Blood Standard: A Lesson on our Currency’s Real Value

The idea of life in a pure free market freaks a lot of people out; especially those on the left. They believe that only the rich and selfish will win, and the result of an Atlas Shrugged society will be a corporate plutocracy. Drastic cuts to public service and assistance programs also scares many people, especially the poor. Some people happen to be on food stamps or disability or some other form of public assistance. Its just the reality of the world we live in. The idea of someone’s Federal assistance being taken away from them overnight turns many demographics that might otherwise support us. Getting rid of public assistance cannot happen overnight; it must be phased out.

It is a widely floated stereotype that libertarian economics are brutally heartless in terms of the poor. The trouble is that many libertarians cannot adequately respond to these charges. The typical libertarian counterargument is “but private charities and churches will take care of the poor in our society”. The leftist intellectuals, becoming more and more bitterly atheistic by the day, chomp at the bit to rip this claim to shreds.

The topic of poverty and government assistance is an extremely important topic,and if the liberty movement is going anywhere, these sort of questions will need to be answered with real world solutions, in Populist Vulgate for the working poor. Most people do not have time to read three hundred pages of an Austrian economics textbook. People in desperate situations do not want to listen to a lecture on “trickle-down economics” or hear about the “churches and charities” that will come out of the woodwork to help.

A growing parallel to the liberty movement is the anti-establishment progressive movement. True progressives have much common ground with us, including ending the wars overseas, ending puppet dictatorships, freedom of choice, ending the war on drugs, and ending corporate subsidies and bailouts. But unfortunately, it seems that many libertarians are quicker to do business with the Establishment Right than the Anti-Establishment Left. This may be a serious mistake. Although the arguments for “working within the two-party system” make sense, this modus operandi is actually completely backwards.

Ron Paul refused to back down when talking about the Federal Reserve and the International War Machine. He said it multiple times, and made it clear that it was his top priority. The Federal Reserve and the War Machine. No one should stay silent on these two issues, whether they come from the Left or the Right. Solving these two problems are as important as the first two amendments to the Bill of Rights. If they don’t matter, then nothing else matters.

Likewise, those who will not face the realities of the Federal Reserve and the War Machine head on cannot make progress on any other issues. Drug decriminalization, marriage equality, free market economics, state’s rights, and civil liberties, cannot coexist with the Fed and the War Machine. The Federal Reserve is only a few months away from it’s 100th birthday, when it was created to fund practically every war of the 20th century. Had those wars not been waged and won, then every paper dollar coming off the printing presses of the Federal Reserve would be worth nothing.

To show that our paper currency is worth something, the US has to back it up with blood and iron. The US War Machine has had to stomp its boot on the neck of someone, somewhere in the world, twenty-four hours a day, seven days a week, to remind them who’s boss. It was that Stars and Stripes being planted on the moon that reminded the world what we were capable of, and therefore whose currency was most valuable. The minute that stops, Americans will be pushing a grocery cart full of dollar bills to McDonald’s to buy one McChicken sandwich.

This is not something that liberals or even most conservatives realize. Every liberal protestor that holds up a sign that read something along the line of: “Hey Conservatives, stop cutting my public social/assistance programs to fund your wars!” or sports a bumper sticker that says, “Let me know when the Air Force has to have a bake sale to buy a new jet!” does not grasp how codependent the two really are.

Absolutely nothing but “right-wing statism” (global military machine) makes their “left-wing statism” (food stamps, disability, social security) possible. That is the only reason that people don’t need a giant basket of food stamps to buy one TV dinner. We can call it the Blood Standard.

Since the birth of the Fed, Uncle Sam’s hands have been dripping red with blood, just like every other powerful empire in history. Red, white and blue. The Redcoats. The Red Army. Red from the blood of the soldiers who died and the enemies they killed, to keep the world afraid of their might and power, so their currencies would have value. But this cannot sustainably last forever. Just look at the Romans or the British or the Nazis or the Soviets.

Believe it or not, there are and have been warriors more powerful than ours. Like the Japanese Kamikazes of yore, the Al-Qaeda terrorists embrace their own death head on. When death does not even bother a warrior, what reason does he have to surrender and cooperate? Communist countries put up iron and bamboo curtains around their people so they can be brainwashed to live for nothing but serving and worshiping the state.

Now China is rising fast as the new global economic and military superpower. By pure population, China has the surplus bodies to throw in any given military campaign. This is a country, which due to sex-selective infanticide, will have 30 million more young single men than women by 2020. Those young men have nothing to live for but serving China. China has millions of soldiers that do not demand benefits or civil rights. They have millions of factory workers treated like cattle making new War Machines. They have huge reserves of the world’s strongest mineral, graphene, and they are making robots and spaceships. And these are the people who hold most of the US national debt.

Someday soon, the Chinese will surpass the US in world might and power. We are reaching a 100 year mark. Just like Britain defeated Napoleon at Waterloo around 1815, and the U.S. bailed out the British Empire around 1915, so too around 2015, the Global Emperor’s crown will move from an American head to a Chinese head. And if we do not prepare for this by concentrating our soldiers at home, aggressively paying back our debt, and slowly but eventually returning to a gold, silver, natural resource standard, we’re going to be severely damaged.

Dr. Martin Luther King had several important opinions in regards to the War Machine. In the years before his death, Dr. King aggressively campaigned against the Vietnam War, NATO imperialism, and the CIA puppet states all over the third world. He believed that U.S. taxpayer money (believe it or not, it was still gold standard when he died in 1968) needed to stop being poured into the War Machine and be brought home to be used for American citizens. The leftist economic beliefs he had are beyond the point. He realized that ending the War Machine was top priority in the struggle for civil rights.

So here is the best answer for libertarians to give to leftists and progressives when they ask how will poverty be relieved without the Federal Government:

  1. Give Congressional oversight powers to the Federal Reserve. Expose where the money comes from. Reform, and abolish if necessary.

  2. America First foreign policy. If there’s still poverty in America, then we can’t be giving tax-dollars away to other nations. End foreign aid, which is often used against us, and bring that money home. End the droning in the Middle East. End all CIA operations in third world nations that deal guns and prop up dictatorships. Close down the WWII military bases. If Europeans are going to protect themselves from Al-Qaeda or the Russians, let them do it with their own militaries.

  3. It is a fact that if three quarters of the US military budget was cut, it would still be the largest military budget in the world. After military spending is reduced, the vast majority of the Federal budget will be freed. Begin making aggressive loan repayments to the Chinese to reduce the deficit.

  4. After the deficit is significantly reduced, begin lowering taxes for the working poor, working-class, upper-middle-class, and then the rich. It’s amazing how much quicker we become prosperous when middle-class salaries aren’t swallowed up by taxes. Move back towards the gold standard, silver standard, oil standard, or some resource-bases standard, so the Federal budget never again spends money that is not real.

What to do with the taxes when they are brought back home is Step Number 2. A conservative libertarian would leave it to the people to keep, where a liberal progressive would use it for social community programs. But we as a country are not EVEN at that step yet. Why even waste the time for leftists and rightist economists to argue about what to do with fake printed Federal Reserve paper notes that operate on Blood Standard. As Hillary Clinton would say, “What difference does it make?”

Behold, the facts that need to be understood if any progress is to be made. After these four necessary steps are completed, libertarians can finally argue it out with progressives, leftists, and Keynesians, on how to deal with Federal assistance for poor Americans. Topics such as state programs vs. federal programs, who qualifies, welfare to work, etc. Technically, it is consistent with libertarianism to believe that states have the right to tax and dole welfare how they see fit.

Ron Paul was not afraid to stand up and talk about the Federal Reserve and the War Machine. But with all due respect, Rand Paul may be. And this is not to say that I do not support Rand Paul, because I am fully behind him. He may just be going about it the wrong way. When his time comes, it may be too late for left-leaning moderates to support him. I already know many who dismiss him as a typical right-winger.

So to sum it all up. Libertarians and Progressives must unite, end the Federal Reserve, end the War Machine, and get a sound monetary policy, before we delve into partisan arguments about the details of things like abortion, welfare, corporate regulations, gay marriage, state taxes, and drug legalization. To focus on these smaller issues before knocking down these two great pillars of statism, is to put the cart before the horse.

Content published on the Young Americans for Liberty blog is only representative of the opinions and research of the individual authors. It does not necessarily reflect the views, goals, or membership of YAL. 

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