Friday, July 31, 2009

The Principals of Secession Part II Fiat Money

As I reported months ago and Arthur Laffer just recently in the Wall Street Journal our monetary base has exploded to unprecedented proportions. What does this mean? What it means is the dogs of inflation will plague the United States in the very near future. How much inflation depends on the Federal Reserve.

How bad can inflation get? Inflation brought down Rome. Inflation propelled Hitler into power. Inflation made Jimmy Carter a one term president. Inflation can bring down the United States.

How? People like to get paid in “real” money not monopoly money. When someone works 40 hours a week they want to be assured at the end of the week a gallon of gas will be $2.50 not $3.00. And so it goes for the other items. If the worker doesn’t get paid correctly the worker will demand higher wages. And we get cost push inflation of the 70’s.

And what of hyper inflation? If we get hyper inflation of 50% or more per year it will be devastation to our economy and personal lives. Looking at the monetary base increase over 110% is hyper inflation possible? Damn right it’s possible. Will it happen? Can somebody shove a boot up Obama’s ass? If Obama health care, cap and trade and other asinine programs are passed yea we will be unemployed and our money worthless. Can the adults take control of Washington? Highly doubtful since both partie s support this dictatorship.

Where does that leave the succession movement? If Texas can create a currency backed by gold or some other instrument in defiance of the Imperial Federal Government and gain acceptance for the currency in its home state Texas the Texas economy will expand exponentially while the rest of the nation suffers under the ravages of a politically motivated Federal Reserve. And that is the first step to a successful succession from the fascist in Washington. A viable home currency while the rest of the nation flounders in unemployment and inflation would create a beacon of hope and prosperity for the rest of America.

A look at the first civil war shows this relationship perfectly. As the confederacy began losing battles their currency declined, foreign countries failed to back them, and it was all over financially. The same principals apply except economically. If the Federal Reserve isn’t going to render its citizens a viable currency then secession minded states like Texas need to fill that void. And secession becomes viable.

Texas needs to plan this move, get layers in place to blow off the law suits and ligation, then do it and never look back. Other states will join Texas. When the states that don’t want to be a part of the fascist inflationary number 30 or 40 Texas can dictate to Washington the terms of surrender. And praise be to god never a shot fired. Change.

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