THE REAL WORLD OF MONEY
Andrew Gause may just be the top man anywhere for the highest quality analysis into the world of money we all live in. Andrew is a currency historian, an internationally recognized expert on the United States monetary system. He’s written two books, “The Secret World of Money” and “Uncle Sam Cooks the Books”. You can order these books as well as speak to Andrew personally. As a One Radio Network listener, you’ll have highest priority in his phone time. His # is 800.468.2646
-What permits the US to manufacture Tomahawk missiles and other military hardware while we’re in tremendous debt is the ability of the Fed to create federal reserve notes (dollars).
-If you control people’s money, you control the people. Don’t need to create slaves in physical bondage, just need to control its rulers.
-Federal Reserve banks administer monetary policy, collect a skim off the top for their expenses, and are guaranteed a tax-free 6% dividend on paid-in capital.
-We have taxation without representation in its purest form.
-US is on the cusp of inflation now, similar to 1971-1975 cycle. Andy predicts a 10 year inflationary period starting up.
-US backed creation of banana republics lead to territorial takeover enabling Panama Canal construction.
-The sergeants not the generals determine if we fight enthusiastically or just go along.
-Lincoln assassination was a well-planned conspiracy. William Seward attacked in his townhouse while Lincoln was being shot. Lincoln backed the creation of greenbacks to finance the Civil War to avoid paying extortionate interest rates to the bankers. When a president gets out of line, patterns repeat themselves.
-First Bank of the United States, a monopoly bank, had its charter canceled in 1812. Second bank started after 1812. It decentralized the creation of money, led to a period of immense economic growth, until the SS Central America loaded with gold sunk in a hurricane, leading to the crash of 1857.
-From 1913 to 1929, the Central Bank issued more notes than it had gold to back them. Allowed the market to crash, then removed the gold standard.
-Income tax started out as a millionaire’s tax. Now it hits the mass of Americans. Inflation is a hidden tax on earnings.
-Impossible for the US to have a balanced budget now. Government spending is 30% of GDP.
-First priority for Trump should have been to slash corporate tax rate from 30 to 15%. Multiplier effect will make up for loss of corporate taxes. Second priority should have been increasing tariffs, which would slow down imports and speed up US manufacturing.
10:00 Start of Second Hour
-John asks about the 2015 American Eagles that were produced at the Philadelphia mint.
-Leroy asks if a multi-trillion dollar war will slow down inflation?
-War and welfare is consumptive inflation, not productive inflation.
-All the war hawks in the Senate love Trump after the Syria missile strike.
-US has been operating under “extraordinary measures” since March 15 because debt ceiling wasn’t raised. Obama administration emptied the checking account and didn’t extend borrowing, putting the Trump administration in a bind with an inability to manage the debt. 76 cents of every dollar created must be used for debt service. If the government doesn’t raise taxes, the alternative path is to monetize, raise debt ceiling, and put the money into circulation.
-Looking at the Maturity Table Schedule of the H41 release. If 10% of the people with money in the bank go to withdraw it, it would start a crash.
-IMF imposing limits on its member nations regarding cash actions. Increasing electronic transfer of wealth in lieu of cash. Eventual outlawing of private ownership of paper money?
-Mac asked if government money could be used to grow GDP?
-Clinton administration instituted cards for benefit programs so they could to link transactions to a central data base. Every transaction leaves a trail that can be tracked.
-Cashless society enables tracking of every financial transaction. Tangible assets stay out of the tracking systems.
-When China’s security and housing bubbles popped, they increased their leverage. Be on the lookout for serious trouble in the Chinese banking community.
-Listener asks about JFK’s executive order 11110 authorizing silver certificates. Likely engineered by James J. Saxon, Comptroller of the Currency.
-Municipal bond backed securities, currently popular, are the incarnation of mortgage backed securities.
-Listener asks about the potential future value of a newly minted $100 gold commemorative coin featuring a black Lady Liberty.
-52 y.o. listener asks about selling other numismatic coins to complete an Indian Princess $3 gold piece set. Questions on silver.
-20-30% of assets in numismatic coins is sufficient investment for a hedge. Compressing your wealth to reduce storage issues.
-The 30% that can handle a $1500 car repair are the ones with money in the bank. They can be robbed (as with a bail-in) without engendering protests from the masses.
-Andy predicts the Euro will hold together. Billions will be spent to keep Le Pen (the French Trump) out.
-Fed’s Kaplan says inflation is not running away yet, labor market is tight, the Fed can be gradual in raising rates. But Trump better pay attention to the debt.
Andrew Gause and The Real World of Money, April 12, 2017 Part One
Andrew Gause and The Real World of Money, April 12, 2017 Part Two