Indeed it is. Central planning always fails and make no mistake in many ways our economic system is “planned.” Not in the sense that it was planned in the Soviet Union but planned and controlled by the Federal Reserve through the manipulation of interest rates. The Fed creates malinvestment by trying to juice the economy. People over invest with cheap credit on office buildings, homes, cars, infrastructure projects and so on. Then when the reality of the economy hits this juiced economic situation failure occurs broadly.
If you are “resisting capitalism” you are “resisting human progress.” You are resisting the voluntary exchange of goods and services. You are resisting opportunity for people to make a better life for themselves through hard work. You are trading that opportunity for a system which rewards the uncreative and unambitious. (And perhaps you understand this.) You are fundamentally resisting FREEDOM and LIBERTY, because “economic liberty,” the right to do what you want with that which you own, is not separate from social FREEDOM and LIBERTY.
(The was a post on Facebook from Lawrence Reed at FEE)
April 5 is yet another “day that will live in infamy.” On this date in 1933, Franklin Roosevelt signed Executive Order 6102, which criminalized the possession of monetary gold. Americans were ordered to hand over their gold coin and bullion to the government in less than a month (by May 1) under penalty of $10,000 fine and/or up to 10 years in prison, so that the government could more easily inflate the money supply.
The big guys are giving us plenty of signals. In the event the world as a whole moves to negative rates we won’t be able to say that we hadn’t been warned. We’ve been warned.
More from the War on Cash. The European front is the hot one at this moment as the European Central Bank flirts with the idea of sub-0% interest rates. I mean, because they are worried about terrorism.
Mr. Forbes’s views are his own and do not necessarily reflect the views of ACC.
Mike Gleason, Director, Money Metals Exchange: It is my great privilege to welcome Steve Forbes, Editor-in-Chief of , CEO of Forbes, Inc. to our Money Metals Exchange podcast. Steve is also author of many fabulous books,
By Clint Siegner, Money Metals Exchange
Sound money issues make for good politics these days. The leading Republican candidates have all suggested reforms to our monetary system. The topic is popping up in debates as well as interviews. Predictably, Fed worshippers and proponents of central planning everywhere are snickering and trotting out the usual responses.
Michael Hiltzik, with the Los Angeles Times,
Flat as your returns.
It is no secret that we at ACC believe there are deep systemic problems in the economy. All the current cronyism, economic obfuscation, over spending, over taxation, government intrusion, and most importantly Keynesian central bank meddling does not bode well for the future. (Though we can and must correct our ways in an historic way.)
Will 2015 be looked upon as the year the “recovery” began to completely stall? Will 2016 be worse than a stall?
Gold is real power in the hands of people. This is the main reason central banks, Marx, Lenin, Keynes and many other “planners” throughout history have hated it. The “barbarous relic.” A tool of the petty bourgeoisie. Kind of like guns in the hands of the citizenry, gold has served as a check on the excesses of those in power. Gold flows have historically impacted rates of interest. Those who would prefer to set rates of interest themselves however, find gold very inconvenient.
I was talking to a friend of mine yesterday about some of the assets below. As we were talking I remembered an adage an old metals dealer introduced to me many years ago.
“What do we do when the price of gold goes down? We buy more.”
Same goes for silver.
The dotted line indicates where the dollar was detached from gold.
One the most important things about gold as a monetary foundation is that it forces financiers and economists to deal with reality. Gold is the North Star by which economies and currencies are judged. It’s been this way for millennia, and it likely will remain the case for many years to come. But we have detached our money from gold, and reality. In 1971 Richard Nixon severed the last ties the dollar had to gold.
Peter Schiff and I diverge on some important points. For instance I don’t think he gives the Chinese economic system a hard enough time. I think he totally recognizes the crony nature of the place but I think it’s more fragile than he does.
And he’s been plenty wrong at times. (Who hasn’t been?)
In the effort to inject interesting economic thought into the discussion at ACC we present the following video by Jeff Deist recorded at the Mises Institute. This lecture will likely challenge many of your assumptions about money.
The a new front opens up for the Federal Reserve.
Also one definitely gets the sense that the recent decline in gold is looking more and more like an opportunity to put away some real wealth at relatively low cost. This is definitely on the mind of the Chinese, and perhaps the guys in 10 gallon hats.
The reason we had the Crash in 2008 was because the Fed kept rates too low for too long. In response to the tech implosion and then the 9-11 attacks Allan Greenspan and the FOMC panicked and ended up inflating a worldwide housing boom which morphed into the disaster (to put it mildly) which is the Great Recession. There’s more to it than that but that’s basically what happened.
Consider now that Ben Bernanke (and Janet Yellen) have kept interest rates much lower for even longer than Greenspan did.