We need a gold
standard. For those (newer) readers who don’t understand why this is so,
the explanation couldn’t be simpler. Among other virtues, a gold standard
performs two, essential functions. It prevents (corrupt) governments from
drowning us in debt. It prevents (criminal) central banks from stealing all
of our wealth, via the “inflation” they create with their excessive
money-printing.
It is these noble properties which earned the gold
standard its scornful nickname, from history’s most-infamous gold-hater, John
Maynard Keynes. The great Charlatan Economist called the gold standard “the
Golden Handcuffs”. A gold standard handcuffs corrupt governments,
forcing them to operate somewhere near a balanced budget, at all times. A
gold standard handcuffs criminal central banks, restraining the speed
with which they steal-by-inflation to a near-zero rate.
For those readers who don’t accept the assertion of this
writer, and who don’t trust the words of Charlatan Keynes, we have a more
contemporary and even more-infamous authority here.
In the absence of a gold standard, there is no way to
protect savings from confiscation [i.e. theft] through
inflation.
- Alan
Greenspan , 1966
No way to protect ourselves. The language is unequivocal.
This warning was uttered well before Greenspan himself became a servant of
the banking Crime
Syndicate , and the world’s foremost Inflation Thief. We either have a
gold standard, or we are permanently vulnerable to the systemic, monetary
crimes by the fraud-factories
which call themselves “central banks”. Pretty simple.
Another of the great truths in our societies is what that
when we have a crying need for some change in public policy, there will be no
shortage of politicians who pledge such changes – and then break their
word. Generally, we have no way of easily separating the Posers who promise
reforms (like the cynical liar, Barack “Change” Obama) from the tiny minority
of politicians with the integrity to carry out such reforms.
However, in the case of a gold standard, there is a very
straightforward “test” to separate the Posers from the serious advocates.
This brings us to the subject of Debt
Jubilee .
For those (newer) readers who are not familiar with
either the definition or the concept behind this term, a brief historical
synopsis is required. Going back to literally Biblical times, one of the
constants of human government is that sooner or later (usually sooner) ruling
regimes end up drowning their populations in debt. Once this occurs, that
society/economy is faced with one of two alternatives.
The economy can continue to wallow in their unpayable
debts, i.e. Debt
Slavery . All of the productive efforts of the Workers of that society
are consumed paying “interest” to the banker
oligarchs who hold all of the IOU’s. Obviously this is unjust, corrupt,
and simply economically insane. There could never be a rational justification
for choosing Debt Slavery.
There is, literally, only one alternative to Debt
Slavery: Debt Jubilee. A “jubilee” is the complete renunciation of all debts.
Any/all debt instruments become null-and-void. Debt Slavery is abolished. The
Workers are allowed to retain the fruits of their labours, and use
their productive efforts to build and improve their societies – rather than
simply fattening financial Criminals.
The policy of Debt Jubilee is completely straightforward.
The economic justifications for such a policy are absolutely indisputable.
There is only one element of uncertainty in this economic equation: when has
an economy reached a level of indebtedness where Debt Jubilee becomes a
mandatory policy decision?
There is no precise formula here, but there is certainly
general agreement. Throughout the modern history of our economies, it has
been universally acknowledged ( until the present) that when any
nation’s debt-load exceeds 100% of GDP that no other alternatives remain.
Once an economy is saturated with this magnitude of debt, it is never
possible to reduce (let alone retire) such debts.
A debt-spiral has begun. From that point onward, the only
mathematical/economic possibility is ever-worsening indebtedness, and
ever-larger interest payments on these unpayable debts, the precise
definition of Debt
Slavery . Throughout virtually the entire Western world, we are now well
past this point-of-no-return.
These economies are not “slightly insolvent”, they are bankrupt.
During last year’s “Greek
crisis” , Greece’s government spent six months begging to be allowed to
declare bankruptcy. The banking Crime Syndicate which holds these debts
refused to allow this, via their lackeys at the ECB. Ultimately, Greece’s
bankrupt economy was force-fed large amounts of additional debt – piling more
debt onto a bankrupt debtor. Increasing Greece’s Debt Slavery. Pure
criminality.
This brings us back to the gold standard. As previously
explained, a gold standard can prevent irresponsible regimes from drowning
their nation in debt. What a gold standard cannot do is to erase the (fraudulent)
debts which have been incurred by previous, corrupt regimes.
By definition, a gold standard involves “backing” the
monetary system of a particular economy with gold, via backing that nation’s
currency with gold. Obviously, such backing must also include all of the
debts which are denominated in that nation’s currency . It is here
where we encounter a simple, yet fundamental premise of arithmetic.
No insolvent economy can “back” their economy with
gold.
This should be completely self-evident, yet it is
apparently beyond the comprehension of the charlatan economists. When these
frauds consider the gold standard, what we hear continuous from these vacuous
mouthpieces is that “there is not enough gold” for a gold standard.
What the charlatans actually meant, if they were capable
of expressing themselves coherently, is that our debts are too large
for any of these insolvent economies to actually “back” their currencies (and
economies) with gold. And this brings us to the connection between a gold
standard and Debt Jubilee – in an era of Western insolvency.
It is absolutely mathematically and economically
impossible for any of these corrupt regimes to implement a gold standard
until after they have declared Debt Jubilee . Even the Charlatans have
acknowledged this, they are just incapable of doing so in an intelligible
manner. In turn, this brings us back to the Poser politicians, and the
intellectually bankrupt “economic advisors” who shill on their behalf, via
this headline:
Trump Advisor calls for Gold Standard: “Money that
transcends borders and time”
Isn’t that special? Donald Trump and the charlatan
economist who speaks on his behalf supposedly want a gold standard. Read
through the happy-talk which follows this headline, and two words will be
notably absent: Debt Jubilee.
Donald Trump and this “economist” (supposedly) want the
United States to go back to having Honest Money. The problem? There is
absolutely not one word from these Posers about transforming the U.S. into an
Honest Economy, i.e. one that either pays its bills, or openly
renounces those bills as being unpayable (Debt Jubilee).
It is obviously mathematically impossible for any Western
economy to return to a gold standard without first declaring Debt Jubilee. To
have Honest Money, one must begin with an Honest Economy.
Posers like Trump (and others) want to “have their cake,
and eat it too.” They want to talk about bringing Honest Money (and
the Golden Handcuffs) back to our nations, while notably omitting any mention
of the necessary precondition before this could ever happen – Debt
Jubilee.
This test to separate the Posers from serious advocates
of a gold standard is absolute. If someone touts a gold standard without
first acknowledging the necessity that Debt Jubilee precede this change,
there are only two possibilities. The individual in question is lying about
their intent to implement a gold standard, or they simply lack the economic
sophistication to even understand the dynamics which are involved. Either
way, such individuals are unequivocal posers.
How many writers, politicians, and charlatan economists
are talking about a gold standard? Lots. How many are informing people
that we must have Debt Jubilee before we could ever move to an Honest
Money monetary system? Just this writer.
We absolutely require a gold standard. We absolutely
require Debt Jubilee. As a matter of the simplest arithmetic, it is totally
impossible for us to ever have the former until after we have the
latter. Ignore the Posers. They are not serious individuals.
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Jeff Nielson is co-founder and managing partner of Bullion Bulls
Canada; a website which provides precious metals commentary, economic
analysis, and mining information to readers and investors. Jeff originally
came to the precious metals sector as an investor around the middle of last
decade, but with a background in economics and law, he soon decided this
was where he wanted to make the focus of his career. His website is www.bullionbullscanada.com.
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The views and opinions expressed in this material are those of the author
as of the publication date, are subject to change and may not necessarily
reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the
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results from its use.