the form of actual silver, nickel, and copper. It was solely this guarantee that supposedly prevented the elite from running the paper money presses in the middle of the night to print as much money as they needed to pay for wars or imported goods. On some American money you will read the words "In God we trust", but it is not God in whom we trust to maintain the value of the money, it is the elite who are in charge of printing the bills and minting the coins.

On July 1 1944, as part of what became known as the Bretton Woods Agreement, the American government gave its word to the American people and to the world that in exchange for $35 US paper dollars, the American government would hand over an ounce of real gold. That was the promise that gave the American paper dollar its value!! In fact, the vast warehouse of gold stored at Fort Knox came to be acknowledged and accepted as the tangible proof of that promise. The American people have had to trust ever since, that the government would not print any more paper money than there was real wealth to redeem the bills. That is the understanding and the promise upon which the value of American paper money has been based. {B92}

However, neither the government (the elite), nor the media (the elite) saw fit to make it clear to the American people that the real wealth and value (upon which the American paper money was based), was systematically being removed!

Here's how.

As long as a gold coin is made of gold, it can theoretically be taken to any other country in the world and melted down for the value of the gold it contains. However, while the US government has exercised exclusive control over the minting of coins, they have slowly devalued the currency by minting coins which looked somewhat the same, but which contained less of the precious metal than they were supposed to contain. Now the majority of coins in America have scrap metal value only. The dimes, for example, are no longer made of silver, the quarters are now made of sandwiched alloys. In other words, over time, the real value of coins has been stolen!! In case you are wondering, the gold and silver that used to be in the coins has not disappeared or corroded, it's weighing down the Swiss vaults like never before.

During the Vietnam war, there were over 500,000 military personnel that had to be fed, housed, paid, hospitalized and entertained while they weren't busy dropping expensive bombs, and chemicals on a barefoot peasant population. This was indeed a very costly war. But the American elite simply spent, and spent and spent. Of course the elite knew that the American people would have cut off funds for the war if they had been given an opportunity to do so. Instead, the elite used the treasury's printing presses to pay for the Vietnam War. The American government secretly printed as much paper money as it wanted or needed to carry on the War. Eventually, foreign bankers, who suspected this might have been going on (i.e. that paper money was being printed without actually creating the real wealth to redeem it), called America's bluff by demanding to redeem their American paper dollars for actual gold.

Finally, on August 15 1971, Richard Nixon refused to redeem 35 American paper dollars for an ounce of real gold!! The deceit had at last been exposed.

Immediately, the price of gold skyrocketed. Most Americans went to bed that night knowing that the price of gold had skyrocketed but few knew why. In reality, it was not the value of gold that rose that fateful day, it was the value of the American dollar that had taken a nose dive to adjust to what the world considered the paper dollar was really worth in relation to an ounce of gold.

The fact that the American government had prevented its citizens from buying and holding stocks of gold had been no accident, it had wished to prevent its citizens from ultimately demanding to exchange their own paper dollars for the gold in Fort Knox. Americans have been purposely kept in the dark about the systematic devaluation of their money.

The move quickly ushered in a decrease to the American standard of living second only to that caused by the great market crash of 1929. And yet few still appreciate what actually happened that day.

It did not take long for the cost of living in America to begin escalating because Americans had an insatiable appetite for imported goods, the prices of which had been raised (like the price of gold) to compensate for the now publicly acknowledged devalued dollar.

Incidentally, insiders who knew that the government was going to abandon the gold standard (i.e. refuse to sell its gold for $35 dollars an ounce) made instant fortunes by secretly buying gold abroad before it happened, and then buying back American dollars once the dollar had been devalued. And this could very well have been what finally tipped off the foreign banks to start redeeming their U.S. paper dollars for the real wealth of gold. The prohibition on buying gold in America prevented a run on American gold by forcing the insiders (who wished to capitalize on the inevitable devaluation) to purchase their gold from foreign countries. In fact, the America elite had for some time been effectively cheating 2nd and 3rd world nations, by knowingly buying their raw materials and foreign products with devaluing money.

Americans were already feeling the pinch of expensive European imports by the time the OPEC nations raised the price of oil. Ironically, this came as a welcome relief to the American elite, not only because it made oil in America, both above and below ground, worth billions more for the oil barons, but because the elite now had a scapegoat on which to focus blame for the dropping standard of living. Even the higher cost of goods from abroad could now be totally blamed on the increased cost of Arab oil.

Moreover, because the American people remain virtually blind to this style of thievery, it has continued unchecked. In the last two years, the American dollar has been devalued more than 40% against the Japanese yen and most other foreign currencies!!!

Just remember at all times that the majority of politicians are actively cooperating to deceive the American people on this and countless other issues. It is no wonder that the rich don't wish to hold their wealth in banks where the dollars can be devalued, Instead, they buy real estate, and real gold, that can't be devalued in this way. Or else they have their money salted abroad where economies are growing and where devaluations are most unlikely.

Should anyone be surprised that Mr Bush is about to encourage the bottom 90% with tax advantages (that only come collectible when withdrawn upon retirement), to invest their money in banks via Investment Retirement Accounts (IRAs), and other similar savings instruments such as the "Family Savings Account" that will lock their money in for the next devaluation theft. {B93}

Before leaving the topic of economic travesties altogether, the reader should realize that with the exception of monetary devaluation, the techniques mentioned in the book have all involved taxation avoidance perks and incentives. Although the book has described their disastrous effects within America, the reader should be at least be partially aware that some of the effects are also felt around the globe, and especially by the poor in the 3rd World nations.

Repercussions in the Third World

Perhaps the worst aspect of the 3rd World Debt crisis has been what is referred to in the banking circles as "flight capital", which refers to the net outflow of money from a country. First of all, it is commonly acknowledged that despite the obvious moral implications, money flows North. In other words, more money flows from the poor 3rd World nations mainly located in the Southern hemisphere, to the rich 1st World nations primarily located in the Northern hemisphere, than vice versa. The drain of capital from the poorest nations to the richest nations is caused by two main factors. The first reason is the net outflow of interest payments to 1st World banks. The crux of the problem for these countries lies in the fact that the amount owed in interest payments quite regularly exceeds a country's total revenue from exports. (i.e. the country's profits) By not being able to use their profits to stimulate economic growth in their own economies, most 3rd World countries are kept on the brink of bankruptcy. Since 1982, this net outflow of capital from the poor to the rich has amounted to over $160 billion dollars. But that is only half the tragedy!

More importantly, because the economic elite running the 3rd World nations realize they cannot milk too much more wealth out of their bankrupt economies, and because they fear for the safety of the wealth they have already accumulated, vast quantities of cash have been sent out of these nations for safe keeping in Swiss and American banks. Astoundingly, the $300 billion flight capital from Latin America has already exceeded the total Latin American debt of $257 billion!

Without too much imagination required, one can speculate that much of the money loaned to the elite went straight into the hands and bank accounts of the very people who have shipped money out of the country for safe keeping. While the rich ride out the economic turbulence on their yachts, much of Latin America has been thrown violently into poverty and hunger. Argentina's inflation rate, for example, is over 1000%. No wonder the frustrated workers in 3rd World countries are so quick to loot from the wealthy when opportunities arise. {B94} In fact, looting occurs in America with increasing regularity, and probably because poor Americans too watch helplessly with frustration and anger as the rich get richer and the poor get poorer.

Just as the American elite are causing hunger and poverty in the 3rd World nations, the selfish behavior of the economic elite in some 3rd World nations affects Americans in no less a fashion, and not surprisingly, due to their taxation avoidance laws.

The destruction of the Brazilian rain forest is a very important case in point. Tax laws favoring the Brazilian economic elite are affecting the air the planet breathes, and here's how simply it is happening. The Brazilian government has for all intents and purposes exempted agriculture from taxation. This has led businessmen

{B92} "A brief history of funny money The Economist (Jan 6 1990): p21
{B93} "This plan won't end America's savings drought" BusinessWeek (Jan 15 1990): p24
{B94} "A Latin debt that might work" Fortune (Apr 24 1989): p212