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Constitution in Peril

Abridged from the November "Global Macro Tipping Point" at GordonTLong.com

It can not be overstated the importance SOUND MONEY plays in protecting the public's Constitutional Rights, the control of relentless government spending and the limitation of political 'reach' and growth of socialist programs. This fact was well understood even before the founding of the US Federal Reserve.

The Austrian Economist Ludwig von Mises wrote in 1912 in 'The Theory Of Money & Credit", the year prior to the creation of the Federal Reserve that:

"It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically, it belongs in the same class with political constitutions and bills of rights."

Unfortunately, these wise tenets to protect human freedoms have been relegated to the dustbin of history by modern day Monetary Malpractice. Our forefathers warned us sternly, what we must be vigilant to if we were to safeguard the liberties entrusted to us.

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks...will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered ....

The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

~ Thomas Jefferson.

The Old Game of Power: You Must "Create Crisis"

Unfortunately, an unelected body of academics at the US Federal Reserve are mistakenly taking 'we the people' in a direction our forefathers were furvently opposed to.

This quasi-public institution, owned by the banking institutions themselves, has followed a path of Monetary Malpractice stemming from Misinformation, Manipulation, Malpractice, Malfeasance, Mispricing and Malinvestment which resulted in Moral Hazard, Unintended Consequence and Dysfunctional Markets.

We have reached the stage where market Mispricing and Malinvestment is so rampant that a market clearing crisis is the only solution.

Ludwig von Mises was quite clear in spelling out what results from the Monetary Malpractice of Unsound Money:

"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

In a series of articles entitled "Extend & Pretend" and "Sultans of Swap" where I laid out a roadmap in 2010, with the expected catalysts, which in late 2012 appears to be fairly precise.

Larger Image

Unsound Money Jeopardizes Constitutional Rights

Why Sound money is a necessary protection of civil liberties:

  1. It reins in the growth of government.
    • When a government prints money without the restraint of competing currencies -- even if the restraining "competition" is a gold standard -- runaway bureaucracy results.
    • Wars are financed; indeed, it is difficult to imagine the extended horrors of World War II without governments' monopoly on currency.
    • A white-hot printing press can finance the soaring numbers of prisons and law enforcement officers required to impose a police state.
  1. Floods of currency can prop up unpopular policies like Obamacare or the War on Drugs.
    • That is why government holds onto its monopoly with a death grip.
    • "The gold standard did not collapse. Governments abolished it in order to pave the way for inflation. The whole grim apparatus of oppression and coercion, policemen, customs guards, penal courts, prisons, in some countries even executioners, had to be put into action in order to destroy the gold standard."
  1. Permits government to monitor virtually all transactions through the financial institutions with whom it maintains an intimate partnership.
    • Total surveillance is a prerequisite to total control, which is what the government wants to establish as quickly as possible. For example, prior to establishing the Suspicious Activity Report (SAR) in 1996 -- a form that financial institutions submit to the U.S. Treasury -- banks were required to automatically report any transaction over $10,000. Now any activity deemed "suspicious" is vulnerable.
    • The monopoly facilitates a vicious attack on privacy and has become a main building block of the American surveillance state. As libertarian Mark Hubbard stated, "Civilization is a movement toward privacy, a police state the opposite, and tax legislation has become the legislation of our new Big Brother states."

Much of the tracking is a pure money grab, but it is also an attempt to ferret out and punish "unacceptable" behavior, like dealing in drugs or politically dissenting. Indeed, it is criminally naive to believe the government will not use these massive and valuable data to target its critics.

Thus, people can be discouraged from speaking out. Controlling the information, however, means controlling the currency. Otherwise, anyone could mint gold coins in the middle of the night and release them covertly into the wild.


Fiat Currency and an Emerging Police State

Our transition from a more-or-less free country to police state is accelerating.

    1. The NSA's Utah Data Mining facility,

    2. Ever-tighter restrictions on offshore accounts,

    3. The Internet "Kill Switch",

    4. The Patriot Act's many assaults on the Bill of Rights,

    5. The Militarization of local police, (Equipment, FEMA Graduates ... the new NDAA 's "indefinite detention without trial")

    6. The spread of Drones for domestic surveillance (FAA planning for 30,000 by 2020)

    7. The NCTC's (National Counterterrorism Center) " Disposition Matrix" - "KILL LISTS"

... each has a role in the high-tech updating of a very old idea: that the state is paramount and the individual a slave to public order and national power.

QUESTION: Why is this happening now, rather than in 1950?

ANSWER: We're reaping the whirlwind that always accompanies fiat currency. We created a central bank in 1913 and freed it from the constraint of gold in 1971.

Give the government or the big banks the power to create money out of thin air and you eventually get a dictatorship.

"Eventually" just happens to be NOW.

Executive Orders Issued...

Obama has signed 134 Executive Orders in 40 months!
What did Congress do in those 40 months?

  • -EXECUTIVE ORDER 10990 allows the government to take over all modes of transportation and control of highways and seaports.
  • -EXECUTIVE ORDER 10995 allows the government to seize and control the communication media.
  • -EXECUTIVE ORDER 10997 allows the government to take over all electrical power, gas, petroleum, fuels and minerals.
  • -EXECUTIVE ORDER 10998 allows the government to take over all food resources and farms.
  • -EXECUTIVE ORDER 11000 allows the government to mobilize civilians into work brigades under government supervision.
  • -EXECUTIVE ORDER 11001 allows the government to take over all health, education and welfare functions.
  • -EXECUTIVE ORDER 11002 designates the registration of all persons. Postmaster General to operate a national registration
  • -EXECUTIVE ORDER 11003 allows the government to take over all airports and aircraft, including commercial aircraft.


The Rule of Law


The Police State Switch is Now Ready To Be "Flipped On"

Clearly the evidence suggests that Police State is now available and ready. It simply requires the 'event', 'excuse' or 'crisis' and a political regime with the need to flip it on. Will it be a Cyber attack that disrupts the financial system, an Iranian nuclear threat, a 911 like terrorist attack ......?

The 'rationale' to flip the switch is coming!

We Are Here!

The shift towards Statism has been evident for anyone taking the time to track and report it. The Constitution is in Peril and is being intentionally and insidiously 'chipped' away at. The global banking complex which operates a completely unregulated, offshore, off balance sheet and opaque $67 TRILLION Shadow Banking System and a $639 TRILLION SWAPS market (and their behind the scenes controllers) have a plan. Do you?

Consider yourself as having been warned!


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