The American economy has been fundamentally transformed by globalism and ‘money-printing.’ Before Global Governance (United Nations “FREE TRADE”), the United States was a manufacturing dynamo and the greatest creditor-nation of all time.
America’s transformation is an economic catastrophe:
- From 1900 to 1971, the manufacturing economy produced trade surpluses and balanced trade accounts (from 1792 to 1971, all trade imbalances were settled with gold).
- Since 1971, the consumption economy has produced mind-numbing trade deficits. The United States pays the bills with ‘money-printing;’ the Federal Reserve digitally creates credit (U.S. debt) by the trillions of dollars.
AMERICA 2018 – STATE OF THE UNION
Today, the United States is the greatest debtor-nation in the history of the world. The nation has 1,000 military bases around the globe and is involved in two wars (plus covert-operations). Many cities and states have enormous, unfunded obligations; and most Americans struggle with personal debt. In a few years, 2/3rds of the population will be government-dependent in some way.
Only 10-11% of the workforce is involved with manufacturing (public employees out-number manufacturing employees by 2 to 1). America is now dependent on foreign countries for most manufactured products. The country mainly exports raw materials such as wheat, coal, soybeans, fertilizers, meat, and tobacco.
BEFORE “FREE TRADE”
(United Nations Managed Trade)
In the early days of the Republic, the Founding Fathers knew manufacturing would be the key to economic independence (under the British system, the American colonies had imported most finished goods). Right from the beginning, they created trade policies that transformed the economy of the fledgling nation.
Founders such as George Washington (Father of the country), James Madison (Father of the Constitution) and Alexander Hamilton (first Secretary of the Treasury) introduced an American System of protection to domestic labor and industry. In 1789, the first Congress of the United States passed the “Tariff Act.”
Why did our forefathers establish protective tariffs on foreign merchandise and what were the results?
As a consequence of the legislation, Americans decided to produce the goods themselves, rather than pay the import tax and depend on foreigners. The strategy created a production-boom for ‘infant’ industries and businesses that competed with England. Customers ended up paying less; and inter-state commerce sky-rocketed.
PROTECTIVE TARIFFS WORKED.
The export economy of the United States grew by leaps and bounds.
For the next 150 years, customs duties produced 50% to more than 90% of all federal revenues (to fund infrastructure).
ECONOMIC NATIONALISM WAS AMERICAN POLICY.
United States leaders believed political independence (national security) depended upon industrial independence. Very high, protective tariffs provided the foundation for economic development; secured the U.S. market for U.S. producers; and upheld a high standard of wages for American workers.
MANUFACTURING IS A WEALTH MULTIPLIER.
Tremendous wealth was created by manufacturing products using domestic raw materials. From sea to shining sea, a powerful middle class developed. Before the dollar became the world’s “reserve currency,” the U.S. Treasury held title to more than 4/5ths of the world’s officially-held gold reserves. After World War II, ‘the greatest stack of pure gold ever accumulated’ weighed 20,000+ Troy tons.
MADE IN AMERICA
(40% of all finished goods)
Across the land, just about everything was manufactured, grown, logged, mined, and made by Americans. But in no way did protective trade policies lead to isolationism. Before quotas, “favored nations,” and sanctions, the U.S. traded with nations impartially. America supplied the lion’s share of domestic needs and exported high-quality MADE-IN-USA products to the world.
The nation’s robust manufacturing-base supplied 40-42% of ALL manufactured products traded on the planet! Competition was fierce to develop new and better products. Equipment was invented to save time, save work, and save money.
UNITED NATIONS • BRETTON WOODS
(the end of Economic Nationalism)
“The United Nations Monetary and Financial Conference” convened in 1944 at Bretton Woods, New Hampshire to establish a United Nations banking system. Nations in attendance chose the U.S. dollar as the interim “reserve currency” of the new monetary system. National currencies were un-pegged from gold, and pegged to the dollar.
Conferees adopted a plan for centrally-managed trade within a framework of United Nations Governance.* In the global monetary system, national economies would become integrated and inter-dependent. By the incremental loss of economic independence, nations would gradually lose sovereignty (nationhood).
The International Monetary Fund (IMF) and the International Bank for Reconstruction (World Bank) were established as the agencies of Global Governance.* At the close of the U.N. Conference, the U.S. Treasury Secretary (Henry Morgenthau, Jr.) said the establishment of the United Nations banking system marked the “end of economic nationalism.” And he was right.
IMPLEMENTING GLOBAL GOVERNANCE
National economies were integrated in phases, beginning with the 22,000-page “United Nations General Agreement on Tariffs and Trade” (U.N. G.A.T.T. Treaty). GATT legally removed protective tariffs and other barriers to inter-dependence (effective January 1, 1948).*
As the policy of protection was removed from U.S. industry, America’s powerful manufacturing economy was gradually transformed to a consumption economy.**
UNITED NATIONS FREE TRADE
In 1994, the United Nations N.A.F.T.A. Treaty (North American Free Trade Agreement) was “fast-tracked.” NAFTA signaled an exodus by local manufacturers to foreign lands. Why? Lower taxes, fewer regulations, lower prices, lower quality, no employee healthcare or retirement benefits, and no unions (super-cheap labor). Millions of U.S. industrial jobs vanished.
In 1995, the United Nations G.A.T.T. Treaty (General Agreement on Tariffs and Trade) was replaced by a sweeping United Nations Management System called the “World Trade Organization” (W.T.O.).
The U.S. manufacturing exodus accelerated in the decade leading up to the 2008 crash. Almost 50,000 manufacturing plants (with 500 or more employees) moved operations off-shore. Domestic high-tech-manufacturing began to disappear.
Image courtesy of “The Atlantic.”
A CONSUMPTION ECONOMY IS A DYING ECONOMY.
Until credit collapsed on August 9, 2007 and markets crashed in 2008, people enjoyed the illusion of growth and prosperity as a result of easy credit at low rates. The last ten years of Quantitative Easing (QE), 0% interest rates, and various government programs have helped to disguise the structural increase in U.S. unemployment:
More than 95 million Americans are no longer counted in the work-force; and an all-time-high number of young, eligible workers do not have jobs.
It is not an accident the United States is now economically dependent and indebted beyond belief. Lawmakers ignored the Constitution, debased the dollar, and hitched America’s wagon to United Nations Global Governance.
United Nations “Free Trade” agreements serve to destroy American sovereignty. According to the United Nations World Court, U.N. treaty authority trumps the authority of the United States Constitution and Bill of Rights. Trade agreements (which govern much more than trade) have the force to over-rule U.S. law:
World Trade Organization WTO; North American Free Trade Agreement NAFTA; Central America Free Trade Agreement CAFTA; Security Prosperity Partnership North America SPP; TransAtlantic Trade Investment Partnership TTIP; TransPacific Partnership TPP; Korea Free Trade Agreement; Columbia Free Trade Agreement; Panama Free Trade Agreement; Trade in Services Agreement TiSA.
Closed-door negotiations by unelected bureaucrats are fast replacing open government by elected representatives. To regain U.S. independence (sovereignty), U.S. leaders must heed U.S. law. The House of Representatives alone has Constitutional authority to regulate commerce with foreign nations (Article II, Section 2; the Treaty Provision requires 2/3rds Senate approval).
Our forefathers opposed British free trade, and enacted tariffs to protect American labor and industry. Today, our heritage is being squandered. Un-American Global Governance is producing economic ruin:
- Wages are stagnant.
- The average person’s standard of living is falling.
- America’s preeminent position among the nations has slipped.
In Abraham Lincoln’s day, southern plantation-owners were the ‘Free-Traders.’ Lincoln rejected the idea that economic progress requires permanent, low-class workers (the feudal rationale for slavery). He campaigned to boost tariffs:
“I… try to show, that the abandonment of the protective policy by the American Government… must produce want and ruin among our people.” Abraham Lincoln, 1846.***
ESSENTIAL PRINCIPLES OF OUR GOVERNMENT
Thomas Jefferson was one of the authors of “The Declaration of Independence.” When he outlined “the essential principles of our government,” the great patriot emphasized the danger of entangling, international alliances:
“…peace, commerce, and honest friendship with all nations – entangling alliances with none….” President Thomas Jefferson, “Inaugural Address,” March 4, 1801.
George Washington was America’s greatest statesman. He was chosen by the Founders to preside over the framing of the Constitution and Bill of Rights, and unanimously elected President (two times). In his famous “Farewell Address,” he warned leaders to “steer clear” of foreign alliances:
“The great rule of conduct for us in regard to foreign nations is in extending our commercial relations… our commercial policy should hold an equal and impartial hand… It is our true policy to steer clear of permanent alliance with any portion of the foreign world….” George Washington, 1796 “Farewell Address.”
To “Make America Great Again,” the Republic of the United States of America needs statesmen who understand the “essential principles of our government.” We fervently hope the President will continue to resist globalism.
* The “White Plan” adopted at the United Nations Bretton Woods Conference laid the foundation for a global monetary system with centrally-planned trade.
According to the author of the U.N. plan (Harry Dexter White, Assistant to the U.S. Treasury Secretary), independent countries would become inter-dependent states. In 1944, he wrote: “…the change will be in the direction of increased control over industry, and increased restrictions on the operations of competition and free enterprise.” White, 1944 unpublished essay: “Political-Economic Int. of Future,” The Princeton Archives (U.K. “Daily Mail,” #2288294: “Moynihan Commission on Government Secrecy,” Washington, D.C., 1997).
* The systematic debasement of the reserve currency enabled U.N. central banks (IMF, World Bank) to provide currency liquidity to the rest of the world. The U.S. trade deficit grew exponentially after the dollar’s tie to gold was severed in 1971. The flood of “fiat” dollars enabled the development of third-world economies (China, etc.).
* The U.N. GATT Treaty was an interim step toward globalism, providing the necessary management to implement a system for ‘Mutually Assured Economic Destruction’ (if one industrialized nation collapsed, all would collapse).
** U.S. CONSUMPTION ECONOMY (Personal Consumption Expenditures, PCE): From 1998 through the 3rd quarter of 2007, consumer spending (81.3%) plus government spending equaled 96% of the growth in Gross Domestic Product; U.S. exports plus business investment accounted for only 3% of GDP growth. In the 25 years leading to the 2008 crash, consumer spending accounted for 82.5% of real growth in GDP (each year, PCE grew 3.5% continuously compounded).
William Emmons Jan 2012 Federal Reserve Bank of St. Louis.
*** Abraham Lincoln, The Collected Works of Abraham Lincoln, Roy P. Basler, Editor, 1846 “Discussion of Protective Policy,” Vol. I, p. 415; 1859 “Address to the Wisconsin State Agricultural Society,” Vol. III, pp. 478-479; Rutgers University Press, New Brunswick, N.J., Abraham Lincoln Association, copyright 1953.
Submitted by Denise Rhyne
“There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” John Maynard Keynes, The Economic Consequences of the Peace, (McMillan, 1919); St. Martin’s Press for the Royal Economic Society, pp. 148-149, 235-236, London, 1971.
WHAT ARE CAPITAL CONTROLS?
FEDERAL RESERVE DOUBLE WHAMMY:
WEIGHTS, MEASURES & BALANCING SCALES:
CONTENTS: Ancient Monetary System; CARAT Weights; KARAT Purity; TROY Weights; METRIC Weights; MILLESIMAL Fineness; FAR EAST Weights; British POUND (Pennyweight, Pound Sterling, Sovereign); DOLLAR (Old U.S. Gold Coins); Historical GOLD-to-SILVER-RATIOS (U.S. 90% Silver Coins, Gold & Silver American Eagles; BIBLE Weights: TALENT, MANEH, SHEKEL, GERAH, BEKAH (Conversion Table); WORLD COINS (Gold Contents).
VIDEO EXPLANATION OF GLOBALISM:
Money printing is “life-support” for
the failing health of the U.S. economy.