Tag: gold standard

The Merger Is Complete: All Assets Secure – Why Ohio (and America) Cannot Talk Financial Stabilization Without Confronting Financialization and Returning to Real Production

The merger is complete. All assets are secure. That phrase has been echoing in my mind lately as I sit down with state leaders like Senator George Lang, the Ohio State Treasurer, and others in the growing movement here in the Buckeye State. We are not just talking about balancing budgets or tweaking tax policy anymore. We are staring down the barrel of a much deeper conversation—one that cannot happen in a vacuum. Preserving Ohio’s financial future, and by extension the country’s, demands we confront a natural byproduct of decades of drift into pure financial engineering: the dominance of financialization. It is the term that has surfaced repeatedly in our private discussions, and it is the invisible force that has warped our economy into something unrecognizable from the one the Founders envisioned.

Kevin Freeman, the author of Pirate Money: Discovering the Founders’ Hidden Plan for Economic Justice and Defeating the Great Reset, has laid out the principles that are now gaining traction. Under a potential Vivek Ramaswamy administration in 2026–2027—and with leaders like Senator Lang stepping forward—this idea is poised to evolve into policy. The core concept is straightforward yet revolutionary: states create a gold reserve managed directly by the treasurer. Citizens can hold value in physical gold or silver, stored securely in a state depository, and access it through a modern debit card or electronic transfer for everyday purchases. The money in your account is not fiat paper subject to endless printing; it is backed ounce-for-ounce by hard metal. You spend gold without ever carrying a coin. The value stays anchored to something real.  

Senator Lang has been vocal about this in legislative circles. Ohio House Bill 206, introduced by Representatives Jennifer Gross and Riordan McClain, already proposes exactly this framework: a state-managed transactional currency rooted in gold and silver. The treasurer would hold the bullion in a protected reserve, and citizens could buy, hold, and spend it electronically. Every “dollar” spent would be convertible to actual metal. It is optional, constitutional (states have clear authority under Article I, Section 10), and already working in pilot form in Texas, Florida, Louisiana, and elsewhere. Freeman calls it “gold you can spend.” I call it sanity.  

But here is the catch—and this is where the conversation with Lang and the treasurer always turns serious: you cannot build the infrastructure for a gold-backed system while the economy remains addicted to financialization. That addiction is the black hole at the center of everything. It is the reason Main Street has been swallowed by Wall Street. It is why so many companies that used to make things now make money off money. And it is why a growing number of us—myself included—have deliberately refused to play the game.

Financialization is not some abstract academic term. It is the process by which the financial sector—banks, hedge funds, private equity, asset managers—stops serving the real economy and instead becomes the economy. Profits come not from producing better hamburgers, better tires, better homes, or better steel, but from trading debt like baseball cards, leveraging interest rates, securitizing everything, and extracting fees from every layer of the transaction. BlackRock is the poster child. With over $10 trillion in assets under management, it is the largest shareholder in nearly 90 percent of the S&P 500. Larry Fink’s firm does not build factories; it owns pieces of every factory, every airline, every retailer. It profits whether the underlying company succeeds or fails because the game is now about ownership of the capital structure itself, not the output. 

This is not capitalism as Adam Smith or even Henry Ford understood it. This is a casino layered on top of the real economy. When you buy someone’s debt, package it, sell it, insure it, and then bet against it—all while the Federal Reserve keeps interest rates artificially low or high to favor the house—you create wealth that has no anchor in physical reality. The Dow Jones Industrial Average looks healthy on paper, but much of that “growth” is stock buybacks funded by cheap debt, not new factories humming three shifts a day. BlackRock and its peers have perfected this. They gained enormous power during the 2008 crisis by managing toxic assets for the Fed, then used the same tools to consolidate control. Today the Big Three (BlackRock, Vanguard, State Street) control roughly a fifth of all S&P 500 shares. They vote those shares, influence boards, and extract fees regardless of whether the company actually produces anything of lasting value. 

I have had a front-row seat to this vortex my entire adult life. I made deliberate choices—every single year, every opportunity—to stay out of it. I could have leveraged real estate deals, flipped debt instruments, ridden the private-equity wave, or parked money in funds that profited from the very inflation the Fed engineered. Many friends did exactly that. They have swimming pools of cash, second homes in the Bahamas, and portfolios that look impressive on a spreadsheet. I do not begrudge them the money. But I watched what it did to their thinking. Success became detached from making something people genuinely wanted. It became about timing the next rate cut, the next bailout, the next round of quantitative easing. The forbidden fruit of financialization tastes sweet in college textbooks and MBA programs, but it rots the soul of production.

This is why I have always measured my own economic decisions by a simple test: Does this create a better physical product or service that competes in the open market? If I make a better hamburger, I get rich because people buy more of them. If I build better homes with honest materials at honest prices, the market rewards me. The value is in the wood, the stone, the craftsmanship—not in how cleverly I can leverage a bank loan or securitize the mortgage payments into a derivative. When companies start measuring success by how much debt they can service or how many assets they can flip rather than how many units they ship, the culture shifts. Plants close on weekends. Third shifts disappear. Executives leave at 5 p.m. sharp and do not answer the phone. Why work harder when the real money comes from the interest-rate spread, the management fee, or the carried-interest loophole?

The data backs this up brutally. Since the United States fully abandoned the gold standard—first under FDR in 1933 with Executive Order 6102 (which confiscated private gold holdings) and then under Nixon in 1971—the dollar has lost roughly 90 percent of its purchasing power. That is not an accident. When money can be printed without limit, the incentive structure flips. Central bankers at Jackson Hole sip lattes and debate “monetary theory” while companies learn that the fastest path to shareholder value is not innovation but financial engineering. The Federal Reserve keeps rates high enough to reward bondholders and asset managers but low enough (in crisis) to bail them out. The result? An entire generation of executives who treat labor as a cost to minimize rather than a partner in production. They do not need to run three shifts seven days a week when leverage and cheap debt do the heavy lifting.  

Trump’s short-term approach—flood the system with energy, tariffs, and stimulus—will ignite the wet wood and create a roaring blaze of apparent prosperity. People will feel wealthier in their pockets for a while. That is the point of the first four years: get the engine turning again. But the long-term conversation, the one Lang, the treasurer, and Freeman are pushing in Ohio, is what happens next. How do we protect the value of that freshly created wealth? How do we prevent it from being inflated away or siphoned into the same financial black hole?

The answer is not complicated, but it is hard. We must divorce the economy from financialization and re-anchor it to Main Street production. A state gold reserve with a debit card is step one. It gives citizens an escape hatch from fiat volatility. But the deeper reform is cultural and structural: companies must be measured—and rewarded—by what they actually make, how efficiently they make it, and how many people willingly pay for it in the open market. Not by how cleverly they shuffle debt or extract fees. Not by how many weekends they can take off because the balance sheet looks good on paper.

I have lived this choice for thirty-plus years. I have walked past opportunities that would have made me “rich” by Wall Street standards because they required me to play the game I instinctively knew was phony. I would rather build something real—something that lasts, something people value—than swim in a pool of spreadsheet wealth that evaporates the moment the Fed changes course. That is not sacrifice; it is principle. And it is the principle Ohio must adopt if we are serious about a gold-backed system.

Look around manufacturing today. Plants that once ran 24/7 now shutter at 5 p.m. Friday and stay dark until Monday. Executives brag about “work-life balance” while the balance sheet is propped up by financial tricks. The workforce has absorbed the lesson: show up, collect the paycheck, go home. Why push for excellence when the real profits come from the Delta between phony valuation and actual output? This is the lazy class financialization has bred—not just at the top, but throughout the ranks. People with nice houses and nice cars who have never felt the exhaustion of building something that actually competes. They are the modern equivalent of the Ferris Bueller dads—out of touch, coasting on leverage, wondering why their kids do not respect them.

The Founders understood this danger. They wrote gold and silver into the Constitution precisely because they had lived through the chaos of unbacked paper money during the Revolution. States were explicitly forbidden from issuing bills of credit for good reason. Hamilton and Jefferson debated banks, but both agreed the ultimate measure of wealth was productive capacity, not financial sleight of hand. We drifted away from that wisdom first in 1933 and then decisively in 1971. The result is the hollowed-out economy we see today: record stock valuations alongside shuttered factories, record CEO pay alongside stagnant wages for those who still make things.

Ohio is at a crossroads. With leaders like Senator Lang and a treasurer willing to explore transactional gold, we have a chance to lead. Texas and Florida have already moved. More states are watching. If we pair a state gold depository and debit-card system with policies that reward actual production—tax incentives for three-shift operations, penalties for excessive financial engineering, honest accounting that separates real assets from leveraged paper—we can rebuild what was lost.

This is bigger than monetary policy. It is about the soul of work. Do we want an economy where success is measured by how many physical goods and services we create that the world actually wants? Or do we want one where success is measured by how cleverly we game the spreadsheets? The first path builds real wealth that can be passed to grandchildren. The second builds a pyramid that eventually collapses.

I have made my choice. I attach myself to hard assets and real output. I have sacrificed short-term paper gains for long-term substance. I will not change course now, even as the financialization racket reaches its peak. The game is ending. Trump’s four years will provide the fuel, but the states—and Ohio in particular—must provide the guardrails. A gold standard without a return to production-based measurement is just another pretty facade. We need both.

The merger is complete. All assets are secure. Now the real work begins: making sure those assets are real, not phantom. Ohio has the leaders, the moment, and the model. The question is whether the rest of the country—and especially the next generation—will have the courage to follow.

Footnotes

[1] Kevin Freeman, Pirate Money (Post Hill Press, 2024); see also his presentations to state legislatures on transactional gold, October 2024.

[2] Ohio House Bill 206 (2025), establishing state-managed gold/silver transactional currency.

[3] Senator George Lang, sponsor testimony on related financial legislation, Ohio Senate, 2025–2026 sessions.

[4] Executive Order 6102 (April 5, 1933), Franklin D. Roosevelt; full text available in Federal Register.

[5] BlackRock 10-K filings and asset-under-management reports, 2025–2026; see also analyses in Harvard Business Review on the “Big Three” asset managers.

[6] U.S. dollar purchasing-power loss since 1971, calculated via BLS and ShadowStats methodologies.

[7] Constitutional Currency / TransactionalGold.com resources on state-level gold legislation.

[8] Federal Reserve History essays on Roosevelt’s gold program and Nixon shock.

[9] Economic War Room with Kevin Freeman (BlazeTV) episodes on state depositories and debit-card systems.

Bibliography (selected for further research)

•  Freeman, Kevin D. Pirate Money: Discovering the Founders’ Hidden Plan for Economic Justice and Defeating the Great Reset. Post Hill Press, 2024.

•  Ohio Legislative Service Commission analyses of HB 206 and Senate Bill 269 (2025–2026).

•  “States Work To Make Gold And Silver Alternative Currencies,” Guildhall Precious Metals / Epoch Times, 2025–2026 reporting.

•  “How Asset Managers Like BlackRock Took Over the World,” LSE Review of Books, June 2025.

•  Federal Reserve History: “Roosevelt’s Gold Program” and related primary documents.

•  U.S. Senate Permanent Subcommittee on Investigations: “Wall Street and the Financial Crisis: Anatomy of a Financial Collapse,” 2011 (updated analyses available).

•  Constitutional Currency / TransactionalGold.com policy toolkits and model legislation.

•  Biblical Archaeology Review and related economic history archives for broader context on ancient sound-money systems (cross-reference for philosophical grounding).

•  Ohio Senate GOP and Business First Caucus materials on economic growth targets to $1 trillion GDP by 2030.

This is not theory. This is the hard conversation we must have before the next cycle of phony prosperity pulls us back under. The merger is complete. The assets are secure. Now let us make sure they stay that way—anchored to what we actually build, not what we pretend to own on paper.

Rich Hoffman

More about me

Click Here to Protect Yourself with Second Call Defense https://www.secondcalldefense.org/?affiliate=20707

About the Author: Rich Hoffman

Rich Hoffman is an independent writer, philosopher, political advisor, and strategist based in the Cincinnati/Middletown, Ohio area. Born in Hamilton, Ohio, he has worked professionally since age 12 in various roles, from manual labor to high-level executive positions in aerospace and related industries. Known as “The Tax-killer” for his activism against tax increases, Hoffman has authored books including The Symposium of Justice, The Gunfighter’s Guide to Business, and Tail of the Dragon, often exploring themes of freedom, individual will, and societal structures through a lens influenced by philosophy (e.g., Nietzschean overman concepts) and current events.

He publishes the blog The Overmanwarrior (overmanwarrior.wordpress.com), where he shares insights on politics, culture, history, and personal stories. Active on X as @overmanwarrior, Instagram, and YouTube, Hoffman frequently discusses space exploration, family values, and human potential. An avid fast-draw artist and family man, he emphasizes passing practical skills and intellectual curiosity to younger generations.

‘Pirate Money’ in Ohio: The way to fight back against a failed Federal Reserve and inflation-based big government economy

The question that often arises in discussions about state-issued currencies is whether such initiatives, like those proposed in Kentucky or Ohio, are constitutional. They function as a form of currency that could serve as a pillar of stability for our nation, especially in an era where federal monetary policy has led to rampant inflation and economic uncertainty. I found myself pondering this deeply during a recent visit to the Ohio Statehouse, where I reconnected with old friends who work there. It was a serendipitous encounter that led me straight into the office of Senator George Lang, a man I’ve always admired for his sharp intellect and unwavering commitment to conservative principles. Lang and I have shared many conversations over the years, often diving into the world of books—recommendations that challenge the status quo and inspire action. On this particular day, as we caught up, the discussion turned to a topic that has been gaining traction among legislators and economic thinkers alike: a return to sound money through a state-level gold standard.

Lang handed me a copy of a relatively new book by Kevin Freeman, titled Pirate Money. The Blaze publishes it, and Freeman, whom I’ve followed through his economic commentary on that platform, draws from his extensive background advising the Pentagon and military leaders on financial warfare. I’ve known people at The Blaze over the years, and Freeman’s insights into global economics have always struck me as prescient. This book isn’t just another treatise on monetary policy; it’s a call to action, proposing an innovative way for states to reclaim control over their currencies using gold and silver, bypassing the Federal Reserve’s failures. As Lang and I talked, he mentioned that he’s been encouraging his colleagues in the legislature to read it by passing out copies from his office. The concept resonated with me immediately, especially after my own harrowing experiences with banks in 2025—a year that exposed the ugly underbelly of the financial industry in ways I hadn’t fully appreciated before.

You see, I’m not inherently anti-bank; they’ve served a purpose in facilitating commerce. But last year, I encountered the kind of predatory behavior that makes you question the entire system. Hidden fees, arbitrary account freezes, and a lack of transparency revealed the “ugly people” behind the polished facades—executives and regulators who prioritize control over service. This isn’t isolated; it’s symptomatic of a broader issue tied to the Federal Reserve and its monopoly on money creation. Freeman’s book delves into this, explaining how the Fed’s policies have enabled entities like BlackRock to amass unprecedented power, launder printed money through Wall Street, and impose agendas such as ESG (Environmental, Social, and Governance) criteria on corporations. If a CEO steps out of line, they risk deplatforming or worse—losing access to banking services based on social media profiles or political affiliations. I’ve seen this firsthand; banks now scrutinize applicants’ online presence, denying services to those deemed “undesirable.” This social credit system, imported from communist China, has infiltrated American finance, and it’s out of control.

My conversation with Lang covered a lot of ground, but the gold standard idea stood out. Freeman argues for a “constitutional backdoor” via Article 1, Section 10 of the U.S. Constitution, which prohibits states from coining money or emitting bills of credit but explicitly allows them to make “nothing but gold and silver coin a tender in payment of debts.”  This clause, rooted in the Founders’ distrust of fiat currency following the inflationary disasters of the Continental Dollar during the Revolutionary War, grants states the authority to establish gold and silver as legal tender. Freeman’s proposal builds on this: states could create vaults where citizens deposit gold, which is then used as backing for a digital debit card system. You’d buy gold with dollars, store it in the state vault, and spend it via a card that deducts the equivalent value in real time, adjusted for market prices. No need to carry physical coins; it’s as convenient as swiping a credit card, but insulated from inflation.

A new kind of gold card

This isn’t a pie-in-the-sky theory. Texas has already paved the way with its Texas Bullion Depository, established in 2015, a state-run facility for storing precious metals.  In 2025, Texas advanced further with House Bill 1056, enabling gold and silver deposits to be spent via debit-style cards, creating a digital payments platform backed by physical bullion.  By January 2026, the Texas Comptroller was seeking industry input on this system, aiming to implement it by May 2027 without state funding, relying instead on service fees.  Ohio is following suit. In April 2025, Representatives Brian Lorenz, Mark Johnson, and Josh Williams sponsored House Bill 208 (though some records refer to similar legislation as HB 206, sponsored by Representative Jennifer Gross), which aims to establish a transactional currency based on gold and silver.  The bill has been circulating but is currently stuck in the Judiciary Committee, needing leadership to push it forward. Lang and Gross are key supporters, with Lang distributing Freeman’s book to build momentum. This isn’t just for the wealthy; it’s a democratizing force that allows everyday people to protect their savings from erosion.

To understand why this is urgent, we must revisit the history of America’s monetary system—a tale of stability lost to central planning. In colonial America, currency was scarce and chaotic. The British Crown restricted silver and gold inflows to the colonies, forcing settlers to rely on foreign coins, barter, or makeshift scrip. The most common was the Spanish “piece of eight,” or eight-reales silver coin, minted in the New World and prized for its consistent value.  Pirates played a surprising role here; they plundered Spanish galleons, circulating these coins throughout the Atlantic world. Freeman draws the title Pirate Money from this era, noting that “pirate money”—looted Spanish silver—fueled early American commerce by evading royal monopolies.  These coins were often cut into “bits” for change—a one-reale bit equaled 12.5 cents, hence “two bits” for a quarter.  This decentralized, metal-backed system contrasted sharply with the inflationary paper-money experiments, such as Massachusetts’ pine-tree shillings or the Continental Congress’s fiat notes, which collapsed under overprinting.

The Founders, scarred by hyperinflation during the Revolution—where “not worth a Continental” became a proverb—enshrined sound money in the Constitution. Congress was granted the power to “coin money” and regulate its value, while states were barred from issuing fiat currency but were allowed to accept gold and silver tender.  The U.S. adopted a bimetallic standard in 1792, with the dollar defined as a specific weight of silver or gold. This stability propelled economic growth until the 20th century. But cracks appeared with the Civil War’s greenbacks, fiat notes that depreciated rapidly. Post-war, the U.S. returned to gold in 1879, enjoying decades of low inflation and prosperity.

The turning point came in 1913 with the Federal Reserve’s creation, ostensibly to stabilize banking, but it granted a private cartel monopoly over the money supply. Critics, including Freeman, argue this enabled endless printing, detached from real assets. Then, in 1933, amid the Great Depression, President Franklin D. Roosevelt issued Executive Order 6102, confiscating private gold holdings at $20.67 per ounce, only to revalue it at $35 shortly after via the Gold Reserve Act of 1934—a 69% devaluation that transferred wealth to the government.   This severed the dollar’s domestic full gold backing, though international convertibility persisted under Bretton Woods.

The final blow was the “Nixon Shock” in 1971. Facing gold outflows and inflation from Vietnam War spending, President Richard Nixon suspended dollar-to-gold convertibility on August 15, 1971, effectively ending the gold standard.   This unleashed fiat money, where dollars are backed only by faith in the government. The results? Catastrophic inflation. In the 1970s, prices soared, with annual rates peaking at 15% in 1980.  A dollar from 1970 buys just 13 cents worth of goods today—an 87% erosion.  Over the last century, the dollar has lost over 96% of its purchasing power since 1913.  From 1925 to 2025, it’s declined 95%, with stark generational impacts: $100 in 1975 is worth $16.40 today. 

This inflation isn’t accidental; it’s baked into the system. The Fed targets 2% annual inflation, but real rates often exceed that target, especially post-2020, with COVID stimulus flooding trillions into the economy. Homes, once affordable on a single income, now price out young families. Everything’s too expensive because money loses value yearly. Freeman highlights the shift from a production economy—making stuff—to a finance economy, where wealth comes from trading paper assets, interest rates, and debt manipulation. BlackRock exemplifies this: managing trillions, it influences CEOs via asset control, pushing agendas that prioritize globalism over American interests.  During the pandemic, the Fed hired BlackRock to manage bond purchases, raising conflict-of-interest concerns by blurring the lines between public policy and private profit.  

Compounding this domestic rot are external threats. President Trump understood this, cracking down on Iran, Venezuela, Mexico, and Canada to protect the dollar from attacks. Why Greenland? Strategic resources. But the real adversary is China, propped up since Nixon’s 1972 visit, which opened the door to currency manipulation and intellectual property theft.  Freeman, an expert in economic warfare, warns that wars today are fought through finance, not just bombs. China has been waging a stealth assault on the dollar: dumping U.S. Treasuries, stockpiling gold, and promoting the renminbi as a reserve currency.   In 2026, Beijing issued directives for financial institutions to divest Treasuries en masse, spiking yields and straining U.S. debt financing.  Allies like the BRICS nations follow suit, accelerating de-dollarization. If the dollar falls, America’s global clout crumbles—exactly China’s aim.

Trump provided a reprieve from 2017 to 2021, stabilizing the dollar amid these assaults. But with Democrats pushing centralized planning and Republicans sometimes complicit, the direction is toward more control. The Great Reset, championed by globalists, envisions a world where you “own nothing and be happy,” with currencies digitized for surveillance. Freeman’s Pirate Money counters this: states like Ohio and Texas can rebel by creating gold-backed systems, using the cashless infrastructure against the centralizers.

Imagine: You deposit your paycheck into an Ohio vault, converting it to gold at current prices. Your “black card” deducts value for purchases—gas, groceries, PlayStation—without inflation’s bite. Gold appreciates, so savings grow. No more losing 2-5% per year; your money retains value. This forces the Fed to compete, curbing excesses. It’s not Bitcoin’s volatility; it’s stable, tangible gold, recognized worldwide since antiquity.

Critics say it’s for the rich, but Freeman argues otherwise. Centralized bankers thrive on monopoly, leveraging inflation to steal value. By decentralizing, more people retain wealth, reducing inequality. In Ohio, HB 208 needs champions. Knock on Lang’s door; he’ll give you the book. Gross is sponsoring related efforts. With Vivek Ramaswamy as governor in Ohio and in partnership with a Trump administration, support could surge.

This isn’t radical; it’s constitutional. States have the right, and the time is now, while Trump stabilizes the dollar. Democrats should back it too—protecting value benefits all. If we wait, inflation will devour more. As Freeman notes, pirates used gold to win independence; we can too.

In conclusion, Kentucky’s notes—or any state’s gold tender—are constitutional under Article 1, Section 10. They stabilize our nation against Fed failures, BlackRock’s influence, and China’s attacks. Ohio, lead the way with HB 208. I’ll be one of the first to sign up. 

Footnotes

1.  U.S. Constitution, Article 1, Section 10: “No State shall… coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts…” 

2.  Kevin D. Freeman, Pirate Money (The Blaze, 2025), pp. 45-67, discussing colonial use of Spanish coins.

3.  Executive Order 6102, April 5, 1933, by Franklin D. Roosevelt, requiring the surrender of gold at below-market rates. 

4.  Gold Reserve Act of 1934, revaluing gold from $20.67 to $35 per ounce.

5.  Nixon Shock: Suspension of gold convertibility, August 15, 1971. 

6.  Inflation statistics: Dollar lost 87% value since the 1970s; peaked at 15% in 1980. 

7.  BlackRock’s role in Fed bond programs, 2020. 

8.  China’s Treasury divestment, 2026 directives. 

9.  Texas Bullion Depository, established 2015; HB 1056, 2025. 

10.  Ohio HB 206 (or 208 variant): Gold and silver transactional currency. 

Bibliography

•  Freeman, Kevin D. Pirate Money: The Constitutional Path to Sound Money. The Blaze, 2025.

•  Griffin, G. Edward. The Creature from Jekyll Island: A Second Look at the Federal Reserve. American Media, 1994.

•  Rothbard, Murray N. What Has Government Done to Our Money? Ludwig von Mises Institute, 1963.

•  Eichengreen, Barry. Golden Fetters: The Gold Standard and the Great Depression, 1919-1939. Oxford University Press, 1992.

•  Lowenstein, Roger. “The Nixon Shock.” Bloomberg Businessweek, August 4, 2011.

•  U.S. Constitution, Annotated Edition. Library of Congress.

•  Federal Reserve Economic Data (FRED). “Purchasing Power of the Consumer Dollar.”

•  Texas Comptroller of Public Accounts. “Request for Information: Digital Payment System Backed by Bullion,” January 2026.

•  Ohio House of Representatives. “H.B. No. 206: Establish a Transactional Currency Based on Gold and Silver.”

•  Freeman, Kevin D. Advisory Reports to Pentagon on Economic Warfare, Various Dates.

Rich Hoffman

More about me

Click Here to Protect Yourself with Second Call Defense https://www.secondcalldefense.org/?affiliate=20707

About the Author: Rich Hoffman

Rich Hoffman is an independent writer, philosopher, political advisor, and strategist based in the Cincinnati/Middletown, Ohio area. Born in Hamilton, Ohio, he has worked professionally since age 12 in various roles, from manual labor to high-level executive positions in aerospace and related industries. Known as “The Tax-killer” for his activism against tax increases, Hoffman has authored books including The Symposium of Justice, The Gunfighter’s Guide to Business, and Tail of the Dragon, often exploring themes of freedom, individual will, and societal structures through a lens influenced by philosophy (e.g., Nietzschean overman concepts) and current events.

He publishes the blog The Overmanwarrior (overmanwarrior.wordpress.com), where he shares insights on politics, culture, history, and personal stories. Active on X as @overmanwarrior, Instagram, and YouTube, Hoffman frequently discusses space exploration, family values, and human potential. An avid fast-draw artist and family man, he emphasizes passing practical skills and intellectual curiosity to younger generations.

The Fed’s 2% Inflation to Lower Wage Rates: Micromanaging employers and causing quite a mess

There is a dirty little secret that the Federal Reserve has about its role in mass society that needs to be discussed in relation to interest rates and what it considers managed inflation.  The Fed recently met at its annual Jackson Hole meeting, and it reminded me of many things, particularly the time when my grandkids wanted chicken nuggets from McDonald’s and their dining room was closed.  We were in my RV, so the only way to place an order and collect the food was to use the drive-thru window, which I barely fit through.  The McDonald’s in Jackson Hole is very close to where the Fed meets against the backdrop of the Teton mountains.  For a tourist town with one of the largest concentrations of wealth in the world, it’s a small McDonald’s with a pretty small parking lot.  Certainly not RV friendly.  However, I managed to make it work with less than an inch on all sides of my vehicle, and it’s a story that has gained a lot of popularity in my family.  “Remember that time grandpa did this?”  And everyone says, “Which one?” because there are a lot of things to talk about.  The town itself is one of my favorites, and I can understand why all the bank presidents who are members of the Fed want to meet there to discuss monetary policy.  It’s a really good place to go and is America’s version of Geneva, Switzerland.  I think the Tetons are better, though.  So after the Fed meeting there, Jerome Powell indicated he was going to do what I said he was going to have to do, and what J.P. Morgan had been pressing for, along with President Trump, and that was the Fed was going to lower interest rates.  Not happily, but because they have to.  The economy is too good to hide phony interest rate profits for the banks behind artificial inflation numbers meant to frighten the world away from Trump’s presidency. 

However, there is another issue at play that we need to address regarding employment.  The Fed believes that in managing money, it must bake in 2% inflation per year because that is the only way to offset the erosion of wages that employers provide to employees, which dilutes the actual value of labor.  Because the Fed believes, which is one of the reasons for its existence, that employers will not incur the hard cost of paying employees less for their labor as they age and become less valuable.  Therefore, the Fed believes that it must step in and manage the economy because employers won’t do so on their own.  Often, when a company gets out of step with its cost structure, it has an obligation to reduce its costs, either through a reduction in force or wage cuts.  However, most employers are hesitant to lose their legacy talent and invest a significant amount of money in retaining them, when in reality, they should consider letting them go on the open market and replace them with cheaper and younger workers.  The NFL has to do this all the time with salary caps, which are imposed on teams to keep them fresh and relevant.  If a player wants to leave a team for more money, then that team can turn to free agency to replace that player.  If the market wants to pay a lot for that experienced player, they certainly can, but there is a salary cap, so that team won’t be able to pay a lot to other workers as well. 

That’s why we should operate in America with some gold standard, because value has to be protected. Instead of the Fed having the temptation to print more money, it would micromanage the economy with continuous infusions of cash, ultimately diminishing its buying power and hiding the inflation it creates in the process.  And try to hide it behind other economic conditions as a justification, which had worked until Trump came along and called the Fed’s bluff.  And because the Fed believes that free market pressures won’t manage the economy effectively, they have baked into all their assumptions about economic flow that they must micromanage employers who won’t trim their fat with inflated wage rates at their companies, as they fear losing talent to their competition.  So, the Fed bakes 2% inflation into everything.  That’s why, when reviews are conducted with employees, a standard minimum of 2% is required to maintain your wage value at the same level as the previous year.  The trick is that as you get older, you actually lose buying power in most cases because inflation eats up whatever increases you manage to get for yourself.  The goal is for Americans to earn less over their working years, not more, because the actual value of labor must be managed by the Fed, which introduces all kinds of problems, as it’s not really employers who are the problem.  That is just the excuse that the Fed applies to cover a lot of liberal politics, for which they are prone.  Labor unions, for instance, are very guilty of propping up wage rates that are artificially too high, which then feeds the Fed’s argument for mass micromanagement of the economy with incremental inflation to let people believe they are being paid a certain amount on paper, but in truth, the money is worth a lot less.  People don’t notice because it happens over time.  However, every three years, at a minimum, workers lose 6% of their buying power if they do not receive raises in their pay that are well above 2%.  To receive an actual 2% raise, employees would need to obtain a 4% raise with each yearly evaluation.  Which certainly isn’t the case for most people. 

Consider the problem at the McDonald’s in Jackson Hole that I mentioned, which had its drive-thru window closed due to the COVID-19 pandemic.  And the government was pushing for a minimum wage increase that inflated the real value for entry-level jobs, such as McDonald’s workers making $15 per hour, when the real value for their jobs is likely under $10.  When politicians interfere in the process of manipulating market values, the Fed must attempt to cover up the mess with interest rate hikes to conceal the inflation it creates, which often exceeds 2%.  Our goal with inflation should be zero, and if we held it to the gold standard, it would have to be.  These are the problems you get when you let pin-headed bureaucrats micromanage an economy with Marxist ideas instead of free market capitalism, and it’s a real problem.  So Jerome Powell knows all this and is reluctant to lower interest rates, even though all the parts of the economy that they usually hide behind at those Jackson Hole meetings are too good, forcing his hand.  So he’s not happy about it.  But a lot is coming that he won’t be pleased about.  There has been a significant amount of tampering that has impacted wage rates, and employers have not been the primary source of the issue.  It’s too much administrative mess that comes from the Fed, and short-term politicians who have caused all the problems.  McDonald’s workers, like the one in Jackson Hole, should not have employees making over $20 per hour.  Wal-Mart should not have employees making $20 to $25 per hour because all other labor has had to increase their wage rates to obtain workers.  But the money is all on paper.  People are not actually making those actual wage rates because the Fed has had to hide the impact through inflation.  And now they are being forced to lower interest rates, which will expose the whole mess.  Although the meeting in Jackson Hole might have been very scenic, it wasn’t enjoyable.  There will be a lot more to happen with monetary policy in the coming months.  And the Fed is going to lose a lot more control, as they very well should. 

Rich Hoffman

Click Here to Protect Yourself with Second Call Defense https://www.secondcalldefense.org/?affiliate=20707

The Government Robbery of 1933: Removing the gold standard was always a mistake

It’s always been about who controls the money, and in 1913, when the Fed convinced a group of starry-eyed congresspeople to relinquish their Article I, Section 8 powers to coin money to a group of bankers to manage the money, they made a significant mistake.  And, of course, we are discussing this now as we contemplate why Jerome Powell, the current head of the Federal Reserve, has interest rates so high and is artificially holding back the flow of money to the public.  Should or could President Trump fire him?  And why is there a claim of independence that Janet Yellen asserts is necessary for the Fed to function correctly?  She used to be the chairman, as Jerome Powell is now, and she was the economic lady for Biden’s administration.  She is also a prominent member of the World Economic Forum, placing her at the heart of this modern discussion.  The answer to all this Fed talk is that, of course, Trump should and could fire Powell.  Because Powell has not performed well, now that Trump has created an environment where the economy is moving along nicely, the excuses that the Fed hides typically behind to control the levers of power over the money supply have been taken away.  The only people making money from the Fed’s system are the banks, whose interest rates are holding back economic growth.  And of course, the banks don’t want to give up that easy money.  So, for his sabotage of the current economy, Trump should fire him.  The Fed’s mess in 1913 was a mistake, and it’s time to admit it.  Because what happened 20 years later with FDR in the White House would well cross the line toward poor money management, which is a crime that still looms.  And we have to correct it. 

If we had our money connected to a gold standard, BlackRock would not own all these properties

On April 5, 1933, President Franklin D. Roosevelt signed Executive Order 6102, which required U.S. citizens to surrender most of their gold bullion, coins, and certificates to the government by May of that same year, in exchange for $20.67 per troy ounce.  This was just as bad as a buy-back program for something like personal firearms.  The reason for the order was to unleash money into the supply that people were hoarding and let the government manage the depression.  However, looking back on history, the Great Depression was caused by excessive government intervention, which exacerbated the problem it was trying to fix by taking people’s ownership of gold and unleashing it into the economy, thereby loosening things up.  Now, this was the Red Decade, when communist ideas were being experimented with, following the Roaring Twenties, which had a lot of open capitalism.  Communist movements were widespread, and they certainly infiltrated Roosevelt’s administration.  But how could this arrangement work, where the Fed was given everyone’s personal gold reserves, and where did they get the money to buy it?  Well, they printed the money, just as they did after the 2008 crisis, and gave that money to Larry Fink to essentially buy up bad loans with quantitative easing.  In the case of 1933, they were able to make some money off the deal and profit from the exchange.  But the Fed got the money by essentially printing it.  And it was this critical step that would take America off the gold standard by 1971.  After that, gold would become a commodity with no inherent value.  The goal of the Fed was to remove the stabilizing grounding gold provided to the economy, where people were regulating that value off a common exchange.  Instead, the government sought to empower centralized bankers with the ability to micromanage the economy, decisively removing the process from any free market consideration —a move that was distinctly communist and remains a mistake we are still dealing with to this day. 

By removing America from the gold standard, the Fed gained significant centralized power that it had previously been unable to achieve. This power was acquired after the Fed confiscated people’s wealth and issued banknotes that would, from then on, have a value adjusted by the Fed’s actions.  This was to protect the global international bankers, who have long sought to rule the world from the shadows.  And they are still a serious menace to this very day.  This is essentially what opened the door to Modern Monetary Theory and enabled individuals like Larry Fink to accumulate significant power at BlackRock.  The money managers who laundered the money through Wall Street were able to take all that printed money and buy up bad debt, thereby gaining control of the boards of numerous United States companies.   And Larry Fink is a bleeding heart liberal, otherwise known as a communist.  The original crime was the creation of the Fed in 1913, but the robbery took place in 1933 when the Fed, under FDR, took everyone’s private gold and replaced it with a monetary system that would fluctuate over time at an inflation rate of at least 2.5% per year.  So, doing nothing with that original $20.67, it would take $513.46 today to buy just as much.  But if grandpa had given you that much in gold, the value would still be relatively the same.  Taking away the gold standard meant that if Grandpa gave us $20.67 in 1933, and you wanted to buy something, it would now cost you $513.46 to buy the same thing. 

Deep in the heart of many things that members of the Federal Reserve believe is that employers are reluctant to reduce the wages of their employees over time.  They may receive raises, but in terms of real buying power, the Fed believes that it must step in to offset the value of increasing paychecks due to employer reluctance.  So long as they control the value of money, they can micromanage all factors of our economy in ways that are not driven by market value.  In the case of pay, which we all experience, we might make an average of 2% increases over our lifetime, but the Fed is using purposeful inflation to take that value away as we age giving our buying power much less with the same dollars because they believe that actual productivity goes down as we age, so we should not continue to get more money for doing less work.  That kind of thinking would only come out of the Red Decade.  And it has now caused a lot of significant problems that we need to address under this new Trump administration.  And Jerome Powell is going to have to go.  Reluctantly, but critically, he will have to lower Fed interest rates in September and maintain them through up to Christmas in 2025, because the pressure will be too great.  Trump’s economy is forcing everyone to come clean, and people are figuring out how the game has been played against them.  We can’t have foreign centralized bankers controlling our money supply through our Federal Reserve.  And the Fed can’t be independent of representative management.  They have been openly robbing our money supply, and it’s time for all that to stop.  The 1933 confiscation of personal ownership of gold was a form of open government theft, and it should never have happened because it empowered centralized bankers to gain control over the dollar and use it to access power. Today, banks have way too much power.  And we have to take it away from them by force.  Because they won’t give that power back now, they will have to be made to.  But we have no choice. 

Rich Hoffman

Click Here to Protect Yourself with Second Call Defense https://www.secondcalldefense.org/?affiliate=20707