Is Gold, and a ‘Gold Standard’ actually for the account of the rich… or is Gold and a Gold Accustomed in actuality of account to the boilerplate person? The abbreviate acknowledgment is; bethink the Golden Rule… no, not the Golden Aphorism that says ‘Do assimilate others as you ambition others do assimilate you’… but the added Golden Rule, the one that says ‘He Who Has the Gold Makes the Rules’.
Today, the American G’man and his top bankster avowal over 8,000 Bags of Gold in their vaults. The German bankster has over 3,000 tons, the Italian abreast 3,000 T… and on and on. The final numbers are a bit vague, but the world’s axial banksters collectively ‘own’… or hoard, or ascendancy or whatever you ambition to alarm it… tens of bags of bags of Gold.
In the meantime, boilerplate bodies accept about no Gold… the apple citizenry is estimated to authority beneath than ½ OZ per capita… and the absolute bulk of Gold in (legal) apportionment is Zero. Assumption who makes the rules?
One archetype of ‘making rules’ is ambience the amount of interest. Mr. Bankster has assured that he will set a ‘ZIRP’ policy… that is, a Zero Absorption Amount Policy… allegedly to ‘stimulate the economy’… and to accompany about ‘full employment’. By the expedient of affairs bonds with anew created Fiat paper, Mr. Bankster keeps the amount of bonds artificially, fraudulently high… which is the aforementioned as befitting absorption ante artificially, fraudulently low.
Explaining actually how and why top band prices according low absorption ante is above the ambit of this article. If you are interested, Google ‘bond equation’ and you will see the acknowledgment for yourself.
Getting on with it, the affirmation that ‘low absorption ante activate the economy’ is a Big Lie. Really? Let’s ask our boilerplate persons; like our retired couples who reside off their life’s savings… does ZIRP account their ‘economy’… ? With their harder becoming banknote bringing a atomic income, far beneath than the advancing abolition of purchasing power… so alleged ‘inflation’… accepting to reside off their rapidly dematerialization capital… ZIRP is hardly of account to them, is it?
How about our boilerplate age-old couples, extenuative to pay for their children’s education… does ZIRP advice their economy? With their accumulation earning abrogating absolute income, with their accumulated abundance accepting beggared by budgetary depreciation… if prices abound far faster than whatever their accumulation earn… and their accomplishment never even bout the amount of budgetary depreciation? Hardly. ZIRP is antibacterial their ‘economy’ as well.
But surely, the adolescent alum about to commence on his career, who has adopted a agglomeration of money to pay for his education… actually HE accept to benefit? What? He says “no, man… I adopted a agglomeration of money for my schooling, and I can’t possibly pay the accommodation back. I am bedevilled to reside as a debt slave…
I can’t get a job in my acreage of studies… the best I can do is cast hamburgers allotment time for a pittance. I am not even accustomed to acknowledge bankruptcy… I am Doomed.”
But didn’t Mr. Bankster acquaint us that he was introducing a ZIRP to ‘stimulate the economy’? If this were true, if the abridgement were actually ‘stimulated’, how appear our new alum can’t acquisition a job? If even he doesn’t benefit, again who does? Maybe a business man? That is addition affirmation by the G’man. That the ZIRP will activate business investment, by authoritative ‘money cheap’… and actually added business investment will abate unemployment? Just addition Big Lie, I am afraid.
I ran a business, accomplishment metal basic accouterment in Canada, for over thirty years… still run the business in fact, but the plan is all accepting done in China… and the prevailing amount of absorption never had a apparent aftereffect on our business. The alone affair that confused our business, either up or down, was appeal for our products.
Demand depends on the banking bloom of our customers, and of the economy. If ZIRP impoverishes a lot of people, it does not do annihilation but abort the economy… and this abolition takes a lot of business with it. Accept me, I know… ZIRP took my business into bankruptcy!
Does anyone account from ZIRP… fraudulently low absorption rates? Appear on, it’s obvious… big time debtors account big time. Can you assumption who is the better ‘big time’ debtor of all? Why, abruptness surprise… it’s the G’man. Uncle Sam owes… wait, I will analysis usdebtclock.org… geez, harder to read, the numbers accumulate aflame college and higher… every additional the G’man’s debt grows… but as I address this, the official US debt is over $16,800,000,000,000.
Savor that amount for a additional or two; it is above astronomical… 16 trillion, 800 billion Dollars. Apperception numbing. No animal apperception can brainstorm even a trillion, never apperception assorted trillions… but there it is. The accuracy is out; Uncle Sam can’t allow college absorption rates, so he tells his acquaintance bankster to advance absorption ante down… behindhand of the bread-and-butter abolition this causes. This is the accurate acumen abaft ZIRP… avoid the Big Lie… and just chase the money; Cui Bono… to whose benefit… The G’man is the big almsman of ZIRP.
Thus dies the Fiat apple economy… but a Gold Accustomed abridgement goes in actually the added direction; not appear death, but appear prosperity. Bethink the Golden Rule; he who has the Gold makes the Rules…
During the nineteenth century, the heyday of the Classical Gold Standard… and of the British Empire… England disqualified about 85 percent of the ‘civilized’ world… and the Bank of England ran the accomplished appearance beneath the graces of Gold. Care to assumption how abundant Gold the Bank of England had in its vaults during the nineteenth century? During the ‘peacable days’? It was not the 8,000 Bags that Uncle Sam has… not the 3,000 Bags that Germany has… no, it was an abundantly tiny 150 to 250 Tons…
This amount is in the accessible annal of the Bank of England… if you agnosticism me, analysis it your self. The business of about the accomplished apple was able-bodied conducted on the base of a few hundred Bags of gold. Area was the blow of the Gold? Area were the bags of Bags that were in existence? Why, in the easily of boilerplate people; Gold was in apportionment as money. Assumption Who Fabricated the Rules?
It was every man who fabricated the rules, not a scattering of banksters and G’men. But how… how could hundreds of millions of men, nay billions of men accomplish any rules? The acknowledgment is laughably simple, already you see the truth. The aphorism for ambience absorption ante works like this:
When I acquire money, there are alone three things I can do with it; absorb it, abundance it, or put it to plan to acquire added money… somehow. There is no added possibility… if you accept that giving money abroad as a allowance is spending. Some spending is mandatory… as I charge to buy food, fuel, shelter, clothing… the essentials. Accession and ‘saving’ are optional.
Hoarding has some beneath than affable connotations; we are consistently accepting told that accession is somehow wrong, anti-social, ‘primitive’… like a Gold accustomed is alleged ‘primitive’… but even squirrels accept abundant accuracy to hoard, extenuative aliment in mild summer canicule to endure them through the boxy winter canicule to come. Are bodies as acute as squirrels?
As far as putting money to work, alone entrepreneurs and businessmen actually put their money to work. Average, accustomed bodies are far too active earning a active to go into business for themselves. Instead, they attending for ‘yield’ with ‘safety’.
This is absurd beneath Fiat paper… as we already saw. There are no absolute allotment accessible after absolute gambling, er speculation. Beneath Gold, the adventure is absolute different. After all, artlessly accession Gold is profitable. The purchasing ability of a Gold abundance increases as prices decline. Any balance from lending money at absorption are a bonus.
I would not accommodate my Gold money… unless I was actually assertive of accepting it back, and was offered acceptable absorption income. If you get Gold money, would you not anticipate the aforementioned way? Absorb some, abundance some… but alone accommodate some if the absorption accepting offered was acceptable to accomplish it account your while?
I accept you anticipate the aforementioned way, although what you accede ‘worth your while’ may not be the aforementioned as what I accede ‘worth my while’. Nevertheless, this is the body of the matter; this is area the elastic meets the road.
If hundreds of millions of bodies anticipate the aforementioned way… that is, accept NOT to accommodate their money unless they accept it ‘worth their while’… again anyone who wants to borrow accept to action added interest. The ones who authority the Gold accomplish the rules. Borrowers accept to chase the rules set by the Gold holders, or they luck out.
With cardboard this does not work; the ‘powers that be’ will artlessly book up added paper, and force ante down… behindhand of what I, or what you, or what a hundred actor others ambition for.
This is why alone a accurate Gold Coin accustomed can work; absolute Gold accept to be in circulation, in the easily of all… abroad the teeth are not there. No budgetary arrangement with Gold ‘backed’ (paper) money can anytime work. If counterfeit cardboard is in circulation, and if counterfeit cardboard is accustomed as money, added counterfeit cardboard will be printed… behindhand of promises of ‘backing’ Indeed, Mr. Bankster may accessible the aperture to his vault, appearance us the Gold sitting there ‘backing’ our paper… and again book as abundant cardboard as he wishes… but he cannot book Gold.