For some of our readers this may be entirely new information. If it is I encourage you to explore fiat currencies, the financialization of the economy, gold, the Federal Reserve, and the concept of honest money. You’re in for a wild ride.
Oh cash, you are dying quickly. The machine wants you dead, and when the machine wants you dead, sooner or later you’re gonna be dead.
Ron Paul calls out the Plunge Protection Team on CNBC. I don’t think I’ve ever heard it mentioned on financial television. Seriously anyway.
And boy is he right. There is an assumption that the Fed will never let stocks (and other assets) revert to real levels.
The thing is the Fed for all its power is still subject to the laws of thermodynamics, just like the rest of us. That is, even the mighty central bank will feel the sting of its hubris.
Indeed it does. Gold is a little bit of power you can put in your pocket. It is a direct and ongoing challenge to the current system of fiatism. (And by extension crony capitalism.) Central Banks can’t print gold. Gold limits the power of the Fed and its brethren. Gold limits the power of the banks which suckle at the teat of central banks. Gold limits the power of governments to indebt their peoples. Gold limits the ability of governments to wage war.
Here’s hoping the Swiss do the right thing and return to at least partial backing of the Swiss Franc by gold.
Say what you want about gold but it has held its value for thousands of years. The fiat dollar? Well let’s just say its been a steady march toward becoming trash.
If we want a high value economy, if we want high value jobs, we should have “high value” money. Sound money. Gold backed money. We should have money which can’t be eroded at the whim of our central bank.
The dotted line is where the dollar was detached from gold.
The bloom has come off Piketty’s socialist rose that’s for sure. Once the free marketeers peered into the French economist’s book, the arguments, particularly the central one, that capital snowballs forever with the rich forever getting richer, has fallen apart under scrutiny.
Basically Chrysler should be JEEP. An that’s about it. Maybe the Ram Trucks brand too. That’s all Fiat wants and it’s all the world wants.
The 0% interest rates of the past 5 years have made the wealthiest people in America and the world much wealthier. At least in (fiat) dollar terms.
Many people are mystified by the kids at the Ron Paul rallies screaming “End the Fed!”
They ask themselves, “Why should we end the Federal Reserve? The Fed helps maintain economic stability right? Every country has to have a central bank. These “End the Fed” kids are nothing but “Paulbots.” The people on CNBC and Bloomberg tell me that the Fed acts in my best interest. I think the people on Bloomberg and CNBC ought to know what’s right for me and my money.
This is what happens when the dollar is backed by “the full faith and credit of the United States” and not the barbarous relic. Nixon abandons gold in 1971 and inflation launches skyward. It’s hard to believe that for most of the history of the United States inflation was next to 0%.
“The problem is the fiat world should end as well then.” – Rick Santelli
For 35 years we have witnessed the slow disintegration of the world economic system. The 2008 Crash represented our entrance into the acute stage of this fiat driven disintegration. We may enter the critical stage in the relatively near future. The attached report from Myrmikam Capital discusses this.