A lot of history books discuss how the Founding Fathers managed to orchestrate a government that protects citizens, as much as possible, from excessive governmental power. The three branches of government, Constitutional rights that cannot easily be overturned -- all set up to protect us from the evils of power. Very little, if anything, is said or written regarding the development of the fledgling nation's monetary system.
Well, allow me to {cough} add my two cents if I may.
With a quick glimpse at the Constitution as originally written it's fairly clear to me that the Founding Fathers of the United States of America abhorred "unfunded paper". They weren't keen on agricultural systems either --- tulip bulbs anyone? Nope. Their preference was gold and silver coin aka precious metals.
A few quotes from 1787, warn us that our monetary system is critical to the survival of our nation.
- George Washington wrote in a letter "If ever again our nation stumbles upon unfunded paper, it shall surely be like death to our body politic. This country will crash."
- Thomas Jefferson said "I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a money aristocracy that has set the government at defiance."
- John Adams warned that "All the perplexities, confusion and distress in America arise not from defects in the Constitution or Confederation, not from a want of honor or virtue so much as from downright ignorance of the nature of coin, credit and circulation."
So, one wonders what the Founding Fathers would think of the system we have today. Rolling over in their graves, I'd imagine, at the very thought of sliced and diced mortgage CDO's, and hedge funds that amount to nothing more than gambling with hard earned wages. Likely, they'd be aghast at abandoned homes, overgrown with weeds while citizens live in tents down by the river like third world refugees.
While we mere peasants argue ad nauseum the nuances of free speech, the right to keep arms, and the separation of church and state, Wall Street separated us from our money. And, to add insult to injury, Wall Street controls the very value of the dreaded paper currency from which the Founding Fathers warned us away.
The paper currency ship has sailed. I really don't think we can go back to precious metals. The hit on paper values world wide would be even more catastrophic.
What to do. What to do. Well, our government
is attempting to wrench control of our national fiscal policy away from the banks ... trying to take back the hen house from the wolves, but those wolves, those banks, will not cede power easily. And I'm not certain that our government is strong enough to battle the howling pack of beasts. And, like many citizens, I'm not so sure the wolves haven't infiltrated Congress, as well.
No. I think it's up to citizen activism in the free market.
Yes!!! We still have the freedom to choose the banks, if ANY, with which we do business. That is where our power lies.
The first step is doing your homework.
Sites like
ehomemortgage allow you to compare mortgage rates and run YOUR budget through a mortgage calculator (don't, for Pete's sake, believe what a broker TELLS you you can afford!). Yeah, I know, that pool and four car garage look tempting. Just turn on CNN to see all the people who now live under a bridge after living a life of luxury they couldn't afford. Hmmm?
Step two. Make it a priority to investigate your small local banks and credit unions. It's my personal opinion that
too big to fail is too big. In fact, I'm against big in any industry. I love indie. Small businesses, and small banks count as indie, don't they?
Step three is related in theme to step one -- live within your means. That translates to putting down the credit cards. ALL OF THEM. Paying interest for 15 years on your daily 4 buck cup of coffee is INSANE! Stop it! Pay cash. If you don't have the cash, let it go.
And don't give up on our government. We MUST stay put as a thorn in our senators and representatives sides. We MUST keep score and use that score during primaries and on election days.