- A lot of conservatives have been intrigued by the promises
of fiscal reform touted by NESARA, the National Economic Stabilization
and Recovery Act. See www.nesara.com 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
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.