Forum Post: The Government Patronage System
Posted 13 years ago on Oct. 23, 2011, 9:20 a.m. EST by Republicae
(81)
This content is user submitted and not an official statement
Many people are concerned, and rightly so, with the drastic disparity of income and wealth in this country, but few seem to understand just how this system has evolved in this country.
The entire impetus from the period of Lincoln to Obama has been with little interruption, a path of the consolidation of a nationalized government with the power to control every aspect of the lives of individuals. In order to do this it was necessary for the free-market to be completely destroyed and a system of centralized planning be implemented for that the purpose of bringing about a Government Patronage System of Mercantilism. The first barrier that had to be removed was sound money, after that it was necessary to implement a form of economic theory that would not only allow the government to gain control over the economy, but would make it necessary for it to gain control through the gradual destruction of monetary and economic functions that operate according to free-market principles.
Thanks to the Government’s Fiat Monetary System and its Lapdog The Federal Reserve Bank, a vampire economy has been created that siphons off not only wealth, but also the ability to create wealth from the general population of this country. There is an intentional deception that has been perpetrated on the American People through the use of a monetary system that constantly depreciates the ability of the People to both create wealth and live a life beyond that of a peonage wage.
In 1913, a U.S. Dollar was 100 Cents in face value but it also had the buying power of 100 Cents each, but not today. Essentially, today every Federal Reserve Note, commonly known as a “Dollar” has the effective buying power of 3 Cents due to the hidden taxation of inflation. That means that person might think he is making $9.00 per hour in wages, but that $9.00 an hour only has the power to buy .39 Cents worth of goods and services today. The disparity of income is far greater than most people realize, because underneath the drastic differences in what we count as income there is the real disparity in buying power. Thus, if a person is making $360.00 per week in wages, that person really only has the power to buy what $15.71 bought when the “Dollar” was actually a 100 Cent Dollar. It is a massive deception. Is there any wonder why the Government implements a Minimum Wage, they have to attempt to keep the ruse going. At the current Minimum Wage a person only has the effective buying power of .32 Cents an hour, not even enough to live on and it will continue unless the real source of the problem is addressed, that being the Government, the Federal Reserve and its Patronage System.
This Government has created a system of peonage, serfs working for what really amounts to pennies per hour, while most of the actual wealth being generated through their labors is siphoned off and redistributed to the Governments System of Patronage. It is Mercantilism, Corporatism, it is essentially nothing more than Socialized Fascism. Through the instrument of the Federal Reserve and the Fiat Monetary System, this Government has created a huge Serfdom where the People are working for what amounts to pennies on the “Dollar”, but the real wealth is redistributed to those who hold its Patronage.
While that is true to a degree, you must understand that most of the 1% tend to move their cash holdings into hard assets, rarely do you find them setting on Federal Reserve Notes. The damage is brought about when a person who is working his or her butt off trying to make a living cannot because the purchase value of those wages are constantly being depreciated.
Wage inflation has not kept up with price inflation in this country, Since 1913 inflation has eaten away at the "Dollar" to the point that is can only buy what 3 to 5 Cents did in 1913. That being the case if a person makes $55,000.00 today that person only has the effective wage purchasing power of what $2,399.85 did in 1913, that is a massive erosion of livable wages.
Is there any wonder that the increase of poverty in this country has been so dramatic, it has been facilitated by the official government policy of inflation. It is an intentional policy to create what amounts to a peonage, an officially sanctioned Serfdom where the People labor, continually paying "rents" to the Lords of the Manor.
Actually inflation is the single thing that the 1% fear most, because it erodes the value of all 'wealth' not stored in physical assets.
However it is also damaging to the top ~30% who are relying on pension funds to finance their retirements.
For the bulk of Americans with negligible assets it will be a zero sum game, given that wage inflation keeps pace with price inflation.
The biggest beneficiaries are those financing the purchase of physical assets with borrowed money. They get into their big houses at the expense of banks. It's not enough to finance your 25 year retirement, however.
Watch out for the scramble for cultivable land.
The solution is not an easy one, fighting against a Government Patronage System requires a far greater leadership than is commonly available in this country at this time. Eventually, probably sooner than most thing, the system will implode, as we are now witnessing around the world, especially in Europe. The massive debt that accompanies the fiat monetary system will consume it and the governments and organizations that patronize those governments.
Outside of overt Revolution, there are few options left to the People. A step in the right direction would be Congressional exposure of the system, that would require far more Congressional members being aware that the source of many problems in this country is, in fact, the FED and the government-sponsored Fiat Monetary System. An Audit of the FED is a start, it will expose the misallocation of our resources by the FED and with that exposure there would be a growing public opinion against both the purpose and functionality of the FED.
Next there must be a repeal of the legal tender laws that force the use of Federal Reserve Notes as currency in this country. Legalizing competing currencies would effectively kill the system, but that would require a great deal of political will which, I don't think is currently available.
We cannot simply resort to a government gold standard, one that is manipulated by the government and its banking patrons, there must be a restoration of a classical gold standard, one where the government is not involved in its administration. Any centralization of a monetary system will only lead to similar issues. In the early years of our Republic, the Treasury was nothing more than a depository, the Mint was nothing more than a service provider to the People. People could take gold, silver, copper bullion or ore to the Mint and for a very small fee, it was refined and minted into coin for that person. It was a system that worked extremely well at that time, but today things are different, few people have access to either bullion or especially to ore, but a system of competing currencies would go a long way to restoring a system of honest money in this country.
The need for a honest dollar, one based upon the stipulations of the original Coinage Act of 1792, would restore a great deal of power to the People of this country, taking away a massive amount of power from this government and from its system of patronages.