The economy is a justifiable concern for all Americans. As a candidate for congress I want to bring to this issue not empty campaign promises of change, but a better understanding of  the problems like insolvency, inflation, balance of payments, monetary reform, etc. I want to zero in on the physical economy and try to make a brief presentation of how one works and the empirical evidence that eliminates the words “in theory”.

Constitutionality:

Article 1 Section 8 subsection 5: To coin money, regulate the value thereof, and of foreign coin, --------.

The Constitution does not give Congress the authority to delegate that responsibility to anyone or anything. But, the Federal Reserve Act of 1913 established the Federal Reserve System as the private central banking authority of the United States.

“The Secrets of the Federal Reserve” by Eustace Mullins is a good place to understand the general political chicanery involved in passing this unconstitutional aberration. But, that we still have the Federal Reserve System (Fed) after nearly 100 years is a testimony to the cunning deception that those moneyed interest have worked on the American public.

The Physical Economy:

Drawing from the work of economic analyst Carl H. Wilken I want to demonstrate how, as he says: “Underpayment by society for the production of new wealth forces the economy as a whole to operate at a loss”. He discovered that when we underpay the production of raw materials the problem goes completely through the economy. (That’s why we are the largest debtor nation in the history of the world). This is no mystery. I quote from Charles Walters, in his book Unforgiven,  “For a span of almost a decade Carl H. Wilken, Charles B. Ray and Dr. John Lee Coultler gave more testimony to various committees of Congress than all all other non-government experts combined.” Adding brick and mortar to this cornerstone observation, Wilken and his associates predicted with 99% accuracy the Gross National Product SIX MONTHS in advance of official government reporting for 14 consecutive years working with the prices that farmers were paid for storable commodities on the farm. (Agricultural products comprise 70% of our nations raw material base.)

The physical economy starts with the production of raw materials. Raw materials production is then the foundation upon which we build the economic cycle. So our primary consideration ought to be on production; especially the production of raw material. Our secondary consideration ought to be consumption. You first milk the cow, then you drink the milk. You first grow grain then you can eat the stuff. You first mine the coal, then you burn it for heat.

Production comes before consumption; always has, always will! In a physical economy then; production creates the credits for consumption. This is called Says Law of the Markets. Said another way: when that raw materials producer  by his labor extracts wealth from the earth his monetary reward (his pay) must allow him to participate in the economy without borrowing against future production.

Here in lies the essence of our economic woes. Most of us do not have sufficient reward for our labor to live without borrowing from a financial institution. We go into debt. Starting with our raw materials and then driving through the entire economy we  monetize debt. Once the productive sector of our economy is duped or forced to borrow money to maintain consumption the economy carries the additional burden of interest ---- the cost of borrowed money.

The Tactic:

During the period of the American Revolutionary War The Bank of England was the private central bank  that owned the British Monarchy. We, the American Colonies, were viewed as a source of cheap raw materials and then as a market place for the British industrial machine. In A Century of War author John V. Denson writes on page 108 “Through limited wars and military actions, the British had acquired numerous colonies throughout the world. It was perceived that these possessions were necessary for industrial development, to secure these colonies’ natural resources and to provide markets for the manufactured products of the British economy.”

Of course, we won the Revolutionary War but we didn’t understand the money game.

Denson writes again on page 113 “The British were the first modern nation to make imperialism into an “art of government,” and they created their empire over several centuries by following three main aims: control of the sea, control of international banking, and control of the world’s natural resources.”

Since 1913 the monetary policies of the Federal Reserve System have done exactly what the Bank of England had tried to do to our colonies. They have taken control of our raw materials, they have control of the national and international banking and our military controls transportation world wide. Of course the American market place is the place where this “free trade” economic cycle ends for us but not without the creation of more debt. The vast majority of congressional district 13, the state of North Carolina, and the nation carries some kind of debt. Once again there are reasons that we are the largest debtor nation in the history of the world.

The Remedy:

The third act of our very first congress was to establish a tariff law. Our founding fathers knew that in order to regulate the value of our currency they had to protect our markets and our labor. We had just defeated the British or more appropriately the Bank of England on the premise (if I can be very general here) that we did not wish to be slaves in the drive to dominate world trade. We (that’s “We the People”) knew that to be free we had to keep the fruits of our labor.

There are at least four major steps that we must take to begin to recover our freedoms.

            The first is the repeal of the Federal Reserve act of 1913. We must have a sound monetary system based on law. Unfortunately many Americans still do not understand that the Federal Reserve System is a private central bank. We do not even know all of the owners of the Fed. The second step is to have a good tariff law. That means when foreign goods come across our borders they must carry our labor rate. This will help bring jobs (production) back to the U.S. Free trade is not fair trade, and when we accept cheap foreign goods we in effect lower our labor rate below our standard of living. The third step is to secure our borders and our ports of entry.  The fourth major step is to monetize our production by insisting that the production of our raw materials carries a sustainable labor rate. Then, as the late Carl H. Wilken documented to Congress, our free market economy can operate in balance.

Winning this primary is important to me. But, I would not lead you to believe that bringing back our freedoms and economic vigor will be an easy battle. I would hope that as time permits each of you would check out my claims that these solutions have already been presented to congress and even validated (if briefly)  with congressional action (the Steagall Amendment). I have already mentioned the book Unforgiven, another good book is The Nature of Wealth by Fred Lundren & Jerome Friemel. Probably the most practical reading recommendation would be a reprint of Carl H. Wilkens 81 page booklet entitled All New Wealth Comes From the Soil. That reprint is available from  The National Organization for Raw Materials (NORM),680 E.5 point Hwy., Charlotte, Michigan 48813.  www.normeconomics.org