“Central bankers are in the business of currency manipulation!”
James Grant, editor of Grant’s Interest Rate Observer, told CNBC Thursday.
Aside from reminding people of sordid details they’d sooner forget, mainstream news organs incrementally approach the truth like a bomb diffuser with a death wish but these theatrical duds no longer give a bang for a buck. The sting in the tail from daily fables merely reminds us of just how powerless our supposedly representative society leaves one and all. And since our fate is tied to lumps of rare dirt we seldom if ever see, we fully deserve to reap what we sow for not holding anyone in power to account!
Recent upward fluctuations in the gold market and calls for gold-backed fiat currency are less a symptom of what ails us than a confirmed diagnosis of rampant malignancy at the insolvent banks. Their boom-bust cycles and servile governments, yes, they do own them, accommodate the leverage of our fate against a Newz backdrop of crisis met and heroically averted in 24-hour cycles, yet the very idea that a country shouldn’t obligate itself past it’s ability to repay seems repugnant in the extreme to the politicos of planet earth. They firmly believe punitive 1-World Government is here, right now!
“Ten percent of the purchasing power of your entire life’s savings, and all of your pensions and all other non-real-goods investments, has been wiped out in one week due to government incompetence in its monopoly control of money, the lifeblood of civilization.
For nearly 200 years, £4 equaled an ounce of gold. And then this value was inflated away in four main bursts. The first paid for the deaths of millions in World War I, when the pound was “temporarily” debased from gold; the second was achieved after 1931, when the sterling link to gold was eventually broken; the third occurred in 1971, when the pound was based on the paper dollar, itself newly removed from a gold foundation; and the fourth began in 2008, to cover up the monumental failures of Gordon Brown.”
For sheer amusement value, we hope you will click through to these links and then consider how many have-nots we will have with us should the physical posession of precious metals become the norm. Apart from it’s natural scarcity, gold will only ever be available at any rate to those with enough fiat notes to enact a transaction, leaving the greater multitude as needy paupers. It’s not easy to digest, it’s planned that way.
All kidding aside, it’s happening by administrative means! Dig out your passport from any plantation (country) and have a look at the top left section under the word ‘TYPE’. If that letter below isn’t a ‘P’, then you’re special, just like mother said. In keeping with our thesis that modern society was formulated in the 19th century, with a view to rob all of humanity by the 21st, RMI is compelled to pan a future gold-backed central bank scenario in it’s entirety. The looming public pensions wipeouts will put paid to all that!
Jesús Huerta de Soto, author of the thought-provoking book on economics ‘Money, Bank Credit and Economic Cycles’ and Professor of Political Economy at Rey Juan Carlos University, Madrid.
“all the problems we are suffering today began with something that happened on July 19th, 1844. In that date, in that fateful day, Peel’s Bank Act was enacted in England. And Peel’s Bank Act was a very important step forward in the right direction, because Robert Peel realised that all the problems England was suffering before 1844 – I’m meaning all the economic problems of bubble bursts, bubbles, financial crisis, and economic recessions England was suffering before those days ‑ were the result of a single fact, that they saw that bankers were issuing certificates of deposits of money in a greater amount than the true money that was deposited in the banks. In those days, the world money was gold. And bankers realised that when the gold was deposited in their vaults, it was either for a long period of time, their vaults, so they were tempted to begin to issue a greater amount of certificates of deposit than the true amount of gold originally deposited in their vaults.
“Of course, these certificates of deposits were paper bills. I cordially disagree with James Turk. Those paper bills are not credit titles against anybody. They are just certificates of deposits, certificates of demand deposit. So, they act, as Mises called them, pure money substitutes. In the same way that people have a 100‑percent confidence of banks, everybody was using these paper bank notes as if they were gold in their economic transactions.
Of course, the temptation for the bankers was huge. Why not issue a greater amount of paper bank notes, of certificates of deposits? This is what, in fact, they began to do, since the creation of the Bank of Stockholm at the beginning of the 17th century, when they began to develop the business of creating banknotes, paper bank bills, in a greater amount than the gold originally deposited in their vaults.
……….this legislation was a huge failure. Why it was a huge failure? Very easy. It’s very easy to understand. Because the legislation did forget to require exactly the same, the 100‑percent reserve requirement, not only for deposits, which was what was established in the law, but also to the deposits of gold, but also to demand deposits. That’s a very important point. From then on, from Peel’s Bank Act, it was forbidden to print more paper banknotes than the world originally deposited. But, the legislation forgot to require the same for demand deposits.
Why the legislation forgot to demand this 100‑percent requirement for demand deposits? Just for one reason. In those days, in the first third of the 19th century, economic theoreticians did forget something that was discovered 300 years earlier by the scholastics of the School of Salamanca. The scholastics of the School of Salamanca, in the 16th century, already discovered that demand deposits in a bank do behave exactly the same way as banknotes, are part of the monetary supply, exactly the same way as paper bills. They called it “chirographis pecuniarium” in Latin, which means, in English, “pecuniarium,” money, “chirographis.” Written money.”