“ . . . the salvation of the soul of America
depends upon the reestablishment of gold.”— The
God of Gold
"Watch you then for you know not when the Master of the House
cometh."—Mark 13:35
"But the glory has been the glory of pasteboard, and the
wealth
has been the wealth of tinsel."—Anthony Trollope
"The acronym 'FIAT' when used to describe our 'money'
is short for Financial Instrument Administering Theft."—The
Mogombo Guru
"Money is the most marketable commodity."
—an insight of the economist Ludwig von Mises
"It is dangerous to be right when
the government is wrong."—Voltaire
"With the exception only of the period of the gold standard,
practically all governments of history have used their exclusive
power to issue money
to defraud and plunder the people."—economist Fredrich
von Hayek (1899-1992)
"It would be insufficient to sum up the [Rothschild] family
as still very wealthy
. . . (their fortunes are as) ineffable as always . . . today
the family grooms
the inaudibility and invisibility of its presence, as a result,
some believe
that little is left apart from a great legend—and the Rothschilds
are quite content
to let legend be their public relations."—The Rothschilds,
Frederick Morton, 1962
"God, guns and gold are the three core values to a real American."
"You've got to know when to hold
'em;
know when to fold 'em;
know when to walk away;
know when to run."
—famous lyric of the great country western song, 'The Gambler' |
|
Origin of name: From the Anglo-Saxon word "gold" (the
origin of the symbol Au is the Latin word "aurum" meaning
"gold")
Gold was known and highly valued from earliest times. Egyption
inscriptions dating back to 2600 B.C. describe gold and gold is
mentioned several times in the Old Testament.
Gold is one of the elements which has an alchemical
symbol, (alchemy is an ancient pursuit concerned with, for instance,
the transformation of other metals into gold).
Gold is found as the free element in nature and
associated with quartz, pyrite and other minerals. Two thirds
of the world's supply comes from South Africa. Much of the USA
production is from the states South Dakota and Nevada.
Gold is found in sea water (about 5-6 g in a
million tonnes of seawater), but no effective economic process
has been designed (yet) to extract it from this source.
Gold has been the basis of many currencies over
the centuries and so for economic reasons —among others—the
possession of gold was or is restricted in some countries. Notably,
private ownership of gold (apart from as jewellery and coins)
was banned between 1933 and 1975.
Gold has been used for centuries for jewellery
and decoration. In addition to the more familiar rings, brooches,
necklaces and ear-rings, gold is used as gold leaf for decoration
and protection, screen printing (directly on to bone china, earthenware,
porcelain and glass surfaces or decals).
Gold is the key component of "liquid gold,"
preparations containing up to 12% gold ideal for decorative application
using brushes and gold pastes used for screen printing.
Gold is also well known as a coinage metal (because
of its scarcity, inertness, and decorative features) and is a
standard for monetary systems in many countries.
Apart from gold coins, gold ingots and gold bars;
gold is available in many forms including pure gold and alloys
as gold flakes, foil gauzes (meshes), grain, powders, sheet, sponges,
tubes, wires and even single gold crystals.
Recently, gold catalysts as gold supported on
carbon or metal oxides are becoming useful in the chemical industry.
Many other gold compounds including neutral gold halides (AuBr3,
etc.), aurates (K[AuBr4], etc.) gold cyanides, gold oxides, phosphine
gold complexes, gold hydroxides and gold nitrates are available
to industrial users. Chlorauric acid (HAuCl4) is used in photography
for toning the silver image.
Gold is a really useful metal for electronics
because of its inertness and its unique physical properties. Gold
is used for electrical contacts, spring contacts, bonding wire,
solder alloys, bumping wire, electroplating and sputtering targets.
Gold is also a useful brazing material. Gold
is used for coating space satellites, as it is a good IR reflector
and is inert.
Since gold is inert and possesses useful properties
when alloyed, gold is used extensively for dentistry in gold teeth,
dental attachments, inserts, and solders. Similarly, gold is used
increasingly for medical implants in eyes and ears, as well as
many other medically useful wires, tubes, sheets, and foils.
Disodium aurothiomalate is administered (intramuscular)
as a treatment for arthritis. The gold isotope 198Au is used for
treating cancer and other conditions.
Gold is used in nanotechnology applications as
colloids, conjugates, nanoparticle inks, nanoparticle solutions
and nanopowders.
Gold has been good to America. This ancient metal—the
first used by man and still prized above all others—today
plays a more vital role in the life and health of our nation than
ever before.
Gold has become essential in today's high tech
world. It ensures the proper functioning of the most sensitive
electronic instruments. In national defense. In telecommunications.
In advanced biomedical research. In many other ways that ensure
our health and safety at home, at work, on the road and in the
air.
The Pentagon specifies gold for critical instruments
that may make the difference between life and death. Gold circuitry
helped save the life of Air Force Captain Scott O'Grady when his
plane was shot from the skies over Bosnia a few years ago.
NASA specifies gold for sensitive spacecraft
instruments to ensure the safety of astronauts. Air traffic controllers
depend on gold for the flawless operation of radar equipment around
the clock.
On America's roads, hundreds of lives are saved
and thousands of serious injuries prevented each year by the gold
circuits in electronic sensors that ensure airbags operate without
fail.
Gold is used in all these technologies because
of its unmatched reliability. It is not affected by extremes of
heat, cold or damp. It does not rust, tarnish or corrode. It remains
a superior conductor of electricity under all circumstances. It
is amazingly flexible. And it is virtually indestructible.
Gold has been good to America in many other ways.
The extraction of gold from otherwise barren rock formations has
created tens of thousands of well-paid jobs, not only in the West
but in 46 other states that make the modern equipment needed to
find and extract gold more efficiently, more precisely, and with
less disturbance to the natural environment.
For every million dollars worth of gold produced,
the local economy grows by nearly $2 million and household earnings
increase over $500,000.
Gold has been especially good to our national
economy. As recently as 1980, most of our gold had to be imported.
Today, because of new technologies, we are able to produce domestically
all the gold needed for defense, communications, aviation, medical
research, computers, automobile afety and other important applications.
Gold also generates billions of dollars of income
for other industries throughout the United States. Each year,
gold production contributes hundreds of millions in state and
local taxes to fund roads, schools, hospitals, universities and
other facilities.
It also provides over $500 million a year to
the federal treasury. And it strengthens America's balance
of trade by providing over $1.5 billion a year in exports.
The development of our modern, high-tech gold
industry is an American success story. It has made our country
stronger, more independent, more competitive in the global marketplace.
And in many unseen ways, it has made life better, healthier and
safer for millions of people here and throughout the world.
Across 2,500 years, gold has retained its purchasing
power, relative to bread at least which is seemingly proved when
one considers that It is said that an ounce of gold bought 350
loaves of bread in the time of Nebuchadnezzar, king of Babylon,
who died in 562 BC, which is roughly what it buys today, a stretch
of 2,500 years, while the dollar, on the other hand, has lost
97% of its buying power since 1913, less than 100 years ago, when
the detestable Federal Reserve was given its diabolical unholy
control of the nation's banks and money by a corrupt Congress
and allowed by a corrupt Supreme Court.
The same ounce of gold still buys approximately
350 loaves of bread today. This proves to me that gold holds its
value when nothing else does, and especially against a fiat currency,
which never does, either, only a lot faster!
Patrick A. Heller at numismaster.com
writes,
"The money supply of all of the world's major currencies
is now increasing by 10-30 percent annually. With the gold supply
increasing by less than 2 percent annually, it is a virtual certainty
that all currencies will fall in value against gold" and
as bread crosses that $5 per loaf mark, and that $7 per loaf mark,
and that $10 per loaf mark, then gold will go up right along with
it!
"To this day, N.M. Rothschild &
Sons of London still lists as its primary business the selling
and buying of treasuries and gold bullion. N.M.
"Rothschild helps fix the price of
gold in London each day through the LBMA. A recent London
Times articles explained that the gold price fix ceremony
where five men (including a Rothschild) talk on their phones
for 10 minutes, then lower tiny Union Jacks sitting on their
desks, thereby fixing London's gold price each day.
"This ceremony takes place at 10:30
a.m. and 3 p.m., like clockwork, the same way, in the same
place, and with mostly the same firms participating since
the first gold fixing was enacted at Rothschild in St. Swithin's
Lane on Friday Sept. 12, 1919. The company's name is also
associated with many gold mining companies (e.g. Trillion
Resources Ltd. and other Canadian mining companies).
"Their influence extends to the Bank
of England, Bank of France and the U.S. Federal Reserve,
and possibly the IMF. They thus have enormous influence
on the world's monetary policy
"What distinguishes the Rothschilds
from other world power brokers, like Soros, is their diminutive
"presence" in the world, in spite of their untold
influence on almost every aspect of our economic existence.
Their continued bullishness on gold exhibited through their
activities in the LBMA and gold trading suggests that we
maintain our confidence in the this barbaric relic. Ultimately,
however, one must be keenly aware of the potential controlling
influence over gold which the Rothschilds and their merchant
banking brethren can exercise, and thus placing our liberty
in their hands.
"It has been said that "the
wealth of Rothschild consists of the bankruptcy of nations"
|
The Rothschilds, LBMA, and Gold
Markus Angelicus
November 21, 1997 |
|
"Thou shalt not defraud thy neighbour,
neither rob him: the wages of him
that is hired shall not abide with thee all night until the morning."—Leviticus
19:13
"You don't make the poor richer
by making the rich poorer."—Winston Churchill
“And the rest of men who were
not killed by these plagues
yet repented not of the works of their hands,
that they should not worship devils, and idols, and idols of gold,
and silver, and brass and stone, and of wood:
which neither can see, nor hear, nor walk:
Neither repented they of their murders, nor their sorceries,
nor of their fornication, nor of their thefts.”—Revelation
9:20-21
"It's the economy, stupid."—Bill
Clinton
THE HEALING POWER OF GOLD
In medieval Europe, alchemists mixed powdered
gold into drinks to "comfort sore limbs," one of the
earliest references to arthritis.
Word of gold's power to relieve the pain of arthritis
passed down through the centuries. Its mysterious efficacy has
been confirmed by modern medical research. Today it is widely
used, in combination with other compounds, in the treatment of
rheumatoid arthritis.
In ancient Rome, gold salves were used for the
treatment of skin ulcers. Today, gold leaf plays an important
role in the treatment of chronic ulcers.
As long as 4,500 years ago, the Egyptians used
gold in dentistry. Remarkable examples of the artistry of these
early orthodontists have been found, perfectly preserved, by archaeologists
of our own time.
Today, American dentists use some 13 tons of
gold each year for crowns, bridges, inlays and dentures. The reason?
Gold is non-toxic, it can be shaped easily, and it is tough—it
never wears, corrodes or tarnishes.
The use of gold in modern medicine began around
1890, when the distinguished German bacteriologist Robert Koch
discovered that compounds made with gold inhibited growth of the
bacillus that caused tuberculosis. His work was honored with the
Nobel Prize in Medicine.
Today, medical uses of gold have expanded greatly.
It is used in surgery to patch damaged blood vessels, nerves,
bones and membranes. And it is used in the treatment of several
forms of cancer. Injection of microscopic gold pellets helps retard
prostate cancer in men.
Women with ovarian cancer are treated with colloidal
gold. And gold vapor lasers help seek out and destroy cancerous
cells without harming their healthy neighbors.
Gold has become an important biomedical tool
for scientists studying why the body behaves as it does. By attaching
a molecular marker to a microscopic piece of gold, scientists
can follow its movement through the body.
And because gold is readily visible under an
electron microscope, scientists now, for the first time, can see
whether and where a reaction takes place in an individual cell.
Some researchers are placing gold on DNA to study
the hybrid genetic material in cells. Others are using it to determine
how cells respond to toxins, heat and physical stress.
Because it is biologically benign, biochemists
use gold to form compounds with proteins to create new lifesaving
drugs. One experimental new gold compound blocks virus replication
in infected cells. It is being tested for the treatment of AIDS.
Every day, surgeons use gold instruments to clear
coronary arteries, and gold-coated lasers literally give new life
to patients with once inoperable heart conditions and tumors.
Around the world, the unique qualities
of gold are helping millions of people live longer, healthier
and more productive lives. One day, it may save your life.
|
"Apathy
can be overcome by enthusiasm, and enthusiasm can be aroused
by two things: first, an idea which takes the imagination by storm;
and second,
a definite, intelligible plan for carrying that idea into action."—Arnold
Toynbee
"The collection of
taxes which are not absolutely required,
which do not beyond reasonable doubt contribute to the public
welfare,
is only a species of legalized larceny. The wise and correct course
to follow in taxation is not
to destroy those who have already secured success, but to create
conditions under which
everyone will have a better chance to be successful."—President
Calvin Coolidge (1873-1933)
|
Gold is so rare, only 90,000 tons of it have been taken from the
earth in recorded history.
Gold is so rare that the world pours more steel in an hour than
it has poured gold since the beginning of time.
South Africa leads the world in gold production. Other countries
leading world production are Russia, Canada, and the United States.
Gold is so heavy that one cubic foot of it weighs one half a ton.
A one ounce natural gold nugget is rarer than a 5 carat diamond.
Experts estimate that there are only 41,000 tons of gold left
in the earth to mine.
Gold is so malleable and soft that one ounce can be stretched
into a wire 50 miles long.
Gold is so malleable that one ounce can be hammered into a sheet
so thin it would cover 100 square feet.
Gold has lustrous beauty, it’s easily workable, it is rare,
and it is virtually indestructible - four characteristics that
no other precious metal possess.
The jewelry industry uses about 1,000 tons of gold per year and
dentistry uses 87 tons.
All the gold in the world could be compressed into an 18 yard
cube.
Gold has been used by man for more than 66 centuries, In fact,
the first nugget mined, now over 6,000 years old, probably exists
in some form today because of its durability, considering the
way gold is remelted and recast, that first nugget could be part
of a ring, watch, or gold chain that you are wearing.
|
"The firm basis
of government is justice, not pity."—Woodrow Wilson
"Ah . . . at last .
. . Marx's dream has come true.
The workers—at least those in the United Automobile Workers
union—are taking over
the means of production. Between the government and the unions,
General Motors
will be almost entirely in the hands of the sweating proletariat."—Bill
Bonner, The Daily Reckoning
EARTHLING ECONOMICS
by Edmond J. Bugos
Gold "gets dug out of the ground in
Africa, or someplace. Then we melt it down, dig another
hole, bury it again and pay people to stand around guarding
it. It has no utility. Anyone watching from Mars would be
scratching their head"—by a well known investor.
Why humans would guard something that has
no utility must have escaped notice there.
I would like to know what kind of society the Martians in
this allegory had.
I mean, under what system of social cooperation were they
able to arrive at the far superior technology required to
observe humans from way off in the distance? Do the individual
members exchange ideas, or goods? If not, how were they
able to economize on scarce resources in order to
produce their technology, or is there no such thing as scarcity
in outer space? What motivates them to act?
Are they centrally organized like a simple
ant colony or collectively motivated like the coercive Borg
in Star Trek, or is their division of labor organized by
a complex but voluntary system of the free exchange of property
titles, which here on earth forms the basis of civilized
societies?
If not, I wonder then why "anyone
watching from Mars" would not also scratch their head
about paying someone to guard this hoard, let alone of the
concept of utility, especially to an "individual"?
In fact, if such a system were so unfamiliar, what sense
could a Martian make of any human action? Maybe the philosophy
of exchange is not foreign to this observer.
If that were true, neither could a common
medium be all that foreign. In fact, if our Martian observer
knew anything of our history or of such a system of cooperation,
the reasons for the puzzling activity would be no less clear
to him than to any informed economist right here on earth.
Corruption.
But let's fast-forward the economic mumbo
jumbo and cut straight to the chase. Since we are in outer
space already, amongst superior beings, we may be forgiven
for our excursion into a little fantasy.
Imagine that we had the technological capability
to travel through time, and you signed up for an expedition
that would catapult you, say, 5,000 years into the future,
what would you choose as money to bring with you . . . assuming
that you were only allowed to choose one of the following
prospects? Keep in mind that your decision could mean the
difference between life and death!
1. Gold
2. Silver
3. Brazilian seashell necklaces
4. As much top grade Light Crude (Oil) as you can carry
5. Salt
6. Cigarettes
7. Dutch tulips
8. Cattle (or a lamb?)
9. A bottle of 5,012 year old scotch
10. Federal Reserve Note (US dollars)
11. Euros
12. Government bonds / bills d'etat
13. Chinese Remnibi
14. 1923 German Reichesmark
15. Microsoft or Apple shares, or other kind of claim on
asset
I know your answer.
You already know what the Martians apparently
do not. Aside from a few drunks and jailbirds debating the
merits between the scotch and smokes, I could bet that most
'humans' probably picked gold or silver.
The value of gold as the medium of exchange
is a topic in itself but we do not have to go there today.
We do not have to know why humans have preferred it to other
goods to know that it has outlasted any of them. What other
commodity, or currency, has survived as money for any similar
length of time?
What has held its purchasing power better?
Many of those above have been money at different times and
different places, but scarcely any of them has been money
as long as gold. Gold is one of the oldest, and it is still
accepted where it is not restricted by a state protected
legal tender monopoly.
It was first coined at least 2500 years
ago; it adorned Egyptian kings as far back as 4500 years
ago; yet suddenly, in only the last three decades, it has
apparently lost all of its utility, as if history vanished,
and barbarism with it . . . as if empire and dominion, conquest
and plunder, or any of those activities usually associated
with the history of gold no longer exist.
Indeed, for our Martian observer to be
scratching his head over this implies that he must have
only begun his observation in the last thirty years, and
is totally ignorant about the 4500 years of human history
before 1975. I would say that is out of line with most Alien
accounts, especially since widespread sightings of UFO's
date long before 1975.
Gold has a monetary value, which can only
mean something that is attributed by a market.
The state can say something is money but
the concept of value being attached to something implies
the market has a say. Allow me to contend that what this
Martian observer puzzles over as a waste of resources is
not the "utility" of the metal, or the question
of why we bother mining it.
If he only started with this utility as
a given, implied by the act of guarding it, and wrote it
off to some human affinity or other, what would really puzzle
him is the same thing that should puzzle you: that the state
would go to so great an expense to withhold such a desired
thing from freely circulating. Indeed, the costs do not
end with the remuneration of the security guards at Fort
Knox, or wherever. They only start there.
Truth may not need the support of government,
but fiat and fractional reserve bank notes do.
It takes additional resources to force
individuals to accept something as money which is not by
choice; and if the integrity of this money is subject to
the inflationary whims of a fractional reserve banking cartel,
the costs can quickly pile up.
Genuine savings are depleted, debased or
frittered away . . . the control over the means of production
compromised, inefficiencies burgeon, inhibiting progress
and technological innovation, and instability reigns.
Moreover, the policy undermines both the
moral fabric of society and its adhesive force: the division
of labor. Why would humans, as an observer who was not foreign
to human history might astutely question, allow such self-defeating
and costly institutions?
This, at least, is what puzzles me.
The answer is ignorance . . . induced by
a misinformation campaign that is costly in itself.
The value of a sound money is that it prevents planners
from redistributing the wealth and savings of the productive
classes to the political classes in order to finance expensive
unproductive agendas, or from depleting the savings of fixed
income earners, or the wages of the poor . . . as Greenspan
wrote many years before becoming a central banker:
"In the absence of the gold standard,
there is no way to protect savings from confiscation through
inflation" (published by Ayn Rand in 1966).
Alas, the Martian observer can no longer
be confused about either the utility of this metal or the
reason that it is being guarded (rather than allowed to
circulate). Its absence from circulation has been answered:
it is part of a scheme to raid the savings of productive
classes.
The utility of this metal should thus be
clear: it restricts the coercive elements of society and
protects savings; it is but an instrument of the sound money
principle . . . and it is interchangeable with the idea
of freedom.
There is no way to understand the utility
of gold—or to make sense of the entire activity described
in the quote—if one does not grasp history, or these
ideas.
Comedian Jerry Seinfeld, who specializes
in irony, perhaps reveals the fallacy best when lamenting
that if Martians were watching (human) dog owners follow
their pets around with a doggy bag, they would probably
think that the dogs were in charge. Just what you need .
. . another head scratcher.
|
|
Consider the financial reporter B.C. Forbes's account:
"Picture a party of the nation's greatest bankers
stealing out of New York on a private railroad car
under cover of darkness, stealthily hieing hundreds
of miles South, embarking on a mysterious launch,
sneaking onto an island deserted by all but a few
servants, living there a full week under such rigid
secrecy that the names of not one of them was once
mentioned lest the servants learn the identity and
disclose to the world this strangest, most secret
expedition in the history of American finance."
According to this scenario, the
banking houses of 3. P. Morgan and of Kuhn, Loeb and
Company —in concert with the Rockefeller 'Standard
Oil group' at National City Bank—bought influence
in Congress and invested in the career of Presidential
hopeful Woodrow Wilson in order to secure legislation
favorable to their conspiratorial designs. The details
of this plot, which resulted in the Federal Reserve
System and thereby delivered control of the Nation's
money into the hands of the conspirators, allegedly
were hatched at the Jekyll Island ultra-secret meeting.
The chief figures at this clandestine
gathering were: Senator Nelson Aldrich (Nelson Rockefeller's
namesake), who was then the head of the National Monetary
Commission; Frank Vanderlip, president of the National
City Bank of New York; Henry P Davison, senior partner
of J. P Morgan Company; Charles D. Norton, president
of the First National Bank of New York; Paul Warburg
of Kuhn, Loeb and Company (he was the principal author
of the draft of the Federal Reserve bill); and Col.
Edward Mandel House (he would become President Woodrow
Wilson's closest advisor, even though without official
title).
Especially sinister implications
are often drawn in conspiracy literature from the
biographies of two of the participants. Paul Warburg,
a Jew who emigrated to the United States from Germany
in 1904, was the brother of Felix Warburg, also of
Kuhn, Loeb, and of the international bankers Max and
Fritz Warburg of Germany. Col. House, on the other
hand, was a Texan "connected" to the London
banking establishment by virtue of his father's Civil
War exploits as a blockade runner for the Confederacy.
But his greater notoriety derived from a novel he
had written the year before Wilson was elected President.
That novel, titled Philip Dru, Administrator,
ostensibly endorsed 'a detailed plan for the future
government of the United States' which 'would establish
Socialism as dreamed by Karl Marx.' In conspiracy
literature, these men are condemned on the basis of
these relationships. Admittedly, the relationships
provided opportunity for scheming, but 'nonbelievers'
are not likely to be persuaded by such circumstantial
evidence.
The Jekyll Island meeting was indeed
convened in secret, but it did not remain a secret
for long. And although the imagery of the supposed
intrigues on Jekyll Island may be fully consistent
with what would be expected of powerful personalities,
there is no verifiable evidence that any activities
at that meeting constituted conspiracy or fraud. Unquestionably,
a draft of legislation—or at least the broad
outlines—for a U.S. central bank was drawn there;
participants in the meeting subsequently acknowledged
and celebrated their "achievement."
For example, Frank Vanderlip recalled
in his autobiography, "Our secret expedition
to Jekyll Island was the occasion of the actual conception
of what eventually became the Federal Reserve System.
The essential points . . . were all contained in the
Federal Reserve Act as it was passed."
There was and is nothing illegal
about collaboration of this type—that is, collaboration
among interested parties. Allegations that "much
of the influence exerted to get the Federal Reserve
Act passed was done behind the scenes, principally
by two shadowy, non-elected persons: The German immigrant,
Paul Warburg, and Colonel Edward Mandel House of Texas"
describe the way the American legislative process
often has worked. Somebody behind the scenes initiates
an idea or a working draft that subsequently is publicly
debated, revised, and either rejected or adopted.
Continued
|
"The Return of the Gold Standard After
36 Years"
September 25, 2008. By Professor Antal E. Fekete,
Intermountain Institute for Science and Applied
Mathematics
"Four legs good, two legs
better!
"Animal Farm could just
as well be a parody of the regime of irredeemable
currency. The pigs have overthrown the gold
standard. They started to mimic its operation,
prodded by the chief of pigs, Alan Greenspan.
Their revolutionary slogan later gave way to
a new one: "four legs good, two legs better!",
when the pigs tried to walk on their hind legs
instead of all four, to the endless amusement
of the other four-legged creatures on the farm.
Unfortunately for them, their new manner of
walking could not help the fact that they remained
just as pig-headed and ham-handed as ever.
"Kill the Constitution
to make it a 'living document'
"The role of gold in the monetary system
is anchored in the U.S. Constitution. The Founding
Fathers were no fools. They knew exactly what
they were talking about when they insisted on
a blanket denial of power for the government
to monetize its own debt, or any debt for that
matter. They knew perfectly well that a metallic
monetary standard is the only effective prophylactic
that can deny that power. The fact that the
U.S. government never considered proposing an
amendment to the Constitution to legalize fiat
money is a telltale.
"Policy-makers could not
muster the necessary moral courage to face counter-arguments
in an open debate. Irredeemable currency has
no integrity: the issuer is given privileges
with no countervailing responsibilities. He
is granted unlimited power in a republic based
on the principle of limited and enumerated powers.
The principle of checks and balances is thrown
to the winds. These features are all alien to
the spirit of the Constitution, not just to
its letter. Rather than facing a public debate,
the government prefers to live with the odium
that it is the destroyer of the Constitution.
" . . . To expect that
the gold standard can be destroyed with impunity
is a pipedream. The Establishment will never
admit that the present monetary and financial
crisis is a gold crisis, or that the day of
reckoning has dawned. It will find any number
of ad hoc explanations, such as too little
regulation, too relaxed lending standards, naked
short selling of financial stocks, etc., etc.
"The big picture is blackened
out. For this reason, it is necessary to state
the cause-effect nexus between ousting gold
from the monetary system and the credit collapse
that is now unfolding before our eyes, after
a 36-year lag, in the clearest possible terms.
"Gold has the same role
to play in the monetary system as the fly-wheel
regulator does in an engine, the brake does
in a train, and circuit-breakers do in an electrical
network. Gold is the regulator of the quantity
of debt in the economy that can be safely created
and carried. It is also safeguarding quality
by rejecting toxic debt before it can start
metastasis.
"Debt-based currency utterly lacks safeguards
limiting quantity and vouching for quality of
debt. Debt-based currency is an invitation to
disaster, that of the toppling of the Tower
of Babel. Its effects are far from being instantaneous.
There is a threshold and there is a critical
mass involved.
"We have long since crossed that threshold
and passed that critical mass. By no rational
calculus can the outstanding debt be expected
to be repaid without inflationary or deflationary
adventures, even if further increase were stopped
dead in its track. The discussion of the present
financial crisis by academia and media avoids
all reference to this fact. Under the gold standard
a fast-breeder of debt was unthinkable, and
debt was retired in an orderly manner. ...
"Under the gold standard
interest and foreign exchange rates were so
stable that there was no bond speculation—for
lack of volatility would make it unprofitable.
There was no Debt Tower of Babel to threaten
with burying the economy underneath. Under the
gold standard there were no credit-default
swaps. There was no need for them.
"Barbarous relic or accounting
tool?
"The gold standard has
been called a 'barbarous relic.' However, the
unpleasant truth, one that government propagandists
have 'forgotten' to consider, is that the gold
standard is merely a tool for sound accounting
and, yes, for sound moral principles. Book-keeping
under the regime of irredeemable currency is
an exercise in prestidigitation. The gold standard
is the only conceivable early warning system
to indicate erosion of capital. It was not the
gold standard per se that politicians and adventurers
wanted to overthrow.
" Above all, they
wanted to get rid of certain accounting and
moral principles, especially those applicable
to banking, that had become a fetter upon their
ambition for aggrandizement and perpetuation
of power. Historically, sound accounting and
moral principles had been singled out for
discard before the gold standard was given the
coup de grâce. Just how monetization of
debt has led to unprecedented and previously
unthinkable corruption of accounting and moral
standards, this is a question that has never
been addressed by impartial scholarship before."
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