NESARA - A Bad Joke
By Joel Skousen
World Affairs Brief

A lot of conservatives have been intrigued by the promises of fiscal reform touted by NESARA, the National Economic Stabilization and Recovery Act. See for an overview of this proposed legislation. In essence, the website promotes the notion that our fiscal problems can be solved by taking control of the money supply away from the private Federal Reserve and giving it back to Congress where it belongs. Constitutional conservatives are especially vulnerable to this trap, thinking that the power given to Congress to ãregulate the value of moneyä is equivalent to regulating the supply of money and credit. In fact, the Constitution grants no such powers. By ãregulate the value of thereof (money),ä the founders were only referring to the prerogative of Congress to fix the value relationship between gold and silver coinage. They wanted no fiat money powers in the US Constitution, being all too aware of the financial disaster caused by the issuance of worthless revolutionary script (Continentals).
NESARA thinkers understand that Congress can be tempted to print too much money, so they propose the creation of a special index that is linked to a law mandating that the money supply be kept within a certain growth range. Good theory, but impractical without an understanding of the current state of addiction of all facets of our economy to false injections of money and credit. Congress simply would never have the guts to face the uproar that would follow a serious restriction of the money supply. 

It is a step in the right direction to eliminate the Federal Reserve, but the promoters of NESARA are woefully naive about what effects the new law would have. They also have a seriously misplaced trust in the political will of elected representatives to take the heat in a sudden shift to a policy of fiscal restraint. Real restraint would be very painful to our bubble economy. It is my estimate that over a third of the current economy is driven by money and credit creation that would not exist in a true free market. NESARA claims to eliminate inflation, but it does no such thing. True, inflation would be restrained by law, but as long as a government has the power to create any money at all that is not backed 100% by an exchangeable commodity, the resulting creation of fiat currency is always inflationary and robs existing holders of currency of some of their moneyâs value÷especially those who receive some of the new money long after prices have adjusted upward.   Even in a deflationary depression, fiat money takes away a portion of those downward prices, so that people are robbed of a portion of the benefits of deflation (a process totally invisible but real).

There is an ongoing internet hoax circulating around the Internet concerning NESARA÷and Iâm not referring to the excessively optimistic claims of NESARA (that it would create immediate world peace, world freedom, and world prosperity). The real hoax is an attempt to claim that NESARA has secretly been passed by Congress and that there is a conspiracy to keep the public from knowing about it. There are plenty of real conspiracies about without muddying the waters with disinformation. The following two statements have been widely propagated by email:

"1) NESARA was passed secretly by U.S. Congress on March 9, 2000 and signed into law by President Bill Clinton on October 10, 2000.
2) NESARA was ordered by 1993 U.S. Supreme Court and World Court rulings."

Both of these statements are patently false and without any substance whatever.
They are certainly not supported by the material on the official NESARA website, which states that as of January 20, 2003, ãThe bill has not been enacted into law, has not been introduced into Congress, and has not yet been assigned a tracking number.ä In other words, it hasnât even got a sponsor, and is going nowhere until it does. Of course, even if this proposal finds its way onto the Congressional floor, the moderate changes proposed by NESARA have no chance of succeeding because Congress has promised way too much with way too little income to even deal with this change. Only fiat money and credit creation will keep this bloated ship afloat, and even that wonât last much longer. One thing is for sure. Once corrupted by benefits, the voting majority will never voluntarily relinquish the democratic power to steal otherâs hard-earned money. There is no democratic solution to the fiscal problems of our overindulgent and soft society.



This Site Served by TheHostPros