Toxic Paper

by Bill Huff
by Bill Huff

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Fiat money is the mother of all toxic papers.

The reason for bubbles, bursting and Bailouts, is our fake, phony, fiat, fraudulent, intrinsically worthless, "money." Because it is inherently fraudulent and criminal it spawns all sorts of other criminal and speculative aberrations. Among these we find all sorts of convoluted ways to "trade," in all sorts of other "securities" – all made insecure by being drawn from the same poisoned well. This encourages and institutionalizes all kinds of theft and speculation and discourages industry, frugality and creativity. It even encourages and draws out unlawful wars. For wars need not be successful in any other terms than generating debt for the banksters to continue increasing their power, wealth and influence. They love getting paid by both sides – or whoever is left.

War Is A Racket – and Fiat Money with Fractional Reserve Banking represents a universal war against the person, liberty and property of everyone on the planet. The Federal Reserve banking system, along with its siblings in all other major countries, has enjoyed its criminal enterprise for almost 100 years – practically unmolested.

It’s time for justice to be done. It’s time for a rectification of our monetary system and a full vindication of our Constitution. An audit will not suffice. Nothing less than Abolishing the Fed will do. Tragically, our Criminal Congress has not been ethical or manly for such a long time that we couldn’t trust them with any part of the job of investigating the Fed. They are effectively "on the take." There is at least one notable exception. Guess who.

This was all predicted:

Mankind soon learn to make interested uses of every right and power which they possess or may assume. The public money and public liberty, intended to have been deposited with three branches of magistracy but found inadvertently to be in the hands of one only, will soon be discovered to be sources of wealth and dominion to those who hold them; distinguished, too, by this tempting circumstance: that they are the instrument as well as the object of acquisition. With money we will get men, said Caesar, and with men we will get money. – Thomas Jefferson: Notes on Virginia Q.XIII, 1782. ME 2:164

Because of its transcendent toxicity, the fraud of fiat money with fractional reserve banking will surface again and again. Like the cocktail of noxious poisons that oozes from underneath mounds of dirt piled high over the worst of our Superfund landfill sites, the poisonous effects of criminal money and banking, gradually, inexorably, seep in, to choke the life out of every positive economic activity denominated in their toxic paper. The World’s poorest suffer the most from this malignancy – making it all the more criminal.

The hardest work the banksters ever do:

Until they are banned, fraudulent banking establishments will never finish the task of covering their bloody tracks. Their PR campaign must go on at all times. It must be powerful, thorough, incessant. But it must also be subtle enough to fool most of the people most the time.

Their chief weapon and ours: EDUCATION

A thorough education in Classical Libertarianism, Austrian Economics, and Original Americanism, ought to leave any potential victim immune. Perhaps now more than ever, with the leveling effect that the Internet has on media, we will be able to effectively educate the public as to the devastation that has been wrought upon the entire world by the obscene crimes of modern banking establishments in collusion with most of the more powerful national governments and all of the governments of the 50 States of the Union. Of course we must not forget all of the international corporations and organizations they have spawned – not the least of which is the UN. All these have a long-standing policy of "bailing out" relatives and friends – even "enemies," on many occasions.

It could never be anything but extremely dangerous to let any private person, special interest, or combination, control an essentially secret source of indefinite unlimited wealth, value, or power.

Once upon a time there was man who developed an excellent technique for printing his own version of the $100 Federal Reserve Note – a species of toxic paper over which the federal government tries to maintain an exclusive monopoly. This man was going to be a very clever, "conservative" criminal. Life would be just a little sweeter with this extra advantage he would have over his neighbors. He decided that his bills were so good no one would ever find out as long as he kept his spending to just a little bit more than his regular job could support. Who would notice a 10% lifestyle enhancement? He told no one – not even his wife. But one evening his brother-in-law walked in on him while he was finishing up a fresh batch of almost perfect 100s. The brother-in-law was overwhelmed. After he was able to calm his brother-in-law down, our hero acquiesced and gave him just a few samples to spend "judiciously," explaining to him, that, with a little discipline, there would be enough for them to enjoy and share indefinitely. If they could only exercise the right amount of self-control, detection was only a very remote concern, because of the extremely high quality of the product. Sadly, for him and his enterprise, our hero’s confidence in his brother-in-law proved to have been a gross mistake. Just a few hours later that same evening, after a few drinks and a few dances, and a few more drinks, the brother-in-law’s tongue began to wag out of control. Soon after, he was fitted with a shiny pair of silver bracelets and got to meet a lot of nice men in uniforms and suits. Naturally his attorney encouraged him to turn in his "partner" in a plea-bargaining arrangement. With the help of the federal prosecutor he was able to relocate to somewhere in Arizona as a permanent quest of the witness protection program.

The Federal Reserve in collusion with Treasury and the Congress only impersonates the hero in the story above. In reality they are all more like his profligate brother-in-law. With the financial leverage they have attained through fiat money coupled with a fractional reserve system that effectively goes down to a zero reserve requirement; with no oversight or control by any agent truly answerable to the People; with their tentacles reaching into the pockets of almost every property owner on the planet; and with their minions and military, undermining life, liberty and property in almost every country, it is time for all people everywhere to say "Kill the Bank before it Kills us All!"

Using the Federal Reserve Note as a measure of Anything, Anywhere, leaves too much power in the hands of those who can print more at there own caprice. The wonder is that they have any restraint at any level in this scam. Of course errant brothers-in-law come and go. Then there are the Greenspan types who are so "good" they can even lie to themselves and betray their own souls and consciences. You can buy a lot of talent with unlimited money. But Alan wouldn’t have had a prayer without a lot of expensive help. It takes larger and larger armies to steal and control larger and larger booties.

Once you have studied the issue for a short period of time, with access to some of the best historical documents and scholarship, you will come to realize how impossible it would be to gauge the magnitude of these financial crimes.

I will not quote an entire book to prove my thesis. But I will ask you to read an entire short book. This work was bequeathed to you by the man who founded the Naval Academy in Annapolis, MD. He had held the office of Secretary of the Navy and penned this work in his 85^th year – just six years before his death in 1891. Bancroft’s "A Plea for the Constitution of the United States – Wounded in the House of Its Guardians" was doubtless a reaction to what he saw as an egregious ruling of the Supreme Court that had been preceded by a great many errors and some very deliberate machinations to undermine lawful government by destroying every link between de facto government and the Constitutional imperatives related to preserving the integrity of our monetary system as well as the Constitution itself.

Would the United States Supreme Court Lie?

According to Bancroft:

The supreme court of the United States was endowed by our fathers with a peculiar tenure of office and high powers of jurisdiction, that it might be able to keep watch over the life and integrity of the constitution. On the third of March, 1884, without having listened to any public argument on the case which was made the occasion of its utterance, it pronounced before a crowd of listeners an opinion in these words: "The power to make the notes of the government a legal tender in payment of private debts being one of the powers belonging to sovereignty in other civilized nations, and not expressly withheld from congress by the constitution; we are irresistibly impelled to the conclusion that the impressing upon the treasury notes of the United States the quality of being a legal tender in payment of private debts is an appropriate means, conducive and plainly adapted to the execution of the undoubted powers of congress."

In the Constitutional Convention of 1787, Mr. Langdon, a Delegate from New Hampshire, had said he would rather reject the entire new Constitution rather than retain the language that would have permitted emissions of paper money [called "bills of credit" in the original draft].

Even John Marshall, the chief judicial pioneer/heretic and proponent of judicial supremacy, could never stomach paper money according to Bancroft:

The inflexible adversary of paper money, detesting it with a hatred almost amounting to a passion, was the chief justice of the United States, John Marshall. While he was on the bench, no case could come before him, in which power was claimed for the United States to issue bills of credit; because at that day he and everybody else well understood and willingly acknowledged that the power to emit bills of credit was withheld from the United States, was forbidden by not being granted. But his opinion of the illegality of the issue of bills of credit by the states gave him the opportunity to declare in terms of universal application that the greatest violation of justice was committed when paper money was made a legal tender in payment of debts. But the opportunity to express his opinion, which was never offered to him as a judge, he found as a historian in his life of Washington. He claimed for himself and those with whom he acted, an "unabated zeal for the exact observance of public and private engagements." He rightly insisted that the only ways of relief for pecuniary "distresses" were "industry and frugality"; he condemned "all the wild projects of the moment"; he rejected as a delusion every attempt at relief from pecuniary distresses "by the emission of paper money"; or by "a depreciated medium of commerce." These were his opinions through life. He gave them to the public in 1807, and twenty-four years later in a revised edition of his Life of Washington he confirmed his early convictions by the authority of his maturest life.

Bancroft, quoting Thomas Paine:

"The laws of a country ought to be the standard of equity and calculated to impress on the minds of the people the moral as well as the legal obligations of political justice. But tender laws, of any kind, operate to destroy morality, and to dissolve by the pretense of law what ought to be the principle of law to support, reciprocal justice between man and man; and the punishment of a member who should move for such a law ought to be DEATH."

Yes! Mr. Paine was saying anyone who introduced any legislative measure in favor of legal tender laws for fiat or paper money ought to have been hung by the neck until dead. I will say that you have no comprehension of the problem if you would tend to disagree.

My challenge to all who have any place left in their hearts or imaginations for fiat currency, fractional reserve, or the Federal Reserve System: Carefully study everything Bancroft said in his Plea, spend more time reading on the subject at Mises.org and LewRockwell.com As you read at Mises and Rockwell – please make sure you explore all their archives and links.

Finally, after you truly understand the issue, decide how much poison is too much. You will not have lawful government without lawful money: Gold and Silver ONLY.

Good money must have an intrinsic value. The United States of America cannot make its shadow legal tender for debts payable in money without ultimately bringing upon their foreign commerce and their home industry a catastrophe, which will be the more overwhelming the longer the day of wrath puts off its coming. Our federal constitution was designed to end forever the emission of bills of credit as legal tender in payment of debts, alike by the individual states and the United States; and it will have that effect, if it is rightly interpreted and firmly enforced. – George Bancroft [emphasis added]

Bancroft closes his Appendix with a quote from Thomas Jefferson:

"The federal government – I deny their power to make paper money a legal tender."

Please email this article to your favorite banker and ask for his complete and thoughtful response. You might also ask your US Representative to co-sponsor the Bill to Abolish the Fed. So far Ron Paul’s Bill has no co-sponsor. What does that tell us?

December 4, 2008

Bill Huff [send him mail] is a Classical Libertarian and proprietor of LEXREX.com and JamTheCulture.com; a former public school music teacher turned home schooling advocate; a US Navy veteran, and host of WarIsARacket.com. He is available as a guest lecturer or for interviews on talk radio.

Copyright © 2008 Bill Huff

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