classical economics
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Truth and the Republic

Can One Survive Without the Other?
By Wayne Jett © May 30, 2013

    The U. S. Constitution requires a high standard of integrity from elected officials because it embraces the republican model of government. Effective oversight by the electorate is impossible when officials or their subordinates mislead or fail to inform citizens about government policies and actions. Merely reciting these truisms raises serious doubts about the health of the American republic.

In Search of Honest Government

     Try to identify the last time the U. S. president, or the U. S. government, told you the truth. Benghazi terror assault amid military stand-down; weapons transfers into Syria; IRS targeting of political opponents; surveillance of press communications; home searches without warrants; undisclosed “geoengineering” of weather; Fast and Furious gun-running to Mexican drug cartels; ObamaCare; Newtown elementary school attack; Aurora theater attack; raids on Gibson Guitar; big bank TARP (2008); oil price spike (2008); Saddam Hussein’s WMD; World Trade Center attack (2001); Oklahoma City bombing (1995); World Trade Center bombing (1993).

     This list is by no means exhaustive for the time period covered. You may pick one or more items about which you are confident you know the facts. If you do, almost certainly many other Americans strongly disagree with you based on relevant evidence from sources other than government. What is implied about the stability of republican government, when timely knowledge of facts on significant events may have swung elections to different results?

Truth in Financial Markets

     Political instability has severe consequences for the economy and financial markets. The reverse is equally true. Check the archives link of this Classical Capital site for repeated warnings before 2008 of destructive – even corrupt – monetary, fiscal and regulatory policies which would bring turmoil and collapse.

   Those warnings, however, were to no avail so far as effecting policy changes. U. S. policies are designed to accomplish objectives of ruling elite who own the international banks, the central banks and major media. From these power bases, the ruling elite thoroughly dominate all institutions of U. S. government.

     U. S. financial regulators certainly are among the worst corrupted and dominated by the ruling elite. The Federal Reserve Board, a private central bank owned by the global ruling elite, manages the dollar more corruptly and destructively than any major currency in history. The Fed sets interest rates and manipulates the dollar’s unit value, all as desired by its controlling owners. Armed with insider information, the international banks and related hedge funds loot trillions from adversaries, doing great damage to economic health and political stability.

     Federal officials serving this “Establishment” have added insult to injury by actually placing regulatory authority over financial markets and banking institutions in the Federal Reserve. So the ruling elite who control the Fed have, by law, federal power over their banking competition and in financial markets where they do their looting, even including authority to intervene in those markets using federal funds.

U. S.: Not Nearly Good Enough

     If you find solace in financial corruption abroad – perhaps thinking the U. S. is better than Europe, so let’s make the best of it – you should reconsider. The World Bank has serious corruption issues, but it is led by a U. S. appointee.  The recent scandal about manipulation of LIBOR data (not to mention the current ICAP/ISDAfix matter), e.g., does not support your case. The manipulators of LIBOR were international banks of the ruling elite, which are equally prominent in this country as in Europe, if not more so.

     Why was LIBOR (London Interbank Overnight Rate) so important in the first place? LIBOR was used in many financial contracts as the most reliable gauge of market interest rates in the world. No interest rate originating in the U. S. could be used. Why? Because every key interest rate in the U. S., beginning with the Federal Funds Overnight Rate set by the Federal Reserve, is manipulated.

Acute Vigilance Advised

     Government and financial markets are symbiotic. Do not expect to find honesty in government when financial markets are corrupt. Likewise, when your government lies to you, you should be wary of corruption in financial markets. In case you may have missed one or the other, meters of corruption in government and finance both presently are setting on “dead red.”

     A clear indicator of reason to worry: the U. S. president counsels university graduates to “reject voices that warn about government tyranny.” To what end does a government’s highest executive advise citizens against vigilance towards his potential tyranny? Founders of the Constitution advised precisely the opposite: eternal vigilance against government tyranny.

     On March 9, 2010, Speaker of the House Nancy Pelosi said of the Affordable Care Act (known as ObamaCare), “We have to pass the bill so that you can find out what is in it, away from the fog of controversy.” The Speaker called for the vote and obtained a sufficient number from her party to pass the bill through the House without reading its contents.  Stripped of the zaniness of wording chosen by the ruling elite’s operative, this was blatant imposition upon the American people by dictate of the most complicated, destructive and oppressive law in U. S. history. This is government tyranny, plainly in our faces, used to achieve powers pursued avidly in the U. S. by the ruling elite for more than a century.

     A retired commanding general (three stars) of U. S. Special Operations Forces has disclosed that a provision of ObamaCare authorizes formation of a “constabulary force” armed and equipped for action within the U. S. at the order of the president to control the population.  A retired U. S. Army Lt. Colonel reports significant jousting for power among opposing elements of the federal government. These are dangerous times, lacking in trust, both in financial markets and in government affairs. ~