The Destroying of the Dream

The fathers of our country not only created and structured a government for its new citizens, but they nestled it in the rudiments of time developed arts and sciences of existing civilization. The envisioned theme of its future was growth through individual freedoms. Its value system placed a premium on hard work.

The U.S. dollar was adopted as the medium of exchange for the functioning of commerce and the centerpiece of a monetary system that would allow a functioning economy that would facilitate a reality that was the American Dream.

The essentials of the prescribed monetary system were the same as those of the dream; savings, application of savings to economic replenishment and wise consumption. See paragraph 2 of the first tomk article entitled “It‘s Time to Let America Know What’s Really Going On“. The functioning economy was intended as an inexorable part of the dream.

The role of government was to increase the supply of money when business and consumer demand coupled with banks desire to make loans for a profit created the need for more script. The economy could then grow and the dream would grow with it.

The dream was and is attainable. It is not hard to observe that one can (1) work hard in early life and prosper from the energy of youth; (2) prepare for declining years by deferring certain consumptions to allow savings to be invested in an economy that rewarded savings and facilitated helping oneself in times of increasing and diversifying needs and; (3) live later years in relative tranquility without despair.

Far out stepping the bounds established by the Constitution and with disdain for the accumulations of knowledge gained through observation of economic realities, politicians have constantly sought an economic panacea through the manipulation of money. They have tried spending to end poverty, tax incentives, massive infrastructure spending, fine tuning the business cycle through interest rate tinkering, bailout scheming and completely controlling the money supply. Politicians arrogantly think they can control the economy.

Our economy and the monetary system have been reeling from the inflictions of (1) unrestrained uneconomical leveraging and derivative gimmickry of Wall St. and (2) the political hubris alluded to above. Both Wall St. and the government view money as primarily a power tool and not an exchange medium. Politicians have tried to use money to purvey their ideas of social justice. The Wall St. credo seems to be manipulate the use of other peoples money. Wall St. and the government have suppressed and rejected technical advances in accounting and law that would curtail their reaching for more control of money.

The belief that Congress poses the major threat to our liberty and well being is why the Framers gave it limited enumerative powers. To our detriment today’s Americans have given it unlimited powers.

In addition, the government covertly usurps power. It has not revealed that a real intent of providing bailout money to behemoth banks is to establish the potential to gain control over banks lending policies. This allows the government to dominate all three factors that determine the money supply (the quantity of money, the level of interest rates and the amount of lending provided by the banks). The power grab to control bank lending can lead to an abrogation of the system of checks and balances that control our money supply. Government could then force feed more borrowing when market forces have determined not to increase the amount of debt regardless of availability or rate.

The founding fathers understood that the cornerstone for a successful economy was stability of our nation’s currency. Now political hubris and government neglect that created a depression is ensuring that it is accompanied by intractable inflation.

Our government is doing a good job of shattering not only our free market monetary system, but also the underpinnings of the Constitution. By the way, they are stealing your savings and your freedoms, while destroying the American Dream. Why? To seize complete dictatorial power over you to enable the few to control the many.

Without a definitive plan, the government says it will take a decade or more to restore our economy. Real representatives of the people could reform Wall St., repair the shattered monetary system and have the free market economy working in short order. Just get the politicians whose minds are locked in the steel trap of reelection obsession out of the way.