This is Viewpoints for Monday, July 10, 2017

Federal Reserve woes

President Andrew Jackson said, “If the people understood the rank injustice of our money and banking system, there would be a revolution before morning.”

The Founders of this nation set up a simple economic system that did not rely on a private central bank. Government issued the public currency and spent it into circulation where it was used by the public free of interest. Money was then taxed back into the government’s hands to be re-spent back into circulation. For each fiscal year money issued equaled money collected. During such times, our monetary system was based on a weight measure of silver or gold, which meant the value of a dollar was fixed and not subject to the whims of governments or bankers.

Several private banks existed in our history. Bankers are powerful entities, easily corrupting our elected officials. One could link many presidential assassinations throughout history to their opposition of the central bank during that time.

Unlike the economic system of value instituted by the Founding Fathers, our current Federal Reserve System is debt-based. All money, whether issued through the government or by member banks to the public, is the result of a loan from that private central bank.

Realize that the moment the first Federal Reserve Note went into circulation, more money is owed to the banking system than actually exists. Our dollar is literally created out of thin air and debt (interest) is owed on that dollar. The Federal Reserve System is designed to suck the real wealth out of the nation and put it in the pockets of the bankers. We are trapped in debt that can never be paid off.

Wars are lucrative for central banks. They create the currency to finance them and conversely create the currency for the rebuilding, making huge profits off the nation’s taxpayers. The Middle East wars and conflicts, at its core, are to continue the petro-dollar’s hegemonic reign.

Our second Independence Day will be when we get rid of the Federal Reserve in this country. Maybe then we will have a world with peace and prosperity.

Due consideration

I appreciate the recent letters published from Jim Costello and Jane Carder concerning our military adventures in Iraq, Syria and Afghanistan. Having spent time in two of those countries, please allow me to state a somewhat different perspective. Nations, like people, tend to act in ways that they believe to be in their own interest. Sometimes those actions are folly. I won’t try to express in this letter whether I believe our actions are in our interest or simply folly.

However, I will state that our military capacity is finite, and we should use military force only after consideration. When an enlisted troop or non-commissioned officer is lost or injured, it’s a tragedy. Non-commissioned officers are the glue that binds any military organization into a cohesive, effective fighting force. The effects of these losses on family and fellow military members are eternal.

So what should happen with regard to our use of military force? First our civilian leaders, with advice and tutelage provided by active military members, should decide what are our long term, and near term, goals and objectives. This is true not just concerning the countries mentioned, but also across the globe. Remember these goals and objectives are pursuant to our nation’s perceived interests, and their identification must be a civilian endeavor.

After deciding upon our goals and objectives, our military leaders should decide the strategies and tactics that will support attaining those goals and objectives. Every goal or objective does not require the application of military force. That would be folly. The concepts stated here are established, perhaps using other terminology.

The main idea is the consideration, which is not simply a byzantine exercise. After deciding upon our goals and objectives, they should be shared with our fellow citizens, as well as members of our military. Members of our military services should also be familiar with pertinent strategies and tactics.

The current occupant of the White House inherited a world in chaos, as well as a military under trained, under resourced, but with robust inherent capability. That military should be employed wisely, not haphazardly as it has been previously. Our non-commissioned officers and enlisted personnel should be provided a roadmap to victory, if they are deployed, and they deserve the support to get the job done.

In regard to the three countries mentioned earlier, we should consider our perceived national interests, the goals and objectives adopted pursuant to those interests, and the pertinent strategies and objectives. History is littered with the ruins of empires whose leaders failed to carefully consider the results of their actions. Making decisions is hard. Leadership is hard. Mistakes are common and forgiveness is rare. But, it is better to apologize to the families of a thousand dead goat herders than the family of a single dead Marine.

Older consumers don’t spend

I just read an incredible story about Japan that drew comparisons of America today. Roughly 10 years ago, Japan went into a financial death spiral. By the end, their economy lost 80 percent in real value. Today they only recovered 30 percent. Consumers had diminished due to an aging population.

Today, the 130 million “baby boomers” are now savers and not consumers and that loss along with a reluctant next generation of consumers, America faces a very complex financial future. Being one of that group I can confirm I am not buying much and a new car is not envisioned.

Up to three years ago I was still dining out regularly, now twice a month is a stretch. We have closets full of clothes and shoes. We are no longer consumers as before. The sheer numbers are very disturbing when considering America’s GNP is going to shrink drastically.

As in Japan, valuations are going down across the full spectrum. There seems no answer to counter the loss of consumers. Consumers produce 80 percent of GNP and governments 20 percent, which will drop drastically too.

This story was originally published July 9, 2017 at 9:00 PM with the headline "This is Viewpoints for Monday, July 10, 2017."