Folks, nobody hates the fags more than fags hate the fags.

Because Diabolical Narcissism is the root pathology behind every form of sexual perversion, and the emotional palette of Diabolical Narcissists consists solely of anger, hatred, jealousy and fear, it is not only zero surprise, but COMPLETELY TO BE EXPECTED that these wretches would, exactly like the demons and the damned souls in hell, hate “their own”.

There is no “relationship” whatsoever in hell, and here on earth, the Diabolical Narcissist, who has freely chosen to purge charity from his soul, is likewise incapable of relationship- only of fleeting usurious alliances, exactly like the demons they emulate. They hate themselves, they hate each other, they hate everyone else, and they hate God.

People ask, “How can the post-Christian west ever purge this now metastatic stage-IV civilizational cancer of sex perverts barring supernatural intervention?”

The answer is, most likely, that they will probably ultimately exterminate each other. The question is, how many morally sane people will be killed collaterally?

A lot. Including maybe you and me. And we will collectively deserve it because we tolerated it.

Who, having known the justice of God, did not understand that they who do such things [sodomy], are worthy of death; and not only they that do them, but they also that consent to them that do them.

Romans 1: 32

Stay confessed.

Today is the Feast of St. Cecilia, the patron saint of music.

Here is the second movement (Allegretto) from Beethoven’s 7th in A Minor, which is at once liquid sadness, but because it modulates into A Major, also cautiously optimistic. Every key in music carries its own specific emotional correlation – which I find miraculous in and of itself. Why do certain keys and chords in music elicit specific, consistent emotional responses across humanity? It’s just miraculous.

The key of A Minor is sadness, straight-up. The key of A Major is described by Schubart as, “suitable for declarations of innocent love, hope of seeing one’s beloved again when parting; youthful cheerfulness and trust in God.”

Well, yeah. That’s exactly right. That’s the Christian life on this mortal coil in a nutshell, really, isn’t it? Or at least it should be. Hurts so good.

Here is the full list of Schubart’s Affective Key Characteristics, if you’re interested. Some of the descriptions are quite moving.

Saint Cecilia, pray for us.

St. Cecilia, Guido Reni, ARSH 1606, Norton Simon Museum

This is quite possibly the most egregious public example of “I’m going to lie to your face and then get off on watching you let me get away with it” demonic gaslighting I have yet seen.

People begged for Ivermectin. Families begged for Ivermectin. Doctors lost their licenses for attempting to prescribe and/or administer it. Pharmacists were threatened with loss of licensure if they filled prescriptions for it.

“Horse dewormer” propaganda against a drug that had been dispensed to humans over 3.5 billion times since the late 1980s with statistically zero side effects and was the “I” in the P.I.A. Triumvirate of the three most important HUMAN drugs in HISTORY (Penicillin, Ivermectin, Aspirin), was ubiquitous. The NewWorldOrder/WEF FTX money laundering cabal paid for a fake study indicating – falsely – that Ivermectin was ineffective.

Now, the FDA has the demonic, shameless gall to claim that all of their war of attrition against Ivermectin was “just a recommendation.”

As in, if you or your loved one didn’t get it or take it, that was YOUR fault.

Even I am taken aback at the brazen evil, the cocksure confidence that there will be no consequences, ever.

Full reportage HERE.

(Written in ARSH 2016. We were all so young and innocent then. I reposted this in June of ARSH 2022, but will repost it here again to finish out the series on Monetary Theory, because inflation is, as anticipated, inevitably, finally at Carter levels with no end in sight, and because the New York Fed just announced the first roll-out of “Central Bank Digital Currency”. -AB ’22)

ORIGINALLY WRITTEN IN ARSH 2016.

And he shall make all, both little and great, rich and poor, freemen and bondmen, to have a character in their right hand, or on their foreheads. And that no man might buy or sell, but he that hath the character, or the name of the beast, or the number of his name.
Revelation 13: 16-17

I think this may be the most important economics piece I ever write.  This came to me at Mass as I was thinking about Monetary Theory and how to explain to folks why it is that we have not had Weimar Republic/Zimbabwe-like hyperinflation given the massive, unprecedented money and debt creation by the Washington D.C. and European banker-oligarch regimes over the past decade. The realization made me gasp audibly.

First, the question.  Why HASN’T there been hyperinflation?  Why ISN’T a loaf of bread $100,000 by now?

The answer, which I did know, even from my ridiculously bad college days of Keynesian drivel, is because the VELOCITY of money is very, very low.

INFLATION is defined by the equation MV = PQ.  Now stay with me, because this is actually really easy to understand.

The M stands for Money – the Money Supply, which includes both money (both physical paper currency and zeroes and ones of computer servers) AS WELL AS CREDIT, because in today’s world credit is also just zeroes and ones on computer servers. If you have access to credit, say a credit card, you can go out and purchase goods and services, no? Well, that’s money too.  So “M” is all money plus credit.

The V stands for Velocity.  The Velocity of Money is the number of times a given dollar turns over in a given period of time.  When Velocity is high, consumers are putting their money out into the economy – spending it.  Dollars don’t sit stagnant in bank accounts or under the mattress when Velocity is high. (Dollars DO sit stagnant, however, when the Covigarchy puts everyone under house arrest, or has direct control of HOW MUCH anyone can spend their “Central Bank Digital Currency” based on their “social credit score”. -AlphaBravo, ’22)

The P stands for Price and is self-explanatory – the price of goods and services.

The Q stands for Quantity – how many goods and services are produced.

This is an equation, and thus it must ALWAYS, ALWAYS BALANCE.  This is mathematical reality. To deny it is to deny the very metaphysical foundations of the universe.  But, in today’s sick, depraved world, people have been contra-educated and indoctrinated to believe that even the laws of mathematics are non-rigid and malleable according to the whims of man.  But mathematics is a subset of reality, and reality is God, so to cross math is to spit at God Himself.  And God will not be mocked. Math always wins.

Here is how it works.  Let’s use Weimar Germany.  In the early 1920’s, inflation was so bad in Germany that it was quoted not as percent PER YEAR, but percent PER HOUR.  People would be paid in Marks, and then literally run as fast as they could to the market square and buy tangibles such as bread and potatoes as fast as they could, because prices were rising literally from minute-to-minute.  To delay in spending Marks was to have your wealth dissipate into nothing before your very eyes.  

There is a sad-yet-hilarious anecdote about Weimar Germany in which a man literally had to haul his wages to market in a wheelbarrow (because so many Marks were needed to make even the smallest purchase).  The man stopped at a shop and went inside to make his purchase, leaving his wheelbarrow of money outside because it wouldn’t fit through the door.  When he came back out, all of the money was still there, in a pile upon the ground… but the wheelbarrow was gone.

Then, each merchant, upon making a sale, would immediately hand the money off to an associate or family member, who would then instantly go buy bread, potatoes, and any other cash commodities in a desperate bid to capture as much buying power as possible, and so on and so on like a game of hot potato, except with money.

So, if you have people desperately buying cash commodities, what does that frantic increase in demand do to prices?  Sure…  It bids them up.  That is why prices increased literally by the hour, or even minute.

NOW, add onto that the fact that the Weimar Republic, in an effort to keep the peace and pay reparations imposed upon it by the Treaty of Versailles for World War I, even though Germany was broke, was printing more Marks and using the massively devalued Marks to buy foreign currency.

LOOK AT THE EQUATION ABOVE.  MV = PQ.  We have just said that Germany was printing money like crazy, thus making M bigger and bigger.  People are also spending, or turning over, their Marks as fast as possible, which means that V, the Velocity, was through the roof.  If both of the terms on the left side of the equals sign are increasing, what MUST the terms on the right side of the equals sign do in order to balance the equation?- and the equation MUST, MUST, MUST and WILL, WILL, WILL balance.  Because REALITY.

Yes, the Price and Quantity must and will increase – but there is only so much wheat with which to make bread flour, and there are only so many ‘taters in Germany, Precious, so between P and Q, who gets the brunt of the force?  Yep.  PRICE.

Okay.  So now we understand MV = PQ.  MV = PQ describes inflation in a given economy.

So, we know that today the Bankster Oligarch regime in Washington and Europe has massively increased M – because the Central Banks just keep creating trillions and trillions of debt units called “dollars” and “euros” in order to enrich the oligarchy and to keep the unwashed masses from killing all of them in their beds by bribing them with government transfer payments – WELFARE.  So, what MUST NOT be happening?  Right.  Velocity must NOT be increasing.  In fact, it must be decreasing relative to M in order to keep prices from shooting through the roof. (“Lockdown.” –AB ’22)

And yes, that is EXACTLY the case.  The Central Bankster Oligarchs are indeed printing trillions upon trillions of dollars and euros, but most of it goes onto the balance sheets of megabanks and other massive financial institutions such as pension funds, money market funds, insurance companies and brokerage houses in the form of Treasury bonds and bills, which are then used to trade the much riskier and much higher yielding repurchase agreements and credit default swaps, at a relatively slow turnover rate.  So this massive component of the Money Supply, M, only reaches the economy in a very glancing, tangential way.  It pretty much stays in the derivatives market, enriching only the tiniest handful of oligarchs – but bear in mind that every dollar and every euro created out of thin air is a debt instrument leveraging the future labor, production and man hours of the HUMAN BEINGS that make up the populace behind the Central Bank.  In the case of the Federal Reserve, the people of the former United States are the backing collateral.  In the case of the European Central Bank it is the people of the Eurozone.  And given the amount of debt these criminal rackets have racked up, it isn’t just the people alive and working today – it is now multiple generations into the future that have had their very lives levered in this looting scheme by the oligarch class.

Do you remember my essay about how WE ARE THE GOLD – we the people, our lives and our capacity to labor, produce and create through time is the “commodity” that truly backs ALL MONEY?  I also covered this in my Economics Presentation video.

Now, let’s tie this diabolical mess all together and go back to the Velocity.  The Oligarchy likes things just the way they are now.  They are enriching themselves by leveraging/enslaving human life out into the future with seemingly no end or horizon in sight.  All they have to do in order to keep from being killed in their beds, or arrested, tried, and executed, is to keep INFLATION, which is what the MV = PQ equation is describing, from going parabolic and thus fomenting mass civil unrest and a war which would surely mean the death of the Bankster Oligarchs.

Now, they know that they have themselves painted into a corner so tight that they can no longer move, and that the economy, mathematically, is already guaranteed to implode.  What they are trying to do is drag the whole thing out such that they are dead before the implosion happens, having lived the rest of their lives in total material decadence, and thus never have to face any earthly consequences for what they have done. EARTHLY consequences. (Or, you know, concoct a bee-ess reason for global lockdowns and mass genocidal population reduction and sterilization. -AB ’22)

Interest rates were taken to zero immediately upon the usurpation of the Washington D.C. regime by Obama (which means the Bankster Oligarchs behind Barry and Valerie and the whole incestuous crew in Washington).  NOW, they are so desperate to “stimulate” in order to keep the plebs calm and the gravytrain rolling that they have taken interest rates NEGATIVE.  Yep.  That’s right.  If you have money in a deposit account with a bank, not only do you get no interest (time value) on your money deposited, you actually have less of the principal amount at the end of every month than the beginning.  So, this is the Oligarchy trying to COERCE people into spending (increasing Velocity), which they then hope will manifest by a relatively small increase in Prices but mostly by an increase in Q – the quantity of goods and services produced. (The interest rate dam done broke. -AB ’22)

But wait.  As we discussed not long ago, why would people keep their money in a bank if the bank took a bite out of the principal every month?

The short answer is because cash is soon going to be phased out and made illegal, thus FORCING people to engage in the economic behavior that the Bankster Oligarchs want – and ONLY that behavior.  They want nothing less than total economic control, and cash simply makes that impossible.  They want to control your income, your spending, and even what you spend your money on.  Not enough Velocity?  Okay.  Push those interest rates negative. Do you think a monthly confiscation of 10% of your balance might incentivize you to spend? Use it or lose it, baby!  Too much Velocity? – and believe me, that day WILL come, they’ll be ready for that too with micro-level capital controls.  Nope.  No new clothes or electronics for you. And you just bought food four days ago.  You don’t need any more.

In a cashless environment where all money and all transactions are electronic, the state can dictate HOW MUCH you can spend, and WHAT YOU CAN SPEND IT ON.  Oh, yes.  They fully intend to keep printing Money – the lion’s share of which winds up in their pockets – by CONTROLLING VELOCITY, WHICH MEANS CONTROLLING ALL SPENDING BY FORCE.  You can panic all you want, but you will only be permitted to spend X dollars per day, or to buy ONE package of toilet paper per week, or 15 gallons of gas per week, or use 300 kilowatt hours of electricity per month.  There will be no Venezuela-type runs on grocery stores here – how 20th century!  No, no.  This will be… different.  All government-released economic statistics will be very, very pretty, I’m sure.

The Mark of The Beast from Revelation 13 is real and it is coming – a biometric something-or-other (Proof of injection, young, naive Ann of ’16. -AB ’22) that will be required to buy or sell, to send or receive money in any context.  No more paper currency.  Only zeroes and ones, fully controllable, perpetually surveilled, with all transactions dictated by or subject to approval by the Oligarchy.  In other words, no more private property.  Only an endless cycle of stimulation and punishment in order to control Velocity in order to enable continued “money printing” to feed the insatiable, gaping maw of the Bankster Oligarch class.  Oh, and don’t forget the forced support of baby killing, islam and sodomy, with tithing and almsgiving to “unapproved” groups blocked. (Say, Canadian truckers, for example. -AB ’22) And here is where we delve into the supernatural.

We have already established that money itself is a fungible proxy for man’s capacity to labor, produce and create through time.  Let’s call that MAN’S EXISTENCE. We are created by God, and we exist through time.  We can labor, produce and create and be paid MONEY for our labor or production in time.  When we save money, we are saving up weeks, months and years of our life.  When we spend money, we are exchanging periods of time in our life for goods and services that we need (such as food, clothing and shelter) or want (like everything else). When we give money away in an act of charity, we are giving someone else a piece of our very life.  (That last one keeps me, reduced to being a well-dressed beggar, up at night folks, and don’t ever doubt it.)

Do you realize what VELOCITY is?

VELOCITY OF MONEY is nothing less than a manifestation man’s God-given FREE WILL.  Velocity is a manifestation of man’s freedom to choose what he does with the fruits of his labor and creativity – his very existence through time.  Does he spend?  Does he save? Does he invest? Does he tithe or give alms?  Velocity speaks to the dignity of man in the sense that God created man with free will, and thus able to love – and even though we are talking about Monetary Theory, when you drill down on these concepts, where you always, always end up is at LOVE.  Do you love, or are you a Diabolical Narcissist (like the Bankster Oligarch Class and their Bureaucrat Toadies)? Do you love God?  Do you love your neighbor as yourself because God loved us all first?  Love is completely contingent upon free will.  This freedom of will and corollary ability to love is one of the primary ways in which man is “created in the image and likeness of God”.

We are now, quietly and effeminately, entering into a supernatural totalitarianism never before seen.  The objective is to convince man in his post-modern, post-Christian effeminacy, materialism and narcissism, that he is NOT free to choose, is a slave to the will of the Oligarchy, and thus capitulate to serving the Beast without putting up even the smallest fight.  “But I had no choice – they took money out of my account and sent it PlannedParenthood, the Muslim Brotherhood and the ManBoy Love Association automatically.  I had NO CHOICE….”

(Folks, the paragraph above was written in ’16. Tell me that isn’t EXACTLY what happened with the CoronaScam. -AB ’22)

Satan, the father of all lies, and the father of all of this, hiding in the shadows, would like nothing more than to pummel all of humanity into believing that they are nothing more than chattel who can only submit to him and serve his cult like dumb animals, and certainly never achieve that which he himself can never, ever have: the Beatific Vision.  Heaven.  God.

And a main front of this attack, whether anyone acknowledges it or not, is the equation MV = PQ.  So maybe we should spend less time watching the Trump-Clinton joint-produced and pre-scripted “reality show”, and a little bit more time being adults and, I dunno, maybe mounting some sort of concrete resistance in the real-life war that is raging all around us.

So then, brethren, we are not the children of the bondwoman, but of the free: by the freedom wherewith Christ has made us free.  Stand fast, and be not held again under the yoke of bondage.
Galatians 4: 31, 5:1

First: There can be no hope of a sound rebuilding unless and until people understand what money actually is.  As I covered in Parts One and Two of my Economics Presentation on YouTube, MONEY is a FUNGIBLE PROXY for man’s ability to labor, produce and create THROUGH TIME.  Money isn’t gold.  Money isn’t pieces of paper.  Money isn’t zeroes and ones on a computer server.  Money is human life and effort manifested in an agreed-upon form which is used as a convenient medium of exchange.  This is why, for example, when Jon Corzine swept the MFGlobal accounts, one trader at the Chicago Merc (now housed in the Board of Trade building), who kept the majority of his wealth in his MFGlobal account, precisely because it was, according to the Rule of Law, the safest place to store wealth, walked up to one of my order clerk clerk buddies during the first week of November of ARSH 2011, weeping, and said to him, “It’s all gone.  All those years of work … its all gone.”  Note the units.  YEARS OF WORK.  Not dollars, but “YEARS OF MY LIFE”.  Yep.

Let’s say I have a friend to whom I loan some of my money in the form of cash.  Let’s also say that this friend, after years of study and hard work, has acquired a skill set that I would like to learn – let’s say welding.  There are two ways that my friend can repay his debt to me.  The first is for him to repay me in cash money – which is actually a DERIVATIVE.  The second, and PUREST FORM is to repay me in his TIME and SKILL, which is the true underlying entity.

Okay, so we would now have two choices of the form of repayment if we decide that he will repay me in his time and skill.  First, we set an HOURLY RATE, because humans live their lives passing through time, and thus TIME is the baseline unit.  Let’s say $20 per hour is the rate for tutelage in the skill set of welding.  After every one hour lesson, I can reach into my wallet and hand him a $20 bill, which he would then hand immediately back to me, and I would then reduce the balance on his loan in my ledger by $20.  OR, he could take every $20 bill I hand him over the weeks and months of welding tutelage, put it in an envelope marked “Ann”, and when he had the full balance of the loan saved up, hand me the envelope, and then I would close out the ledger as “paid in full”.  THIS is how most people think they MUST do business.  Since people wrongly think that money is the pure commodity itself, and NOT a mere derivative proxy, they insist that this “You hand me a $20 bill and I hand it back to you” maneuver is necessary.  But it isn’t.  In fact, it is silly.  The SIMPLEST way to repay this debt is for me to simply strike $20 from the loan balance for every hour of tutelage, with no further exchange of cash.  In fact, once the hourly rate for the tutoring has been set, the debt COULD be recorded not in dollars, but in HOURS OF HIS LIFE.

This is why Marxism is so evil, and why the Seventh Commandment (Thou shalt not steal) exists.  Forcibly confiscating the property of one person unjustly and giving it unjustly to another person is an act of violence and degradation – utterly denying and disregarding the humanity of the one (the “rich”), presumably in favor of the other (the “poor”).  When this is done in the name of “charity” or “compassion”, it is, in a way, even more evil.  Hey, at least with Jon Corzine we all know where we stand.  Corzine and the other oligarchs feel free to steal other people’s property because they have no respect whatsoever for other human beings.  When religious leaders falsely paint property confiscation and redistribution as “CHARITY”, which is, remember, a constitutive quality of God, namely the joy at the very existence of another – NOT the indifference to the life and existence of the other to which the denial of property rights is an obvious corollary – this is perhaps even more damaging to society.  It is nothing less than calling good, evil and evil, good.   

Not surprisingly, the Antipope doesn’t seem to have even the faintest understanding of this – or he does and is evil, which seems ever more likely.  He seems to believe that money is MERE paper, MERE zeroes and ones, with no connection whatsoever to actual human beings, and seems to have not the slightest understanding that it is the FREE GIVING of one’s money or property, which is simply a derivative proxy for one’s human capacity to labor, produce or create THROUGH TIME, that is charity, not being gang-raped by oligarchs spewing platitudes about “the poor”.  And don’t even get me started on his seeming failure to comprehend that government debt monetization is the forcible confiscation of wealth from not just the contemporary non-oligarch class, but also from human beings who do not yet exist, and are thus utterly helpless.  

If nobody even understands what money is, how can we possibly hope to rebuild the economy, banking system and financial markets into something other than yet another iteration of the satanic maw of iniquity and villainy that we are now witnessing the implosion of?  “Same song, second verse” is NOT a satisfactory goal.  Not even close.  Either do it right, or lay down, shut up and stay out of the way so that better men than you can at least have a clean slate from which to start.  Harsh?  Yep.  But true.  So deal.

Money is a representative proxy for man’s ability to reason, labor, produce and create.

Money therefore is a fungible representation of human life.

Personal property is also a proxy for human capacity. Humans exchange their labor and productivity either for direct payment with other commodities, or, most commonly, for money, which they then turn into either consumable commodities OR personal property.

This is why the coveting and/or stealing of another person’s personal property and/or money is specifically prohibited in Seventh and Tenth Commandments. If you steal a man’s property or money, you are stealing the part of his life, labor and capacity that the property or money represents. If you covet another man’s property, you are begrudging him the right to be compensated for his labor and/or creativity, and thus his sovereignty and human dignity.

Money and property are therefore interchangeable concepts.

If a person purchases a tract of land and agrees to let it to a tenant for a year, the landowner is paid for the TIME VALUE of the productivity of the land for the year in which the tenant has possession and use of the land, and the landowner necessarily surrendered by virtue of the lease.

Money has time value just as the land has time value. If a man lends another man money for a year, which is simply a different, more fungible form of property, upon returning the money to the lender after one year of possessing and using the money and reaping the productivity of the money, why shouldn’t the lender be paid a fair rent on the money in exactly the same way that a landowner is paid a fair rent on his land?

To deny interest on money, which is a proxy for human capacity and productivity, is to deny that human life has any time value. To deny that human life has any time value is to deny that human life has any value at all, since all human life exists traversing through time at the precise rate of one second per second. Hence, wages are paid as a function of TIME, per hour, per month or per year.

Now that we have that pinned down, we can move to the question of fractional reserve banking and the creation of money in the banking system. Many anti-interest people argue that money should not be created and that the money supply should remain static. This is false. In a healthy, Godly society, people reproduce in excess of the replacement rate and the population increases. As the population increases, so does the human capacity to reason, produce labor and create as a function of time.

A population of 10,000 people has more productive and creative human capacity than a population of 2500 people. If the money supply remained static as a population grew from 2500 people to 10,000 people, the same number of dollars (or whatever unit) would have to represent the larger pool of creative and productive capacity. Therefore, each dollar would serve as a proxy unit of exchange for more and more human capacity. Thus, the dollar would be worth more and more with the passage of time and the resulting multiplicative increase in the population. And remember, a multiplying population is a good, good thing. See Genesis 1:28.

When a currency increases in value per unit, this is called DEFLATION. Persistent deflation is bad because it stifles investment and growth. If you know that your dollars will be worth more tomorrow than they are today, and worth more next month than this month, and worth more next year than this year, you will be incentivized to hold your dollars and not invest, or even spend. This will eventually strangle an economy to death.

In order to have a truly stable economic and monetary system, the money supply must grow in proportion to the population. Since human beings are themselves the “gold”, or the “wealth” of a nation, as the population multiplies, so too must the amount of money in order to keep the buying power of that money stable.

The smoothest way to accomplish this is via the fractional reserve banking system, with
A.) significant, strictly enforced reserve requirements,
B.) “One Dollar of Capital” daily marking-to-the market of bank assets with full dollar-for-dollar backing of any shortfall or of any unsecured loans by bank owners and investors
C.) the total, complete elimination of branch banking and bank holding companies (Yay!)

The alternative method of controlling money supply would be a central bank, and I think we can all agree that that little experiment has been tried, failed miserably, and proven that Central Banks are nothing more than a cesspool of scoundrels and aspiring tyrants.

I’ll leave it to others to discuss such in-depth topics as the use of reserve requirement adjustments to fine-tune the money supply, and to navigate the natural, normal, albeit less pronounced cycle of economic expansion and contraction that is organic and intrinsic to ANY economy.

Banking requires the charging of interest in order to cover the intrinsic default risk. Defaults WILL happen in lending. This is one of the main components of a bank’s cost structure. This cost MUST be covered, or else banking is, by mathematical definition, impossible. Any argument to the contrary is thus irrational, and then we’re done talking.

Bank depositors, as the primary source of loan funds, are also entitled to compensation for the time value of their money, as discussed above.

Finally, interest is also necessary because money DOES erode whenever the economy is in a period of expansion, which is inevitable as healthy economies operate in a pseudo-respiration cycle of inhaling (expansion) and exhaling (contraction). The net, over time, is GOOD HEALTH, GROWTH and THRIVING – just as with an individual person. Thus interest rates would modestly increase in periods of expansion, thus keeping growth from exceeding the natural growth in the population, and conversely interest rates would fall during contraction, thus preventing a strangling deflation.

Caritas (charity/love) PROCEEDS FROM The Logos. Logic and reason (of which mathematics is a subset) have primacy over charity. Deny that, and you deny the Trinity.

But what do I know. I’m just a mindless Catholic woman who checks her brain at the door when I put on my second-class citizen chapel veil of misogynistic, slackjawed submission. Oh, and also a CONVERT!! </Eyeroll>

Concluding aside: Now do you understand why the Magi brought GOLD as a gift to the Baby Jesus? The Gold wasn’t just a crass gift of jewelry or coinage. The gold represented the gift of mankind offering his capacity to labor, produce, reason and create BACK to the King of Kings, God Himself, who is the Source of all life and creation, the Driver of all human capacity, and Who is Reason Itself.

Adoration of the Magi, detail, Gentile da Fabriano, ARSH 1423, Uffizi Gallery

Originally penned and posted on February 29, ARSH 2012.  The next day Western Rifle Shooters Association reprinted it in full (everyone has full reprint permission – I’m not writing this stuff to exercise my fingers, I’m writing it to be read), and the following comment showed up on the WRSA thread.  I found it quite humbling.  Given the events of the past decade – remember how bad we thought things were ten years ago today, and how naive it turns out that we were? –  the commenter’s words now carry even more weight. Hopefully it encourages folks to read this piece, despite its length. -AB ’22

“Part 3 of 3 is the most profound insight on why we are where we are in this allegedly Representative Republic that I have encountered in 40 years of deep reading on history and economics. In this day of shallow education and shortened attention spans, I never expected to come across anything like the profound insight and clarity she put forth here. I submit that the above paragraphs are nothing less than the Unified Field Theory of Western Civilization. One of the Founding Fathers said that the system of government they had put together would only work for ‘a moral and religious people. They will utterly fail for any other’. In a few paragraphs, Ann just explained to us why that is so. Yes, it’s depressing, and the successfully and designed outcome of an amoral state education system. Well done Ann.  -Trivium Pursuit”

———-

WE ARE THE GOLD.

Ann Barnhardt

PART 1

If you know how bad the situation is and don’t feel the need to subject yourself to any more of my patented Barnhardt Phillipic and Funeral Dirge for Civilization, take your leave now, because I honestly think that this is the the saddest, most profoundly depressing post I have yet written.

And I’ve written a few.

A few thousand.

The topic is the US Dollar, and currency in general. The Federal Reserve has been willfully and systematically debasing the US dollar for a century by claiming that 2% inflation is the benchmark of a healthy economy. Since the universities and media have been overrun by Marxists, there is hardly anyone alive who A.) is in possession of the capacity to independently think and reason their way through such a question and B.) anyone who cares in the first place.

In addition to the slow grinding debasement by the Fed, the Marxists have finally fully usurped and overthrown the government of the United States, and thus have now executed the coup de grace: wild, flagrant money “printing”, and by “printing”, please understand that we are not talking about the fabrication of paper bills. We are talking about computerized entries into the Federal Reserve’s ledger. The Fed literally types in an addition of x billion or y trillion dollars into its balance sheet – creating dollars out of thin air that exist as zeroes and ones on a computer server – and then use those new dollars to purchase US Treasury bonds. In this way, the Obama regime and its puppetmasters have debased the US dollar by roughly one half the total GDP in less than four years. This iteration of both the United States and the US Dollar are over. There is no way to walk back the damage that the Obama regime has done. They have accomplished their mission, no matter what happens from this day forward.

After reading and reviewing my texts on monetary theory from Mises, Hayek, Friedman and contemporary economists including Denninger, I have come to a profound realization about money and the fiat vs commodity money (i.e. gold-backed currency) debate – and it bodes very, very poorly for us.

First, a few preliminary points.

1. Going to a gold standard will solve nothing. This is not to say that I don’t think that gold and silver are good wealth storage vehicles in this situation. To the contrary, I think they are excellent for these times. BUT, simply reverting to the gold standard, in and of itself, will not turn us around. We will, at some point, be FORCED to revert to the primordial commodity currency paradigm simply because our government and society will collapse, and thus our currency with it. If and when our culture rebuilds itself, if we remain as we are, the exact same problems that have arisen under the fiat money system will emerge again, even under a gold-backed currency.

So why has civilization, up until just within the last few decades, operated on commodity money systems, and why is it plausible to think that any fiat currency could ever have any legitimacy? The reason why civilization has used commodity money, namely gold and silver, up until just recently is because up until just recently, there was no way to instantly verify money held on deposit, or the existence of a line of credit. With computers and the internet, such instant checks are as common as breathing, blinking and walking. We don’t even think about it anymore. We go to the sandwich shop, get our sandwich, and in less than three seconds, the vendor has confirmed that we have funds, and then transferred those funds into his account. In the centuries and millennia past, people would load chests filled with gold coinage and jewels onto sailing ships and set out for distant lands. Why did they take their gold and jewels with them and risk losing that money to shipwreck or piracy? Because they had to take it with them. The only way to confirm your wealth to others was to physically possess it. Physical possession and spot exchange was also the only way to execute mercantile transactions. If we lose telecommunications and computing ability due to the successful detonation of an Electromagnetic Pulse weapon, or simply due to the total breakdown of society and the ability to maintain and power such systems, then indeed, this argument will become moot. BUT, so long as there is near-instant data transmission, commodity money will be theoretically optional (*with a qualifier to be addressed later in Part 3).

While we are looking at history, it bears mentioning that metals-backed currencies have not prevented other economic calamities. Just in the United States, the Great Depression of the 1930’s and the post-Civil War depression of 1873-1879, now called the Long Depression, which was actually caused by the manipulation of silver demand by the German Empire, were not magically prevented by metals-backed currency. Returning to a gold standard would not prevent recessions from happening. In fact, recessions are a necessary fact of economies, and serve to deflate bubbles and restore equilibrium. The only people who promise to eliminate economic recessions are Marxists, and that is because Marxists are liars. Just as all respiring beings on earth must both inhale and exhale, so too must economies. A person who perpetually inhaled would eventually burst their lungs and die. Conversely, a person who could only exhale would asphyxiate and die. But both actions, in a balanced, moderate cycle, are the definition of health. It is the same with economies: periods of expansion followed by a healthy, normal contraction that deflated any bubbles and restored equilibrium, thus setting up the next expansion phase.

2. Metals-backed currencies can be corrupted, too. There are two ways to corrupt a metals-backed currency, and it has happened many, many times throughout history. The first means pertains to coinage, and is to corrupt the metal itself with cheaper metals, such as zinc. The Roman denarius was debased from 4.5 grams of pure silver to less than one tenth of a gram of silver. Hyperinflation was the inevitable result, and the currency had to eventually be totally replaced.

The second means, which pertains to paper and electronic currency, is for the government to lie about the reserve quantity. This could either be done by explicitly lying about the number of ounces in storage, OR could be done by clandestinely issuing dollars to cronies of the oligarchy, which were NOT actually backed by any metal, and thus would be a de facto lie as to the supply. Since the people would be unable to demand a daily audit and reconciliation, the ability to police and reconcile the supply of metal and dollars would be impossible, and exactly the same things that are going on today, namely government looting of the Treasury and debasement of the currency, would continue apace.

PART 2

The problem lies in our overtly criminal government, obviously, but also in the banking paradigm itself. Fractional reserve banking with unsecured lending has got to go. In the current banking paradigm, banks are required to keep from zero percent to ten percent (yes, that’s right, ZERO PERCENT) of customer deposits on hand as reserves, and loan the rest of the money out. If a customer deposits $100 in Bank A, $90 is lent out and $10 remains as reserve (and this is the CONSERVATIVE version). Whoever borrowed the $90 then deposits it in Bank B. Bank B then lends out $81 and keeps $9 in reserve. And so on, and so on. If you go through ten cycles this way, you end up with the original $100 being leveraged into $686.19 of deposits backed by only the original $100. This is what they call “money creation.” For you math buffs, this is a limit function. With a 10% reserve requirement on a $100 initial deposit sum, the limit terminates at $1000. With a 5% reserve requirement on $100, the limit terminates at $2000. With a zero percent reserve requirement, the limit is obviously infinite.

A reasonable, non-zero reserve ratio is workable, but only so long as banks are required to carry one dollar of reserves for every one dollar they lend out. These reserves can be either in the form of the bank’s own capital, OR in the form of FAIRLY VALUED booking of the assets purchased with the loan. All unsecured lending must stop. This means that all home mortgages must be marked-to-market every single day, and if the home is worth less than the loan outstanding, the bank must post its own capital against the shortfall. This also means that credit cards, which are totally unsecured because they are used to purchase mostly non-assets, such as meals, gasoline, vacations and pure service commodities, must be backed by bank capital dollar-for-dollar. The bank could sell bonds to raise capital if it wants to make unsecured loans and then would be arbitraging the spread between the interest rate it must pay on the bonds and the interest rate plus default risk on the credit cards. In this way, the worst that could possibly happen, namely every unsecured credit line totally defaulting, would result in the bank owners and investors losing their money – but the customer deposits would be safe because all of the loans against hard assets, which would be properly valued and marked-to-market, could be sold to other banks in the market, and that revenue would fully cover all customer deposits.

In not posting capital against unsecured loans, the banks are indeed naked short selling our currency – and it matters not whether that currency is gold-backed or not. The credit card customer is promising to pay back (deliver) a loan with money that they do not have and does not exist, and they won’t be able to borrow. So, the bank and the customer together are colluding in the naked short sale. The long on the other side is the citizen and taxpayer who will subsidize the inevitable “need” to print more dollars to “bail out” both the bank and the customer. Taxes will be raised and the currency will be further debased via electronic “printing”, causing price inflation – a one-two punch to the citizen. This is EXACTLY what is happening to us today.

Well, the reality today is that banks are both writing massive quantities of unsecured loans and doing nothing on their side to balance the ledger, AND they are failing to honestly and realistically book the values of their hard-asset loans. The big banks are still booking home values at their original purchase price – not the fair market value today. Given the housing bubble, most mortgages today are underwater and are worth far, far less than the principal balance to say nothing of interest. This is why I say, echoing others, that the major banks in this country are not just totally insolvent, they are insolvent multiple times over. If the government wasn’t criminal and the favored banks of the oligarchs actually had to comply with Sarbanes-Oxley, the entire system would implode into a singularity tomorrow.

For more info and a much better explanation of the concepts covered to this point, do purchase “Leverage” by Karl Denninger – a very easy-to-grasp, detailed explanation of the whole, stinking mess.

CLICK HERE TO BUY “LEVERAGE”.

PART 3

And that brings us to the conclusion and actual point.

All of the stuff outlined above is all well and good to talk about, but as I was reading, including opposing thoughts from other schools, including the Austrian School which advocates full-reserve banking in some instances, namely demand deposits – a possibility to which I am not entirely opposed – I kept running into the 400 pound gorilla, which is silently acknowledged, but never really discussed, because the discussion would inevitably lead to talk of morality and thus . . . religion.

At the end of the day, any currency is backed not by physical commodities or a collective abstraction called “a government”. No. A currency is backed by the character and integrity of men that constitute the issuing nation or body. In short, WE ARE THE GOLD. We are the bearers of the “full faith and credit” which backs our Federal Reserve notes today. And that, dear readers, is why this country is not going to turn itself around anytime soon, and is almost certainly doomed in the short-run.

Every text I read over the last few days always included a very brief caveat that all of the preceding theory was, of course, contingent on a moral society with a functioning rule of law, honest regulation and a populace that was mostly honorable and trustworthy. This caveat was phrased differently in each instance, but it was always there, hanging over everything else like a fine mist. If you have a nation of moral degenerates, all bets are off. If the people are more dishonest than honest, and the government is nothing more than a mafia, then all economic systems and all postulations fly apart at the seams. If there is no rule of law, and if theft, graft and looting are the prevalent systems of economic activity, then no matter what your banking system, no matter what your currency – fiat or commodity-backed, your system and your economy will absolutely, positively fail eventually.

Sadly, that is where we are in this country. Sure, there are still good people, but as a percentage it isn’t even remotely enough to bear the burden of the massive moral degeneracy of the others. Even among those people who would never steal or loot, there is a decided lack of courage to stand up to those who do steal and loot. The MF Global confiscation proves this. People have mostly rolled over and taken having their money stolen, shrugging their shoulders and telling themselves that there is nothing they can do – and then going back for more, continuing to patronize the very exchange that facilitated the theft and fraud. To my knowledge, only one broker has exited the field on purely moral grounds in a pre-emptive action to protect clients, and as a protest to the injustice of the system itself.

Our government is saturated with corruption, looting and outright treason and criminality, and yet most people simply cannot be bothered to care, much less to act, and are thus passively complicit. A non-trivial percentage of the population are planning and maneuvering to best “benefit” or profiteer from the criminality and fundamental dishonesty of the paradigm. Others are attempting to enter the oligarch class themselves under the guise of running for political office – and make no mistake, this encompasses both the so-called left and the so-called right on the political spectrum. The degeneracy is everywhere.

The fall of a society can happen very quickly. Our society has taken roughly 50 years to topple. If the previous example of the Russian culture is any example, we can expect it to take many multiples of 50 years to undo this damage, if and only if the pendulum has reached its maximum amplitude and now begins to swing back, which I fear has not yet happened. Morality cannot be legislated. Cultures cannot be purged of evil, selfishness and sloth overnight – even with a war. I cannot lie to you and tell you that short of Divine Intervention, this situation will resolve itself in any of our lifetimes. We had “it.” We had “it”, and we squandered “it”, and now “it” is gone, and no governmental, economic or monetary policy will get “it” back. “It” can only come from God, dwelling in the hearts of men, and God only comes to men if they specifically ask Him.

We, the people, always have been and always will be the ultimate backing commodity of our currency, because at its core, money is merely the representative device for a man’s capacity to produce and create. Dishonest men do not create or produce. They steal. Thus, the currency of a morally degenerated society is by definition degenerate itself. The currency of a degenerate society is the proxy not for a man’s ability to work and think, but rather a proxy for a man’s capacity to steal and evade work.

We used to be like gold – beautiful and warm. Now we are like pig iron – cold, brittle and good-for-nothing. And THAT is what constitutes the “full faith and credit” that backs the U.S. Dollar. So long as our culture remains degenerate, our currency can never be anything but spiraling, worthless trash.