One significant downside of holding the position of Secretary of the Treasury in the United States is the obligation to personally sign the Federal Reserve’s legal tender notes. This signature, prominently displayed, highlights a fundamental issue: it indicates the Treasury Secretary’s endorsement of money that arguably violates the Constitution.
According to Article I, Section 8 of the U.S. Constitution, Congress—not the Federal Reserve—holds the authority to coin money and regulate its value. Article I, Section 10 further clarifies that only gold and silver can be coined as money, ruling out paper legal tender notes as valid currency.
From our perspective, paper dollars can be deemed unconstitutional for two primary reasons: they are issued by the Federal Reserve and classified as bills of credit without any backing of gold or silver.
What’s going on here? Isn’t the U.S. Constitution supposed to be the ultimate law of the land?
Let’s be realistic. Many are aware that the U.S. Constitution has become little more than a historical relic. Does this situation concern you? Continue reading
Recent events have shed light on the direction of the U.S. economy and its complex network of global credits and debts. On Monday, Mark Yusko, Chief Investment Officer of Morgan Creek Capital Management, shared his insights on CNBC:
“We’re moving toward a scenario reminiscent of 1928-29 when Hoover was in office, and now Trump is president. Both faced Congresses dominated by their party, filled with promises that ultimately fell short, leading to a moment when reality sets in.”
“By autumn, we’ll have much clearer indications of declining growth,” he observed. “Growth has indeed been waning.”
As many recall, the fall of 1929 marked the beginning of a significant downturn in the U.S. stock market, initiating a multi-year depression. Yusko’s analysis suggests we are headed toward a similarly precarious situation, one that could severely impact your investment portfolio. Continue reading
A significant portion of today’s economic issues stems from an overconfidence in the so-called wealth effect, which posited that rising asset prices would spur economic demand.
The theory suggested that as people saw their stock portfolios grow, they would feel financially secure enough to make lavish purchases—be it large televisions or high-end vehicles on credit—thereby boosting gross domestic product (GDP), elevating wages, and lowering unemployment. The expectation was a self-reinforcing economic boom.
However, this assumption has proven to be a substantial miscalculation. While asset prices indeed climbed, leading to a surge in consumer goods purchases and a reported drop in unemployment, the actual growth of real GDP has been remarkably modest, never surpassing 3 percent in any given year. The anticipated economic revival turned out to be far less impactful than projected. Continue reading
On Wednesday, the International Monetary Fund released a concerning forecast for the U.S. economy, indicating that the current economic model is failing to adequately foster inclusive income growth. This assessment was part of their annual review.
Coincidentally, on the same day, billionaire investor Warren Buffett conveyed a similar perspective during an interview on PBS Newshour:
“The real issue, in my opinion, is that prosperity has dramatically favored the extremely wealthy.”
Buffett illustrated this disparity by noting that in 1982, when Forbes first published its list of the 400 wealthiest individuals, their collective net worth was $93 billion. Today, that figure has skyrocketed to $2.4 trillion—a twenty-five-fold increase. This situation has severely concentrated wealth in the hands of a few, while the middle class continues to diminish, wages stagnate, and well-paying, family-supporting jobs vanish. Continue reading
The articles present a critical perspective on current economic policies and realities in the United States. The foundational perspective emphasizes how foundational economic principles enshrined in the Constitution have been overlooked, suggesting a deep disconnect between historical mandates and contemporary practices.
Economic trends and insights offered by prominent figures, such as Mark Yusko and Warren Buffett, illustrate widespread concerns about growing wealth inequality and the potential for economic downturns. Overall, these articles serve to inform readers about the complexities and challenges facing the U.S. economy today, urging awareness and action in light of these pressing issues.
