As another Lame Cherry exclusive in matter anti matter.
Economics are a subject which makes most people cringe, as they like spending money, but can never figure out how the financiers are robbing them, as the economists they distrust tell them how great an Obama Super Depression felt destroying them.
What the Lame Cherry is going to do, is to lay out for each of you easily so you can understand, and can be advocates for in the Trump Administration for making you rich again, and America Great Again.
It all comes down to the fact that John F. Kennedy and Ronald W. Reagan as Presidents both initiated boom times in America, which were consumed by globalists in the Vietnam War and War on Poverty, and the Bush Clinton Obama Wars, and the Obama crack whore looting of the US Treasury.
The fact is under the Obama regime, Obama stole record taxes from every American, and we got nothing for it but stagflation, exactly as under Jimmy Carter.
America is facing the same dire situation as in 1980 under Jimmy Carter horrendous monetary policy. Not revisiting history, other than to state that Ronald Reagan with economist Milton Friedman and Secretary Jack Kemp, turned all of that around for 30 years of growth, which was only destroyed by George HW Bush taxes, Bill Clinton retroactive taxes and Barack Obama super high taxes.
All of this comes down to the reality of good money, or a strong dollar for trade, versus easy money, or money printed by the regime flooding the world, which robs you in inflation.
No more perfect examples of easy money treachery is in 1970 a car cost 1200 dollars and gas was 25 cents a gallon and homes were 10,000 dollars. In 2017, cars cost 30,000 dollars, gas is 2.50 a gallon and homes are 250,000 dollars. Everyone is poorer than 1970, and it all has to do with easy money which benefits the rich in expanding their coffers, while the poor are eaten up in inflation.
The Reagan Men behind the Good Money are still alive, save for Jack Kemp, and have provided 3 directions to deal with the economic bubble which is going to implode on America after Birther Hussein.
America can first, keep the dollar standard and wait for a collapse as a pegged dollar drags down the world. Second, America can hand control over to globalists in making the International Monetary Fund, which will make them global dictators, who could outlaw currencies or punish nations not putting the slave chains on, or America can return to Jack Kemp and re institute the Gold Standard.
Mueller’s Wall Street Journal column enumerates the three options open to President Trump:
First, muddle along under the current “dollar standard,” a position supported by resigned foreigners and some nostalgic Americans—among them Bryan Riley and William Wilson at the Heritage Foundation, and James Pethokoukis at the American Enterprise Institute.
Second, turn the International Monetary Fund into a world central bank issuing paper (e.g., special drawing rights) reserves—as proposed in 1943 by Keynes, since the 1960s by Robert A. Mundell, and in 2009 by Zhou Xiaochuan, governor of the People’s Bank of China. Drawbacks: This kind of standard is highly political and the allocation of special drawing rights essentially arbitrary, since the IMF produces no goods.
Third, adopt a modernized international gold standard, as proposed in the 1960s by Rueff and in 1984 by his protégé Lewis E. Lehrman …and then-Rep. Jack Kemp.
Like all of you as I do not camp out at Fort Knox, I had not bothered to check how much gold America had, as we had been told America had no gold. The fact is America is awash in gold as it is in oil. America has more gold than the IMF and Germany combined.
If one combines the top three in America, Germany and the IMF, they have as much gold as all the other depositories combined.
Meaning that switching to a gold standard, the American Dollar would not create the Russian Ruble as a super currency, but all producing nations would benefit from the Gold Standard, and that would uplift the non producing nations to production.
Trump has been misled to believe that “we don’t have the gold. Other places have the gold.” In fact, the United States, Germany, and the IMF together have about as much gold as the rest of the world combined and America has well more than Germany and the IMF combined. [Note: This column has been updated to clarify that the United States has well more gold than Germany and the IMF combined but not, as originally stated, more than twice as much.]
We have the gold. Bringing back the gold standard would not be very hard to do.
The reason the foreign owners of the Federal Reserve do not want a Gold Standard is it takes the power away from the State and puts slave control in the hands of the bankers. The Fed can print endless money, inflating prices which turns them into billionaires and trillionaires, as the poor and middle class are eaten alive in price increases and can no longer afford to live or are forced into rationed Obamacare death.
What Jack Kemp did in "supply side" meaning, by lowering taxes, people had more money and corporations having more money increased production, and people having more money then bought the products which increased jobs, production and created the 30 year Reagan expansion where real growth took place six times the rate of Obama anemic malaise.
Kemp’s supply side agenda reversed the then (and now, somewhat, recurring) conventional wisdom in favor of high tax rates and easy money. The “Mundell-Laffer Hypothesis,” as it was called by journalist Jude Wanniski, reversed the conventional wisdom, calling for dramatically lower tax rates and good, rather than easy, money from the Fed.
This is all based on good money, and not easy money being printed. One has to remember the Lame Cherry Doctrine in this, that a Bubble can have two ends, it can burst or it can be filled. Ronald Reagan filled the bubble in real production and growth.
Bill Clinton stopped the filling and a Dotcom Bust took place robbing investors.
All that this Kemp Doctrine which is proven needs is sound economic policy which America has not had, and the economy will respond with no inflation, surging growth to fill the bubble and each person becoming wealthy in working is something which really pays.
When Reagan first began his 1980 campaign the Dow was bouncing around (even well below) 1,000. Reagan, inspired by Kemp, put the Dow on a course to rise by an order of magnitude.
And much more. Kemp’s policy formula, under Reagan and Clinton, created close to 40 million jobs.
We haven’t seen anything like that since.
There were two elements to Kemp's formula. Lower marginal tax rates. And good money.
The “good money” aspect of the Kemp formula has decayed, far more seriously than have his tax rate cuts. With “easy” — which is to say, decayed — money, America has suffered economic stagnation for well over a decade. By putting monetary policy back on track America can resume its historic course of growing equitable prosperity — without prices creeping up and putting a big, if semi-obscured, squeeze on workers.
Kemp, posthumously, again offers us the key to stupendous growth.
The Gold Standard was and is the bugaboo in this, as in past history gold was in short supply and silver was turned to, to "fix" the problem, when the problem can be rectified in two ways in Paul Volker who ran the Federal Reserve for President Reagan, actually ran the Fed as if there was a Gold Standard and the Dollar was pegged to this invisible mark.
As we can see once Reagan was gone, the James Baker and other 'easers' of monetary policy eroded the Dollar to the wholesale looting of Obama at 20 trillion in debt.
It is reality that the Clinton Dotcom bust or the Obama 2008 bust which put that fraud into office, would never have happened with a Gold Standard, as the money supply would not have been boosted beyond natural market forces which peg currency to gold. Your money does not inflate nor deflate, so you can not speculate and flip houses as it will bring your ruin, but not the ruin of the nation as prices moderate.
While Kemp politically quarterbacked the historic cutting of marginal tax rates, good money was delegated to Fed Chairman Paul Volcker. Volcker used initially punitive, but effective, high interest rates to slay the inflation dragon then terrorizing America. He is on record as using a “rule or indicator” rather than discretion.
Some thinkers believe (although he has never implied) that Volcker may have used the gold price as the, or an, "indicator." As William L. Silber, Marcus Nadler professor of finance and economics and director of the L. Glucksman Institute for Research in Securities Markets at New York University’s Stern School of Business observed, in 2012, at Bloomberg.com, “Volcker wanted to restore the gold standard without gold.”
Volcker is not a gold standard proponent. That said, in his Foreword to Marjorie Deane and Robert Pringle's The Central Banks (Hamish Hamilton, 1994) Volcker observed: "It is a sobering fact that the prominence of central banks in this century has coincided with a general tendency towards more inflation, not less. By and large, if the overriding objective is price stability, we did better with the nineteenth-century gold standard and passive central banks, with currency boards, or even with 'free banking.' The truly unique power of a central bank, after all, is the power to create money, and ultimately the power to create is the power to destroy."
America has had a Fed, or Central Bank which has been destroying the Dollar, American lives and lives across the globe, as it operates not on production, but exploitation of slave labor, genocide of Americans and Europeans, while the 1% become trillionaires.
When one can print a dollar for a few cents and charge Americans and everyone else the full 100 dollars, it is the epic robbery scheme in world history which benefits the few and not the many.
"As American economist Barry Eichengreen summarized: 'It costs only a few cents for the Bureau of Engraving and Printing to produce a $100 bill, but other countries had to pony up $100 of actual goods in order to obtain one.'"
As stated, the original Reagan Economic Team are still alive. There are positions opening up on the Federal Reserve and by placing those experts who have proven economic prosperity in knowing how to manage an economy for those who actually work and produce.
President Trump placing these advocates at the Fed, with sound fiscal policy by Secretary Munchkin, lowering spending and deficits, and the American economic will surge to life like a rocket engine, and protected by the Federal Reserve in good money policy.
How might President Trump go about turning this around? He has a unique opening to forcefully pivot America toward epic prosperity.
As Paul-Martin Foss of the Menger Center astutely points out the Federal Reserve Board currently has three vacancies. If Trump were to fill those vacancies with three sophisticated gold standard advocates from the short list of Lewis E. Lehrman (whose eponymous Institute I formerly served), Dr. Judy Shelton (who served as an advisor on his presidential economic transition team), former presidential candidate Steve Forbes, and John Allison, former CEO of BB&T (preferably as vice chairman for regulation) the president would create a super “beachhead team” at the Fed to seriously restore equitable prosperity.
Senator Jack Kemp advocated for Good Money and put into place the blueprint for the Gold Standard adjustment. He was not able to complete it, as President Reagan did not have the situation nor political drive to complete it, as much as balancing the budget.
It is all there though now for President Donald Trump, and simply requires passage over the coup plotting of the globalists and elites who are with the insiders in the Administration working against President Trump. The will of the People is there for President Trump and he only needs to push this, and he will do better than making American Great Again, as it will no longer be remembered as the Golden Era of the past but the Trump Era in which your grandchildren will live in peace and prosperity.
Secretary Jack Kemp's 1984 Good Money Act
Not later than one year after the date of the enactment of this Act, the Secretary of the Treasury shall establish a permanent definition of the dollar, as expressed as a fixed weight of gold, nine-tenths fine.
The dollar defined as such fixed weight of gold shall be the standard and unit of value of the United States, and all forms of money issued or coined by the United States shall be maintained as a parity of value with this standard.
Beginning one year after the date of the enactment of this Act, any person may, on demand, redeem for gold at any Federal Reserve bank any currency or coin of the United States, or any demand note or demand liability of a Federal Reserve bank.
Such redemptions shall be made either in gold coins or in an equivalent value of gold bullion.
The Secretary of the Treasury shall cause gold coins to be minted in such weights, denominations, and forms as the Secretary determines will best serve the maintenance of gold payments and the needs of commerce.
Coins minted under this section shall be legal tender for all debts, public charges, taxes and dues.