MONEY AND THE CON CON CON, PART 2

In the last installment of this blog, "Money and the Con Con Con," I ended by observing that at the end of the American War between the States, one had several types of money in circulation, both in the Union, and in the recently defeated Confederacy:

So we end up with, effectively, a four-tiered or four-storied structure:

(1) A base or core structure of specie to which is added:

(2) a new superstructure of circulating notes redeemable or convertible to that specie; to which is added:

(3) yet another superstructure of circulating notes which are either promises to pay

(as in the Confederacy)

or interest free non-backed notes

(as in the Union)

... and all of this is accompanied by

(4) circulating bills of exchange.

And this brings us to the Con at the heart of the Con Con Con... which we'll get to in the next installment...

Over the years and in several of my books I have outlined a (1) hidden system of finance, reliant upon (2) covertly recovered bullion assets from World War Two, which assets (3) form part of a secret reserve which (4) allow the participants in that system to use that recovered and off-the-books bullion as a secret reserve which can be (5) endlessly rehypothecated to create (6) liquidity as needed in order to support and sustain massively expensive and secret covert research projects and operations, I concluded from this that there were two basic conclusions to be drawn: firstly, that the amounts of various types of bullion in the world were badly obfuscated, and perhaps off by as much as an order of magnitude, making any system of convertibility of circulating money-to-specie highly suspect, and manipulable (just look at the prices of gold and silver), and for that reason, complete transparency would have to occur before any specie resumption or "sound money" system could be re-established. Thus, we have the recent rush of state bullion depositories also mandating that a 100% reserve be maintained by their depositories, i.e., they are really requiring complete transparency in so far as their own bullion depository is concerned. But notably, this does not detract from my overall observation that the actual amounts of bullion and therefore of specie is badly obfuscated on the global scale. Such obfuscation was absolutely essential to the necessities of the post-war research agenda thought to be necessary and which was being established

Secondly, even without that obfuscation, the different types of money in circulation vastly exceeded any estimates of the amount of bullion and/or specie available to back all the types of circulating money. This problem was encountered after the American War Between the States, and again, after World War One, and again, after World War Two, and all financial and legislative acts which followed those wars were an attempt to deal with this problem, and to restore convertibility to specie of circulating types of money.  In short, each of these wars required a vast reconstruction of the financial system to accommodate vastly increased supplies of the various types of money. In fact, if one looks closely at that list of different types of money, one will discover that there are three very different systems or views of money all operating at once, and all related to a system that says that money is bullion.

Historically, there have been various strategies for dealing with the circumstances people found themselves in after the ends of large wars like the War Between the States, or after other major financial crises, when attempting to preserve the assumption of convertability: (1) a total debt jubilee effecting everyone (and not just particular monied classes) requiring an universal transparency and agreement of all parties to the jubilee, a solution not pursued since ancient Sumerian and biblical times, (2) partial debt jubilees or restructurings effecting only certain classes, usually the monied classes or specific monied interests, (3) discovery of new sources of bullion (which may be kept secret, as with Venice' sources of bullion in the New World which were kept secret, or the American covert recovery of Japanese looted bullion from Asia at the end of World War Two); (4) the "inflationary" strategy of the revaluation of circulating notes in terms of more fractional (and thus smaller amounts) bullion backing, or finally (5) the "deflationary" contraction (and destruction) of the supply of circulating notes relative to the supply of specie.

It is to be noted that in the current economic and financial discussions, the last three methods have all been publicly floated in and by the media, oftentimes without any comment as to their relevance to the deeper question of financial systems. For example, I have often pointed out that the amount of bad paper in the form of derivatives in the quadrillions of dollars is still on the books, sloshing around in the system and egregiously poisoning it. If one wants to "make this problem go away" by the third solution, then one has to find resources in the quadrillions of dollars. Voila, asteroids were discovered in the asteroid belt that conveniently were valued in the quadrillions of dollars. All one has to do now is physically go out there, stake the claim, and mine the asteroid, or at least to claim to have done so. Enter Elon Musk and Jeff Bezos and all the private "space ventures", which are the other part of the financial story.

If one pursues the "inflationary" strategy of revaluing circulating notes in ever smaller and more minute quantities of specie backing, then one will absolutely require the existence of a "digital" or "electronic" transfer system capable of computing and dealing with such minute quantities of gold. A gold $1  certificate of 1910 will yield a measurable tangible quantity of gold one could hold, and see, and feel, in one's hand to the naked eye. A similar certificate of today for a gold-backed dollar would yield perhaps a microdot, a nano-thin fleck or speck of gold only visible under a magnifying glass.

Conversely, if one pursues the "deflationary" strategy of reducing (and destroying) a certain amount of notes relative to specie, it could induce a disastrous round of deflation.

My point in raising all these strategies is firstly to observe the fact that the trial balloons for each of these strategies has been floated in the news stories of recent years, if one only knows what to look for, because oftentimes the stories do not appear to have any ostensible connection to matters of the philosophy of money nor to economics and finance.

And if one thinks about this a little further, one realizes that the perfect way to dramatically and quickly restructure the entire financial system, and even the entire concept of money, is via a constitutional convention which could redefine it, either as so many flecks of gold or silver 'backing", or as requiring only so many circulating paper notes relative to specie. Or as defining a new dollar in relation to the old dollar at a ratio of 100:1, or as getting rid of any physical medium whatsoever.  And with so many states in the mix all passing similar but distinct and discrete bullion depository and legal specie tender laws, it is inevitable that some sort of centralizing "solution" will be advocated, and probably via the con con con. After all, they've already shown their true colors by redefining "vaccines" in order to make their covid potions be accepted as 'vaccines", and more recently, they've almost successfully redefined the word "woman." Why not money itself?  If my guess is correct, the campaign behind all these initiatives is designed to be 'resolved" by a Constitutional convention, which will be a con, regardless of which strategy they may decide upon for implementation.

Constitutuional convention? no thank you!. The last one was bad enough.  It led to compromises which led to a war, which in turn created much of the mess we're currently in.  After five decades of trying to solve that mess, they gave us the Federal Reserve System by a quorum vote in the middle of the night during a Christmas recess.  I shudder to think what they'd do to what's left of our money during such a convention, but we have the "sovereign wealth fund" with its crypto-content as a forewarning...

See you on the flip side...

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