Regína sacratíssimi Rosárii, ora pro nobis!

“A deceitful balance is an abomination before the Lord: and a just weight is His will.”
(Proverbs 11: 1)

    This past Monday, September 15th AD 2008, the feast of the Seven Sorrows (Dolors!) of our Lady, may well go down in history as “Black Monday”—unless, the American people reflect on what made the financial events of that week take place and demand that they never happen again—if they do not, there will be Blacker and Blacker Mondays to come.  The presidential candidates whom we are allowed to hear in the mainstream media, and the media's own “talking heads,” all bluster about raising or lowering taxes, tighter regulation, greater government oversight, investigative commissions, “one time” bailouts, and other similar “remedies” aimed at treating the symptoms of our financial disaster, but completely ignoring its causes.  Politicians tend to treat symptoms with popular, vote-getting remedies—rarely do they investigate the causes of the symptoms, particularly if the cure might be unpopular.  Don't expect them to even mention subjects like “sound money,” “fractional reserve banking” “the Federal Reserve,” “deficit spending,” “off budget debt” or “the Constitution.”  Perhaps they are ignorant, perhaps they complicit, or perhaps they are in fear—the bottom line is that the actual causes of  “Black Monday” and all of its associated catastrophes will not be part of the mainstream discussion—and not being widely discussed, they will not be remedied.

    Here follows a list of things about which Americans must demand sound answers in the days and weeks ahead:

  • How can we return to sound money?  Currently, the money of the United States is based on debt, rather than on any tangible asset.  There is no gold or silver backing the dollar.  New money corresponds not to any increase in wealth, but to an increase in debt.  New “money” is either spent into existence by the federal government, created out of nothing by the Federal Reserve in exchange for public debt;  or spent into existence by the public, created out of nothing by the banks in exchange for private debt.  “Money” that is created from nothing is not taken seriously by those at whose bidding it is created.  The mentality rapidly develops that we can bail out of any sized financial crisis by just creating enough “money.”

    The debasement of the nation's “money” by creating it out of nothing and spending it into existence steals from everyone holding dollars.  Savings, pensions, bonds, and other fixed incomes all become worth less.  Wages and investments may increase, but rarely if ever grow as rapidly as the dollar is debased—and when they do grow, they are subject to larger taxes.

  • How can we get uniform accounting for both government and business?  Most, if not all, of the entities at the heart of the financial trouble have engaged in highly questionable accounting procedures.  Many were caught, paid a fine, and continued business as usual.  The old accounting tradition of “debits on the left, credits on the right” seems to have gotten lost in the shuffle.  One firm, Enron, was caught classifying an item as a liability for tax purposes, and as an asset for its investors;  another, WorldCom, claiming its expenses as assets;  Fannie reporting earnings only when they would result in senior executive bonuses, and Freddie doing the same.  Forbes Corporate Scandal Sheet is must reading! What about the agencies who rate the quality of bonds?  Remember that New York State Governor who went down in flames with a call girl—do you know what he had been investigating?

    Now, just guess who the biggest offender is!  And we have it on the authority of a Federal Reserve President.  Why does the government not follow the same rules as industry?

    No, I am not looking for more government regulation—but only that the rules of accounting be uniformly, fairly, and universally be enforced—corporate executives and government bureaucrats who violate them should face jail time for serious violations.

    And if the government is going to regulate or audit American firms, it is reprehensible for politicians to accept campaign contributions from those over which they have oversight.  See who received contributions from Fannie and Freddie!

  • How soon can we expect a return to constitutional government?  The United States Constitution is written in language every high school graduate ought to be able to read, at least with a dictionary to look up the few uncommon words like “bill of attainder,” “marque,” “militia,” or legal terms like “ex post facto,” and “habeas corpus.”  The Constitution is explicit as to what powers are given to the federal government, and what powers are retained by the States or individual people.  Any question about this limited delegation was put to rest by the Tenth Amendment, in the Bill of Rights.  The Constitution also provides a method by which the delegation of powers may be amended, which has indeed taken place a few times.  To spend money for things or programs not within the scope of the delegated powers is theft—theft on a grand scale, which is in no way legitimized by the fact that it is the government doing the stealing. 

    Federal programs in violation of the United States Constitution represent the entirety of the “off-the-books national debt” and a significant portion of the “on-the-books debt.”  What do Social Security and Medicare cost?  What does an undeclared war cost?  (Maybe ### ?)  What about our military presence in countries around the world?  And are we acknowledging the liability to care for those who return maimed in mind or body or both?  What does an undeclared “war on drugs” cost?  Conversely, what is the economic cost of not guarding our borders? the military/security cost?  What did the nationalization of Fannie and Freddie add to the debt?  It is becoming difficult to keep track of the bailouts and their expected costs—wouldn't want to “double dip” a few hundred billion, or ignore anything either—and is it realistic to expect a government program to come in “on cost”?

    It is the duty of Congress “to coin money, regulate the value thereof, and of foreign coin, and .... To provide for the punishment of counterfeiting the securities and current coin of the United States.”  “No state shall ... make anything but gold and silver coin a tender in payment of debts....”  There is no provision for the establishment of a central bank (the Federal Reserve), none for the bank's creation of  “money” based on “faith,” and none to allow for the “fractional reserve banking” in which the same “faith-based money” is loaned to five or ten customers simultaneously.  The inflation of the currency in return for federal debt debases our money, steals buying power from everyone holding US dollars, constitutes a hidden and unlegislated tax, and causes economic instability.  Under Section 19 of the Mint Act of 1792, debasement of the money of the United States was (is?) punishable by death.  It is precisely the Fed's ability to create money from nothing and the irresponsibility of Congress and the Executive which has saddled our nation with a many‑Trillion Dollar debt.

    How can we possibly rationalize the taking of public office with an oath to “preserve, protect and defend the Constitution of the United States” or to “support and defend the Constitution of the United States against all enemies, foreign and domestic” with repeated campaign promises to violate that same Constitution?  with an inaugural address promising more of the same?  Can one come morally and lawfully to public office by perjuring himself?

in XTO,
Fr. Brusca
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