Monday, July 19, 2010

Book review: Tomorrow's Money- A Financial Program for America

Lies, disinformation, and the blueprint for a totalitarian Monetary Authority, all in one handy little volume!

Five stars, not because I agree with the content, but because everybody needs to read this book and understand the threat it represents. Writing in 1932, Frank A. Vanderlip describes changes to our monetary system which have gradually come to pass (the United States abandoned the gold standard in 1971), and some which are still in the process of evolving (centralizing of the commericial banking industry). It should be clear that the endpoint of Vanderlip's proposals would leave the American public with a system of monetary totalitarianism.

Background Information
The author, Frank A. Vanderlip, was a minion of banking elites J.P. Morgan, J.D. Rockefeller, and the Rothschild family. In 1910, he helped them draft the Federal Reserve Act at Jekyll Island. This legislation, passed in 1913, took the power to print money away from the U.S. Treasury and put it into the hands of the privately-owned “Federal” Reserve (in truth no more federal than Federal Express). Under the terms of the new law, the Fed does not print the nation’s money at cost, as the Treasury did, but charges the public interest on their money , as a “fee” for the printing. To assure the bankers that the nation would always be able to pay the interest, federal income tax was created (also in 1913) to create collateral, with the passage of the Sixteenth Amendment to the Constitution. That is where much of your income tax goes: paying interest to private bankers for use of their money, when we could print our own at cost just as easily, and it would be less subject to manipulation. This outrageous and unjustified power over the money supply allows the Money Masters who also control the credit markets) to engineer boom/bust cycles manipulable to their personal interests. Through timely deployments or shorts on the market, they whipsaw the public out of their investments. Vanderlip dedicated his life to constructing and promoting this system, which remains in place today. Privately-owned debt-based currencies continue to centralize wealth into the hands of a very few who are intent on a planetary oligarchy. That is the “New World Order” (NOVUS ORDO SECLORUM) which appears on our $1 bill, and which Vanderlip refers to on page 5. Our ongoing $23 trillion banking “bailout” is part of it. Tomorrow’s Money is a public relations piece promoting this work.

The book is divided into two sections:

The Past
The first seventy pages or so outline Vanderlip’s skewed and self-serving interpretation of the dollar’s history. At the heart of this is an attack on the gold-backed dollar (i.e. the gold standard). A gold-backed currency requires a certain amount of physical gold in reserve before paper dollars representing the reserve may be printed. This restricts banking Elites’ ability to manipulate the money supply, and is the reason the gold standard has been an object of their animosity. Friedrich Hayek elaborates on bankers’ hatred of gold in [book:The Road to Serfdom|299215], and more recently Ron Paul comments on the same in [book:Case for Gold: A Minority Report of the United State Gold Commission|747182] Vanderlip begins his attack by showing how a gold-backed money supply can be inflated by manipulating the gold exchange rate (how much gold each dollar represents). True enough; any paper currency is subject to manipulation… but fiat money is much more prone to inflation than physical coin. Even with changes in the redeemability rate (in 1834 and 1837), the gold-backed dollar was remarkably stable compared to any fiat currency in history. Our fiat ( since 1971) money supply is supposedly managed and regulated with bankers’ tools like the Consumer Price Index, the CRB Commodities Index, and currency exchange rates, which have proven to be so manipulated that they are really just charades. Proceeding, Vanderlip describes bank runs, liquidity freezes, and other engineered banking horrors, and then blames these on the gold standard. In truth, these are all artifacts of fractional reserve banking , not the gold standard… and there is no plausible way Vanderlip did not know this; he was a Vice President of National City Bank, and later an Assistant Secretary of the Treasury.

The Future
This part consists of a lot of grousing about citizens “hoarding” gold. Of course what Vanderlip calls “hoarding” the rest of us call saving, and up until recently, it was considered the responsible thing to do. Shame on ordinary citizens for selecting a stable medium as a store for their hard-earned wealth! Shame on them for protecting value from the inflationary ravages of Federal Reserve printing presses!

Bankers don’t like having large amounts of gold out of their direct control, and give all sorts of pretexts for why it is undesirable, including: “It creates instability and unpredictability in the circulating gold supply“; “the nation‘s gold reserve can be transported offshore, leaving insufficient reserves to support the circulating paper money“ etc. Vanderlip kicks around several solutions to address bankers‘ concerns, all of which restrict citizens’ ability to freely use the metal as a store of wealth:
1) Maintaining a bullion, rather than coin standard. This is designed to deter saving by limiting the coin supply and making it less convenient to ascertain the value of a quantity of gold.
2) Limiting redeemability of gold certificates. This serves central banks’ interests by protecting their reserves, but limits certificates' utility as a store of wealth by restricting liquidity. It is never explained what the basis would be for confidence in a currency which was backed in gold, but was never redeemable for gold.

Eventually Vanderlip gets around to telling us what he really wants: creation of a totalitarian, private banker-controlled “Monetary Authority”, which would impound and control all physical gold. On p.79, he tells us “[the Monetary Authority:] would always be in control of the situation, being aware at all times of the purposes for which any gold secured in exchange for currency was intended.” Oh, how nice for the nation! Big Brother will keep the economy stable by overseeing every private transaction! He goes on: “free coinage of gold should be a thing of the past. At the moment, of course, it would presumably be in possession of all the free gold in the country with the exception of gold employed in the arts or for jewelry, etc..”

It is a testament to the author’s audacity that he would feel comfortable coming out and admitting this. Fleshing out the details, he tells us: (p.127) “the Federal Monetary Authority will have to take over from the Federal Reserve, not only the currency-issuing function but this system of valves [rediscounting commercial paper, dealing in short-term Treasury notes, and buying and selling bank acceptances:] as well.”

There would be no point in denying these plans represent the architecture for a monetary tyranny, so Vanderlip admits (p. 156) “I believe that a Monetary Authority which concentrates all the levers within the grasp of one group of hands is the wisest course." I can't imagine any rational person (banking insiders excepted) agreeing with him.

A few comments about Style and Substance
The people working to construct a world totalitarian collectivist oligarchy are good at what they do, but they aren’t very imaginative writers. Whether you’re reading Vanderlip, Col. House or Henry Kissinger, you tend to keep coming across the same soundbites, phrases, and stylistic hallmarks. For example, no good Robberbarron book on finance would be complete without a passage characterizing gold as a primitive, outdated, maybe irrational or superstitious icon of wealth. Frankie Vanderlip delivers those goods on p.13-15.

Another old saw is the overused "terrorist" label. The Elites love to call anybody who does anything they don't like a terrorist. I kid you not: on p.32, Vanderlip cautions that future banking systems need to be constructed to protect their gold reserves from “the domestic attack of hoarders“! I’ll bet you didn’t know that buying gold to protect your wealth from inflation was a terrorist act!

Finally, most of the New World Order crowd seems incapable of containing their contempt for the public. There are so many instances of arrogance in this text; I need to list just a few to show you what I’m talking about. On pp. 201-202 he goes on at length about how the nation is filled with “economic illiterates”, and how certain select politicians are especially good examples of this. On page 10, he tells us that paper money used to require a 40% backing of gold reserves, but declines to explain or defend the statement, since it can’t be explained “without going into confusing details”. (go ahead, Frank: confuse us, we want to know where that number came from!) On p.153, we learn that when “the reform of banking practices is debated, the subject is too technical for untrained minds to grasp.”
Isn’t there anybody Frank Vanderlip respects besides himself? Oh, don’t‘ worry, there is: he gushes embarrassingly over the “expert management of English bankers” on p.30. He also shares with us that “Bankers have become almost unduly modest in advancing their opinions.” Yeah, right.

Everybody needs to read this filthy piece of Robberbaron totalitarian propaganda, and understand the threat it represents to our Life, Liberty, Prosperity and Democracy.

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