America’s economy has been fundamentally transformed by globalism and ‘money-printing.’ Before United Nations “FREE TRADE,” the United States was a manufacturing dynamo and the greatest creditor-nation of all time.
Before globalism, just about everything in America was manufactured, logged, grown, sewn, invented, mined, or made by Americans. In the post-war years, the nation’s robust manufacturing-base produced 40-42% of ALL finished goods. The U.S. Treasury held title to 4/5ths of the world’s officially-held gold reserves: The “greatest stack of pure gold ever accumulated” exceeded 20,000 Troy tons!
AMERICA 2018 – STATE OF THE UNION
Today, the United States is the greatest debtor-nation in the history of the world. America is dependent on foreign countries for most manufactured products. Only 10-11% of the workforce is involved with manufacturing (public employees now out-number manufacturing employees by 2 to 1). The country mainly exports raw materials (coal, wheat, soybeans, fertilizers, meat, tobacco).
America’s transformation is an economic catastrophe:
- From 1900 to 1971, the U.S. manufacturing economy produced trade surpluses (trade imbalances were settled with gold from 1792 to 1971).
- Since 1971, the U.S. consumption economy has produced mind-numbing trade deficits (the U.S. has not run a trade surplus in more than 40 years). Since 1971, America pays the bills with ‘money-printing;’ the Federal Reserve digitally creates credit (U.S. debt) by the $ trillions.
THE AMERICAN SYSTEM OF PROTECTED TRADE
Washington, Jefferson, Roosevelt, and Lincoln (carved on Mt. Rushmore above) opposed the British system of FREE TRADE. They believed America’s political independence (national security) depended upon industrial independence.
How a nation of farmers became “the land of opportunity.”
Under British rule, the American Colonies exported their raw materials and depended on England for most finished goods (1620 to 1776). In the early days of the Republic, America’s Founding Fathers knew manufacturing would be the key to economic independence. Right from the beginning, they created trade policies that transformed the economy of the fledgling nation.
Founders such as George Washington (Father of the Nation), 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. The strategy created a production-boom for ‘infant’ industries and small businesses that competed with England. Inter-state commerce sky-rocketed; and customers ended up paying less.
PROTECTIVE TARIFFS WORKED.
The manufacturing 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 (duties funded infrastructure).
MANUFACTURING IS A WEALTH MULTIPLIER.
From sea to shining sea, tremendous wealth was created by manufacturing high-quality, MADE-IN-USA products using domestic raw materials. Equipment was invented to save work, save time, and save money. Competition was fierce to develop new and better products for America’s burgeoning middle class.
VERY HIGH, PROTECTIVE TARIFFS:
- Secured the U.S. market for U.S. producers.
- Provided the foundation for economic development.
- And upheld a high standard of wages for American workers. Highly-paid manufacturing jobs created the fastest growing middle class in history.
UNITED NATIONS • BRETTON WOODS
“The United Nations Monetary and Financial Conference”convened in 1944 at Bretton Woods, New Hampshire to establish a United Nations banking system: the International Monetary Fund (the I.M.F.) and the International Bank for Reconstruction and Development (the World Bank).*
Conferees adopted a plan for centrally-managed trade within a framework of United Nations Governance.* Under the governance of U.N. agencies, the economies of independent countries would become increasingly integrated and inter-dependent. The dollar was chosen as the reserve currency of the global system. National currencies were un-pegged from gold, and pegged to the dollar.
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. The U.N. G.A.T.T. Treaty legally removed U.S. protective tariffs (effective January 1, 1948).* Over the next five decades, eight rounds of GATT trade negotiations served to dismantle U.S. protective tariffs and other barriers to inter-dependence.
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 North American Free Trade Agreement (U.N. N.A.F.T.A. Treaty) was “fast-tracked.“ NAFTA signaled an exodus by local manufacturers to foreign lands. Why? Super-cheap labor, lower taxes, fewer regulations, lower prices, lower quality, no employee healthcare or retirement benefits, and no unions. Millions of U.S. industrial jobs vanished.
In 1995, the United Nations General Agreement on Tariffs and Trade (G.A.T.T. Treaty) was replaced by a sweeping United Nations Management System called the “World Trade Organization” (U.N. W.T.O. Treaty).
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. Ten years of Quantitative Easing, 0% interest rates, and various government programs have disguised the structural increase in 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 U.S. Constitution and Bill of Rights. Trade agreements (which govern much more than trade) have the force to over-rule the Common Law.
By the incremental loss of economic independence, nations gradually lose sovereignty: 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 the British system of free trade, and enacted tariffs to protect U.S. labor and industry. Today, America’s heritage is being squandered. Un-American FREE TRADE 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 for protective 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 systematic debasement of the reserve currency enabled U.N. central banks (IMF, World Bank) to provide currency liquidity to the rest of the world. After the dollar was debauched in 1971, U.S. trade deficits grew exponentially. The flood of fiat dollars enabled the development of third-world economies (China).
* 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.” Harry D. 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 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
Because of money-printing, America now has 1,000 military bases around the globe and is involved in two wars (plus covert-operations).
“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.
REAL MONEY vs. FUNNY MONEY:
FUNNY MONEY is “life-support” for
the failing health of the U.S. economy.
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).