The “Full Faith and Credit of the United States of America” … Is Nothing But Politicians’ Promises!

Back around 1971, the last vestiges of the Gold Standard disappeared; international payments were made like yours and mine, from fiat money. Our Federal Reserve Notes are prominently backed by the “Full faith and credit of the United States of America.” Sounds impressive, right? When they were old-fashioned Silver Certificates, exchangeable for silver or gold, they were impressive. But if you think for a minute, that “Full faith and credit etc.” parses out as nothing but a fancy presentation of politicians’ promises. And you ought to know by now what those are worth!

If you want more concrete evidence of what the “Full faith and credit…” have been worth, consider: My father bought a new Chevrolet in 1937 for $750. Yeah, it had no heater or radio but you know what a bare-bones Chevie costs now. That is how much of your wealth your government has stolen through the inflation it has engineered specifically to do just that. No wonder nobody can save enough to retire without government Social Security!

Now, not only is your dollar worth about 98% less than it used to buy, but since the hotshots supplying that “Full faith and credit…” have run up some $16 trillion in debt that taxpayers have to repay (plus the interest) it’s becoming very evident exactly what that “faith and credit” are Full of. Specifically, something usually collected in buckets by following a herd of bulls…

This is of course, why the governments of Russia, China, India, Brazil and others–plus lots of individual citizens world-wide–have driven the price of gold past $1,600 oz. while collecting scads of the stuff. That’s a sign of how distorted the world economy has become, thanks to the games of politicians. Gold was about $20.35 oz. in 1932.

See, the Federal Reserve is sitting on interest rates so they can’t rise to reflect risk as they do in normal markets. Why? Because the politicians prefer it. Forced low rates cheapen government borrowing, which is setting new records by the minute. And the pols believe, or pretend to believe, that cheap money gooses the economy. (Not with debts like these!)

They don’t tell you some things, though: The Global Demise of Pension Plans explains how artificially low rates ruin pensions. With little return on investments, how can a pension plan earn enough to fund what it will owe at retirement? How can banks earn enough to offer services for the use of your money? That’s why you see so many bank fees these days; they can’t earn interest with the government’s fix in the way.

The entire planetary financial exchange process is no longer a free market; it’s hardly a market at all. The E.U. first and the U.S. next have pushed money backed by nothing but politicians’ promises to the point of worthlessness…the ability to collect enough from taxpayers to fund the promises does not exist, making the promises worthless. The U.S. is no longer able to rely on its credit, since the necessary faith has been lost; it has now to depend on the Federal Reserve to buy its bonds (ie: to loan it money). And the Fed has no money, it just makes it up as it goes along. We are inhabiting a house of cards in the face of an oncoming high wind…after the election, we’re going to be dwelling in new territory. A storm cellar will be a wise provision…

About Jack Curtis

Suspicious of government, doubtful of economics, fond of figure skating (but the off-ice part, not so much) Couple of degrees in government, a few medals in figure skating; just reading and suspicion for economics ...
This entry was posted in Banks, Debt, Fiscal/Financial Responsibility, Overspending and tagged , , , . Bookmark the permalink.

2 Responses to The “Full Faith and Credit of the United States of America” … Is Nothing But Politicians’ Promises!

  1. James Teague says:

    I was just looking at the taxable amounts of money I made in the 70’s. In 16 years I tripled those earnings, but remained at the same amount of useable wealth. I did, however, change tax brackets so while I didn’t gain anything, the government did. Of course, the price of everything more than tripled too. Gas, for instance, was $1.30 a gallon. Its more than tripled here. This a “hidden’ flaw in all minimum wage arguments. Raising pay by law instead of increased market skills leaves you at the same position on the treadmill.

    • Jack Curtis says:

      Or as my grandmother would put it: “You can’t lift yourself up by pulling on your shoelaces!” But I suppose that as long as it sells, the argument will be made by politicians.

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