts while simultaneously bailing out the Federal Reserve and forever enslaving the American people to its inflationary economic policy.

The Federal Reserve Act of 1913 set up the Federal Reserve System to supervise the economy that had become highly elastic, and thereby easily manipulated, in the years following the United States’ industrial revolution. Next came “The Roaring 20s” a period marked by easy credit and economic expansion fueled by the Fed’s ability to print money at will. By 1933 the Keynesian-fueled boom had already caused the stock market crash of 1929 and Americans’ faith in their economy was lost.

Roosevelt’s answer to the economic problem brought on by the Keynesian carelessness of the era’s economic policymakers was to put ultimate control into the hands of those who had created the problem in the first place: The Federal Reserve. Fearing a gold-run and knowing that neither the U.S. Treasury nor the Federal Reserve had the gold to back the notes that had been issued, Roosevelt signed the Gold Standard Act on June 5, 1933. For the first time the Fed was in control of how much fiat money it was able to produce without short-term consequence. This also gave Roosevelt the ability to kick off his New Deal programs which would require billions in deficit spending by the Federal government.

Today, the implications of Roosevelt’s actions are clear. Last year an Audit of the Fed revealed that it secretly handed out more than $16 trillion to U.S. banks and corporations without the knowledge of the American people. And the Federal Government spends in ways that many people consider to be reckless on “stimulus” and green energy initiatives, continually weakening the dollar’s power.

But, economists such as The New York Times’ constant Keynesian Paul Krugman say it is no big deal. Defending government spending on the failed solar firm Solyndra, he said, “[W]e’re talking as if a billion dollars was a lot of money. In $15 trillion economy, it’s not. Solyndra was a mistake as part of a long program, which has been by and large, it had a good track record—of course you’re going to find a mistake.”

Sam Rolley

Staff writer Sam Rolley began a career in journalism working for a small town newspaper while seeking a B.A. in English. After learning about many of the biases present in most modern newsrooms, Rolley became determined to find a position in journalism that would allow him to combat the unsavory image that the news industry has gained. He is dedicated to seeking the truth and exposing the lies disseminated by the mainstream media at the behest of their corporate masters, special interest groups and information gatekeepers.

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  • Warrior

    Come Nov 7th, krugman will be in a straight jacket along with the rest of the “progressive ilk”. Are there special shrinks for keynesian economists?

    • Sirian

      Shrinks for Keynesian economists? By all means Warrior and there’s a very high concentration of them in Washington D. C. HA, Krugman would probably make a very good receptionist for them.

      • http://Bud12 Ed

        Krugman would not make a good receptionist. His mannerisms and lack of common sense would prevent him from a successful job.

  • http://www.cindynel.co.za peter

    Of course a billion dollars is not a lot of money, just so long as it’s not yours! Economists are used to playing the cards both ways, never ever able to say it as it is, because vthey don’t really know, they just get highly paid for opinions that are usually wrong anyway. Any educated guess is still just a guess. Just what is a big deal to these guys anyway, besides their own ego’s? When voters are so lame, they are easily misled and fall victim to the garbage espoused by the so called learned, whose ultimate aims and agenda’s should also be questioned. When we all give up questioning the actions and decisions of the elite and powerful, we are become useless and subsequently victims of our own lethargy and malaise. By placing our ( blind ) faith in any one person is fraught with danger and ultimately reveals our inability to think for ourselves. If that is what we have become, then we deserve the trouble we have found ourselves in. The question is ‘ are we happy about that or do we plan to do something about it?’ Maybe it is time for the dirty pot to be cleaned!

  • GALT

    Hey, Sam…..what truth are you seeking today?

    Keynesian Economics is based on his book, The General Theory of Employment, Interest and Money which was published in Feb. 1936……………….he was also based in Britain,
    which was not booming………and he had nothing to do with what was happening in the United States……..and if he had done anything at all, before 1936 that was notable, it was the warning that the conditions of the Treaty of Versailles were too harsh and problematic,
    which was unheeded. He also managed to go broke as an investor……..

    Nor did the Federal Reserve create the problem which caused the crash, this was done
    by the same people who did it this time for the same reason………..the particulars here
    are fairly simple math…..when you can purchase a stock with a 10% margin, this is an effective inflation rate of 900%, an since the stock price is determined by market perception, it has no connection to any actual underlying value, profits or assets of the company………which adds a multiplier effect to the 900%.

    Finally, since the U.S. was the only economy that was offering any significant return on investment…….all the available capital in the world, sought these returns……..so add another multiplier………

    Actual fiat money did not come into effect until the 1960′s, when Federal Reserve Notes
    became legal tender, an were no longer redeemable in “lawful money”…….

    Keynesian Theory was a response to, not the cause of the depression…….or the crash.

    Hey what do the facts matter or the truth, when you can tell people what they want to hear
    based on what they think they know……or what you think you know?

    That Roosevelt DID confiscate gold is true……..

    • Professor

      @GALT: You are spot on!!! As I was reading Sam’s piece, I was thinking “the man has never taken a class in economics, and if he did, he didn’t comprehend the material”. Then I read his bio, and I came to the same thought you did. What “truth” is he seeking with his journalism degree??? But I have realized long ago, this “newsletter” is full of “facts” which are nothing more than opinions, and distorted opinions, at that. Ringer is probably the worst, followed by Crystal, and then followed by all the blind mice that contribute with their posts.

      • He Who Cares

        Prof, No doubt you think of yourself as a professor, or even worse, you are in charge of shaping young minds. God help us all. The current administration is using what type of economics? I’m sure they took a class on economics too, just like you. Let’s spend a few more billion (of OPM) on some other failing business. Gotta pay of those donors!!

      • GALT

        Actually Crystal surprised me last week for the first time…….he wrote a piece about
        people who would seek to be “president” and what would be the motivation for it, pointing out that anyone actually wanting the job…….would by that fact alone, be cause for serious concern………it is not an original thought as it has been raised by others, but it may, for him, be the pinnacle of his writing “career”?

      • GALT

        Or it could have been ringer…….hard to sort through the babble, and this is Livingston’s site…….they never respond to you…….but it is interesting to figure out what the game is, for them……….as in $$$$$$$$$$$$$…….for me what is most ironic about the ‘rabid” followers is that they have nothing in common with any of these people………except maybe the IDEA ‘collapse/survivalist” thing……….most of the associated people……are involved in profiting from this impending doom…………which doesn’t make any sense, because if it actually happens…….none of that will matter.

        They are being sold a bill of goods……..or that’s at least the intent…….strangely I am not sensing a strong customer base here…..except for lapping up the rhetoric.

    • Mark Denton

      Funny, my history shows that Executive Order 6102 banned personal hoarding of gold and actually increased the value of the dollar in gold terms. The Gold Standard was abandoned in 1971 under Richard Nixon.

      As for the random reference to Solyndra, I know conservatives cheer that China used “dumping policies” to sell at below cost to eliminate competition, but for the rest of us Americans, that’s not a cheering moment.

  • He Who Cares

    GALT, are you a “keynesian”? If so, please change your name to Mooch or some such other more fitting name.(please). So sorry to be a pain, but if you will read “Atlas Shrugged” you’ll understand. Much Thanks

    • GALT

      Do you know what a “fact” is?

      Do you understand that in order for you to cite something as a cause of something else, the CAUSE has to happen BEFORE the effect?

      Do you understand that what happened in 1936 can not be claimed to be the cause of what happened in 1929? That Keynesian Theory had not one bit of influence over the actions of Roosevelt or anyone else, because it did not exist when those events took place?

      And that reading Atlas Shrugged will not alter these facts?

      Pointing these facts out doesn’t make me anything, except to demonstrate that I am aware of them.

      So if you have a problem, it should be with old “truth telling” Sam who doesn’t seem to actually know what the truth is?

      Now if you have a problem with Keynesian Theory, I am sure you can find a source which will provide you with what you need……..and a clue here would be that it was published after 1936……….although, it does take an effect a while to work through the system, for example, after the repeal of Glass Steagal, it took until 2007 to crash the world economy. and these effects have not subsided.

      BTW did you know that Nazi Germany attacked Poland in 1939, in September……
      be careful who you tell if you do know…….especially people like yourself, as they will probably think you are a Nazi.

    • GALT

      Oh, and you are not a pain…….those who are ignorant can be educated……..it is the “willfully ignorant” that are more of a concern……..not a serious one, of course, since they aren’t going to actually DO anything…….except to come to places like this, seeking what they want to hear, and to complain and wait for someone else to save them.

      As and Ayn Rand fan, you must tell me, in which of the works that you have read, by her,
      were her heroes/ protagonists…… investment bankers, stock brokers or hedge fund managers?

  • http://gravatar.com/rachal44 rachal44

    Speaking of “personal liberty” a previous Democratic Userper and “Commander in Chief of Shredding our Glorious and Perfect Constitution” see following links:

    A Historic Day For America’s Economic Collapse
    http://personalliberty.com/2012/06/05/a-historic-day-for-americas-economic-collapse/?eiid=

    Roosevelt termed the Japanese Surprise attack on Pearl Harbor as a “Day of Infamy”, a phrase also perfectly suited for June 5, 1933.
    On June 5, 1933, the United States Congress and President Franklin Delano Roosevelt unConstitutionally abrogated the use of gold for the payment of public and private debts while simultaneously bailing out the Federal Reserve and forever enslaving the American people to its inflationary economic policy.
    The Federal Reserve Act of 1913 set up the Federal Reserve System to supervise the economy that had become highly elastic, and thereby easily manipulated, in the years following the United States’ industrial revolution. Next came “The Roaring 20s” a period marked by easy credit and economic expansion fueled by the Fed’s ability to print money at will. By 1933 the Keynesian-fueled boom had already caused the stock market crash of 1929 and Americans’ faith in their economy was lost.
    Roosevelt’s answer to the economic problem brought on by the Keynesian carelessness of the era’s economic policymakers was to put ultimate control into the hands of those who had created the problem in the first place: The Federal Reserve. Fearing a gold-run and knowing that neither the U.S. Treasury nor the Federal Reserve had the gold to back the notes that had been issued, Roosevelt signed the Gold Standard Act on June 5, 1933. For the first time the Fed was in control of how much fiat money it was able to produce without short-term consequence. This also gave Roosevelt the ability to kick off his New Deal programs which would require billions in deficit spending by the Federal government.
    Today, the implications of Roosevelt’s actions are clear. Last year an Audit of the Fed revealed that it secretly handed out more than $16 trillion to U.S. banks and corporations without the knowledge of the American people. And the Federal Government spends in ways that many people consider to be reckless on “stimulus” and green energy initiatives, continually weakening the dollar’s power.
    But, economists such as The New York Times’ constant Keynesian Paul Krugman say it is no big deal. Defending government spending on the failed solar firm Solyndra, he said, “[W]e’re talking as if a billion dollars was a lot of money. In $15 trillion economy, it’s not. Solyndra was a mistake as part of a long program, which has been by and large, it had a good track record—of course you’re going to find a mistake.”
    _____________________________________________________
    More Deceitful Tyranny
    http://personalliberty.com/2012/06/05/trump-blasts-mainstream-media-questions-obamas-birth-certificate/?eiid=

    Springsteen favored to write new US anthem: poll
    http://news.yahoo.com/springsteen-favored-write-us-anthem-poll-215026210.html
    • 0users disliked this comment
    chris r • a second agoRemove
    WHO VOTED FOR THIS??? JUST LEAVE OUR NATIONAL ANTHEM ALONE. “We The People” of this God-Given Republic have not exercised our Constitutional Right to Vote on this tragic attack on or proud heritage. Take your Commie Philosophy somewhere else!!!!!!
    Reply

  • Steve E

    The money problems will persist until gold and silver become legal tender again. It will come back after the inevitable collapse of fiat money.

    • GALT

      But they are legal tender now……..$1. silver coins, and Gold Coins from $10 thru $50.

      They were also legal tender in 1929, along with gold and silver certificates…..

      Federal Reserve Notes were redeemable in “lawful money” until 1955…..

      There is also by law, and official price of gold and silver coins……the $50 legal tender gold piece is not an accident…….

      So did you have a point?

    • http://wildeyguns.com Wildey

      It’s already collapsed only we’ve got the guns to keep it where it is. Where’s the line between assets and liablities?

  • Hey you

    Actually, Keynes has been misinterpreted. From my understanding, Keynes prescribed deficit spending when conditions warranted it – - as differentiated from relying on it as a continuing policy – - or as an aid to implementing political excesses.

    Anyway, what is so bad about Franklin Roosevelt? The USA government built a memorial to him and his likeness is on a non-silver 10 cent piece.

  • oldbutnotadumbass 2012

    I’ll agree with that!!!!

  • oldbutnotadumbass 2012

    My comment was directed to Steve E. “Hey you ” that ten cent Dime ,once had 2.25 grams of silver in it until 1965(which ,by the way,is worth about $2.10 in todays money!!The Mim.wage in 1958 was $1.25,I was there ,I know.So ,my point is,by doing a little math(first Grade)I would be making about $13.75 !!.The Min.wage today is a little over $8. So who is really getting screwed here?

  • http://orples.wordpress.com orples

    I re-blogged your post, Sam. Everyone needs to be aware of how the Federal Reserve, in cahoots with our Government, operates. Hopefully people will circle back to you and enlighten themselves, if they are not already aware of how badly this Nation is being screwed.

    • http://wildeyguns.com Wildey

      The Federal Reserve is a private organization. Don’t believe that? When any government agency sends mail it comes with government seal. Get mail from the Federal Reserve and it comes with a stamp like, the rest of us.

      • http://orples.wordpress.com orples

        I know the deal with the Fed, Wildey. Thank you though, for pointing out the facts. I re-blogged this article so others, who are not aware of the role that the Fed plays in the demise of our economy, might learn the truth. JFK tried to expose them, and even offered us an alternate currency (The silver certificate) to compete with ‘the Federal Reserve Note’. Look where it got him. And Ron Paul has been pointing a finger at the Fed for about 30 years now. People are just now beginning to listen. Had it not been for Dr. Paul’s unwavering persistence all of those years, we’d have never gotten that partial audit last summer. Can you imagine what a full blown audit for reveal? Knowledge is power. The people have been kept in the dark for too long. It’s time for the truth.

  • http://www.facebook.com/ron.willison.5 Ron Willison

    I declare all US debt NULL and VOID. Let Bernanke and ASSociates pay off all the foreign debt with Federal Reserve Notes. Had Congress been doing their jobs and managing our money. They could have cut a check for 50.000.00 to every US citizen. And that would have saved the Banks by jump starting the economy. Instead the FED bailed out the banks and that has failed. The FED was and still is a FRAUD and ongoing criminal activity. RON PAUL 2012 ONLY

    • http://wildeyguns.com Wildey

      What your calling money is Notes that you owe for Federal Reserve “Notes”. Legtimate money is a commodity, gold. silver whatever. Legitimate pieces of paper, receipts, would be redeemable for said commodity anytime you want. There are NO commodities backing the paper we carry. Stalin said: “Kill one man it’s murder. Kill a hundred thousand and they’re statistics. The enormity of the crime FDR pulled off making the people surrender their commodity, asset, for a piece of paper has got to be called a statistic.

      FDR went to the gates of hell to gain entrance. Satan, after looking at his credentials, said to him; get out of here, if I let you in, they’ll kick me out.

  • chuckb

    let’s get down to the real cause, november 2007 is when the real problem started, the house and senate taken over by the bolsheviks with a patronizing republican president, then in november 2008 the last nail was hammered in the coffin, the dear leader barry soetoro was elected to finish off the america we knew.

  • http://wildeyguns.com Wildey

    Until then, the money the people owned was a commodity, asset, that the people owned. The paper we exchange was nothing more than receipts for a commodity, gold or silver, we could get at anytime. The Federal Reserve in collusion with the government pulled the largest robbery the world has ever seen. It took the people’s assets and handed them paper

    • GALT

      So don’t take the paper. and don’t use the paper? I am a bit curious though, don’t you think it strange that the people selling the gold are quite willing to take the paper?

    • AZMarc

      “It took the people’s assets and handed them paper” I go to work. For my labors my employer gives me something which the grocer accepts as payment so that I can feed my family, the utility company accepts as payment so that I have running water, etc. I don’t care what you call it, it’s “money”. Pretty rocks from one caveman to another in exchange was “money”. Parsing words is just wasting time and diverting us from the issue at hand which is whether the financial policies of the government will cause an economic collapse.

  • http://www.survivingurbancrisis.com/ Silas Longshot

    Apparently the liberal mind can’t grasp the concept of piles of zeros after a digit on the bottom line of the budget. Solyndra was a ‘mistake’? Yeah, just a little…..payoff to your mega-rich democrat party donor pals. But whatdahell, it’s only taxpayer money, plenty more where that came from, eh?

    Click the name.

    • AZMarc

      Solyndra wasn’t the only or the largest “mistake”. It gets frustrating watching our government trying to bankrupt the country but downright disheartening when you think that half or more of our countrymen are buying into the dribble.

      • http://twitter.com/ericbischoff Eric Bischoff (@ericbischoff)

        Solyndra is a $300 Million loss on $38 Billion in loan guarantees that the govt is involved in with clean alternative renewable energy initiatives. Once again the Obama haters are using anything they can get their hands on. 9 other companies are doing well. Isn’t that what venture capital is about. Some winners and some losers. Maybe if congress wasn’t bought up by the banksters, the oil, gas coal and nuclear industry then they might do things to insure the success of this initiative instead of doing everything to insure it fails.

        I am more upset with the billions going towards funding nuclear reactors in the south. What a moronic decision that is. The banks would never fund this and the insurance industry wouldn’t insure it. I wonder why?

        I amalso more upset with the billions in subsidies going the corn and high fructose corn syrup which is responsible for many problems including subsidizing the cheap fast food industry. Talk about stupid investments.

    • GALT

      I can’t speak for the liberals but as an intelligent person I can see difference between
      $500, 000, 000 and $78,000,000,000,000 so if danger lies in the number of zero’s, then to be consistent with your logic, the latter number looks much more dangerous.

      Just in case you’re curious, that is the existing number of existing unregulated derivative
      financial instruments that are floating around out there in what is essentially a totally free market, whose value is totally reliant on the FAITH people have in them. ( and whose imaginary profits and well as the fees have already been extracted )

      There is a recent Frontline special on PBS which covers Corzine and Global MGMT, whereby using derivatives, they were allowed by the rules, to claim profits, which had not been realized…..which make them look solvent, prevented a ratings downgrade, and sucked in more money………

      Solyndra by comparison was a short term blip, which is simply one of the loopholes
      available to those who secure government loans……..the failure was due entirely to market forces……but the problem is……why were investors allowed to take the government money, in exchange for equity?

      Solving problems requires understanding what the problem is…….that Solyndra failed is not the problem……but the failure should have involved everybody’s money, and the loan
      should have been structured in exactly that way…….

      Just curious but what kind of mind are you claiming to represent?

  • http://twitter.com/ericbischoff Eric Bischoff (@ericbischoff)

    Here’s a great little video where 12-year old Victoria Grant explains why her homeland, Canada, and most of the world, is in debt. April 27, 2012 at the Public Banking in America Conference, Philadelphia. http://youtu.be/Bx5Sc3vWefE

  • SoCo Gal

    In pre-Nazi Germany, when inflation went CRAZY, they BURNED paper money to keep warm.

    Next up – US Dollar in your fireplace when you can’t buy propane, natural gas or electricity

  • oldbutnotadumbass 2012

    Things Don’t look that great,does it!!!!

  • The Golden Rule

    The one that owns the gold, owns you and makes the rules. ie rothschild.

  • Peter

    I so hate that my birthday has been so besmirched like this!
    On the plus side, it’s also world environment day!

  • Raymond Carl Hardie

    I appreciate the fact that we here in America have this freedom of press and the freedom of conscience to speak our mind and either agree or disagree with any information that is disseminated. Benjamin Franklin was right when he said the power of the pen was mightier than the sword, for words have the unique ability to stir feelings in the souls of mankind, love, hate, anger, compassion, the list is endless of what well written or well orchestrated ideas and opinions can arouse in the hearts of those who hear them! Having said that, it does us all well to “glean the fields of journalism and seek the facts for truths sake”. While I do see some truth in this article concerning government policies in our economics which have not bode well over time, yet it is a fact that both Republicans as well as Democrats have in many cases of legislation shook hands with the devil in passing some laws, and in denying the passage of others, but that assessment on my part is based on the information on hand to me and tempered by the physical realities of what I see first hand in everyday life, I thereby make my decisions and opinions. It does us all well to prepare for the worst, and hope for the best in every situation. It grieves me that many of our elected officials once in public office, turn to “think-tanks”, and lobbyists, for guidance in drafting legislation to control or manage some aspect of corporate America which has shown failure of integrity toward the people, but the very system we seek to rightly have oversight of, are the same lobbyists and think-tanks who are drafting the legislation. How absurd is that! Ignorance has gone to seed in Washington and many State and local governments. Let us not fight among our selves, lets come together and use this free press to find truth and openly report it no matter what the consequence. As long as “We the People” are divided, nothing will change in our Government. While I do believe there are some facts that bear out the corruption in our government, I also believe there is good to be found and written about if we look for it.You are welcome to my time, and I thank you for yours.

  • Pingback: 17 Reasons To Be EXTREMELY Concerned About The Second Half Of 2012 « The Jeenyus Corner

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