Gold as Fool's Money
by Richard Eastman
 

The gold standard puts real money in yellow chains—and there
 is no freedom where money is in chains.

The world owes G. Edward Griffin honor and thanks for the light shed by parts of his book, The Creature from Jekyll Island, but he also owes us, out of his reputation, damages for his slander of fiat money.
 

(By the way, Gertrude Coogan told much of the same story decades earlier — except that she had a vastly superior understanding of the economic system that includes the Fed and of exactly how that system is harming us, which you can verify yourself by reading her book here: 

http://yamaguchy.com/library/coogan/coogan_01.html
 

Nevertheless, Griffin has reached more people — possibly because of its considerable bias towards the monetary ideas of the Jekyll Island Conspirators, especially in Griffin's not-so-praiseworthy sixth chapter of the book, which comes out for the Gold Standard that every man on Jekyll Island at that historic meeting firmly believed in as the meal ticket of their class.
 

Remember the Federal Reserve was on the gold standard from its inception, past Franklin Roosevelt — who in 1933 only took gold coin out of the hands of US lower-loop citizens — and past Nixon — who only stopped the Treasury from paying out gold in international transactions, i.e., closing the "gold window" for trade imbalances, so that dollars are only redeemable in dollar notes — a necessary step for Nixon with so many dollars getting into the hands of gold loving leaders of the OPEC monopolists.

But all this time until today the Federal Reserve deals in Gold — and gives sweet, below-market deals, to the big banks that really control and set policy for all Fed transactions with the "upper loop" (financiers who operate outside/above the domestic economy loop.) Greenspan and Lawrence Summers and Goldman Sachs and JP Morgan and others were being investigated for such under the table (non-market gold sweetheart deals when the investigators, the computer files and seemingly everything else about the case perished in the bombing and demolition of the North Tower and Building #7 (with South Tower and the Pentagon on September 11, 2001).
 

Gold is the great yellow lock on a nations enterprise — it ensures that no money can be created or spent that does not have the tribute a golden permission token bought from Rothschild. To have money in circulation, under a gold standard, someone has to first buy gold or borrow gold at interest from Rothschild and allied banking families. Thus any investment must be made by a loan — because money is too hard to get for people to make their own advances to the entrepreneurs, no matter how valuable the thing he or she wants to produce and no matter how economical and sensible the method and resources used to make it — it can't happen without a Rothschild loan — a gold dog tag around its neck. Gold is Rothschild's lock on all enterprise.
 

Money isn't backed by anything. Money's value subjective — in the eye of the beholder — and it is exactly worth to each individual only what that individual values most among the things that individual believes he likely can buy with it. End of story.
 

Gold is money in chains.
 

Gold is our bondage — our debt slavery — our boundary imposed by rich men who do not want the competition we would give them with our superior minds and or superior care and consideration for people and their needs. They bind us with a deflationary system.
 

In a government taken over by Rothschild money — gold is not needed in the economy in order to dominate the economy and enslave its people to debt. The national debt and the central bank and treasury "fighting inflation" — an euphemism for strangling domestic commerce with deflation — does that job. But when the nation state is eventually bankrupted — as must happen when loans make up money and all loans must be repaid in amounts that are the sum of the loan (i.e. principal) plus the total of compound interest payments. So then, over the corpse of a bankrupted government the golden chains are clamped around our necks and on or ankles and on our wrists. The government is not needed any more, nor even a central bank. Rothschild can create booms and busts at will simply by increasing or decreasing gold reserves in banks at will — and this is possible even with 100 % reserve requirements. When Rothschild calls in his loans of gold which make the system operate — all loans must be called in — the gold backed money supply must contract. J.P. Morgan knew the game and so did the president of the Central Bank during Andrew Jackson's time, Nicholas Biddle.
 

Even now this country is being manipulated by the Rothschild power — as his shills panic the people into buying gold — buying gold at a peak! — I am talking about Gerald Celente, Glenn Beck, Ron Paul, and Jim Willie etc., although any gold dealer in the country becomes a shill of Rothschild — as middle men gaining from being instruments of the Rothschild mechanism — whether knowing or unknowing who they are really working for.
 

And our buying gold — at the top — means that we are sending Rothschild all of our dollars — sending our dollars out of the economic loop we live in — the loop of households exchanging goods and labor with the domestic businesses.
 

Grifin wrote a summary of Griffin's Chaper 6. Let's look at it:
 

Chapter 8 Summary: Fool's Gold  (G. Edward Griffin )

Fiat money is paper money without precious-metal backing which people are required by law to accept. The first recorded appearance of fiat money was in thirteenth century China, but its use on a major scale did not start until colonial America. The experience was disastrous, leading to massive inflation, unemployment, loss of property, and political unrest. During one period when the Bank of England forced the colonies to abandon their fiat money, general prosperity quickly returned. The Revolutionary War brought fiat money back to the colonies with a vengeance. The economic chaos that resulted led the colonial governments to impose price controls and harsh legal tender laws, neither of which was effective.

Fractional money is defined as paper money with precious-metal backing for part, not all, of its stated value. It was introduced in Europe when goldsmiths began to issue receipts for gold which they did not have, thus only a fraction of their receipts was redeemable. Fractional money always degenerates into pure fiat money.

[Editors' note:  Griffins is not telling the truth regarding the real cause of the Revolutionary War, as is seen here:  With the true account, we would have the following corrections <<in blue>>:

Fiat money is paper money without precious-metal backing which people are required by law to accept. The first recorded appearance of fiat money was in thirteenth century China, but its use on a major scale did not start until colonial America. The experience was disastrous, phenomenally successful, leading to massive inflation, prosperity, unemployment, employment,  loss of property, and political unrest. abundance, happiness and peace in the land. During one period when the Bank of England forced the colonies to abandon their fiat money, general prosperity quickly returned poverty, unemployment, pauperism and beggars became as profuse in the Colonies as England with its poor houses. The immensely degraded condition of life through the suppression of the colonists' Colonial Scrip was the pivotal cause of the Revolutionary War.  The Revolutionary War brought fiat money back to the colonies with a vengeance. It was the prosperity and happiness of the Colonies The economic chaos that resulted led the colonial governments to impose price controls and harsh legal tender laws, neither of which was effective to bring back the thriving prosperity of the Colonies.

Fractional money is defined as paper continental money with precious-metal backing for part, not all, of its stated value. It was introduced in Europe when goldsmiths began to issue receipts for gold which they did not have, thus only a fraction of their receipts was redeemable. Fractional money always degenerates the economy into depressions into pure fiat money leading to mass unemployment, poverty and pauperism for once thriving middle classes.

Eastman article continues here:
 

Griffin doesn't tell you that, according to Franklin, the Revolution was fought for paper money.  Nor does he tell you that England itself went off the gold standard in order to fight and win both world wars—and that money system worked perfectly—until the gold system was reimposed again under the Chancellor of the Exchequer, Winston Churchill in 1925 leading directly to the great depression.  Listen to my account of this event in this interview with Jeff Rense on Rense Radio (2007):
 

http://rense.gsradio.net:8080/rense/special/rense_D_Eastman_022107.mp3
 

— and read the 97 pages of chronological fully quoted references by which I back up this account -- here http://www.rense.com/rewer.htm
 

The best account written by Gertrude Coogan — which I offer as the Populists counter to the Libertarian-"Austrian" pro-Rothschild line put out by Griffin. (If you back gold, you are backing Rothschild.) Read it here (thanks to yamaguchy.com — which has made so many populist books of our history available to everyone with access to the internet) G. Coogan Money Creators (1935) read free online:
 

http://yamaguchy.com/library/coogan/coogan_01.html
 

Here is the ultimate answer to Griffin. The gold power put in the Federal Reserve system as a fake populist/progressive system — as a disguised continuation of the same power of J P Morgan for Rothschild. The Fed pretends to be a populist reform — even William Jennings Bryan backed it (he who ran against gold and uttered the famous line "You shall not crucify America on a cross of gold." (or something very similar). Yet Griffin is calling for the very system that the Jekyll Island conspirators really wanted in the first place but couldn't get away with selling to Congress in the light of day.
 

Paper money—fiat money—it can be plastic money—electronic data entry money—electrons—thin air—IS THE ONLY THING THAT CAN SAVE THIS ECONOMY. It is not a great evil, it is a great boon, done right. Griffin has a nicely bound thick book to his credit that is selling even today— and he appears on all the big "alternative" talk shows like prison planet—but what he is calling for—his history of the Fed aside — is exactly what the money power wants.
 

Now Griffin is frequently appearing on Alex Jones to push the candidacy and gold-standard policy of Congressman Ron Paul. Ron Paul when he was out of power called for the audit of the Fed. Now that his party has taken control and he has a powerful chairmanship in a Congressional banking subcommittee he is no longer calling for the audit of the Fed but has changed his priorities and now calls for an audit of Fort Knox. And Griffin appears on Alex Jones backing up this stupidity — when everyone knows 1) whatever bullion is in Fort Knox and is owned by the owners of the debt, or else is gold coated tungsten etc.

BUT FORT KNOX — A BIG BANK VAULT— IS SO INSIGNIFICANT IN COMPARISON WITH THE FED WHICH HAS ITS OCTOPUS ARMS IN EVERYONE'S POCKETBOOK AND PAYCHECK — and yet the people remained fooled by the bait and switch political game that has been helped by Griffin and Jones. Yes, I know these are likable people, especially soft spoken Griffin—but they are leading you down a booby-trapped primrose path, maybe wittingly or unwittingly.
 

Griffin told a story of a conspiracy—and did a good job—but he does not grasp how the system works. In his view and in the view of Alex Jones, the Fed is just a printing press that can set interest rates for banks borrowing from each other. He doesn't realize how gold and securities are part of the Federal Reserve Game.
 

I've never written a letter to Griffin—so I can't accuse him of avoiding the Populists and Social Crediters—but I can only suspect that by 2011 and all the fomenting of ideas about money and reform that it is mighty strange that neither has mentioned the subject on a radio program or article that I know of.
 

Pretending you don't hear the Social Crediters is not only a game played by the Bank of England and Fox News—and those all the time talking in favor of gold but never mention the possibilities of debt repudiation, or national fiat currency, or social credit distribution of all new money to households—are mighty suspicious—their heads held high on every related topic, but hiding their heads in the sand only on these.
 

The Fed is not just a big printing press. And the gold system is not alien from the Fed Reserve System or the Fed Reserve System opposed to gold. The only way to kick down the Money Power behind the conspirators of Jekyll Island is to replace bank money with household money— debt-free, non-loaned currency that simply appears from the National Social Credit Department in the checking account of every citizen.
 

Here is what I am talking about:
 

http://www.youtube.com/watch?v=xRfOtrYhVx8
Dick Eastman American Social Credit
 

http://www.thespiritualun.org/socialcredit.htm
 

Two Loop Theory and Social Credit solution:

http://www.citizensamericaparty.org/socialcredit.htm

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