As related in my latest commentary, the federal government is planning to replace the traditional American dollar with a government-controlled electronic “currency.” The nation of America has devoted itself to currency worship like no country in human history. Indeed, nations around the world elevate the greenback to a mystical status, and Hollywood always reveres the mighty buck as the goal of many a blockbuster film.
But currencies do fall, and this one is a true “fiat” — backed by nothing other than an increasingly dubious federal government’s promise of trust. Internationally, nations have slowed or stopped loaning money to America to fund its lavish spending. As nations lose faith in the buck, it stops here at home. If no one will buy new issues of bonds and bills from the U.S. Treasury, who becomes the buyer of last resort? Why, the government that prints money for itself. This is called debt monetization, and it has been an open secret that the United States has launched off this precipitous cliff at least since Obama’s bailout of Wall Street with quantitative easing (QE).
Interest rates are skyrocketing, in what is sometimes erroneously dubbed “quantitative tightening.” But quantitative tightening correctly refers to the government buying back debt with revenue, not raising interest rates to stave off inflation, which was standard monetary policy long before QE (remember that 1980’s “stagflation”). But whatever a government contrives as a “new economics” name for its policies, it still can only print so much money before the cows come home to eat it.
A March 2022 Biden Executive Order reveals a government that will social-justice “save” Americans when this inevitable currency implosion occurs. It will reset the financial markets with a “new” currency, that it controls utterly, and which allows it to treat Americans like cows, herding them into ideological conformity if they wish to eat.
The evidence of government perfidy and willingness to steal from U.S. coffers is longstanding and enormous. Not just the S & L crisis and 2007-2008 debacle, both of which were bailed out on taxpayer backs and the debt completely rolled into the current national deficit, but also Iran-Contra, and pathetically wasteful pork project spending. New revelations suggest that money allegedly sent to Ukraine found its way back through cryptocurrency markets to fund Democrat candidates in the all-important mid-term elections. Could it be so? Who would know, when tracing the money stream is blurred into the ethereal and untraceable internet/cyber-currency stream?
This muddying of the money supply waters has been underway for decades, as ever more reckless federal spending has necessitated ever more obfuscatory opaqueness in financial reporting. As Milton Friedman has observed, “Inflation is everywhere and always a monetary phenomenon.” If there is no way to even track how much money has been printed, or where it has gone, it is inevitable that the usual suspects will abscond with the public coffers.
This government perfidy is actually now hiding in plain sight. After decades of rancor over secret CIA and defense spending, diverted funds to buy weapons from Iran to finance Nicaraguan contras is tame stuff. In 2018, the feds basically restructured financial reporting so that a black hole of federal secret spending was opened fully wide. FASAB 56 (“Classified Activities”) permits federal expenditures to be hidden entirely from the public. Paragraph 8c provides:
An entity may apply Interpretations of this Statement that allow other modifications to information required by other standards, and the effect of the modifications may change the net results of operations and/or net position.
I here cite liberal Rolling Stone’s assessment that this rule change “essentially legalized secret national security spending”:
[FASAB 56] expressly allows federal agencies to refrain from telling taxpayers if and when public financial statements have been altered. … In plain English, the new guidance allowed federal agencies to “modify” public financial statements, with essentially a two-book system. Public statements would at best be unreliable, while the real books would be audited in “classified environment[s]” by certain designated officials.
The implementation of this scheme during the Trump Administration led Rolling Stone to couple its coverage with rants against Brett Kavanaugh, etc. Yet the roots of FASAB 56 are found in the Obama Administration, in Executive Order 13526:
This order prescribes a uniform system for classifying, safeguarding, and declassifying national security information, including information relating to defense against transnational terrorism. Our democratic principles require that the American people be informed of the activities of their Government. … Nevertheless, throughout our history, the national defense has required that certain information be maintained in confidence in order to protect our citizens, our democratic institutions, our homeland security, and our interactions with foreign nations. Protecting information critical to our Nation’s security and demonstrating our commitment to open Government through accurate and accountable application of classification standards and routine, secure, and effective declassification are equally important priorities.
This ‘secret transparency’ is classic George Orwell. It is equally important that financial information be both hidden, and open, at the same time. This is now the status quo of American monetary policy, and of the government’s secret-yet-open un-accountability.
If money was indeed funneled through Ukraine war subsidies to fund Democrat candidates, it is questionable whether Americans will ever know — or whether they even want to. Along with Hillary’s emails, Hunter’s laptop, and the Steele Dossier, it will be buried as an open secret by the Party that “preserves Democracy.”
John Klar is an attorney and farmer residing in Brookfield. © Copyright True North Reports 2022. All rights reserved.