Top Bilderberger: Eurozone Collapse Threatens Global Currency Agenda

Harvard Professor reveals globalists are panic-stricken about Greece debt default threat to survival of single currency  

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Paul Joseph Watson
Infowars

A top Bilderberg member has revealed that globalists are panic-stricken about a potential eurozone crisis caused by a Greek debt default that could precipitate the collapse of the Euro and also derail the wider agenda for multi-regional currency unions and eventually a global currency system.

Appearing on the Alex Jones Show yesterday, veteran Bilderberg sleuth Jim Tucker said that the Euro will again be the subject of crisis talks at this years globalist confab in San Moritz, Switzerland, with power brokers desperate to rescue the single currency from a collapse that numerous financial analysts see on the horizon.

“They’re afraid of the Euro going down and afraid the Euro will simply disappear,” said Tucker, noting that several European countries’ intention to abandon nuclear power after the Fukushima disaster could cause a crisis for the single currency.

During last year’s Bilderberg conference in Sitges Spain, when the Euro was in free fall following the austerity riots in Greece, globalists were panicked that the single currency could face a total collapse.

IMF Managing Director Dominique Strauss-Kahn Calls for New Global Approaches to Post-Crisis World

Editor's Note:  Can anyone say "Problem, Reaction, Solution"?  Clearly the global elites are capitalizing on the Global Political Awakening; in large part, deliberately engineered by them, to make the people of the world beg for a New World Order in the form of a One World Government and Global Currency.  You can certainly plan on the economic crises to worsen significantly before the solution is fully implemented.


“In designing a new macroeconomic framework for a new world”, he stated, “the pendulum will swing—at least a little—from the market to the state."

IMF

In a speech entitled “Global Challenges, Global Solutions” at George Washington University in Washington, D.C. today, Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), called for a new approach to economic policymaking in the wake of the recent global crisis. He singled out three areas for improvement: a new approach to macroeconomic and financial sector policies, a new approach to social cohesion, and a new approach to cooperation and multilateralism.

Discussing the current economic situation, Mr. Strauss-Kahn noted that the global recovery is unbalanced both between and within countries, and the global outlook is still beset by uncertainty. He pointed in particular to the Middle East, noting that it is going through an “historic transformation” as “citizens are seeking greater freedom, and a fairer distribution of economic opportunities and resources”. The immediate challenge for the Middle East, he stated, was “to preserve social cohesion without undermining macroeconomic stability”.

US Treasury's Geithner to visit China March 31

Editor's Note: Finalizing plans for a global currency perhaps?  

US Secretary of the Treasury Timothy Geithner
© AFP/Getty Images/File Alex Wong

AFP

WASHINGTON (AFP) - US Treasury Secretary Timothy Geithner will visit China next week, joining a group of G20 officials to discuss the global monetary system, the Treasury said Friday.

Geithner will attend finance ministers, central bankers and other officials from the Group of 20 in the eastern city of Nanjing, as debate rages about global economic imbalances, caused in part by China's rise.

The group will "discuss reforms to the international monetary system and the importance of the G20 maintaining its focus on supporting a sustainable global recovery," the Treasury said.

Leftist “Economic Terrorists” Are Patsies For The Real Economic Terrorists

INFOWARS-The controversy generated around the remarks of former SEIU official Stephen Lerner and his plan to rally unions, lawmakers, student groups and community organizers around a plan to crash the stock market, destroy big banks and redistribute wealth in America by destabilizing the country will be exploited by the real financial terrorists when they decide to launch the next false flag attack on the U.S. economy.

During a closed session at a Pace University forum last weekend, Lerner divulged his plan to seize back the trillions stolen by big banks through a series of actions designed to “destabilize” financial markets.

“Lerner’s plan is to organize a mass, coordinated “strike” on mortgage, student loan, and local government debt payments–thus bringing the banks to the edge of insolvency and forcing them to renegotiate the terms of the loans. This destabilization and turmoil, Lerner hopes, will also crash the stock market, isolating the banking class and allowing for a transfer of power,”reports Business Insider.

“Lerner’s plan starts by attacking JP Morgan Chase in early May, with demonstrations on Wall Street, protests at the annual shareholder meeting, and then calls for a coordinated mortgage strike.”

Despite ominous warnings from the likes of Glenn Beck, that Lerner’s comments represent the left’s “economic terrorism playbook” in their bid to “take down capitalism” in the United States, in reality it wasn’t leftist activists or unions that used economic terrorism to oversee the 2008 financial collapse and the subsequent heist in the form of the bailout, it was powerhouse financial firms like JP Morgan, Goldman Sachs, and their allies inside the Bush and Obama administrations.

If we’re talking about “economic terrorists” then look no further than former Goldman Sachs CEO and Bush Treasury Secretary Hank Paulson. The initial $700 billion dollar TARP bailout that was passed in October 2008, which laid the foundation for subsequent unchecked bailouts that eventually soared past the $20 trillion mark, was rammed through on the back of threats of martial law, stock market collapses, and food riots by none other than Paulson himself. This is real economic terrorism, and not just a bunch of SEIU leftists blowing hot air, but Glenn Beck didn’t seem very interested in reporting on it at the time, having been a staunch advocate of the TARP bailout from the very start.

During a conference call on September 19th 2008, around two weeks before the TARP legislation was eventually approved by both the Senate and Congress, Paulson threatened lawmakers with dire consequences if they didn’t pass the bailout.

Secretive Plan For a Global Currency

Excerpt from "The Global Economic Crisis: The Great Depression of the XXI Century"

Ellen H. Brown
Global Research

By acting together to fulfill these pledges we will bring the world economy out of recession and prevent a crisis like this from recurring in the future. We are committed to take all necessary actions to restore the normal flow of credit through the financial system and ensure the soundness of systemically important institutions, implementing our policies in line with the agreed G20 framework for restoring lending and repairing the financial sector. We have agreed to support a general SDR allocation which will inject $250bn into the world economy and increase global liquidity.– G20 Communiqué, London, April 2, 2009

Towards a New Global Currency?

Is the Group of Twenty Countries (G20) envisaging the creation of a Global Central bank? Who or what would serve as this global central bank, cloaked with the power to issue the global currency and police monetary policy for all humanity? When the world’s central bankers met in Washington in September 2008 at the height of the financial meltdown, they discussed what body might be in a position to serve in that awesome and fearful role. A former governor of the Bank of England stated:

The answer might already be staring us in the face, in the form of the Bank for International Settlements (BIS)... The IMF tends to couch its warnings about economic problems in very diplomatic language, but the BIS is more independent and much better placed to deal with this if it is given the power to do so.[1]

Globalists Push SDRs as World Reserve Currency

Once again the IMF is calling for SDRs, short for Special Drawing Rights, to replace the U.S. dollar as the world’s reserve currency.

“Over time, there may also be a role for the SDR to contribute to a more stable international monetary system,” said Dominique Strauss-Kahn, managing director of the IMF. He said there are some “technical hurdles” involved with SDRs, but he believes they could help correct global imbalances and shore up the global financial system.

In addition to creating a globalist fiat currency controlled by the financial elite and their central banks, the IMF is proposing the creation of SDR-denominated bonds, which would reduce the use of U.S. Treasuries if implemented. The IMF also suggested that assets such as oil and gold, which are currently traded in U.S. dollars, should be priced using SDRs.

The nominal value of an SDR is derived from a basket of currencies – specifically, a fixed amount of Japanese Yen, US Dollars, British Pounds and Euros. The IMF cooked up the SDR scheme in 1969. It was originally intended to be the primary asset held in foreign exchange reserves under Bretton Woods, but after the collapse of that system in the early 1970s – a victim of the bankster plan to send the U.S. deficit into the stratosphere – SDRs took on a far less important role.

Following the onset of the engineered global financial crisis in 2008, the so-called BRIC countries – Brazil, Russia, India and China – led primarily by Russia and China, have called for dumping the dollar and moving into a global currency scheme. The SDR facility stands ready.

The IMF and the globalists plan to elevate China and undermine the United States. Strauss-Kahn told reporters last June in a news briefing that he believed there would be more pressure to include yuan, also known as the renminbi, among SDR currencies.

Early in 2009, China issued an aggressive call to dump the dollar and move into SDRs. “The role of the SDR has not been put into full play due to limitations on its allocation and the scope of its uses. However, it serves as the light in the tunnel for the reform of the international monetary system,” saidZhou Xiaochuan, governor of the People’s Bank of China.

The IMF, however, has so far held off on spiking international foreign exchange reserve assets with the yuan. The problem is that China has yet to “liberalize” its currency, in other words the authoritarian state has yet to allow central banks to hold yuan-denominated deposits without restriction.

In June, the United Nations called for abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value.

“In politics, nothing happens by accident. If it happens, you can bet it was planned that way,” said Franklin D. Roosevelt.

Same thing can be said for economics. The banksters have purposely attacked the dollar in order to move us into a globalist world currency.

Federal Reserve operative and current U.S. Treasury boss Tim Geithner gave the SDR concept a nod during the globalist G20 confab in London. During the meeting, it was announced that the IMF would have a trillion dollars allocated to its coffers and an increase in the SDR facility of $250 billion.

The globalist plan to establish a world currency began in earnest after the Second World War when John Maynard Keynes and the British government proposed the “Bancor” as a world reserve currency or – as the globalists like to call it – a supranational currency. At the time, it was decided under Bretton Woods that the U.S. dollar would serve as the world’s reserve currency.

Keynes approach gained renewed favor among establishment economists and central banksters after the engineered financial crisis.

The Federal Reserve is facilitating the move into a world currency controlled by the IMF and the globalist central banks by quantitative easing, that is to say devaluing the U.S. dollar by cranking up the printing press.

As investor Marc Faber noted last year, this funny money intervention by the Federal Reserve is going to create a final crisis that will destroy the U.S. financial system. The Fed “will print and print and print until the final crisis wipes out the whole system,” Faber warned.

Following that engineered destruction, there will be desperate and hysterical calls to embrace the SDR scheme and adopt the globalist world economic order.

–

Kurt Nimmo edits Infowars.com. He is the author of Another Day in the Empire: Life In Neoconservative America.

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Citizens of Europe Rage Against the Machine

Austerity measures drive 100,000 protesters to the streets of Ireland, another 100,000 in Italy as Europeans continue to rage against the international banking machine.

Eric Blair
Activist Post

The international bankster machine seeking to colonize Western nations through debt is now meeting resistance from Greece, to France, to Ireland, to Italy, to Spain, to Portugal, and to the U.K. 

These new protests in Ireland and Italy follow a crippling 2-week strike in France where citizens took over fuel refineries and other vital infrastructure, more strikes in Greece which took over the Acropolis, and a massive student protest in the UK that caused physical damage to government buildings. All of these protests were sparked by governments reducing benefits or increasing fees and taxes on a population that had little to do with the private gambling of banks.

These European protests are intensifying as the international bankers move to collect their "pound of flesh" through austerity and sale of public assets.  As Europeans are becoming acutely aware of the dubious plan to loot them and the anger at their corrupt elected officials for bowing to banks has reached a boiling point.  In all cases the governments are enforcing austerity measures on the people after the private banks over-leveraged themselves to the breaking point, threatening to bring down entire nations. 


For years the bankers churned out easy credit to these nations while they invested public and private funds into worthless credit default swaps and derivatives. As if orchestrated to perfection, they pulled the plug on those toxic assets, essentially bankrupting the more fragile developed countries, followed by calling their debts due.  Now they're demanding that European governments be forced into IMF bailouts that impose drastic austerity measures on the populace.

By forcing tax increases and reducing benefits for the citizens of sovereign nations, the IMF is essentially rewriting their laws.  Well, it appears that the citizens of Europe have had enough.  The massive protests, strikes, and riots that have swept through the streets of many European countries have resulted in growing calls to reject the bailout money used to prop up failed banks and corrupt governments.  The Irish people prefer to default on the debt which drove the EU 'completely mad'.

The protesters are getting support from someone who is experiencing the outcome of resisting public bailouts of private banking debts.  The President of Iceland recently remarked that they're in much better shape than Ireland because they let the private banks fail and their currency naturally devalued, allowing them to regain some competitiveness relative to their neighbors:

“The difference is that in Iceland we allowed the banks to fail,” Grimsson said in an interview with Bloomberg Television’s Mark Barton today. “These were private banks and we didn’t pump money into them in order to keep them going; the state did not shoulder the responsibility of the failed private banks.”

UK's Libertarian politician, Nigel Farage, once viewed as a fringe player, is now getting international recognition for forewarning his European comrades about the troubles in the system.  He's quickly becoming a hero to the banker resistance as his credibility reaches new heights for being proved right -- much like his U.S. counterpart Congressman Ron Paul. His rants in the European Parliament are going viral on YouTube as the people are waking up to their servitude to banks and a lack of true democracy and sovereignty.

Nigel Farage speaks with such confidence against the EU, as he should, given that a recent mainstream media poll showed 99% of UK citizens want out of the Euro.  The battle against the banking cartel is clearly happening with Europe as the spearhead.  As Europeans continue to fight back against corrupt international banksters, lazy Americans continue to live with a much lower standard of living and do nothing to challenge the system.

The rage in Europe and quiet streets in America is causing the euro to fall against the dollar.  The dollar was all but declared dead in the lead-up to the Fed's QE2, but now the eurozone debt crisis has taken center stage.  The European Council is set to meet again this December to amend the Lisbon Treaty to essentially legalize more bailouts.  Some insiders are calling it an impossible mission to get all European countries to agree on fair amendments.  The outcome of these December meetings will assuredly be pivotal in determining whether the euro "experiment" will survive.

If it crumbles, so then does the structure for a global currency.  Indeed, the front lines in the battle to conquer plans for a global currency and the end of sovereign nation states is being waged by the angry citizens of Europe.  Bravo comrades, keep up the fight!


RECENTLY by Eric Blair:
Endgame Legislation: Lame Duck Session Ushers in Tyranny
Eurozone Debt Crisis 2.0: Dollar Sucks Less Than Euro, Again

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The Global Monetary System in Crisis

Bob Chapman
International Forecaster

The recognition of currency war, which has been going on for years, reflects the failure of international cooperation and the failure the G-20 to find a solution of the beggar-thy-neighbor policies of almost every nation. The result has been growing geopolitical dislocation, which G-20 has yet to find a solution for. These efforts, until recently, were turned upside down by the failure of the Copenhagen Summit in the summer of 2009, when it was discovered that global warming was a giant scam. This was proof positive that global leadership was nothing less than a group of common criminals. Economic and financial failure has brought about global austerity measures, and bickering over trade and currencies as well. As this transpired the economies of the US, UK and Europe slid downward in socio-economic, crisis, which in some cases has degenerated into violent demonstrations.

The US and UK are in economic paralysis due to the major changes anticipated in next week’s elections of House and Senate delegates. The President isn’t even going to be in Washington to witness the massacre of the Democrats. He just refuses to deal with it, as a long line of bureaucratic appointees head back to Harvard, foundations, think tanks, the Council on Foreign Relations and the Trilateral Commission. This as the Chairman of the Fed unveils plan two of quantitative easing, the creation of money and credit out of thin air, which in reality has been going on in the bond market since early June. Another bit of subterfuge dreamed up on Wall Street.


The Fed is monetizing a stimulus plan that the administration is no longer capable of assisting, due to an enraged public. On the other hand, large dollar holders are loudly complaining that the Fed’s policies will cause major inflation and a falling US dollar. Of course, the flip side is if the Fed doesn’t act in this manner the US economy will collapse and with it the world economy. The dumb Chinese, Japanese and oil producers should have long ago accumulated gold and gotten rid of dollars. That was not to be as they in fact enslaved to US leadership by yields and exports. The expenditure of $5 trillion over the next two years by the Fed will only take the US economy sideways at best, and in turn take the dollar to new lower levels. All the insiders know the plan won’t work, but it will buy time, perhaps so they can have another war as a distraction, as they have done many times before in history. Even the public knows it won’t work having been alerted by information pouring out of talk radio and the Internet. The US is already in austerity. Just look at real unemployment of 22-3/4%. This is getting worse not better and that means a change in control in the House and Senate could well bring about a constraining of fiscal and monetary policy.

The US is on a path to socio-political chaos as the dollar falls and the world monetary system comes unglued. Those countries in decent monetary and fiscal condition will pull away from dealing with the US and that has already occurred with Brazil that doesn’t want inflationary dollar investments entering their country, thus, they have implemented a dollar investment tax. The US cannot return to the past. Its leadership lost that opportunity in June of 2003 when they decided to go ahead and take down the economies of the US, UK and Europe in order to force the inhabitants of these countries to accept world government. A main cog in this plan was the implementation of free trade, globalization, offshoring and outsourcing, which has cost the US in just ten years 8.5 million jobs.

There is no chance now of return as countries pull away from US and UK financial markets. These moves will protect these countries for a time, but eventually they will feel the sting of economic failure and instability as trade wars and tariffs become the norm. Washington will cease to be the world leader. The currency and trade wars have only just begun. They could not be avoided by either side. There is about to be a convergence of problems. Things that previously were not connected that will burst forth without warning. That will eventually lead to the implosion of the system.

These factors will be accompanied by social unrest, which we have just seen the beginnings of in Europe. This time of social, monetary and fiscal turmoil will last at least into 2014 before any solutions are put on the table. An easy solution is multilateral revaluation, devaluation and default. This would be very painful, but would stop the power by today’s elites in the US, UK and Europe and the unmasking of their treachery.

Throughout Europe and the US there has and will continue to be a rise in patriotic movements, which those who control governments already have labeled terrorists. These are people like us who bring truth and exposure of facts to the attention of the public.

We are currently facing a new crisis in the US in the mortgage markets and in their securities, which has been aided and abetted by a disintegrating legal system. This comes to real estate at a time when it is on life support. The states cannot be of much assistance because most of them are broke, which is another distinct problem.

The US has already abdicated its role of world leader. Even leadership from Wall Street and banking is dreadful. Worse yet there is no one to take its place, as the world lies adrift in a sea of trouble. The atmosphere is explosive because no one wants to give up anything. The financial markets will all eventually fall and the flight to gold and silver as the only real money will gain acceptance, as we predicted long ago. Americans and others have failed to see the future and they’ll pay dearly for not paying attention.

One of the interesting developments of the new currency wars is a concept that, the nations that will be the most successful, are the nations that devalue the fastest. One of the things nations miss is that the cheap currency that propels exports; also raises the costs of imports. Another fallout is others won’t want to own your currency and if you devalue a currency enough it becomes worthless, or nearly so. A good example of that was in the 1930s where only tariffs were successful. As a rule those tariffs were not steep. The threat, of course, is that nations get mad at one another and war follows.

What these nations have been doing is similar to quantitative easing, or simple fiat creation of money and credit. These actions are the antithesis of sound money.

The Forex, foreign exchange market, trades $4 trillion a day and its projected to trade $10 trillion daily in the next couple of years. Money flows are already wild to say the least. Many foreign currencies have been rising versus the dollar. Some nations such as Brazil have already instituted capital controls by putting taxes on foreign purchases of local sovereign debt. Those not into the foreign game are buying US Treasuries, gold, silver and commodities.

The FOMC and the Fed, even though they know it won’t work, are becoming more and more accommodative. You will get some idea of their plan next week. The result will be a falling dollar, which is not really monetary policy, but grasping at straws in the wind. You will find nothing of sound money here and as a result markets will ultimately not survive. Remember, we could return to the circulation of gold and silver. 76 years ago gold coins were widely circulated and silver was in everyone’s pocket just 47 years ago. It is not impossible. It could happen again over the next few years.

It was just two weeks ago that the dollar revisited 76.54 on the USDX. It had rallied over the past four months from 76.88. It is currently about 77.28. Every time it tries to rally it gets knocked down again. That is a long way from 89 where it was seven months ago. One thing is for sure, as long as we have ill-fated policies such as QE2 the dollar will continue to fall.

We also found it of interest that Bill Gross of PIMCO found the Fed has taken Charles Ponzi one-step further. He says, “Has there ever been a Ponzi scheme so brazen?” No, there has not, said Bill. When the Fed meets next Wednesday it could signify the end of a great 30-year bull market in bonds.

What should be noted is that the Fed is intent on generating another asset bubble to accommodate the sale of Treasury and Agency bonds and to give Wall Street and banking more funds to speculate with. This will renew the elitist wealth effect and in the process send the dollar lower, which in turn will increase inflation, which is already sapping consumer buying. The Wall Street gang plan to use Fed funds to jack up the market, which is already overpriced by 20%, is an act of pyromania. In addition, the average increase in 15 commodities yoy to October is 35%. Food costs are up 48% and energy 23%. Real inflation is up 7%, not the 1.6% the Fed lies about.

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Is hard currency on its way out? Introducing the new virtual world currency

The new virtual world currency is an index of the world’s 15 largest economies, weighted by their gross domestic product, adjusted for purchasing power parity.

Rocky Vega
Christian Science Monitor

When discussing reserve currency alternatives to the US dollar, conversation almost inevitably returns to the International Monetary Fund’s “synthetic reserve asset,” the Special Drawing Right (SDR).

However, the SDR basket of currencies is noticeably antiquated in its design, including only the currencies of industrialized nations… namely British Pounds, Euros, Japanese Yen, and US Dollars. This week, foreign exchange manager Overlay Asset Management has announced a currency basket it’s launching in order to offer a more up-to-date “virtual world reserve currency.”

Read Full Article

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IMF sets central bank meeting in Shanghai Monday

Veronica Smith

AFP

WASHINGTON — The International Monetary Fund on Friday said it will hold a high-level conference of central bank governors in Shanghai next week to discuss ways to address the global financial crisis.

The IMF said the conference, scheduled for Monday, would include central bank chiefs and other officials from Asia, Africa, Europe, and North and South America.

The People's Bank of China will host the conference, to be co-chaired by the head of the central bank, Zhou Xiaochuan, and IMF managing director Dominique Strauss-Kahn, the Washington-based institution said in a statement.

The US Federal Reserve was expected to be represented by Kevin Warsh, a member of the central bank's policy-setting Federal Open Market Committee.

The Shanghai conference follows on the heels of last week's IMF and World Bank annual meetings, where leading finance officials discussed steps to strengthen the global economy's recovery from the worst recession since World War II and the global financial system.

"The conference is part of the ongoing international examination of the policy challenges posed by the global financial crisis," the IMF said.

Asked about the last-minute timing of the announcement in Washington, just days before the meeting opens in Shanghai, an IMF spokesman told AFP there was "no urgency surrounding this conference."

"This was in planning for a number of months," he said.

In its statement, the 187-nation IMF noted the meeting follows an IMF-sponsored gathering in South Korea of Asian policymakers and opinion leaders in July, at which it "committed to forging a new relationship with the region."

Read Full Article

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The After-the-Fed Solutions Debate Begins: Greenbackers Vs. Goldbugs
Will the Dollar Rebound Before Being Dissolved Into Global Currency? 


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The After-the-Fed Solutions Debate Begins: Greenbackers Vs Goldbugs

Eric Blair

Activist Post

The battle to expose the Federal Reserve has been long and arduous. It finally appears that after nearly 100 years of absolute economic control and near complete debasement of the dollar, the Fed's reign may be coming to an end.  Its eventual demise is certain according to Black Swan author Nassim Taleb and others.  With all the recent mainstream talk and speculation about the end of the Fed, it is time to debate solutions for the future of America's currency.  This may indeed be the most important discussion of our lifetime.

First, we must be aware that the Federal Reserve along with other foreign private central banks and the IMF have long had plans for a global currency.  This is not conspiracy theory mumbo-jumbo anymore, but rather cold hard fact.  Lew Rockwell wrote an excellent article summarizing the IMF's push for a global currency -- the Bancor.  The recent international currency war may be the beginning of creating a false demand for something more stable for international trade.  As all major currencies race to the bottom, the private banking cartel will surely offer their global solution.  We know what their solution will be -- continued debt slavery with more centralized control -- but what will the people's solution be?

There seems to be another currency war brewing right here in America.  The debate between the two most popular proposed solutions of adopting the Greenback or theGold Standard has just officially begun. Last week, Gary North, a Goldbug and author of Honest Money, wrote a scathing attack of Web of Debt author Ellen Brown, a Greenbacker.  He took select samples from her book in an attempt to tie her public bank solution to Hitler, but failed to address the "interest-free" philosophy of her policy.  Despite that, he does manage to frame the Goldbug's argument against the Greenback, or public banking, as inferior:

Brown is a Greenbacker. She is open about this. Most people have never heard of Greenbackism. It has been a fringe movement in American political life ever since the 1860s. The Greenback Party in the 1870s was the first American political party to come out in favor of a pure fiat money economy, a paper money system controlled by Congress with currency irredeemable in gold coins or silver coins.

The Greenbackers are committed to paper money. They are opposed to any form of gold standard. They are opposed to fractional reserve banking. They are opposed to central banking, unless the central bank is 100% owned and controlled by Congress.

A rebuttal piece was then written by Interest-Free Currency activist Anthony Michgel in defense of Brown and the Greenbacker's where he goes after North and claims interest-bearing gold can never work:

What it is all about is the Goldbug people versus the Interest Free Money crowd. It is one of the most crucial debates around. As I have mentioned before both on this site and elsewhere, Gold is the preferred currency of the Banking Fraternity and they plan to reinstate it in their world currency, which is coming closer every day....

Because North has managed to do something profoundly dishonest and unwise. In this enormous article of his he actually does not mention the problem of interest at all.

This is so totally unfair to Brown’s work, because this is surely one of the most important aspects of her narrative....

Interest free money, either printed debt free by the Government or through interest free credit either by private organizations or again by the State, is simple, proven technology and centuries old.

Yes, many systems have been abused resulting in inflation.

No, interest bearing Gold is definitely not an acceptable solution.

Passions already seem to be running high in the opening round of this most critical debate that will surely shape the future of our economy and society.  Notably, both sides of this argument are in agreement that the Fed is a corrupt organization that must be ended.  North acknowledged that Ron Paul and Ellen Brown share this common ground, but says the Tea Party movement (liberty movement) has "no economic understanding" and "They cannot distinguish Ron Paul's opposition to the FED, based on the gold coin standard, from Ellen Brown's opposition, based on a fiat money standard. They are intellectually defenseless."

It seems a bit arrogant of North to suggest the liberty movement is confused about why Ron Paul and Ellen Brown support ending the Fed, and it's also disingenuous to say that one side of the growing movement is "intellectually defenseless" because of disagreements about the solution.  Especially when Brown's public banking movement appears to be immediately workable and is gaining ground with the first pragmatic step being to establishing state banks -- as proven in North Dakota -- who has a state-owned bank and boasts the lowest unemployment and the only budget surplus of the United States.

The public banking movement opposes the Federal Reserve, like Paul, because it is unconstitutional, but also for a variety of other intellectually defensible positions, starting with the fact that they are a private monopoly who care not for Americans or the country.  There are very real concerns that this group of banksters may maintain dominance of a gold-based system since they already have possession of most of the world's gold -- including much of the mining as well.  Furthermore, if they can continue to create money on a fractional basis -- even if backed partially by gold -- and can continue to charge and determine interest, they'll still possess the power enslave-by-debt people, industry, and entire nations.  Finally, the private profit motive of international banksters, driven by interest, has historically proven to encourage wars as evidenced by their funding of both sides of all wars.  This would also seem to give them dubious power to determine the outcome of those wars.

In turn, it's a given that the liberty movement supports the restoration of the Constitution which clearly states that the coinage of money shall be in gold and that only the elected Congress is authorized to issue and control it.  However, the Constitution says nothing of allowing a fractional reserve gold standard run by private bankers which is promoted by some Goldbugs.  Furthermore, some Constitutionalists still maintain the strange notion that the government should belong to the people.  Therefore, if we were able to restore the Constitutional principle for a government of, by and for the people, it would seem that interest-free currency issued and controlled by our elected government would be considered more constitutional than the current system.

It is true that gold has been valued in society for thousands of years and it will likely continue to maintain its terrific investment value for the foreseeable future. Gold clearly has a physical value derived from the incredible energy it requires to mine and refine it.  But gold, as a limited resource, is interest bearing and can be hoarded by those with the wherewithal to do so.  This would seem to suggest that gold could then be manipulated by the few who control vast sums of it.  And that sounds a lot like the economic tyranny we face today with the private Fed.

North attacks Greenbackers because they "are opposed to central banking, unless the central bank is 100% owned and controlled by Congress" as if to say, how dare the people demand ownership of their own currency.  It shows a blinding distrust for Constitutional government and obvious preference for private banking interests.  Goldbugs seem caught up on the fact that a unit of exchange must have intrinsic value, either backed by gold or as an instrument of debt, or both.  They feel so strongly that fiat currencies are utterly unreliable, but spend little time discussing the motive behind the interest and supply manipulators. Additionally, it is unfair to suggest that fiat currencies are not redeemable in gold as any widely acceptable unit of exchange can be traded for gold.  Currently, one can buy an ounce of bullion for around 1400 Fed-deflated U.S. fiat Dollars.

I don't want people to get the wrong impression.  I believe gold is a great investment, especially in these turbulent times.  And I also believe gold has a place in securing America's currency.  However, I worry that those who hold dear that a currency must be backed partially by gold to have legitimacy are susceptible to supporting a global currency if it includes gold as part of its currency basket.  Perhaps I'm naive, but I'm not sure why a combination of  the two solutions is not feasible, with interest-free paper Greenbacks redeemable in gold or silver, while also producing silver and gold coins for circulation -- all tightly controlled by Congress, not a private organization, as per the Constitution.  After all, Fort Knox is supposed to be the people's gold, right?

Let the debate begin.  Tell us what you think should be the best system to replace the Fed.  

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