Monday, September 19, 2011 – by Adrian Krieg
Dr. Adrian Krieg
Fabian Socialist Keynesian economics is about to destroy the world economy. No, this is not a jest. It is very serious. The concepts of John Maynard Keynes's fiat money system as introduced at the 1944 Bretton Woods conference at the Mt. Washington Hotel in the White Mountains of New Hampshire is as follows.
WWII was over; the victors (Allies) were in financial difficulty due to the cost of the war. Lord John Maynard Keynes, a Fabian Socialist, presented a plan that was then strongly supported by communist spy Harry Dexter White, who at that time was the lead official of the US Treasury Department and who had been the prime Treasury official to introduce scores of Soviet agents into the Treasury department.
The argument put forth by Keynes and his associates was that national economies could not expand at sufficient speed at the end of the war to allow the rapid improvement of wealth in society as desired by the participants of the meeting. For this reason it would be necessary to cut all currencies away from their well established reliance of being supported by gold as the base of value and to a system that would be tied to debt.
The concept was that governments would be allowed on their own recognizance to issue paper money based on loan instruments that they would sell on the open market at interest. In America these were savings bonds, Treasury notes and such. These instruments were based on relatively low interest payments and in terms of five, ten and twenty years. Governments would be the winners because they could structure the interest payments at the inflation rate and the loan would therefore be of no cost to the government and they would then tax the inflation gain interest as capital gains taxes. The investors would be duped and governments would be the winners.
WWII was over; the victors (Allies) were in financial difficulty due to the cost of the war. Lord John Maynard Keynes, a Fabian Socialist, presented a plan that was then strongly supported by communist spy Harry Dexter White, who at that time was the lead official of the US Treasury Department and who had been the prime Treasury official to introduce scores of Soviet agents into the Treasury department.
The argument put forth by Keynes and his associates was that national economies could not expand at sufficient speed at the end of the war to allow the rapid improvement of wealth in society as desired by the participants of the meeting. For this reason it would be necessary to cut all currencies away from their well established reliance of being supported by gold as the base of value and to a system that would be tied to debt.
The concept was that governments would be allowed on their own recognizance to issue paper money based on loan instruments that they would sell on the open market at interest. In America these were savings bonds, Treasury notes and such. These instruments were based on relatively low interest payments and in terms of five, ten and twenty years. Governments would be the winners because they could structure the interest payments at the inflation rate and the loan would therefore be of no cost to the government and they would then tax the inflation gain interest as capital gains taxes. The investors would be duped and governments would be the winners.
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