Reader asked me to comment on an article on Gold Standard, this article is a pot shot against Ron Paul and Gold standard.
Gold standard is not a “silver bullet”.
It is a way to shame to gov into a more obvious raping of the currency
because you can’t play tricks without the tricks being more obvious. It is a partial method to gain control over
those who would intentionally create bubbles by conjuring money out of nowhere
to buoy social sentiments and have more money chasing the same amount of goods,
and then these fraudulent banksters buy up everything on the cheap when the Ponzi
blows up.
People got trouble wrapping their head around “operation twist”, but people
wouldn’t have trouble understanding “gold ratio” manipulation.
OK in 2014 we will link an ounce of gold in gov hands to the initial ratio of $10,000 in USD
allowed to circulate per ounce of gold. Now say gov wants
to print, and they already maxed out their gold ratio, they have to state, OK
now an ounce of gold can cover $12,500. Gold doesn't have to be selling for $10,000 per ounce, it is just a ratio. Get that point.
In that case then, pretty clearcut that the currency has been raped by
25% by the governmental ratio adjustment.
But nothing but laws (pesky little things) would stop them from “printing”
as much as they would like by adjusting the ratio.
On obvious example on how the US currency has been raped. A 1964 quarter with real silver was worth
$0.25 in 1964, now it is worth $5.50, or 22 times higher, 95.5% of the
currencies worth has been destroyed just in our lifetime.
Savers are robbed, foolish spenders are encouraged. Buying a bunch of depreciating assets is
encouraged. Hairstylists driving
$35K Lexus is encouraged, and really how does that make any sense?
Governments cannot pay their bills, ever. And so they will print, until some event forces them to stop printing.
The only outlier scenario that I see that would maybe be OK would be “The
Great Reset (TGRTM)” in the Gov just announces that whatever person
or corporation or governments debt is, tomorrow it will be 90% less, just
strike them from the books. Yep lot of
people would get screwed, there would be some chaos, a lot of countries would be screwed, lots of countries hold debt, maybe they should stop enabling our crack based "economy".
That article is full of lies, almost humourous that they use the modern
day gov produced inflation data as if there is any truth to it. “When we peg the dollar to gold we
have to raise interest rates when gold is scarce, regardless of the state of
the economy.” I say bully to that
comment. This article has an axe to
grind and a point to make, so they lie and avoid the real issues.
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Insightful and Useful Comment!