Government Money Masters: Anti-Gold Videos that
Thousands of Tea Party Voters Think Are Conservative
by Gary North: The
#1 Historical Question Is Unanswered
movement is filled with well-meaning people who do not understand
free market economic theory. They believe that they hold to free
market economics, but they in fact hold to a crude Keynesianism:
economic salvation by fiat money.
conservative movement for over a century has been a hard-core cadre
of left-wing promoters of big government. They present themselves
as enemies of fractional reserve banking. They use this to get a
hearing for their cure-all for banking: a fiat money monopoly that
is completely managed by tenured, unaccountable bureaucrats operating
under the authority of Congress.
are part of a movement called Greenbackism. It has been around ever
since the 1870s. Back then, American Greenbackers had their own
political party. They merged with the left-wing Populist Party in
the mid-1880s. You can read about the Greenback Party on Wikipedia.
Party (also known as the Independent Party, the National Party,
and the Greenback-Labor Party) was an American political party
with an anti-monopoly ideology that was active between 1874 and
1884. Its name referred to paper money, or "greenbacks,"
that had been issued during the American Civil War and afterward.
The party opposed the shift from paper money back to a bullion
coin-based monetary system because it believed that privately
owned banks and corporations would then reacquire the power to
define the value of products and labor. It also condemned the
use of militias and private police against union strikes. Conversely,
they believed that government control of the monetary system would
allow it to keep more currency in circulation, as it had in the
war. This would better foster business and assist farmers by raising
prices and making debts easier to pay.
Greenbackers were openly inflationist. They wanted city dwellers
to pay farmers more for food than the free market established. They
wanted city dwellers to pay more than free market competition established
for wages. They wanted the U.S. government to compel these price
increases by printing paper money.
the passage of the Federal Reserve Act in 1913, Greenbackers have
attempted to conceal their left-wing platform in order to infiltrate
the conservative movement. They have used their hostility to fractional
reserve banking as a cloak. What they really want is money officially
run by Congress, whether Republican or Democrat. This is why they
have always hated money that is redeemable in gold. The government
cannot inflate the money supply very much if money is redeemable
at a fixed price for gold.
Why do conservatives
swallow this witches' brew of statism and inflation? Because they
do not understand monetary theory. On monetary theory, they are
Keynesians. They believe what Ben Bernanke believes: that it is
possible to avoid inflation, avoid recession, and attain economic
growth by having a committee of experts decide how much money to
print. The Chicago School economists (monetarists) think the same
thing. The debate is about who decides how much money to create
after Congress has set up the committee of experts.
is legally in charge of the Federal Reserve System's Board of Governors.
It is only indirectly in control of the Federal Open Market Committee
(FOMC), which is made up of a mixture of Board members (government
appointed) and regional Federal Reserve Bank presidents (privately
appointed by regional bankers). In fact, Congress is not in control.
The FOMC is in control.
implementation of U.S. law is always by the executive branch --
this is federalism -- all calls for Congress to control money are
really calls for committees appointed by the President to control
money. But, ever since 1883, employees of the executive branch have
been protected from being fired. This was the Civil Service law.
So, whenever anyone calls for Congress to control money, he is calling
for an independent committee operating under the President to control
money. This is what the Constitution provides: a separation of powers.
The Civil Service Act began the separation of politics from government:
rule by tenured bureaucrats.
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North [send him mail]
is the author of Mises
on Money. Visit http://www.garynorth.com.
He is also the author of a free 20-volume series, An
Economic Commentary on the Bible.
2011 Gary North
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