The New World Orderís Money Scam: A Huge Poker Game
Tea Party Economist
by Gary North: 'Paleo'
Nutrition Blogger Will Go to Jail if He Does Not Recant
It is not
easy for the average person to make much sense out of the current
international monetary system. It works something like a poker game.
Everyone at the table has some chips. The green ones are supposed
to be exchangeable at a ratio of 35 to one with the yellow chips.
About half way into the game, the other players notice that the
host has a machine at his feet that keeps popping out green chips
every few minutes. Apparently the yellow chips cant be cranked
out this way, but the green ones can. So the host keeps on betting
on every hand deuces, fives, anything and he keeps
offering green chips to pay for staying in the game.
Now why would
anyone in his right mind play a game like this? Well, for one thing,
at present it is the only game in town. Second, the hosts
name is Don Corleone, and it is not easy to leave while youre
ahead. He makes you an offer you just cant refuse.
he just says, I hear you need protection. In contemporary
international affairs, the concept is generally referred to as support
for NATO, but basically it is protection. So several of the
players stay in the game.
really comes when somebody tries to get the host to exchange 35
green chips for one of the yellow chips. I keep the yellow
chips right here, he says. All right, I am a reasonable
man; we can say that the yellow chip is now worth 42 green ones.
Only do not try to exchange your green chips. The yellow chips stay
circumstances, there is only one way to stay in the game competitively.
All the players have to get one of those green chip machines. So
they do. And no one, but no one, gives out any yellow chips for
And that is
the international monetary system. Anyone got a pair of jacks to
You have just
read my speech at the Committee for Monetary Research and Education.
I gave it on March 9, 1973 39 years ago. It was brief. I
was a mere commentator.
was the aftermath of President Nixons unilateral abolition
of the gold exchange standard on August 15, 1971. He also floated
the dollar, meaning he annulled fixed exchange rates. That ended
the Bretton Woods agreement of 1945, which went into into effect
in 1947. In the same speech he froze wages and prices for 90 days.
The controls lasted until 1974. They led to massive shortages, especially
gasoline. Before the year was over, OPEC quadrupled oil prices.
promised to restore fixed exchange rates in December of 1972. It
violated that promise. Rates floated for good after January 1973.
My speech was
in response to a presentation by Prof. Robert Triffin of Yale University.
Triffin was the designer of the Triffin Plan, much heralded at the
time, but not implemented. He had been promoting it for 15 years.
It involved abandoning the gold standard and substituting digital
money issued by the International Monetary Fund. This went back
1943 proposal by John Maynard Keynes, an idea that was rejected
by the Bretton Woods agreement. In other words, it was paper
gold issued by an international bureaucracy. I regarded the
idea as clap-trap. But I figured the best way to deal with him was
with some humor.
speeches by big-shot economists. There was Sir Roy Harrod, who never
earned a Ph.D. in economics, but who at least had a B.A. in history.
He was Keyness close buddy and biographer. He had been a very
influential economist in Great Britain, because he edited The
Economic Journal from 1945-1961, so he could accept or reject
articles. He could make or break academic careers. He had clout.
There was Fritz
Machlup of Princeton, an Austrian School economist who defected
from the position in the early 1940s, thereby enabling him to get
a job at Princeton.
was Henry Reuss, the chairman of the House Banking Committee, who
never had a clue about monetary theory.
like that in the room, I figured a little playful ridicule was appropriate.
As St. Augustine wrote in 430 A.D., ridicule is appropriate when
you are dealing with something ridiculous.
Also at the
conference was Henry Hazlitt, who never went to college, and who
knew more about economics than anyone in the room.
were published as Toward a New World Monetary System, edited
by C. G. Wiegand (Engineering and Mining Journal/McGraw-Hill,
1973). My essay appears on page 70.
is still the poker game I described.
North [send him mail]
is the author of Mises
on Money. Visit http://www.garynorth.com.
He is also the author of a free 20-volume series, An
Economic Commentary on the Bible.
2012 Gary North
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