This time is different. This is an important one.

I have spent the past week or so doing research to write a blog on the dangers involved in the current government's spending policies and the effect they will have on each of us.  Then I received this email from The Sovereign Man, aka Simon Black.  I will still write that blog at a later date but Mr. Black has stated it so well and with a different approach than I am planning that I wanted to share his comments with you.  The following is the Email I received in toto:

By 1789, a lot of French people were starving. Their economy had long since deteriorated into a weak, pitiful shell. Decades of unsustainable spending had left the French treasury depleted. The currency was being rapidly debased. Food was scarce, and expensive.

Perhaps most famously, though, the French monarchy was dangerously out of touch with reality, historically enshrined with the quip, "Let them eat cake."

The Bourbon monarchy paid the price for it, eventually losing their heads in a 1793 execution.  But it took the French economy decades to finally recover.

Along the way, the government tried an experiment: issuing a form of paper money. It didn't matter to the French politicians that every previous experiment with paper money in history had been an absolute disaster.

As French Assemblyman M. Matrineau put it in 1790, "Paper money under a despotism is dangerous. It favors corruption. But in a nation constitutionally governed, which itself takes care in the emission of its notes [and] determines their number and use, that danger no longer exists."

Translation: This time is different. We're different. We're smarter. We won't suffer the same fate. TRUST US.

Within a few years, hyperinflation had taken hold in France. A measure of flour that sold for two francs in 1790 was selling for 225 francs by 1795. Everything soared. Carriage hires. Butter. Sugar. Everything.

Naturally, the French government decided to fix this problem by printing even more money, doubling the money supply from 7 to 14 billion units in a six-month period.

When these measures also failed, the French government imposed every control in the book-- price controls, capital controls, information controls, people controls. They confiscated lands, they filled the prisons, they waged genocide against their own people.

History shows there are always consequences to entrusting a paper money supply to a tiny handful of men. The French experiment is but one example. Our modern fiat experiment will be another.

Like the French, our politicians think this time is different. Our central bankers think they're smarter. And they want us to trust them. After all, what could go wrong?

Ben Bernanke, a man who has expanded the Federal Reserve balance sheet by nearly 300% during his tenure as central banker, just wrapped up Congressional testimony downplaying the risks of his own money printing:

"We do not see the potential costs of the increased risk-taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery..."

It's also quite interesting that the Federal Reserve Chairman is discussing the 'stronger' economy, especially when by the government's own numbers, US GDP contracted in the 4th quarter of 2012. Meanwhile the price of everything from food to fuel keeps getting higher.

Simultaneously, politicians in the US are racing to avoid imminent 'sequestration' budget cuts. They've created a problem caused by excess spending, and their solution is to ensure they can keep spending.

The French were in the same boat in the 18th century. During the time of Louis XV, no one could imagine how French society could possibly function if they cut the welfare system or defense budget. So they kept spending... kept going into debt... and kept debasing the currency.

We know what happened next.

The US already must borrow money just to pay interest on the money they've already borrowed. The political elite is dangerously out of touch. This time is not different. Assuming otherwise is really dangerous.

Signature
Simon Black
Senior Editor, SovereignMan.com

 

E-mail me when people leave their comments –

You need to be a member of Tea Party Command Center to add comments!

Join Tea Party Command Center

Comments

  • Only the truly uninformed populus and the party members that have much to gain by his push of funds to them for their support will  believe his propaganda and vote for him and his party. The question is: How many people has he bought off ?  Only the "blame America first" crowd can continue to support this administaration that beleives America has been the problem in the world despite WWI, WWII, Korea, the Cold War etc., etc. If not for America, many more people would be either goose stepping under fascism/racism, Japanese emperialism/racism,  under North Korean type oppression /totalitarianism, Soviet style communism/totalitarianism , or Chinese oppression  ( the combined murder committed by these regimes must total over 100 million lives). I can't recall America ever initiating and committing such attrocities ofnear this magnitude? Can any of you out there? America isn't perfect but has brought more good to the world than any other nation. But the America bashers will still support this administration and blame America for global warming, antagonism of radical islam , domination of world economies and living high on the hog while the wrld suffers. Truly irrational!

  • All the states start using coin money. What effect would this have on America

    Ideas and plans.

    Only buy Amercian products. How would this effect America?

     

     

     

  • its getting to a point where obama cant cover his tracks anymore, and things are starting to come back to him, where he cannot cover himself. there are so many lies, half-truths and deceptions that his press secretary cant even keep them straight. this economy has been propped up by obama and his tricky economic crooks, and obamas lies are getting tired and old. sooner or later something will give...hopefully it wont be us.

  • I still think Obama is letting China buy the USA and this is their down payment and that is why Obama is not concerned about the debt because he never intends making payments on it.

    • He has refused his assent to laws, the most wholesome and necessary for the public good(energy and monetary policy to destroy our economy and enrich his cronies and our enemies.).
    • He has forbidden his governors to pass laws of immediate and pressing importance (illegal immigration, maintaining the peace), unless suspended in their operation till his assent should be obtained; and when so suspended, he has utterly neglected to attend to them.
    • He has dissolved representative houses repeatedly (bypassing Congress by Executive Orders, overturning initiatives voted overwhelmingly by the people – immigration policy, marriage under natural law between a man and woman.), for opposing with ‘manly’ firmness his invasions on the rights of the people.
    • He has refused for a long time, after such dissolutions, to cause others to be elected; whereby the legislative powers, incapable of annihilation, have returned to the people at large for their exercise; the state remaining in the meantime exposed to all the dangers of invasion from without, and convulsions within (Occupy anarchism, union thuggery, failure to enforce the borders, establishing a ‘civilian defense force as strong and well-funded as the military’)..
    • He has endeavored to prevent the population of these states; for that purpose obstructing the laws for naturalization of foreigners; refusing to pass others to encourage their migration hither, and raising the conditions of new appropriations of lands (Removing lands from resource exploration and development, draconian EPA and development regulations, minimum and prevailing wage demands to eliminate competition and compromise free enterprise).
    • He has obstructed the administration of justice, by refusing his assent to laws for establishing judiciary powers (Appointing judges who have disdain for the Constitution, even though they solemnly swear to uphold it – in league with all too many elected and bureaucratic officials.).
    • He has erected a multitude of new offices, and sent hither swarms of officers to harass our people, and eat out their substance (Obamacare with its 159 new agencies and selective privileges in green, health, education, welfare and union venues).
    • He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his assent to their acts of pretended legislation:(Conspiring with international financial speculators and passing laws so complicated and indiscernible that they are loaded with special privileges, poison pills and bureaucratic license such as that being used to attack businesses, citizens, Christianity in general and the Catholic Church in particular No law should exceed one specific subject area or 100 pages in length, or it is by definition, pretended legislation.)
  • Paper money is great when the economy collapses, you'll have something to burn in your fireplace to keep you warm.

  • I agree..those that do not remember history are doomed to repeat it!

  • I followed the link to Harrison J Bounel and found this link which you may be familiar with but I had not seen before.  It is very interesting and maybe a new source of true news: 

    http://www.newswithviews.com/Devvy/kidd428.htm

  • Under Cloward Piven and the tutelage of George Soros (the puppet master), this is exactly where the imposter in chief is trying to take us to. He entrapped himself though. In his zeal to destroy our military ( at least weaken it), he tried to spring the Sequestration trap on the GOP. It is backfiring on him. Why? It is forcing him to cut his speeding spree. I say let it happen! Hold your ground, Boehner, do not cave! This is buying us time! It is actually 1.54% on the total budget! Where it traps the genius is it forces him to cut entitlements in addition to the defense.
  • Voters need to vote out these RINO's especially the ones that have been around for a long time.  As we see, many times the right aligns itself with the left.  The Carl Rove, John McCain, and Boehner's need to go.  What we need are the Ted Cruz, Rand Paul, and Mike Lee's to become the new LEADERS of the Rublican Party.

This reply was deleted.