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'66 Greenspan article supports gold standard By Jon Dougherty


A 1966 newsletter article written by Alan Greenspan supporting a gold-based U.S. economy is reflective of the Federal Reserve chairman's beliefs even today, WorldNetDaily has learned, even though his Fed policies are diametrically opposed to those that would support a gold standard economy.

The article, entitled, "Gold and Economic Freedom," was written for the July 1966 issue of The Objectivist newsletter, a publication that also featured authors Ayn Rand and Nathaniel Branden.

In it, Greenspan discusses "the specific role of gold in a free society," as well as the importance of a tangible monetary "standard."

"If men did not have some commodity of objective value which was generally acceptable as money, they would have to resort to primitive barter or be forced to live on self-sufficient farms and forego the inestimable advantages of specialization," he wrote.

A congressional source told WorldNetDaily that Greenspan still agrees with the premise of his article today, even though the U.S. went off the gold standard in 1972.

According to the source, Greenspan -- following a March House Banking Committee meeting -- told one lawmaker that if given a chance to add any "disclaimers" to the 34-year-old article, Greenspan said he still "would not change a single word."

He could not be reached for comment.

In his article, Greenspan wrote that "a logical extension of the creation of a medium of exchange [monetary system] is the development of a banking system and credit instruments (bank notes and deposits) which act as a substitute for, but are convertible into, gold."

"... Under the gold standard, a free banking system stands as the protector of an economy's stability and balanced growth," he said. ... And, according to his article, Greenspan said that gold -- in the past -- was responsible for stopping "the unbalanced expansions of business activity," salient points which are relevant in today's sagging, over-speculative economy and markets.

"Periodically, as a result of overly rapid credit expansion, banks became loaned up to the limit of their gold reserves, interest rates rose sharply, new credit was cut off and the economy went into a sharp, but short-lived, recession," he wrote. "Compared with the depressions of 1920 and 1932, the pre-World War I business declines were mild indeed."

Greenspan explained that at the time of the creation of the Federal Reserve in 1913, "the process of [monetary policy] cure was misdiagnosed as the disease. ."

"If shortage of bank reserves was causing a business decline, argued economic interventionists, why not find a way of supplying increased reserves to the banks so they never need be short," he wrote. "If banks can continue to loan money indefinitely, it was claimed, there need never be any slumps in business."

The result of such thinking, he said, was the creation of the Fed.

"Credit extended by these banks is in practice (though not legally) backed by the taxing power of the federal government," he wrote. Technically, the U.S. "remained on the gold standard; individuals were still free to own gold, and gold continued to be used as bank reserves. But now, in addition to gold, credit extended by the Federal Reserve banks ("paper" reserves) could serve as legal tender to pay depositors."

Even then, Greenspan seemed to understand the kind of negative implications associated with the creation of credit based on no tangible asset.

"Under a gold standard, the amount of credit that an economy can support is determined by the economy's tangible assets, since every credit instrument is ultimately a claim on some tangible asset," he said. "But government bonds are not backed by tangible wealth, only by the government's promise to pay out of future tax revenues, and cannot easily be absorbed by the financial markets.

"A large volume of new government bonds can be sold to the public only at progressively higher interest rates," he said. "Thus, government deficit spending under a gold standard is severely limited."

Also, he said the "abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit." Even then, he said, "the fact is there are now more claims outstanding than real assets" to redeem those claims.

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation," he concluded. "There is no safe store of value" for the dollar.

"This is the shabby secret of the welfare statists' tirades against gold," he wrote. "Deficit [government] spending is simply a scheme for the 'hidden' confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights."

A congressional source told WND, "There is no doubt in my mind that the current monetary system is not only impractical in an economic sense, as well as being unconstitutional, it is immoral and dishonest from a biblical viewpoint."

Bring Back Honest Money by Rep. Ron Paul, MD

Ron Paul in the US House of Representatives, July 25, 2003

Mr. Speaker, I rise to introduce the Honest Money Act. The Honest Money Act repeals legal tender laws, a.k.a. forced tender laws, that compel American citizens to accept fiat (arbitrary) irredeemable paper-ticket or electronic money as their unit of account.

Absent legal tender laws, individuals acting through the markets, rather than government dictates, determine what is to be used as money. Historically, the free-market choice for money has been some combination of gold and silver, whenever they were available. As Dr. Edwin Vieira, the nation's top expert on constitutional money, states: "A free market functions most efficiently and most fairly when the market determines the quality and the quantity of money that's being used."

While fiat money is widely accepted thanks to legal tender laws, it does not maintain its purchasing power. This works to the disadvantage of ordinary people who lose the purchasing power of their savings, pensions, annuities, and other promises of future payment. Most importantly, because of the subsidies our present monetary system provides to banks, which, as Federal Reserve Chairman Alan Greenspan has stated, "induces" the financial sector to increase leverage, the Federal Reserve can create additional money, in Mr. Greenspan's words, "without limit." For this reason, absent legal tender laws, many citizens would refuse to accept fiat irredeemable paper-ticket or electronic money.

Legal tender laws disadvantage ordinary citizens by forcing them to use money that is vulnerable to vast depreciation. As Stephen T. Byington wrote in the September 1895 issue of the American Federationist: "No legal tender law is ever needed to make men take good money; its only use is to make them take bad money. Kick it out!" Similarly, the American Federation of Labor asked: "If money is good and would be preferred by the people, then why are legal tender laws necessary? And, if money is not good and would not be preferred by the people, then why in a democracy should they be forced to use it?"

The American Federation of Labor understood how the erosion of the value of money cheated working people. Further, honest money, i.e., specie, was one of the three issues that encouraged ordinary people to organize into unions when the union movement began in the U.S. circa 1830.

While harming ordinary citizens, legal tender laws help expand the scope of government beyond that authorized under the Constitution. However, the primary beneficiaries of legal tender laws are financial institutions, especially banks, which have been improperly granted the special privilege of creating fiat irredeemable electronic money out of thin air through a process commonly called fractional reserve lending. According to the Federal Reserve, since 1950 these private companies (banks) have created almost $8 trillion out of nothing. This has been enormously advantageous to them.

The advantages given banks and other financial institutions by our fiat monetary system, which is built on a foundation of legal tender laws, allow them to realize revenues that would not be available to these institutions in a free market. This represents LEGALIZED PLUNDER of ordinary people. Legal tender laws thus enable the redistribution of wealth from those who produce it, mostly ordinary working people, to those who create and move around our irredeemable paper-ticket electronic money which is, in essence, just scrip.

The drafters of the Constitution were well aware of how a government armed with legal tender powers could ravage the people's liberty and prosperity. That is why the Constitution does not grant legal tender power to the federal government, and the states are empowered to make legal tender only out of gold and silver (see Article 1, Section 10). Instead, Congress was given the power to regulate money against a standard, i.e., the dollar. When Alexander Hamilton wrote the Coinage Act of 1792, he simply made into law the market-definition of a dollar as equaling the silver content of the Spanish milled dollar (371.25 grains of silver), which is the dollar referred to in the Constitution. This historical definition of the dollar has never been changed, and cannot be changed any more than the term "inch," as a measure of length, can be changed. It is a gross misrepresentation to equate our irredeemable paper-ticket or electronic money to "dollars."

However, during the 20th century, the legal tender power enabled politicians to fool the public into believing the dollar no longer meant a weight of gold or silver. Instead, the government told the people that the dollar now meant a piece of government-issued paper backed up by nothing except the promises of the government to maintain a stable value of currency. Of course, history shows that the word of the government (to protect the value of the dollar) is literally not worth the paper it is printed on.

Tragically, the Supreme Court has failed to protect the American people from unconstitutional legal tender laws. Salmon Chase, who served as Secretary of the Treasury in President Lincoln's administration, when he was Chief Justice of the Supreme Court, dissenting in Knox vs. Lee, summed up the argument against legal tender laws in twelve words: "The legal tender quality [of money] is only valuable for the purposes of dishonesty." [emphasis added.]

Another prescient Justice was Stephen Field, the only Justice to dissent in every legal tender case to come before the Court. Justice Field accurately described the dangers to our constitutional republic posed by legal tender laws: "The arguments in favor of the constitutionality of legal tender paper currency tend directly to break down the barriers which separate a government of limited powers from a government resting in the unrestrained will of Congress. Those limitations must be preserved, or our government will inevitably drift from the system established by our Fathers into a vast, centralized, and consolidated government." A government with unrestrained powers is properly characterized as tyrannical.

Repeal of legal tender laws will help restore constitutional government and protect the people's right to a medium of exchange chosen by the market, thereby protecting their current purchasing power as well as their pensions, savings, and other promises of future payment. Because honest money serves the needs of ordinary people, instead of fiat irredeemable paper-ticket electronic money that improperly transfers the wealth of society to a small specially privileged financial elite along with other special interests, I urge my colleagues to cosponsor the Honest Money Act.

Dr. Ron Paul is a Republican member of Congress from Texas.

Ron Paul Archives

NESARA  UPDATE: August 4, 2003
By Patrick H. Bellringer

For those who are new to the scene, NESARA was born many years ago through the efforts of many Lightworkers in cooperation with the Ascended Masters, and especially Sananda and St. Germain.  A law to correct the evils of the U. S. Government, and ultimately that of all governments, was mandated by the U. S. Supreme Court.  The U.S. Congress passed legislation on March 9, 2000 and created the NESARA law known as The National Economic Security and Reformation Act.  This Act was signed into law on October 10, 2000 by U. S. President Bill Clinton.  From that point on to this very day a battle has been waged by those in power to defeat the attempts of the Lightworkers to implement this law.  To do so would mean the demise of those who hold the seat of power and place that power again into the hands of the people.

Much has been accomplished in the past three years to bring NESARA to fruition.  It has been a sorting  process of removing those of the darkside who stand against NESARA.  NESARA was moved into position for announcement as early as 9-11-01, but was stopped by the CIA/FBI under orders of U. S. President G. W. Bush.  The process of sorting out those in the pyramid of power, who stand against NESARA, has moved from the bottom levels up to the very top level of power.  The mayors of cities and governors of states now stand with the true White Knights, who compose Faction Three, to implement NESARA now.  The opposition to NESARA in the U. S. Congress, the U. S. Judicial System, the U. S. Supreme Court, the U. S. Banking System, and the U. S. Federal Reserve System has been neutralized over these past months.  The various banking systems and countries of the world have come to accept the benefits of NESARA, all except the European Union and the World Court (International Court of Justice, IC J).

Because the NESARA Decision Team over these past many months has consistently voted “No” to announcing NESARA, housecleaning has occurred several times.  Over the week-end of July 26-27, 2003 six more members of the 11 member Decision Team were replaced with loyal White Knights.  Another vote to move forward with NESARA was taken on Thursday evening, July 31.  For the first time ever the loyal White Knights prevailed with a “Yes” vote.  Thus, two days later on August 2, 2003 all was in order to make the official public announcement that would finally implement NESARA.  Ninety minutes before this was to happen an order from the World Court forced the NESARA Decision Team to “stand down”.  Why?  The European Union had entered a petition in World Court to delay NESARA.  After three years preparation time the European Union claimed they were not ready to implement NESARA.  The order of the World Court was based on objections from the governments of the 17 countries that comprise the European Union (EU).

For many months the World Court has pretended to support NESARA because the Illuminati has had enough double agents on the NESARA Decision Team to cause a “No” vote.  This last round of housecleaning of the Decision Team replaced six double agents with loyal White Knights, thus the “Yes” vote.  For the first time the World Court now had to allow NESARA to go forward or show their true colors by stopping the NESARA announcement themselves.  This is exactly what they did.  The World Court now plans to hear the EU Petition on Thursday, August 7, 2003 and to vote on it on Friday, August 8, 2003.  The EU Petition claims that their precious metals records are incorrect and time is needed for an audit.  The White Knights have given orders to the World Court Judges that any who vote to delay NESARA by accepting the EU Petition will be removed from their judgeship.  The legal process of removing a World Court Judge and replacing that person with another person from the same country takes about three weeks.

Let us assume that on Friday, August 8 the World Court votes to delay NESARA.  Let us assume that the removal and replacement of those judges who voted “No” takes another three weeks.  Finally, a new court is assembled, another vote on NESARA is taken and again the vote is “No”.  What have we?  This is freewill nonsense totally under the control of the darkside.  This is the NESARA Game being played by the darkside to fool the people.  This process of delay after delay is totally unacceptable by those of us who are Lightworkers.  We refuse to wait until the end of summer or Christmas or who knows when.  This is a third dimensional game that can and must be stopped now!

Let me now show you another scenario.  There is a Cosmic Law which impacts upon our Matter Universe.  It states that whatever is caused to happen in the physical realm must also happen in the etheric realm as well, and that whatever is caused to happen in the etheric realm must also happen in the physical realm as well.  Simply stated:  As above, so below.  As below, so above.

On July 26, 2003 Lightworkers created an order that NESARA would be totally implemented in all countries of our world and that all individuals on our planet Earth would have the benefits of NESARA during the time window of July 26, 2003 and December 15, 2003.  In three days, from July 26 through July 28, 2003 the energy in the etheric realms was accumulated to form the energy grid needed to allow this to happen in the physical realm.  That is how powerful our thoughts and energies are at this time on planet Earth Shan.  The Lightworkers are creating such miracles at this time that the Angels of the Lighted Realms stand in awe of such happenings.  All that remains to be done is to announce NESARA in the physical.  “As above, so below”.  The attempt to do so was made on August 2, 2003.

Now, I want to tell you a very big secret.  All who have returned at this time and walk this planet in the physical are returned Masters—all of us!  We have returned to help with Earth Shan’s transition into fifth dimension.  Most of us have not yet awakened.  Upon entering into 3D we all agreed that the Galactic Solar Tribunal (GST) would be the highest level of authority on our planet Earth Shan and that, as Masters/Lightworkers returned, we all had a seat and a vote on that Tribunal. Do you now know the rest of the secret?

On August 2, 2002 when the World Court ordered the NESARA Decision Team to “stand down” from making the official announcement of NESARA, Ascended Master Admiral Sananda, who is in charge of Earth Shan’s transition into fifth dimension, and Ascended Master St. Germain, who is in charge of NESARA, by proxy, requested the Galactic Solar Tribunal to overrule the orders of the World Court which stopped the NESARA announcement.  They presented evidence which proved that the EU claims of incorrect precious metals records and the need for lengthy audits were only fabrications to continue the delay of the NESARA announcement.  As per Archangel Michael’s communication of August 3, 2003, quoting:

“Presiding Judge Lady Master Nada issued a ruling overriding the World Courts’ order to delay the NESARA announcement.  Lady Master Nada also handed down a ruling that the Judges of the World Court had deliberately and purposely attempted to sabotage and delay NESARA’s announcement and thus violating the freewill choice of the citizens of planet Earth….”  This legal ruling by the Solar Tribunal means that NESARA may be announced at any time.”

As a Lightworker, you are a member of the Galactic Solar Tribunal.  You were there.  You voted.  You heard the decision of the Tribunal and the Judge’s order.  Do you not remember?  Oh well…  Now, the last step is to make the announcement in this physical 3D world by those loyal White Knights who are now in the position to do so. 

For those following the Dove Reports please understand that they focus mainly on third dimension happenings and possibilities.  Information gathered from Faction Two White Knights is presented to reveal the games of the darkside.  The same games are played over and over again because they are the games that are proven to be successful.  These games will continue to be played on us by the darkside until we learn our lessons.  It is now high time we learn our lessons and change the rules of the game and play it our way.

What do I mean by “play it our way?”  We are not tied to a 3D world and its 3D ways of thinking and acting.  We are spiritual beings having a physical experience.  We walk in two separate worlds and it is now our task to unite these two separate worlds into one.  Using the creative power that lies within us, through our God Spirit within and our Mighty I AM Presence, we can change any aspect of our physical 3D world.  We have the power to change any situation if we so desire.

As Lightworkers we have a physical body with a brain, but we also have an etheric Light Body with a mind that is connected to the Mind of God and to All that Is.  We have an etheric heart that is connected to the Heart of God.  We have the very power of the Creation at our disposal.

At this very moment in Earth Shan time we are faced with the greatest choice ever on this planet.  Our decision will affect every human being and everything that makes up our planet.  The choice is to announce or not to announce NESARA.  Are we ready to use our great power and place our physical world under our etheric command?  That is what NESARA is all about.  NESARA is Creator God’s Plan for the uniting of two worlds, the bringing of the violence and pain and death of the physical world under the submission of the compassion and Love of the etheric world, the creating of a world of peace, freedom, justice, abundance and joy.  Are we ready to do that?

Today, the order has gone out to Mr. A. to immediately contact the King of Swords (KOS), who is in charge of all White Knights world-wide, and give him this order from the Lightworkers of Earth Shan, “to move the NESARA Decision Team into position for them to order the announcement of NESARA, now”.  If the NESARA Decision Team refuses to act, then KOS and the Faction Three White Knights are under orders from the Lightworkers of Earth Shan,  “to act immediately to make the official public announcement of NESARA to the world, now”.  The White Knights do not need to await further orders from the World Court.  The way has been cleared by the Galactic Solar Tribunal for the true White Knights to act, now.

Let it be known that all you who respond and carry out these orders, that the Forces of Light and the Ascended Masters are providing you total and permanent protection from the darkside.  You will be given wisdom, guidance, energy and all else that you need to carry out your duties.  You need only ask and you shall have it.  Any errors that you may make will be corrected.  Believe it, and it is so!  St. Germain has assured us that he emphatically supports these orders, that he carries the torch before you, and that he will even push you up to the microphone, if necessary.

When NESARA is announced all governments of all countries of our world are placed under Galactic Solar Tribunal authority.  Therefore, the White Knights who make the NESARA announcement need not fear any threats from the World Court or any other legal actions against them.  With the implementation of NESARA all such actions become null and void.

There are two other immediate possibilities to bring NESARA to announcement now.   The EU can withdraw their frivolous petition to the World Court, and in so doing allow the World Court no room to continue their delay of the NESARA announcement.  The pressure is on for this to happen before the Thursday hearing of the EU Petition in World Court.  We focus our energies on this and so order that this EU Petition be withdrawn immediately from the World Court.  Secondly, if the EU Petition goes forward in World Court as planned, the World Court can vote to reject the EU Petition because it has no merit.  Again, we so order that the World Court in its vote on Friday, August 8, 2003 reject the EU Petition that is now before the Court.   

Lightworkers, let us stand united  as we focus our creative energies and call in the Light of Truth, of Peace, of Hope, of Love, and send these energies to those who now carry the NESARA Torch to the finish line.  Lightworkers of the world, we can cause incredible things to happen.  We can turn NESARA around and bring it to fruition.  We have the power to do it now!  Do you believe in miracles?  I do!  Nothing can stand in the way of the announcement of NESARA, now, nothing!  Do it,  now!  Believe it, and it is so!

Who shall be the first one to say, “People of the world and of this great country, this is a public announcement.  I announce to you--NESARA!”  Who shall be the first to carry the NESARA flag through the gates into the Kingdom of Heaven on Planet Earth?  We, the Lightworkers of the world, call upon the loyal and true White Knights world-wide to do everything in their power to support NESARA, now!   Together we can, and we shall usher in the Age of Peace--now! 

-- The Bellringer Writings and NESARA information is at --

-- The Phoenix Journal/Contact Newspaper Archive site is at --