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Gary North’s Bluff: the Lie he’s been sitting on for 50 years

by on February 29, 2012
North2

Gary North wants to make us believe salvation will come when we can pay our tribute to the Money Power in Gold instead of Fed Notes. Populists have forever maintained the Government should print its own money, so we can actually stop paying tribute. This is why the Volker Fund payed North and his buddies $500 dollars per month in the Sixties.

Having asked Gary North three times why we have to pay $150,000 interest over a $100,000 mortgage in 30 years, he comes up with a screed he wrote fifty years ago.

‘Gertrude Coogan’s Bluff’ is his attempt to discredit Gertrude Coogan, a forgotten hero of the Populist Movement. A typically boastfully arrogant Gary North hit piece. Even as a young lad North was an annoying bigmouth without much content.

According to Gary North, the problem is not that the money supply is monopolized by the Money Power, the problem is that the money is not fully backed by Gold. Here it is, on page 20:
“Counterfeiting is theft for one reason, and only one reason. Paper bills are issued that look exactly like bills that are backed by 100% of their face value in money metals, but these bills do not have such a backing. In other words, if all the individuals went to claim their money metals at the same time, some people could not collect.

This is the classic Austrian case against Fractional Reserve Banking.

Let’s bury it forever.

Consider this: what do you think the Money Power cares whether it gets $150,000 interest over a $100k mortgage in Gold or in Paper?
My hunch is they would like to see us sweat for Gold even more than for Paper. They have been worshiping the Golden Calf ever since the days of Moses, after all. Yes, this is a very old story. So it is perhaps not so surprising that our favorite Libertarian has such an outright Old Testamental world view.

Gary North is trying to make us believe that the choice at hand is to pay our Masters in Gold or in Paper.
But the real question is:

Would you prefer to pay $150,000 interest on your mortgage in Gold, or pay no interest at all?

For an Interest Slave, brainwashed to believe capital will always need to see a return on its investment, this can actually be a hard question to answer correctly. It can be hard to even accept this is the choice.

But it is.

Interest Slavery
The 80% poorest people pay more interest than they receive to the richest 10%. And within the richest 10% bracket, the ‘poorest’ 8% pay more interest than they receive to the richest 1%. And even within the richest 1% bracket, the ‘poorest’ 0,8% pay more interest than they receive to the richest 0,1%.

So all the interest eventually ends up with the Plutocracy at the very top of the food chain.

This wealth transfer is going on both on a national and international level.

At this point the poorest 80% pay an estimated 5 to 10 Trillion dollars per year to the richest 10%. And all this money eventually ends up with the ultra rich.

This is Usurious Usurpation.

Conclusion
One of the key reasons so much money was invested in making Austrian Economics important was to obscure this truth from us.

That’s why the Daily Bell’s Anthony Wile, who’s made a career in Banking, Gold Mining and Hedge Funds, goes around telling people Ellen Brown and the Greenbackers are a US Intel operation, without offering even a shadow of proof.

That’s why John Bircher Ed Griffin was commissioned to write his ‘Creature of Jekyll Island: to obscure that the REAL opposition, Mullins and Pound, were calling for interest free paper money in Mullins’s masterpiece ‘Secrets of the Federal Reserve’.

That’s why Gary North has to resort to the ‘nutty Greenbacker’ stuff. That’s why we have all the huffing and puffing.

To hide that he has built a well funded career on a transparent lie.

To hide that he is a shameless lackey of power.

Recommended Reading:
The Inflation vs. Deflation Dialectic
On Interest
Budget of an Interest Slave
How the Money Power created Libertarianism and Austrian Economics

Related
What Gary North is not telling you about Interest
In Defense of Ellen Brown
Responding to Gary North

23 Comments
  1. The Austrian austerity pimps have reached their high water mark. It’s time for humanity to receive abundance without loyal opposition Usury.

  2. Gary the Y2K is not going to change his spots. He made about $400,000 on y2k without batting an eye, or ever saying “Oh I may have been mistaken”

    “Counterfeiting is theft for one reason, and only one reason. Paper bills are issued that look exactly like bills that are backed by 100% of their face value in money metals, but these bills do not have such a backing. In other words, if all the individuals went to claim their money metals at the same time, some people could not collect.”

    The false premise of this proposition is that there has never been 100% backed currency; no reason to make one; if the banks had to back their currency they wouldn’t bother with banking. When such proposition came up in Congress through the decades, that only gold and silver coin to circulate and be receivable in payment to and from government, the bank representatives always highly opposed it. The Independent Treasury Act (which had such clause) was the first thing Lincoln and crew did away with.

    U.S. Senate,Thursday, June 3, 1841, H.A. Lincoln’s mentor, Henry Clay, speaking:–
    ” I tell the honorable Senator [Mr. Calhoun], at once, and with all frankness, what I go for, and what I believe my friends who act with me mean to go for — and that is a Bank of the United States. That is the object in view. But as the architect, before he erects a building, first clears away the rubbish which occupy and encumber the ground on which it is to stand, so the friends of a National Bank desire first to remove this Sub-Treasury scheme clean out of the way.”

    The ability to increase and decrease the volume of currency is where their real control over the economy lies. They are happy with 0% interest, as long as they are allowed to print notes.

    Neither Gary nor Griffin nor any other gold-ite has any objection to counterfeit bank paper as above described by them; they only object to Treasury paper.

    Historical note– no treasury note was ever “suspended”, whereas bank paper was regularly suspended.

    The “Money Creators” have been continually available for purchase from OMNI Publications in the past 50 years…… it is readers who disappeared, not the book

    http://yamaguchy.com/library/coogan/coogan_index.html

    http://www.omnicbc.com/

  3. Keith Gardner permalink

    great article and good research to find the william volker connection to gary north

  4. Tony B. permalink

    Anthony,

    Gertrude Coogan was one of the very first “money” people I read. Still have a couple of her books, one of which is a collection of her lectures titled “Lawful Money Explained, How To Win Back Your America,” first published in 1939. Too bad it wasn’t heeded by more Americans at the time.

    A more recent beginner’s book on money written by two challenged retired engineers who were shocked to discover the rank dysfunctionality of the Rothschild type usurous bank debt as money is titled “The Truth in Money Book,” by Theodore R. Thoren and Richard F. Warner. It was first published in 1980 and, if Mr. Thoren is yet living, can be obtained from P.O. Box 30, Chagrin Falls, Ohio 44022, USA.

    This book uses “kindergarten” explanations to cut through all the Austrian type propaganda and bring home to the individual just exactly how money works. Don’t know about the rest of the world but this is very necessary for most Americans who don’t even properly learn how to set up a personal budget in American public schools.

    Tony B.

    • Making an excellent case for keeping them kids OUT of school. Best thing we could do for them, as I know you will agree.

      Thank you very much Tony. Great to have you here on Real Currencies.

    • Tony, I greatly enjoyed “The Truth in Money Book” by Thoren and Warner. Thoren’s daughter Margaret wrote an excellent short primer called “Figuring out the Fed” where she compiles a list of questions which she answers.

      One extremely powerful point that she makes is that the Federal Reserve has never had any debt and so it is today as can be verified by looking at their balance sheet. How can this be that they create trillions of dollars without incurring a penny of debt?

      The answer is that they are solely using OUR credit in creating money! It is OUR national balance sheet that should never have any debt – such is the power of sovereignty!

      Larry

      http://www.sovereigndollar.com/

      • Powerful stuff!

  5. We are still living in the dark ages as beliefs and superstitions continue to trump the science of mathematics. Austrian, Kenysian, MMT, etc., are beliefs systems masquerading as sciences.

    Anyone with a high school education should be able to see that our interest-debt money system cannot be sustained, it must fail and in the process, transfer all wealth from the many to the very few.

    P + I > P
    where P=Principal and I=Interest

    As we can see in the above equation, there will ALWAYS be more debt (P+I) than money (P). This is the greatest pyramid scheme ever foisted on a people. The scheme can only continue as long as the amount of new debt (principal) exceeds the existing amount of debt owed (P+I).

    Of course, this creates a feedback loop that requires that the new growth constantly accelerates at a geometric (exponential) rate. Infinite growth cannot be sustained in a finite world and we are very close to the end.

    Great blog Anthony, thanks!

    Larry

    http://www.sovereigndollar.com/

    • and thank you Larry!

    • Cool! I saw you just wrote about Coogan!

      High time this remarkable lady is brought back to the public awareness!

      Were it not for poor old Gary, I’d ‘ve never heard of her……

    • That’s not your math, Larry. Nor does it truly explain the problem.

      • Hello Mike,

        I don’t claim ownership of the P + I > P equation but it does seem to go a long way towards explaining the mathematical problem with an interest-debt money system.

        A more complete mathematical explanation may be found at this link:

        http://bibocurrency.org/English/Formal%20Stability%20Analysis%20and%20experiment%20%28final%29%20rev%203.4.pdf

        The white paper is entitled “Formal Stability Analysis of Common Lending Practices and Consequences of Chronic Currency Devaluation.”

        Mike, it is a pleasure to run into you. I have learned a ton from you and greatly appreciate it!

        Larry

      • stevieb permalink

        Hey Mike! Great comment(not)..now do you think you can finish it? Way to leave us hanging there, buddy! Think-tank much, Mike?

  6. For a while, these libertarians had a good argument for me, though I couldn’t quite accept it as the gospel. Now, you have put things in quite a different perspective.

    Thanks for the refreshing insight.

    Your readers may be interested in this information as well.

    http://www.demonbuster.com/

    • Thanks Halyn. Great to hear the effort is appreciated and of help.

  7. Reblogged this on Recovering Austrians.

    • Good work, Anthony. Gary needs what’s coming for him. He’s been dodging questions since he entered this arena.

      • Thanks Mike, coming from you I appreciate it. I’ve been waiting for two years (which is short) for him to come clean and I hope I made the point clear.

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