classical economics
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Gold, Dollar & Living Standards

Trade Talks Must Succeed

By Wayne Jett © June 23, 2019

     Thirty years ago, President George Bush hustled Americans along the road to a “new world order,” code words meaning an end to nations with elected representative governments. Bush 41 put the North American Free Trade Agreement into place, and his protégé and successor, President Bill Clinton, admitted China to the World Trade Organization in 1995. These two deals obtained cheap, foreign-made goods for U. S. consumers, but undercut the crucial employment of the U. S. industrial-manufacturing base. Combining this glaring flaw with unsound Keynesian monetary policies implemented by the Federal Reserve has produced extreme concerns which now require balancing the foreign trade current account and reforming U. S. currency based on sound money principles.

Reversing the New World Order

     In 2016, the NWO’s favorite presidential candidate was poised to assume power as “the closer” of the American middle class. President Donald Trump instead was elected to return the U. S. to financial and economic stability as an industrialized nation.

     Trump’s election was the first major setback for the globalist cabal and its NWO agenda since the cabal began its all-out assault against the middle class and representative government at the outset of the 20th Century. This explains outright spying against the Trump campaign, the on-going coup attempt to remove him from office by any means necessary, the legislative roadblocks to Trump’s agenda, and major media’s raging opposition at every turn.

Balancing the Trade Current Account

     In this context, problems created in the long march towards NWO during previous administrations are being addressed, and must be resolved, if the Trump rebellion is to succeed. The current account deficit of the U. S. has been running at about $850 billion annually. To reduce this monstrous deficit, NAFTA has been renegotiated (now USMCA) and the new terms are already ratified by Mexico. Canada is ready to ratify, too, but the U. S. House under Speaker Nancy Pelosi is blocking progress on legislation necessary to implement U. S. terms of agreement. The same destructive delay in the House may impede a new trade deal with China, even if such a deal results from Trump’s pending trip to Asia.

     Such challenges arise when government authority is divided between Trump nationalist forces and those who are operatives of the global elite and the NWO agenda. Financial collapse of America would greatly advance the NWO objective to end all national governments. In this context, long delays in re-setting these trade deals are intolerable, so expect the conflict to be resolved on a no-holds barred basis

The Monetary Crisis

     Consider again the monetary crisis faced by the U. S. presently. The Federal Reserve notes issued as “circulating currency” of the U. S. have lost at least 97.5% of their purchasing power since 1971 as measured by gold. Even this terrible performance does not fully reflect the Fed’s secretive, unsound financial condition.

     Other nations have been forced to continue using the Fed notes by economic, diplomatic and military pressures. The U. S. itself has been destabilized socially by wars and clandestine actions, still continuing, though neither is favored under Trump’s new leadership.

     The Fed note and the Fed itself, therefore, are to be jettisoned as soon as possible. That objective will require defeating and destroying the global cabal, which owns and controls the Fed. This historic military, law enforcement and political campaign has been on-going since President Trump’s inauguration in January, 2017. Defeating the coup attempt against Trump has been only one element of that campaign. Arrests and prosecutions will occur to punish capital crimes committed in the coup attempt.

America’s New Money

     In this context, a new monetary system must be created to replace the Federal Reserve and its privately owned and manipulated “note” at the earliest date possible. Doing this will require the U. S. to demonstrate capability to back a newly issued currency convertible into gold at a stated rate per ounce. The U. S. Treasury must show we have the gold necessary to transfer yearly as necessary to settle any trade deficit we experience with every other trading partner. 

     The specter of future gold transfers [measured in tens of thousands of metric tons annually!] out of America illustrates vividly the financial ruin already inflicted upon America continuously during the past 30-plus years as dollars have been sent out of the country in enormous sums for manufactured imports. Many of those dollars have returned to America to buy assets – mostly real estate and businesses, not goods or services – for foreign ownership. Rather than taking our gold to their country, foreign manufacturing interests now own much of the U. S.

     This is the sum and substance of the task President Trump has taken upon himself to resolve with tariffs, skillful negotiations and a very necessary sense of urgency. Those who are operatives of the global cabal will continue to obstruct and delay by any means at hand, but their chances of success are diminishing.

Return To Good Money

     Under classical economic principles, good money has two features: (1) good money has stable value over time; and, (2) good money puts actual, known value into the possession of persons who exchange assets, products or services for it. Gold and silver in the form of bars or coins made from them served the purpose for most nations well into the 20th Century.

     If, instead, a paper currency is used to facilitate ease of use in commerce, the paper currency must guarantee a prompt and easily used mechanism to deliver possession of actual value in exchange for the paper currency at the holder’s request. During past centuries with far less technology than is now available, this design was achieved in many nations, including America.

     Article I, Section 10, of the U. S. Constitution prohibits any state from creating money other than gold or silver coins. These specifications remain the standard for money of the highest quality available, meaning stable purchasing power over extended periods of time. Keynesian allegiance to objectives of mercantilism does not permit admission of the principle, so debate of the issue with Fed acolytes is pointless.

The advent of the Federal Reserve, FDR's 1933 abandonment of the gold standard for Americans, and Nixon's end of exchange of dollars for gold at a guaranteed rate on August 15, 1971, ended the dollar as good money from that day to this.

The Price of Gold

     The question in many minds presently asks what the price of gold will be after a “currency reset.” Those raising the question should consider the premise that owning gold over a significant period is a generally sound way to maintain purchasing power. A sharply higher gold price in Fed notes would mean the purchasing power of each Fed note would fall, so that the dollars obtained from sale of an ounce of gold would purchase the same goods and services as was the case before the rise in gold price.

     Owning gold over a significant period is not a strategy for increasing purchasing power, which requires speculation in determining a most opportune time to sell in exchange for a selected currency. Stated another way, an increased price of gold in a particular currency will ultimately be reflected in prices of other necessities in the same currency.