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Three Daves

Three Daves - Nicki Elson Lies, disinformation, and the blueprint for a totalitarian Monetary Authority, all in one handy little volume. Everybody needs to read this book and understand the threat it represents. Writing in 1932, Frank A. Vanderlip describes changes to our monetary system which have gradually come to pass (the United States abandoned the gold standard in 1971), and some which are still evolving (the extreme consolidation of commericial banking). It should be clear that the endpoint of Vanderlip's proposals would leave the American public with a system of monetary totalitarianism.Background InformationAuthor Frank A. Vanderlip was a minion of banking elites J.P. Morgan, J.D. Rockefeller, and the Rothschild family. In 1910, he helped them draft the Federal Reserve Act at Jekyll Island. This legislation, passed in 1913, took the power to print money away from the U.S. Treasury and put it into the hands of the privately-owned “Federal” Reserve (in truth no more federal than Federal Express). Under the terms of the new law, the Fed does not print the nation’s money at cost, as the Treasury did, but charges the public interest on their money , as a “fee” for the printing. To assure the bankers that the nation would always be able to pay the interest, federal income tax was created (also in 1913) to create collateral, with the passage of the Sixteenth Amendment to the Constitution. That is where much of your income tax goes: paying interest to private bankers for use of their money, when we could print our own at cost just as easily, and it would be less subject to manipulation. This outrageous and unjustified power over the money supply allows the Money Masters who also control the credit markets) to engineer boom/bust cycles manipulable to their personal interests. Through timely deployments or shorts on the market, they whipsaw the public out of their investments. Vanderlip dedicated his life to constructing and promoting this system, which remains in place today. Privately-owned currencies continue to centralize wealth into the hands of a very few. The result (in conjuction with other factors) has been nearly one-hundred years of an asymptotically expanding national and global wealth gap which is squeezing the middle class out of existance, and creating an oligarchical Superclass whose private wealth and power dwarf that of entire nations. Here's where it gets interesting. It turns out the broadening wealth gap is how our monetary system is supposed to function. I don't know who exactly Vanderlip wrote this book for, but he explains that the monetary developments he will outline in this book are part of a new turn history is taking. You may have heard the term "New World Order" come up after the 2008 Republican Primary Debates. If you Google the term, you'll get a lot of references to the "Trans-Texas Corridor, the Council on Foreign Relations, and the United Nations. Vanderlip uses the term to describe the future his banking buddies envision, and he points out (p.5) the phrase "Novus Ordo Seclorum" (Latin for "New World Order") which appears on the $1 bill (below). H.G Wells would further explore this idea a few years later in his 1939 book The New World Order. There's controversy about what this term exactly means, and what it does and does not entail. You can decide for yourself what you want to believe, but by Vanderlip's own words Tomorrow’s Money is a public relations piece advocating his idea of a "New World Order". "We shall have World Government, whether or not we like it. The only question is whether World Government will be achieved by conquest or consent." -James Paul Warburg (together with Vanderlip, one of the authors of the Federal Reserve Act)The book is divided into two sections:The Past The first seventy pages or so outline Vanderlip’s skewed and self-serving interpretation of the dollar’s history. At the heart of this is an attack on the gold-backed dollar (i.e. the gold standard). A gold-backed currency requires a certain amount of physical gold in reserve before paper dollars representing the reserve may be printed. This restricts banking Elites’ ability to manipulate the money supply, and is the reason the gold standard has been an object of their animosity. Friedrich Hayek elaborates on bankers’ hatred of gold in The Road to Serfdom, and more recently Ron Paul comments on the same in Case for Gold: A Minority Report of the United State Gold Commission Vanderlip begins his attack by showing how a gold-backed money supply can be inflated by manipulating the gold exchange rate (how much gold each dollar represents). True enough; any paper currency is subject to manipulation… but fiat money is much more prone to inflation than physical coin. Even with changes in the redeemability rate (in 1834 and 1837), the gold-backed dollar was remarkably stable compared to any fiat currency in history. Our fiat ( since 1971) money supply is supposedly managed and regulated with bankers’ tools like the Consumer Price Index ,the CRB Commodities Index, and currency exchange rates, which have proven to be so manipulated that they are really just charades. Proceeding, Vanderlip describes bank runs, liquidity freezes, and other engineered banking horrors, and then blames these on the gold standard. In truth, these are all artifacts of fractional reserve banking ,not the gold standard… and there is no plausible way Vanderlip did not know this; he was a Vice President of National City Bank, and later an Assistant Secretary of the Treasury.The Future This part consists of a lot of grousing about citizens “hoarding” gold. Of course what Vanderlip calls “hoarding” the rest of us call saving, and up until recently, it was considered the responsible thing to do. Shame on ordinary citizens for selecting a stable medium as a store for their hard-earned wealth! Shame on them for protecting value from the inflationary ravages of Federal Reserve printing presses! Bankers don’t like having large amounts of gold out of their direct control, and give all sorts of pretexts for why it is undesirable, including: “It creates instability and unpredictability in the circulating gold supply“; “the nation‘s gold reserve can be transported offshore, leaving insufficient reserves to support the circulating paper money“ etc. Vanderlip kicks around several solutions to address bankers‘ concerns, all of which restrict citizens’ ability to freely use the metal as a store of wealth:1) Maintaining a bullion, rather than coin standard. This is designed to deter saving by limiting the coin supply and making it less convenient to ascertain the value of a quantity of gold. 2) Limiting redeemability of gold certificates. This serves central banks’ interests by protecting their reserves, but limits certificates' utility as a store of wealth by restricting liquidity. It is never explained what the basis would be for confidence in a currency which was backed in gold, but was never redeemable for gold.Eventually Vanderlip gets around to telling us what he really wants: creation of a totalitarian, private banker-controlled “Monetary Authority”, which would impound and control all physical gold. On p.79, he tells us “] would always be in control of the situation, being aware at all times of the purposes for which any gold secured in exchange for currency was intended.” Oh, how nice for the nation! Big Brother will keep the economy stable by overseeing every private transaction! He goes on: “free coinage of gold should be a thing of the past. At the moment, of course, it would presumably be in possession of all the free gold in the country with the exception of gold employed in the arts or for jewelry, etc..” It is a testament to the author’s audacity that he would feel comfortable coming out and admitting this. Fleshing out the details, he tells us: (p.127) “the Federal Monetary Authority will have to take over from the Federal Reserve, not only the currency-issuing function but this system of valves [rediscounting commercial paper, dealing in short-term Treasury notes, and buying and selling bank acceptances:] as well.” In present day, we already see discussion of a monetary authority, in the form of the Bank of International Settlements, taking on this role in the event of an American credit default.There would be no point in denying these plans represent the architecture for a monetary tyranny, so Vanderlip admits (p. 156) “I believe that a Monetary Authority which concentrates all the levers within the grasp of one group of hands is the wisest course." I can't imagine any rational person (banking insiders excepted) agreeing with him.A few comments about Style and SubstanceThe people working to construct a world totalitarian collectivist oligarchy are good at what they do, but they aren’t very imaginative writers. Whether you’re reading Vanderlip, Col. House or Henry Kissinger, you tend to keep coming across the same soundbites, phrases, and stylistic hallmarks. For example, no good robber barron book on finance would be complete without a passage characterizing gold as a primitive, outdated, maybe irrational or superstitious icon of wealth. Frankie Vanderlip delivers those goods on p.13-15. Another old saw is the overused "terrorist" label. The Elites love to call anybody who does anything they don't like a terrorist. I kid you not: on p.32, Vanderlip cautions that future banking systems need to be constructed to protect their gold reserves from “the domestic attack of hoarders“! I’ll bet you didn’t know that buying gold to protect your wealth from inflation was a terrorist act! Finally, most of the New World Order crowd seems incapable of containing their contempt for the public. There are so many instances of arrogance in this text; I need to list just a few to show you what I’m talking about. On pp. 201-202 he goes on at length about how the nation is filled with “economic illiterates”, and how certain select politicians are especially good examples of this. On page 10, he tells us that paper money used to require a 40% backing of gold reserves, but declines to explain or defend the statement, since it can’t be explained “without going into confusing details”. That's kind of a ridiculous statement to make in a 230 page book expressly written about monetary policy. Obviously the readers have some interest and familiarity with the subject, or they wouldn't be reading it. On p.153, we learn that when “the reform of banking practices is debated, the subject is too technical for untrained minds to grasp.” Isn’t there anybody Frank Vanderlip respects besides himself? Oh, don’t‘ worry, there is: he gushes embarrassingly over the “expert management of English bankers” on p.30. He also shares with us that “Bankers have become almost unduly modest in advancing their opinions.” Yeah, right. Basically this whole book is a condescending piece of Elitist robber baron oligarchical totalitarian propaganda. Everybody should read it to understand the threat it represents to our Life, Liberty, Prosperity and Democracy. You Got the Power!This part is from my review of [b:Case for Gold A Minority Report of the United State Gold Commission. I include it here not as filler, but because it is relevent and I really believe in it!What can you do if the monetary system you see all around you is not designed with your best interests in mind? Well, it turns out there is a lot you can do. First of all, you probably already know you should do what you can to get out of debt, and reduce your credit card spending What you might not know is how independently you can function without the dollar. We are so conditioned against taking initiative and acting independently these days, but who says you have to use dollars when you do your shopping? Throughout the nation, many smaller communities have seen the advantages of printing their own locally-issued money. Some of these currencies enjoy wide acceptance from community-based vendors. Farmers' markets in particular seem to be places where local currencies enjoy acceptance. This local money tends to support small producers and sellers. Wal-Mart and their ilk hate local-issue currency, because they like taking dollars out of your community and sending it to their headquarters out of state. Community-issued money tends to keep circulating in small towns, supporting its businesses, and providing a fair medium of trade, free of the averice of Fed bankers and out-of-control Congressional spenders. Isn't it true that local currencies could be inflated, or otherwise tampered with? Absolutely, but that has not been the general experience with local-issue money. It is created by a town's businesses, who have an interest in its success. If a local-issue currency were to go off track, you actually know and have access to the responsible parties. You could even take them to court, depending on the agreement of its issuance... try doing that with the Federal Reserve! If local-print dollars aren't available where you live, maybe you'd like to consider joining the digital gold economy. By holding tradable ounces of gold in an account, you can spend digital gold with a small but growing number of vendors. Does that sound like a lot of hassle? It's less involved than getting a credit card. This is still a developing area in currencies, so due diligence is advised. I mention digital gold because its mere existance shows that the public has caught on to what a scam fiat currencies are. It seems clear there is a desire of the public to return to an honest money system represented by gold. Good luck!--------------------------If you found this interesting, maybe you'd like to fast forward and see how some of Vanderlip's proposals have found their way into current monetary policy, and what the consequences of these have been. Check out Ron Paul's The Case for Gold!