Gold Standard Implementation Update
Did Ronald Reagan appoint a secret committee to implement the Gold Standard after the 1981 Gold Commission released its final conclusions?
That was the theory behind my first "Road to Roota" article written in 2007 and almost everything that has transpired since has reinforced my original conclusions.
Unfortunately, the Gold Commission members were appointed by the ex-CEO of Merrill Lynch, Treasury Secretary Donald Regan, so, of course, the conclusions would inevitably favor the continuation of fiat money but the commission's final report was surprisingly frank footnoting all the member dissension's. The "official report" was released in March 1982 and can be found here:
Gold Commission Report
What I find most interesting is the report's conclusion on page 21:
"In presenting our report, we are conscious of the complexity of an attempt to define what the role of gold should be in the domestic and international monetary systems.
The majority of us at this time favor essentially no change in the present role of gold. Yet, we are not prepared to rule out that an enlarged role for gold may emerge at some future date. If reasonable price stability and confidence in our currency are not restored in the years ahead, we believe that those who advocate an immediate return to gold will grow in numbers and political influence. If there is success in restoring price stability and confidence in our currency, tighter linkage of our monetary system to gold may well become supererogatory.
The minority of us who regard gold as the only real money the world has ever known have placed our views on record: the only way price stability can be restored here (indeed, in the world) is by making the dollar (and other national currencies) convertible into gold. Linking money to gold domestically and internationally will solve the problem of inflation, high interest rates, and budget deficits.
We have made no attempt to conceal the divisions among us. In that respect, our views probably represent the range of opinions held by the country at large. We hope, nevertheless, that our report will make a contribution to public understanding of the important issues involved. In that event, the time we have devoted to preparatory study before our meetings and to the deliberations themselves will have been well spent."
Basically, they decided to make no changes unless "…reasonable price stability and confidence in our currency are not restored in the years ahead..". One would think that after this report's conclusion the US government would reign in spending to maintain "reasonable price stability and confidence in our currency" BUT THEY DID EXACTLY THE OPPOSITE!
The 1980's ushered in "Reaganomics", "Star Wars Defense Programs", Keynesian Economics and the FED's perpetual lowering of interest rates to solve all problems. As such, spending went through the roof and has continued unabated for 30 years to land us in the mess we find ourselves in today!
Given the conclusions of the Gold Commission and the following reckless spending programs of the US government, a sensible person would ask if it was all done on purpose. Let's examine that theory further.
The ***footnote from Mr. Costamagna at the bottom of page 21 recommended that within 3-5 years a new Gold Commission should be appointed. This never happened but it exactly corresponded with the 1986 introduction of the Gold and Silver American Eagle Coinage Program as well as the appointment of Alan Greenspan as the Chairman of the Federal Reserve (you must read… Greenspan's Golden Secret).
It was Reagan that originally appointed Alan Greenspan, the world's most outspoken gold bug, as head of the Federal Reserve Bank in June 1987. In Lou Cannon's book "President Reagan: The Role of a Lifetime" Cannon claims that 3 days into his Presidency, Reagan startled the Secret Service by walking out the White House front door and down Pennsylvania Avenue to the Treasury Building to have an impromptu lunch with then Fed Chairman, Paul Volcker. Almost immediately Reagan stunned Volcker by saying "I've had several letters from people who raise the question of WHY we need the Federal Reserve at all. They seem to feel that it is the Fed that causes much of our monetary problems and we would be better off if we abolish it."
Two months later Reagan narrowly escaped an assassination attempt by John Hinkley, Jr. (see Bush Family connections)
In September Public Law 96-389 was passed to establish the Gold Commission. In my option, Reagan was at war with the banking cabal much like Kennedy was.
On June 4, 1963 President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve. Kennedy's order gave the Treasury the power "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury." This meant that for every ounce of silver in the U.S. Treasury's vault, the government could introduce new money into circulation. This single order would have destroyed the vice grip the banks have on the US monetary system and lead us back onto the road to prosperity with sound money.
Kennedy was assassinated on November 22, 1963, and in July 1965 Lyndon B. Johnson reversed Kennedy's monetary vision by removing all silver from the coinage of the United States.
When Nixon removed any US dollar gold backing in 1971 the game was on to totally devalue the US Dollar.
Where are we today?
I believe we are in the final stages of the long delayed implementation of the Gold Commission's recommendations. Clearly, with today's reckless government spending "reasonable price stability and confidence in our currency" has been destroyed forever… at which time the Commission recommended returning to the Gold Standard.
On Thursday the House Financial Services Committee passed Ron Paul's "Audit the Fed" bill and it will be part of the Financial Regulation Bill likely to pass in 2010.
The Federal Reserve is hiding $Trillions in losses, massive financial malfeasance and illegal money creation/lending to foreign banks. Although the audit itself would destroy the global monetary system, I believe it was included in the Financial Regulation Bill to clean up the mess AFTER the imminent banking crash.
The timing of this is 100% consistent with the other factors that will lead to the destruction of our debt based monetary system. Please review my article Ducks in a Row that lists those other factors.
We should all keep a close eye on the actions of those people who, I believe, are trying to orchestrate the return to a Gold Standard. These are just some of the "Good Guys":
Ron Paul -- Senator on the original Gold Commission and in 1982 wrote the "Minority Report" attached to the Gold Commission Report advocating the immediate return to the Gold Standard… Ron Paul is a true American hero.
Barney Frank -- Member of the Committee on American Eagle Coin Act of 1982 and recent vocal opponent of the Federal Reserve System.
Diane Feinstein -- Leading charge to reform the CFTC and responsible for hiding vast US gold deposits
for the American people at Chocolate Mountain.
Michael Mukasey -- Former Attorney General leading the legal battle against the banking cabal after years of having to watch the US legal system be destroyed by planted corrupt judges, unconstitutional rulings and illegal intimidation.
Alan Greenspan -- 1960's computer expert and financial genius appointed to President Ford's Council of Economic Advisors in order to rig the gold and currency markets with computer trading programs thus extending the duration of fiat money.
Paul Volcker -- It's a long shot but I think he's some kind of double/triple undercover secret agent who was on the side of the US people all along. Volcker taught the US how to control "floating currencies" in an un-backed fiat monetary system. I expect him to play a major role in the post crash recovery.
Warren Buffett -- Only a hunch but since he notoriously hates Wall Street and his father was a gigantic advocate of the gold and silver standard…I'll go out on a limb with this one. Again, time will tell.
Those are my thoughts at the moment. Keep an eye out for the good guys and be prepared for major chaos in the days and months ahead.
May the Road you choose be the right Road!