According to Jake Towne, a constitutional conservative who is running as an independent for Congress in Pennsylvania’s 15th district, the inflation of the fiat dollar is driving down its value against gold and silver, which are in their own right internationally recognized currencies. This scheme, supported by White House National Economic Council director Larry Summers, results in the deflation of real wealth for workers and investors in the U.S. and is collectively destabilizing the economy.

Jake attended the rally on Saturday and has been endorsed as a ‘9/12 candidate’. He released a statement which begins as follows:

Conceived in liberty, America is a noble and unique experiment created by some of the most revolutionary and brilliant minds of the 18th century who made the bold leap from rule by an elite few (oligarchy) to a constitutional republic with checks and balances. Whereas most wars lead to losses in liberty, our founding fathers began, for the first time on earth, a government based on individual liberties and the rule of law. My view is that the government of a free country, properly speaking, rests not in its elected officials but in its laws. The supreme law of the land is the Constitution. Amazing in its simplicity and clarity, the Constitution has a built-in amendment process to suit the living generation…

His views regarding the monetary policy in America are shared by many and are quickly spreading as the true roots of the credit crisis become exposed.

For instance, financial journalist Max Keiser says that the U.S. is on a slippery slope to economic collapse.

The American debt levels are outrageous, and the way America gets away with it is by maintaining the world reserve currency as a big part of the American hegemony, or the American empire. When America writes checks or creates bonds to other countries, when those bonds are due, America just creates more bonds. It’s what some call an extraordinary privilege.

And this is why countries like Russia, China and Iran are looking to diverse [sic] themselves, and divorce themselves, from the US dollar. They’re doing more deals amongst themselves, more bilateral deals in their local currencies, their regional currencies. Ultimately, America is a debt-a-holic.

…To use the alcoholic metaphor, it’s like giving an alcoholic more to drink. Hank Paulson and his successor Timothy Geithner are part of the financial oligarchy, a part of the banking oligarchy, their interests are not the same as the interests of American citizens; they have their own interests. They are part of a global banking cartel, the same group of bankers all over the world, who seek to keep interest rates as low as possible, to make it as easy for them to borrow as possible. Because when they make a bad bet, their respective governments bail them out with tax payer money. It’s really a war, there’s a global war going on between investors and speculators. Anyone who’s trying to invest money for a decent return, or work for a decent wage is being squeezed out or pushed out by speculators who have access to cheap money through political connections.

Max Keiser in People & Power – Death of the Dollar (Dec. 2006)

Recently, economist Marc Faber talked on Bloomberg Radio about inflation, excess credit, and how pundits such as Paul Krugman have ignored these factors in their analysis.

Well, first of all, I’d like to make the following observation. Mr. Krugman recently – a Nobel Prize winner in economics – he devoted 6,000 words to write an article entitled “How Did Economists Get it so Wrong.” And he talks about economic theories. He also talks about Mr. Greenspan and Mr. Bernanke. And, of course, he doesn’t talk about himself. The article should have been entitled “How Did I Get it so Wrong.”

But in principle what strikes me in this article of 6,000 words that there is never, ever any mention about excessive credit growth, about leverage, about credit playing a destabilizing element in the business cycle. And it doesn’t even mention by going through the various economic theories the Austrian School of Economists – that is a very important school.

And I would argue also when you listen to Mr. Bernanke and Mr. Greenspan, very, very seldom did they ever mention excessive credit growth as a source or as a cause of destabilizing the economy and causing the problems. They just disregarded the excessive credit growth.

part 1/3

part 2/3

part 3/3