How fitting it is that today, part one of the movie Atlas Shrugged opens in theaters across America. Especially on the heels of a another week filled with news headlines about Goldman Sachs, Wall Street wives and government budget deficits. Ayn Rand’s 1957 novel, Atlas Shrugged, demonstrated the glory and interconnections between individual liberty, Capitalism and an honest economic system backed by an honest standard of value – GOLD! On the flip side, we see how government corruption and abuse, as well as the shenanigans of corporations and the wealthy elites are allowed to run wild thanks to the dishonest system of fiat currency, courtesy of the Federal Reserve and the banksters.

atlas shrugged movie 1
Part 1 of the movie Atlas Shrugged opens today in theaters. Publicity image provided by The Pinkston Group.

If America were still on the gold standard, with our dollar set at a fixed rate of exchange by law – the Constitution, the politicians in Washington would not be able to spend money as easily as they do. They would be forced to exercise wisdom and frugality with their budgets. There would still be a debt of some sort at times of crisis and need, but there would be a solid, physical barrier preventing them from running amok.

Two news items from Wall Street and Washington point to the great evil of our fiat currency system. The Senate finance committee, after two years of investigations and hearings, announced this week that Goldman Sachs may have lied to Congress about their transactions of mortgage-back securities. Those crazy derivatives known as CDO and CDS, Collateral Debt Obligations and Credit Default Swaps, which basically allowed Goldman and other banking and investment firms to allegedly print money in the form of securities they sold. Some might call such activity counterfeiting!

Rolling Stone writer, Matt Taibbi, wrote a piece this week about how two Wall Street wives were able to take advantage of a government bailout program and borrow some $220 Million dollars from the Federal Reserve. To ‘stimulate’ the economy, the Fed put up $200 Billion dollars of cash, backed by taxpayers, for a program called TALF, Term Asset-Backed Securities Loan Facility. The idea was to give businesses a source for loans as the banks were not loaning money following the Crash of 2008. Over 20,000 of these TALF loans were issued, including $220 Million dollars to a company started by Christy Mack, wife of former Morgan Stanley CEO John Mack and Susan Karches, widow of the late Peter Karches, also a former Morgan Stanley president.

The two ladies formed Waterfall TALF Opportunity, a company which spent $14.7 million dollars buying up student loans and commercial mortgages. They then trotted over to the Fed’s TALF window and got $220 Million in non-recoursive loans, meaning that they didn′t have to pay the loan back if the investment flopped, based on those shaky assets. How nice is that! Now, to be fair, they have paid back about $70 Million so far. Will the taxpayers ever see the remaining $150 Million? Who can say?

The Federal Reserve System has been shoveling out Trillions of dollars the past few years since Ben Bernanke became chairman. Between TARP, TALF, and the Fed′s discount window, all of this fiat currency has been flying out the door and it has done little public good while it fuels inflation fears. In the past two years, nearly every significant basic commodity, from oil to food to cotton, has doubled in price. Not good news for us taxpaying consumers who are left holding the bill.

This is why Ayn Rand’s book, and part one of the movie Atlas Shrugged is coming out just in time in theaters today. Yes, Capitalism does work and is the best system for promoting individual liberty. But to have an honest economy, and an honest government, it requires an honest currency system. One backed by a tangible asset such as gold. Otherwise, you have government spending money wildly, creating massive national debt from ever increasing budget deficits. Plus, you have large corporations, mostly banks and financial concerns, allowed to run amok with truck loads of fiat currency provided by our central bank, the Federal Reserve System, which has never been audited. Dishonest government and dishonest markets, like those involving ginned-up mortgage-back securities and derivatives, can only exist and thrive with fiat currency. Perhaps now, America will awaken to this truth!

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