Letter to the Editor

"Some inconvenient truths"

Saturday, April 13, 2013

Dear Editor:

Most folks who have been paying attention realize that something is very wrong in the U.S.A. today. Although the major news media keep reassuring us that all is OK and that we are in "recovery," reality doesn't seem to match. Why is this? Are those in control really stupid enough to keep doing the opposite of what needs to be done? When you're $16 trillion in debt is the answer to "print" a trillion dollars more per year out of nothing? If we handled our finances the way our government does, we'd all be in prison! Why do our elected officials allow this wrong-headed march to the financial cliff? Is it because they are not really the ones in control, and are only following a prescribed agenda?

At this point it's helpful to know some history. In 1933 the American Banking Act was passed (otherwise known as the Glass-Steagall Act). This separated commercial banks from investment banks and insurance companies and ended the use of citizens' accounts for gambling by the investment banks, a condition that had led up to the Great Depression. This served us well up until 1999 when it was repealed. The major banks have regulated themselves ever since. And our own justice department recently admitted that these banks are not only "too big to fail" but too big to prosecute for their crimes.

It is well-known that the winners of wars "make the rules." At the Bretton-Woods conference following World War II, the major currencies of the world were "pegged to the dollar." This was OK with those nations because the dollar was backed by gold, and thus "as good as gold." But due to the vast overspending of the 1960s, including Medicare and "The Great Society," other countries began to lose trust in our dollar, and exchanged their dollars for gold. They rightfully lost even more confidence in 1971 when President Nixon "closed the gold window." For the first time in world history, all currencies were "fiat" in that they lacked any backing by gold or silver.

This would have led to the failure of the dollar as America "bled gold" if it were not for a shrewd plan that sent Henry Kissinger to Saudi Arabia in 1973 to work out a deal that required all sales of OPEC oil to be carried out in U.S. dollars. This established the "petrodollar" system, which made the dollar the world's reserve currency and allowed Americans to overspend on inexpensive foreign goods for such a long period of time. The system in which the dollar remains the reserve currency is coming to a halt, however.

Foreign countries are again losing confidence in our currency because of our continued devaluation of the dollar (it's becoming worth less and less) and have worked out deals to use each other's currencies, as well as gold, for transactions. And why shouldn't they? Those who control the finances of the U.S. (the elite bankers) have caused the dollar to lose over 95 percent of its purchasing power since they took over in 1913. This has facilitated the greatest transfer of wealth in history, from the middle class (you and me) to the big banks. Last year the Fed purchased 70 percent of all treasuries, as no other buyers could be found. Australia just announced that it is abandoning the dollar in its transactions with China. Russia and China are using rubles and yuan, and not the dollar, in their dealings with each other.

We can expect that as more and more dollars are "printed" they will eventually work their way into the system and cause increasing inflation. Yes, higher prices are on the way. Why isn't the plight of America more widely recognized? Partially due to government lies. The current inflation rate is not 2-3 percent, but closer to 10 percent. The government for several years has left both energy and food costs out of the cost of living figures! (This also allows them to raise payments to those of us on Medicare by only small amounts compared to the true increases in cost of living.) And unemployment is not running at 6 or 7 percent, but closer to 20 percent, since the government leaves out of the official figures those millions who have given up looking for work, and thus are no longer counted in the "labor participation force."

What will happen when foreign countries dump the dollar? All of those dollars will come home and the "chickens will have come home to roost." That's when the dollar will be severely devalued, possibly quite quickly, and it won't buy much then. Think hyperinflation. Anything denominated in dollars will be virtually worthless, including stocks, bonds, pension funds, mutual funds, CD's, savings accounts, etc. This could happen within a year or so.

How will people react to this? Maybe this consideration accounts for the Department of Homeland Security's recent purchase of over a billion rounds of .40 caliber hollow point ammunition and some 2,700 light tanks, as well as plans for 30,000 drones to fly over our skies. (Yes, 30,000).

What's one to do? Well, at the core of this mess it's a spiritual battle, so the first thing to do is make sure you are "right with God." You cannot make it on your own, and neither can governments.

It's important to know the difference between "currency' and "money." The difference is that money has inherent value. For 5,000 years that's been gold and silver. As for any wealth you have, many say that having a "significant" portion of it in silver or gold (in your possession) will ensure that you survive financially. Both metals are "cheap" currently, though gold may not seem so. Both are obtainable from reliable sources, but as supplies dwindle it takes longer to get them in hand.

You might say, "Well, you can't eat gold or silver, or use them at the store to buy food. And the stock market is at new highs!" True, but both metals are easily convertible into cash as needed, and which would you rather have, a bank account that no longer will buy anything, or real money? And the stock market is only as high as it is because of government purchases, not because of a strong economy.

Government today is "of the banks, by the banks, and for the banks." And don't get me started again on gun control!

Dr. Ron Jones

Nevada