The first deadly innocent fraud maintains its destructive grip on American society, economy, and politics. The old-time religion, represented by people like Judd Gregg, Mike Spence, Olympia Snowe, Ben Nelson, Evan Bayh, and yes, evidently, Barack Obama, expects us to reinvent out economy and its foundations and to adapt to the new challenges of the 21st century, while refusing steadfastly to use the tools we can apply under our fiat monetary system. In fact, it expects us to ignore that we have such a system, and to act instead according to the economic principles that governed us when we were still on the gold standard. It expects us to seek a budgetary surplus relative to our fiat currency, and to forget about evaluating a particular Government expenditure by the proper standard of whether its balance of benefits to costs in the value or non-monetary sense is positive for us and American society. If we persist in obeying the dictates of this first deadly innocent fraud, American prosperity will never be re-captured. The American Dream will die, and Democracy in America will, increasingly, be replaced by Plutocracy, a process that has now been going on for 33 years since President Jimmy Carter initiated it. In the next installment in this series, I’ll discuss some other deadly innocent frauds, and their implications for current issues.