“We were not foolish enough to try to make a currency [backed by] gold of which we had none, but for every mark that was issued we required the equivalent of a mark’s worth of work done or goods produced. . . .we laugh at the time our national financiers held the view that the value of a currency is regulated by the gold and securities lying in the vaults of a state bank.”
- Adolf Hitler, quoted in “Hitler’s Monetary System,” www.rense.com, citing C. C. Veith, Citadels of
Chaos (Meador, 1949)
Guernsey wasn’t the only government to solve its infrastructure problems by issuing its own money. (See E. Brown, “Waking Up on a Minnesota Bridge,” www.webofdebt.com/articles/infrastructure-crisis.php, August 4, 2007.) A more notorious model is found in post-World War I Germany. When Hitler came to power, the country was completely, hopelessly broke. The Treaty of Versailles had imposed crushing reparations payments on the German people, who were expected to reimburse the costs of the war for all participants — costs totaling three times the value of all the property in the country. Speculation in the German mark had caused it to plummet, precipitating one of the worst runaway inflations in modern times. At its peak, a wheelbarrow full of 100 billion-mark banknotes could not buy a loaf of bread. The national treasury was empty, and huge numbers of homes and farms had been lost to the banks and speculators. People were living in hovels and starving. Nothing quite like it had ever happened before – the total destruction of the national currency, wiping out people’s savings, their businesses, and the economy generally. Making matters worse, at the end of the decade global depression hit. Germany had no choice but to succumb to debt slavery to international lenders.
Or so it seemed. Hitler and the National Socialists, who came to power in 1933, thwarted the international banking cartel by issuing their own money. In this they took their cue from Abraham Lincoln, who funded the American Civil War with government-issued paper money called “Greenbacks.” Hitler began his national credit program by devising a plan of public works. Projects earmarked for funding included flood control, repair of public buildings and private residences, and construction of new buildings, roads, bridges, canals, and port facilities. The projected cost of the various programs was fixed at one billion units of the national currency. One billion non-inflationary bills of exchange, called Labor Treasury Certificates, were then issued against this cost. Millions of people were put to work on these projects, and the workers were paid with the Treasury Certificates. This government-issued money wasn’t backed by gold, but it was backed by something of real value. It was essentially a receipt for labor and materials delivered to the government. Hitler said, “for every mark that was issued we required the equivalent of a mark’s worth of work done or goods produced.” The workers then spent the Certificates on other goods and services, creating more jobs for more people.
Major General Smedley Butler Biography War Hero, Antiwar Activist (1881-1940)
“I served in all commissioned ranks from second lieutenant to Major General. And during that period I spent most of my time being a high-class muscle man for Big Business, for Wall Street and for the bankers. In short, I was a racketeer for capitalism. I suspected I was just part of the racket all the time. Now I am sure of it.”
Major General Smedley Darlington Butler, also known as “The Fighting Quaker.” At the time of his death, the most decorated Marine in US history, and the only person to be awarded a Marine Corps Brevet Medal and a Medal of Honor for two separate military actions. He was also an unrelenting voice against the business of war.
Raised by prominent Quaker parents, Smedley Butler defied his pacifist lineage by joining the Marines just before his 17th birthday. He served in Honduras, Nicaragua, Mexico and Haiti (earning his Medals of Honor in the latter two places). He served and distinguished himself in World War I, although he was not stationed on the front lines for combat. Butler was known for his leadership and commitment to the welfare of the men under his command. He rose quickly through the ranks to become one of the youngest major generals at age 48.
Butler was very vocal against what he saw as a rise in admiration for Fascism and Mussolini. He told an unfavorable story about Mussolini for which he was court-martialed. Rather than recant and apologize, Butler retired from the military in 1931. By then, he had also begun questioning US involvement in foreign conflicts. Butler saw the US as being imperialistic, that war (in particular WWI) was really a profitable business for the few at the expense of thousands of lives, and that he himself was a cog in the war machine. In a booklet titled War is a Racket, Butler wrote, “In the World War [I] a mere handful garnered the profits of the conflict. At least 21,000 new millionaires and billionaires were made in the United States during the World War….How many of these war millionaires shouldered a rifle?….The general public shoulders the bill. And what is this bill?….Newly placed gravestones. Mangled bodies. Shattered minds….For a great many years, as a soldier, I had a suspicion that war was a racket; not until I retired to civil life did I fully realize it. Now that I see the international war clouds gathering, as they are today, I must face it and speak out.” War is a Racket grew out of a series of speeches Butler gave to whatever group wanted to hear his views. Veterans, groups with Communist leanings – it did not matter to him. This often drew criticism against Butler, but he was steadfast in his beliefs about war, US imperialism, and a growing Pro-Fascist movement. He spoke frankly and honestly about his experiences and opinions, and was very popular with the American public.
Is Europe heading for a meltdown? … This financial crisis is worse than the sub-prime crash of 2008 because the sums are so much bigger and it is governments that are in dire straits. Edmund Conway explains the dangers. Mervyn King, the Bank of England Governor, summed it up best: “Dealing with a banking crisis was difficult enough,” he said the other week, “but at least there were public-sector balance sheets on to which the problems could be moved. Once you move into sovereign debt, there is no answer; there’s no backstop.” In other words, were this a computer game, the politicians would be down to their last life. Any mistake now and it really is Game Over. Or to pick a slightly more traditional game, it is rather like a session of pass-the-parcel which is fast approaching the end of the line. – UK Telegraph
Dominant Social Theme: The wise men of Brussels and the courageous citizens of the EU will muddle through.
Free-Market Analysis: As the money crisis seems to grow worse in Europe, we have begun to wonder if there are parallels to the 1907 financial panic in the United States that gave rise to the Federal Reserve. The dominant social theme way back then (assuming an active power elite, and we do) was along the lines of “The US banking system is too fragmented and a lender of last resort is badly needed.” JP Morgan assembled his rich friends in the library of his exquisite New York mansion and bailed out the market, but only six years later, the Federal Reserve was born, the bastard child of false market-insolvency rumors and a knobby-nosed father (Morgan, himself).
There is, in fact, still speculation today that Morgan’s camp planted the initial rumors of instability that swept the market and triggered the crash of 1907. Why on earth would he do such a thing? To generate the eventual result: the creation of the Federal Reserve and its passage by the US Congress. This is one perspective, anyway, the “paranoid one” that you will not find in most mainstream history books or college texts.
The six words are: Public Law 111-148 is hereby repealed.
Public Law 111-148 is the Patient Protection and Affordable Care Act. This is the compulsory health insurance law that Democrats rammed through Congress and Obama signed.
The Republican Party voted unanimously to oppose it. Most of them did this for low-risk grandstanding reasons. Had George W. Bush proposed the bill, they would have voted for it, just as they voted for his prescription drug law.
Ron Paul can force their hands in November. By introducing the bill, he will guarantee that the Democrats will never let it get out of committee. That is to be expected.
Once it is bottled up in committee, it becomes politically active. At that point, Tea Party voters can ask their Republican candidates, “Do you promise to vote for Ron Paul’s bill to repeal Obama’s health insurance package if the Democrats lose in November? Do you also promise to vote for it without any amendments or any other modifications until it is signed into law by a Republican President, no matter what?”
That will put the fire under them. At that point, they will begin to mumble. They will say that Obama will veto it. Answer: “That’s true. Kiss Obama’s chances goodbye in 2012.”
Next, they will say that the timing is wrong. Answer: “The timing is never wrong to repeal government-controlled medical care.”
Next, they will say that . . . well, who knows what they will say? They are wafflers. Do not vote for them if they waffle.
The Tea Party people can run a rival candidate in the Republican primary. If the local primary is over, they can run a write-in candidate or an independent. It does not matter how they do it; they must see to it that the waffler is defeated in November. Then, in 2012, Tea Party candidates can run. They can run on a promise to repeal Obama’s health insurance law.
Bill abolishing ID cards and national identity register will be first piece of legislation introduced to [British] parliament by the new government, says Theresa May
The timetable for dismantling the national identity card scheme was spelled out today by the home secretary, Theresa May. Photograph: Suzanne Plunkett/Reuters
The £4.5bn national identity card scheme is to be scrapped within 100 days, the home secretary, Theresa May, announced today.
The 15,000 identity cards already issued are to be cancelled without any refund of the £30 fee to holders within a month of the legislation reaching the statute book.
Abolishing the cards and associated register will be the first piece of legislation introduced to parliament by the new government. May said the identity documents bill will invalidate all existing cards.
The role of the identity commissioner, created in an effort to prevent data blunders and leaks, will be abolished.
The government said the move will save £86m over four years and avoid £800m in costs over the next 10 years that would have been raised by increased charges. An allied decision to cancel the next generation of biometric fingerprint passports will save a further £134m over four years. Savings to the public under the whole package will total £1bn.
Jordan Flaherty is a journalist, an editor of Left Turn Magazine, and a staffer with the Louisiana Justice Institute. He was the first writer to bring the story of the Jena Six to a national audience and audiences around the world have seen the television reports he’s produced for Al-Jazeera, TeleSur, GritTV, and Democracy Now.
On Thursday, two police officers were fatally shot and two wounded. “Two police officers in West Memphis, Ark., were killed at a traffic stop. The two suspects later died in a shootout with law enforcement in a Walmart parking lot. The Crittenden County sheriff and his top deputy were wounded,” USA Today reported yesterday afternoon. “The suspects, who have not been identified, were killed about an hour later after being spotted at the Walmart Superstore in West Memphis, across the Mississippi River from Memphis, Tenn.”
16 year old Joe Kane dead at the scene. Note the missing license plate on the vehicle.
On the surface, the story seems like yet another instance of meaningless violence that resulted in the murder of cops and armed suspects.
However, there is something fishy about the story most of the corporate media is not reporting.