P.O. Box 31, London WC2E 7LX, England or GPO Box 3141, San Juan, Puerto Rico 00936
1. The dollar has declined seven percent on the foreign market, and is still going down! Our American economy is going bankrupt! Our country can't go on robbing the poor and helping the rich, and get by with it! And that's exactly what this American economy has been doing for years. We've been robbing the poor—not as much at home as we have even abroad, because of our high prices that they can't afford to pay!
2. Back twenty or thirty years ago, Franklin Delano Roosevelt in the Great Depression decided to take us off the Gold Standard, where the American citizen could no longer take his money down to the bank and demand that much in gold—because the government was so bad off economically that they couldn't afford to pay off that money in gold—they didn't have it! So since then, not a single piece of paper money in this country has been backed with gold. In recent years‚ Kennedy, who was a worshipper of FDR, took us off the Silver Standard that had replaced the Gold Standard, so you could not take your dollar down and exchange it for real money—real value—precious metal—Silver! The dollar became nothing but a piece of paper which is worth as much as people are willing to believe it's worth—because it's actually not worth a God–damned copper penny if you try to exchange it at the bank!
3. Did you know that during recent governmental administrations they have devalued the precious metal content of our coinage—which is always one of the signs of a decline of a major nation. In a penny, they didn't even put in a cent's worth of copper. That penny doesn't contain a cent's worth of copper, neither does the nickel contain a nickel's worth of nickel!
4. Throughout the world, people usually acknowledge the value of silver, gold, or copper‚ the so-called precious metals—for ages an international medium of exchange. But our government wanted to issue more paper money than they had silver or gold to pay for it. So they started printing what amounts to worthless paper money, which is only backed by faith—faith that the government will keep its word! You have only their word—you can't go right down and exchange it for gold.
5. Roosevelt knew that if he abolished the Gold Standard the only way he could keep the dollar stable abroad (since foreign countries don't have faith in other country's currency) was to guarantee foreign payment for dollars in gold! So when he decided to take us off the Gold Standard‚ he made an agreement with foreign countries, promising to keep the dollar stable so it wouldn't take a nosedive. He made an agreement with the foreign countries that he would set the price of gold at Fort Knox at $35.00 per ounce, and he guaranteed the foreign governments that they could exchange their dollars any time they wanted to, for a guaranteed $35.00 an ounce in gold. This allayed their fears that they better dump their dollars or they would be worth nothing. In exchange for this guarantee, they agreed to set their currency at a fixed price—for example, the British Pound was set at approximately $2.40 per Pound.
6. Nixon's emergency tactics have caused a sudden splurge on the Stock Market because the rich boys are saying, "See, our Nixon Boy hasn't failed us! He's protecting our riches abroad." So stocks have risen—but this is not necessarily a good sound economic barometer.
7. Nixon is slapping a ten percent tax on all foreign imports—we're going to have to pay more or stop buying them. He's reducing taxes on our own products. All this he's doing to help the local economy in the U.S.
8. This former, signed international monetary agreement where FDR fixed the price of the dollar with the gold at Fort Knox, allowing only a certain small percentage of fluctuation, had been enforced for some 20 or 30 years. If these people abroad can no longer cash in their dollars for gold, they might decide to dump them, and the price of the dollar would fall so low it could bankrupt our people abroad who have their investments abroad.
9. When Kennedy took us off the Silver Standard‚ the only thing that kept the dollar stable then, was the fact that foreign nations knew the monetary agreement was still in force, and they could exchange their dollars for gold at that set rate, if they would keep their rate of exchange for the dollar a fixed amount.
10. Lately, due to the uncertainty of the dollar and this coming possible devaluation, foreign investors have been dumping their dollars and exchanging their reserve in American currency for gold in Fort Knox. So much so that now Nixon has stopped gold payments for dollars abroad. He is abrogating the whole agreement. We're now letting the dollar be devalued, or float at market value. He has stopped payment in gold to these countries, a secret for some time, since the government has the press so well controlled. As Tricia Nixon said at her wedding recently, of her father's public relations policies: "Never underestimate the power of fear to control the Press!"—manifest evidence of a Hitleristic attitude so characteristic of the Nixon Administration.
11. To protect our own home economy and economic situation, this abrogation of this international monetary agreement virtually takes us off any standard whatsoever. There is no guarantee for the value of the dollar anywhere.
12. In the same move where he cancels payment in gold to foreign countries‚ he floats the dollar to let it find its own rate of exchange.
13. One guy tried to buy a loaf of bread in Paris, when the news first came out about the dollar being floated, and he offered a dollar for it, and the baker wouldn't even take it. That shows you how people panic if they lose faith in a government. Some hotels and exchanges wouldn't accept American dollars at all‚ or would charge a ten percent discount to protect themselves from its devaluation.
14. If a small government wants to be smart, it has its currency in several different coinages—American, German, etc. These countries have put their money into dollars because it was a fairly safe investment previously—so now that it is getting shakey, they want their gold back.
15. Gold is almost like a value that God has set, so that it is considered a substantial medium of exchange. The time is coming, however, when even that won't be true—the Bible says they'll cast their gold and silver away.
16. So Nixon saw they were going to make a run on Fort Knox‚ so the only way he could stop it was to float the dollar—break the agreement, and stop gold payments, so he didn't have to pay the gold. Nixon did this to protect the gold which is our only reserve, and the only thing that gives these countries any confidence in our economy at all—to protect the country from this constant outflow of dollars.
17. The odd thing about it, is that while our economy has become more shakey, the European economy, due to the Common Market, has become more stable—more stable even than the American economy—of more real value. So their money is now considered valuable, whereas ours is deflating. We are in a bankrupt condition—spending more than we're making. But because of the great power of the American government to make it go even if it is a little bit in debt, the people still trust it.
18. Those countries that have American dollars are either going to have to lose in exchanging them at a loss, or have to send the dollars back to the U.S. for investment in banks here, or buy their goods from America‚ in American dollars. It is an emergency measure by the President to bring dollars back and boost the economy and boost American trade abroad‚ because this'll be the only place foreign countries can get the value out their dollars—by buying American goods. In the second place, their own currencies will be more valuable, because what they would have had to pay five thousand dollars for yesterday, due to this sudden drop in exchange, they can get the same thing for five hundred dollars less today!
19. So Nixon has done this as a protective measure, to stop the outflow of dollars—slapping a heavy ten percent tax on our imports. By deflating the dollar, this keeps people from sending money abroad for exchange to get the value out of it.
20. The dollar will find its own level at whatever they think it is worth, it'll stop the dollars and tourists from going abroad, because they won't be able to buy as much, it'll stop people from investing so much abroad and encourage countries abroad to dump their dollars on American goods, increasing our trade, bringing dollars home, and helping the American economy.
21. Our government will probably even clamp down with a currency export limit, such as many other countries have. What Israeli can go abroad if he can only take the equivalent of $30.00 out of his country with him? What Israeli can go anywhere‚ if he has to pay a tax on his fare‚ making it double, and can only take $30.00 with him? They just make it impossible for you to leave the country—and it may happen here!
22. Now Nixon has frozen wages and prices. All these big strikes that were recently so beautifully settled, with raises which were made to go into effect in the future—he has now frozen wages so they cannot get those raises! The nation's largest union, the Automobile Workers, have virtually gone bankrupt through this—employees that have gone on strike for months to get increases that now they cannot have. Nixon is even losing the support of the hardhats!
23. As usual, the Republicans are out to protect the rich—and to hell with the poor! The only thing they think of with their little narrow minds is, how can I hang on to my money—my investments—my big dollars in the banks—to protect all my interests? The rich are notoriously shortsighted when it comes to protecting their riches. They think by hanging onto them, they can protect them. But God's method of protecting them is to give to the poor—give them out—keep it in circulation—literally socialization! You're going to have to be better to the poor, or you're going to go bankrupt. You cannot amass all this wealth in the hands of a few rich and get away with it. (Luke 12:15-21.)
24. The rust of their money is going to be a testimony against them. (James 5:1-3.) Why is the rust a testimony against them? Something that isn't used gets rusty—because they didn't put it to use and keep it in circulation. Did you know that most of your coins will turn green in you don't keep handling them and using them? God says to the rich, You hoarded them up instead of getting them out and using them? God does not have anything against riches as long as they are used and to put to use helping people—in wages, in benefits, in socialization, in whatever it may be—social security—as long as the rich use the money to help the poor and keep the money in circulation—as long as they give it away—God will even prosper them and give them more, so they will have more to share! Hasn't He done this with us? God's economic policies work! The big business policy is: If things get bad, hang on to your money, sit on it, don't get it in circulation—keep it! So they hold on to it! And God's Word says, he that withholdeth, it tendeth to poverty. And every single time, this withholding has dumped this nation into the biggest depression it has ever known because of the Republicans‚ the Party of Big Business and the rich!
25. God has blessed the Democratic Party to some extent, because of its policies of sharing the wealth—giving the money in wages‚ making jobs and making work. The Democrats would say, "We'll spend government money and make a lake—build a dam‚ sell cheap electricity"—put a lot of government money in circulation‚ and totally improve the whole economic condition of an area. The Democrats are for socialisation much more than the Republicans. The Democrats, oddly enough, have usually been the best party for the sake of helping the economy by getting us into wars. The Democrats were willing to get us into wars for a shortsighted boost to the economy that will make the government spend the billions of dollars on war supplies—and this pours billions of dollars into our economy at home. Whereas they don't worry about the future or how they're going to pay for it. They mortgage the country with taxes and debts and borrowed money and bonds to pay for the war. The money for the war comes from taxes on the people themselves—but lest the people see that their taxes are eliminating the benefits of higher salaries and wages, the government borrows the money in bonds instead of getting it all in taxes. So people buy bonds to loan the government money to spend—they don't even have to pay taxes on it!
26. But what if the people lose their jobs? They're going to try to cash their bonds in. But what if the government hasn't got the money? The government can print more paper money—which is exactly what it has done. They have twice as much paper money in circulation as they have gold or silver to back it up. And the fact that you can't exchange it for gold or silver makes it actually totally worthless!
27. Nixon and the Republican Party have immediately stopped inflation at home by controlling prices, wages, and rents. That doesn't guarantee they're going to stay where they are. They might even go down. But it will reduce American prices on the world market. You'll notice, however, that Nixon hasn't controlled interest, profits or dividends or stock market prices. He's still protecting his rich boys who put him in power!
28. We've had the longest boom in our history because of our American Propaganda—the God-damned liars that have deceived our people at home!—But our neighbours can see that the American economy is sinking; and now it is even obvious to us at home!
29. This new economic policy of Nixon's Administration has caused a terrible blow to the Japanese economy. In the Great Depression, America began to crack first, and it caused government after government to go financially bankrupt.
30. Inflation at home mostly hurts the rich, but it mostly helps the poor, except for those who are on set incomes, like pensions. That's why the rich are trying to bring about deflation. The very rich, however, profit from the deflation, because their dollars grow in value even though they're doing nothing with them. (See "War, Boom, Bust!")
31. We're on a crash course to bankruptcy, but they think they're going to patch it all up instead of curing the disease: which is that they're hanging onto their riches instead of putting them into circulation.
32. The Democrats didn't force the rich to give up their riches either, but they borrowed money and taxed the people to get enough money to put into circulation—which really didn't help‚ because the rich still had their money. The only thing that helped was the heavy income taxes on the rich, which amounted to almost 90 percent in some cases. But instead of feeding the poor‚ they have put it into the war machine, where it's actually wasted.
33. Two-thirds of the government's expenses goes into paying for war—destructive and wasteful! A war expenditure is a total waste. The money the hardhats make by making war materials is invested in stuff that will be totally destroyed—bombs and foreign bases that will be taken over by others. What is produced by people in a war effort is a total loss. Money spent on war is wasted—it doesn't come back—sooner or later the country's going to pay for it. Suddenly we're beginning to wake up and find that billions and billions of American dollars have been thrown away in the most wasteful thing you can possibly do: making war! We lost money on World War I and World War II and the Korean war, instead of getting booty and territory. We actually, out of self-righteousness, went back in and helped those countries after we ruined them!
34. The labouring man has a little visible boom during wartime—wages, jobs, etc.—but sometime that money has got to stop, because the government can no longer borrow it to give him his salary. Pretty soon there won't be any place to get the money from. This Administration has decreased production, increased unemployment, and is now stopping wage raises. Nixon has come in and stuck a pin in the balloon!
35. The Democratic war policy which spent money on the wrong things, and the Republican withholding policy which doesn't want to spend money on anything, are both anti-God, anti–Bible‚ financial policies.
36. So what does it mean to us? Exactly what we've been telling the country: that it is going to crash one way or another. Its power is declining and weakening within and without. Marx taught, just give Capitalism enough time and it will collapse from its own corruption, and then Communism can take over. So what we've warned this country of is happening!
37. The wonderful thing about the economy of the Children of God is that it is not built on gold or silver or foreign trade or war! The economy of our New Nation is not built on the manufacture of idols, but our economy is built on the Lord and love and sharing. And as long as you keep giving, you can't lose. God will feed you, protect you, clothe you and care for you, no matter what happens. Praise the Lord!