Taking the Glitter Out of Gold-Based Currency

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DrKrbyLuv's picture
DrKrbyLuv
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Taking the Glitter Out of Gold-Based Currency

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Although debunking Gold completely would take too long, there are three points I would like to make. I believe some contemplation of these are quite sufficient for all who want to be armed suitably for the monetary struggles ahead.

In the first place, it doesn't matter at all what means of exchange you use. Paper, bits and bytes, shells, tally sticks, salt. They have all been used successfully in the past.

The question is, who is in control of the supply? And what is he doing with it?

Let's just one more time repeat a worn out quote: "Give me control of a nation's money supply, and I care not who makes the laws."  We all know who said this and we all know he knew his trade.This was said when Britain was on the Gold Standard.

What is gained by control of the supply of money?  In the first place the ability to inflate and deflate creating the so called 'business cycle', not a force of nature, but an effect of tampering with money.  Inflation leads to higher prices, growth, optimism. Deflation then comes, forcing many to sell below normal prices and in this time of scarce liquidity, a few insiders with lots of cash buy up the whole lot for practically nothing.

All this doesn't change at all with Gold. The 19th century is riddled with asset bubbles followed by depressions. It is quite clear that there is an inverse relationship between monetary stability and Gold as money. Even though Gold's record is probably not as bad as paper, it is at best the lesser evil.

GOLD-BASED CURRENCY = DEFLATION & DEPRESSION

Most often, however, periods with Gold as money are characterized by deflation. The controllers of the system keep Gold scarce. Also, global gold output is insufficient to keep up with economic growth, implying structural relative decline of amount of money in circulation, compared to total output of production.

Even more important when controlling money is Interest. Now, this really exasperates me.  The Gold people say that interest is a normal free market pricing mechanism for money. It allows for 'optimal allocation of capital'.  Yeah, right in to the bankers pockets..........

Don't the Gold people care about the enormous price that Labor pays for this?

Isn't it totally atrocious to allow a few capitalists to control such an important factor of production and reap such massive profits from it just for their own sake?  Let's get over this.  So it is not about what means of exchange you use, it is about whether we, as a people, are in control of it, so that its supply is steady and dirt cheap.

ILLUMINATI LIKE GOLD CURRENCY

The second item of interest with the Gold narrative is, that it was financed by Rockefeller. He imported Ludwig von Mises to the US in 1940 and gave him a grant...............

The self styled 'Illuminati' would invest in people supporting gold and hiding this message in other, less relevant (dis)information. It would simply be a typical tactic for them, to have some people make some noise about the bankers and perhaps 9/11, at the same time selling gold as a solution and in this way leading the opposition in to a blind alley.

Third, interest free money is not an idea, it is an established fact. It is all around us in the various barter schemes around the world.  Hitler financed his war machine with his own capital and bartered internationally without one dime of gold or 'hard' currency. Declaring stuff like 'breaking the thralldom of Interest is the kernel of National Socialism' time and again..................

Hell, the greatness of the US itself is built on non interest bearing government notes! Franklin's Colonial Scrip, Washington's Continental (even though this was inflated into oblivion, if we take the money supply out of the hands of the bankers, please don't give it to some career politicians.........) and of course Abe Lincoln.  He won the war by throwing 30% interest gold out of the window, spitting in Rothschild's face and buying everything he needed to hammer the South by printing a few hundred million Greenbacks, some of which are in circulation even today!  Of course, he got shot for that, but that just emphasizes the point.

NO CASE FOR GOLD

So is there really a case for Gold? I think not. It is just one more of their memes, and a particularly nasty one.

For real money, serving the needs of the community, instead of its producers, we need at least a few percent of the people to know about these things. We need people who have a basic literacy on monetary matters and who can see through the basic schemes.  The import of the matter is such, that the Truth community both has a major opportunity and responsibility to facilitate the necessary education and debate.

Because the production of the means of exchange is simply a trade and science like all the rest and is in urgent need of demystification.

Have you noticed that almost all books that expose the infamous meeting at Jekyll Island and the Federal Reserve simply copy off Eustace Mullins' earlier works?   For example, G. Edward Griffin's book "The Creature from Jekyll Island" shamelessly and uncritically takes from Mullins but inexplicably, Griffin receives most of the credit.

The copy books, like Mullins research, start at around 1907 and run through the mid century, with little research, if any, added. John Birchers like Gary Allen, Ron Paul and Griffin learned all they know about the Federal Reserve from Mullins - they took his work and wrapped it around their 'gold is money" agenda.

Anyone who takes the time to study history of gold money prior to 1907 and after the 1950's will quickly understand that gold is the last thing we want to be used as money.  Why do I suggest that "gold money" be researched after the 1950's?  Because almost all of the U.S. gold reserves were stolen after that time - we don't have any gold, at least not any 99% pure.

Fort Knox has not been audited or publicly inspected for over 50 years because what little gold that is left there, is coinage melt from FDR's 1933 grand theft.  By the early 1920's, the U.S. had over 26,000 tonnes of gold, over 60% of the world's gold reserves.  It's all gone now, stolen or fraudulently sold at pennies on the dollar.

Larry

 

Johnny Oxygen's picture
Johnny Oxygen
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Re: Taking the Glitter Out of Gold-Based Currency

Interesting article. I lot of this discussion was covered here on the topic: For or Against Usury.

I agree with what he says here but I think there is also a decoupling from practicality too. Yes you could use salt, tally sticks, bear claws, whatever. But those things could also, over time, be manipulated if given enough time.

Interest free money? You bet. I'm all for it. Do you really think the bankers are going to let that happen? No way.

As far as gold and other PM's. Sure they can be controlled but they also do a little controlling of their own because you just can't go get more of it easily like salt, tally sticks, bear claws or for that matter 'interest free' notes.

James Wandler's picture
James Wandler
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Re: Taking the Glitter Out of Gold-Based Currency

Johnny,

Yes - you are right - any medium of exchange can be manipulated given enough time.  The challenge of our civilization is to move to the next level and become aware of what money is (an abstract concept - a social technology) and to construct mechanisms that will allow for exchange consistent with the 3Es in a low energy future.  Larry is just pointing out that gold as a medium of exchange has been used as a diversion from the underlying principles of money - so that if someone "wakes up" to the problems with the current banking system then their anger is channeled in "a blind alley".

We need both the intelligence to devise an appropriate system and the wisdom to maintain its integrity.

Gold does serve as a store of wealth.  However I'd rather have something that generates real value - i.e. that cuts the use of money and leads to sustainability.

Larry doesn't expect that the bankers are going to allow another system - it will take a tipping point of awareness for the game to be changed.  Deepening our knowledge, waking other people up, and building redundant systems are the best use of our resources right now - many hands make light work.  I watched the videos about Iceland and Argentina last night linked here:  http://www.peakprosperity.com/comment/64668#comment-64668 - this presents the magnitude of what we are up against.  I see you signed the petition about Iceland mentioned in that forum so you are part of the solution. 

[Anyone else reading this please see that thread and consider signing the petition, as Johnny, Larry, and I have, to encourage the people of Iceland to vote against debt servitude for their referendum March 6 2010 - they need our support to do the right thing - which is counter to their inherent feeling of responsibility for a debt that enriched others and had nothing to do with them.  You can sign the petition without displaying your name and regardless you can make a statement of encouragement to the People of Iceland.  In a country of 300,000 their debt entanglement is symbolic of the rest of the world.]

Incidentally, tally sticks are an ingenious use of a LETS system in the Middle Ages that could not be counterfeited.  LETS systems bypass the inherent problems with fiat money systems - an unlimited amount of money can be created and destroyed as necessary without affecting the money supply as fiat does.  There is a lot of history we don't know about that is well covered in "The Lost Science of Money" by Stephen Zarlenga available here:  http://www.monetary.org/lostscienceofmoney.html

Zarlenga's proposed solution helps start the process of thinking about a solution but there isn't a silver bullet.  Reading Zarlenga's book (and The Web of Debt as a primer) gives us a platform to understand the issues more deeply.  The book is very well written and extremely interesting.  This is an essential step "down the rabbit hole" to better understand the possibilities of our world.

Cheers,

James

Johnny Oxygen's picture
Johnny Oxygen
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Re: Taking the Glitter Out of Gold-Based Currency

Thanks James

Another book to add to my weakening side table. Maybe I should quit my job so I can read more Laughing

goes211's picture
goes211
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Re: Taking the Glitter Out of Gold-Based Currency
James Wandler wrote:

Zarlenga's proposed solution helps start the process of thinking about a solution but there isn't a silver bullet.  Reading Zarlenga's book (and The Web of Debt as a primer) gives us a platform to understand the issues more deeply.  The book is very well written and extremely interesting.  This is an essential step "down the rabbit hole" to better understand the possibilities of our world.

Cheers,

James

James,

I appriciate the humility of your post but it seems to contradict your post on Thomas's "Monetary Missing Puzzle Piece" thread ( http://www.peakprosperity.com/forum/monetary-missing-puzzle-peice/35436 ) where you said

James Wandler wrote:

Goes211,

It really is as simple as Thomas, Strabes, and Larry set it out to be.

I highly recommend that you read The Lost Science of Money by Stephen Zarlenga available here.  http://www.monetary.org/lostscienceofmoney.html

Which is it?  Is it really just that simple or is there no silver bullet?

Sorry to have interupted.  You, Larry, Thomas, Strabes,  ... can now get back to complementing each others posts while the rest of us newbs can continue in ignorance.

rickets's picture
rickets
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Posts: 238
Gold/no gold - its the wrong debate

 

I find it interesting how passionate we all get on this site (and many others) re how to solve the fiat issues we have with the Fed.  But, lets assume all the proposed solutions have merit  - which they likely all do in some way.  I will say that picking between them DOESNT MATTER.  Arguing over them is fun for working the brain, but is pointless.  Here is why:

 The biggest hurdle by far is not choosing which solution is best - rather, its getting the masses behind ANY idea that stops our government from paying interest on the money it creates - whether backed by gold or not.  Its taking powers away from the banks (Fed), and giving it back to the people (government).  No matter what solution is used, as long as one is implemented - everyone involved in this debate will win.  The different results of idea 1 vs 100 will not really be meaningful.  The meaningful change is the end of govt(taxpayers) paying interest to the banks, and the end of the Fed.

So, lets say I am right, then no matter what your stance on what the best fiat solution is, if we pick any out of a hat we get close enough to the end game we all want.  Now, I am sure I am right that the biggest hurdle is getting the masses to understand and back any plan of change.  This can be really complicated stuff, so I propose we go with the easiest solution.  That solution takes as much out of the conversation as possible.  That means no gold, no Fed.  It means the treasury prints money, and the banks can loan it from them or not.  It means to the uneducated guy his dollar bill stays the same, backed by the same government.  The only thing that needs to be said on top of that is that there will be less debt, and more public services available, and less taxes.

The second you start talking about gold backing, you lose 90% of the populations interest, their eyes will glaze over, and the fight is lost.  So, even if gold is the best solution in the perfect world, we all need to step back and run with a far more likely transition.  Keep it simple stupid. 

Here is the easy conversation to the uneducated man:  There is a way to lower your taxes, reduce the deficit, and stop the banks from running the government.  It doesnt change the money you use.  Right now, private banks print the money for the US, and all we need to do is have the US treasury make that money instead.

I am sure there are even easier ways to say it...thats an off the cuff example.  But, the word fiat is not in there, the word gold, fractional banking, federal reserve....non of that matters.  We must simplify the arguement and go as simple as possible.

rant over....

Johnny Oxygen's picture
Johnny Oxygen
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Re: Taking the Glitter Out of Gold-Based Currency

OMG. I agree with Rickets.Surprised

rickets's picture
rickets
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Posts: 238
Re: Taking the Glitter Out of Gold-Based Currency

laughing - does the fact we agree indicate this is a bad idea?!?!?

 

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
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Posts: 1443
Re: Taking the Glitter Out of Gold-Based Currency

I think it may mean there is some weird cosmic alignment.

KingofthePaupers's picture
KingofthePaupers
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Posts: 7
Re: Taking the Glitter Out of Gold-Based Currency

James Wandler: "Incidentally, tally sticks are an ingenious
use of a LETS system in the Middle Ages that could not be
counterfeited. LETS systems bypass the inherent problems
with fiat money systems - an unlimited amount of money
can be created and destroyed as necessary without
affecting the money supply as fiat does. There is a lot of
history we don't know about..."
Jct: The record most successful case was in the British Isle,
Where "Tallies," sticks of money, left King Henry I with smile
Accountants in the Treasury would split the stick in two,
One half would be the money and the other half its due.
A tally worth a pound of gold to pay the King's expense,
The other half amounted to taxation that made sense.
The tax collectors through the land all had an easy way,
Since people had their tallies and enough the tax to pay.
The tallies funded projects and could pay for everything,
With tallies matching tax, a hero, Henry I, their King.
For over 700 years, the tallies were in use,
But having lost control of money now is Crown's excuse.

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