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A fascinating geopolitics/economics blog

October 14, 2008

For coverage of the current economic turmoil, I have found the Fabius Maximus blog to be about as good as they come.   An example would be his post Status report on the financial crisis, and another I’d recommend is the post A solution to our financial crisis.  One wonders if the U.S. Treasury Secretary actually reads “Fabius Maximus.”  I commend this blog to you–it is very well-written and informative.

3 Comments leave one →
  1. October 14, 2008 1:14 pm

    Hmmm. Fabius Maximus seems to be primarily interested in doing more of the same to prop up a system based on programmes of social engineering and dishonest money. Every effort that continues to prop up fiat currency, maintain debt growth, and nationalisation will simply be putting patches on the bubble for the short-term. A dishonest system of economics can’t and won’t last forever. The US government and the Federal Reserve have spent decades using smoke and mirrors to keep the system going, but now we’re starting to see that even they can’t keep a handle on it. The problems will continue and grow exponentially — we’re already seeing that with inflation — because with every bailout the Fed simply prints more bills and creates money from thin air, thus devaluing the funny money already on in circulation. It can’t go on forever. As hard as it may be — and maybe worse than 1929 — the system needs to crash. The economic monster needs to die so that rebuilding can begin again on sound monetary and economic principles. That said, I don’t think it will happen. Too many people today either refuse to take responsibility for their own money and investments and the risk involved and too many have an entitlement and statist mentality that looks to governments to save the day.

    Thomas Jefferson said, “If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.”

    Jefferson also believed that “banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.”

    Daniel Webster warned, “Of all the contrivances for cheating the laboring classes of mankind, none has been more effectual than that which deludes them with paper money.”

    Webster also said, “We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not gold nor silver; no, Sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors, and a ruined people.”

    George Washington said, “Paper money has had the effect in your State [Rhode Island] that it ever will have, to ruin commerce–oppress the honest, and open the door to every species of fraud and injustice.”

  2. October 14, 2008 5:47 pm

    Peter Schiff was on Glenn Beck last night and addressed some of this — I think fairly accurately.

  3. October 16, 2008 8:45 am

    Fr. Bill,

    I confess I have mixed emotions about this subject. On one hand my head agrees quite a bit with what you say, particularly when considering the lessons of history. It is quite possible that the direction taken by FDR and the American policymakers in the 1930’s actually prolonged the Depression rather than alleviating it. But on the other hand, my heart tells me that if we do take the path now to “kill the economic monster” and rebuild the economic system along sounder principles, we are going to have a social upheaval like nothing ever seen before in the United States and many other Western economies. The culture has changed so much since the 1930’s that I don’t think people would be willing to wait in bread lines (should it come to that), for example, until things got better.

    But I do understand that it might be more merciful to go ahead and “kill the monster” and get the rebuilding process underway, before more and more “fiat money” is created and the currency is devalued greatly. We are certainly facing a bumpy ride ahead, no matter what path we take.

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