I wrote this 6 years ago for The Liberty and Economics Review. My first website of any consequence. I thought our readers might enjoy reading it.
At the time we were just barely considering climbing out of the depths of the Great Recession and we were seeing a solid (though brief) bit of price inflation. This price inflation was hammered later however by the massive move down in oil prices as OPEC and the US frackers went toe to toe and drove the price of fuel down.
“So…Remember when I gave you that Medal of Freedom?…”
I think they were meeting to discuss how they could better help the new president in his efforts. But maybe not.
You think you’re punk rock? You’re not punk rock until you understand why gold is the revolutionary substance it is.
Federal Reserve “independence” is a convenient untruth for the Fed and for many in the Washington political class. The Fed is absolutely influenced by politics. This is evident even to the fairly casual observer.
(From The Dallas News)
Carnegie Mellon University’s Allan Meltzer, a distinguished monetary economist, had this to say about Fed policy during the crisis: “Under Mr. Bernanke, the Fed has sacrificed its independence and become the monetary arm of the Treasury.”…
…Bernanke’s Fed seemed to care just as much about the health of prestigious financial houses as the state of the economy.
Gold and the “poor man’s gold,” silver, are liberators and fundamentally challenge the current central bank system of debt and debt servitude.
The metals should be treated as what they are, a form of money. As such they should not be taxed.
One of the common counters to the call for sound money (a real gold standard) is the quip; “What’s the real golden rule? Whoever has the gold makes the rules.” And then some silly half baked mix of Keynesianism and Marxism usually follows along with whatever the commentor picked up in their Econ 102 course years ago.
But the truth is gold rewards thrift (which many of the ruling economists despise, they want you to spend at all costs) and hard work.
The war on cash is a war on anonymity. Cash transactions are private and discreet. Electronic transactions are recorded and can be sifted through for all sorts of things.
Central planners hate cash. It puts power in the hands of the awful, terrible, ignorant consumers, and limits the power of the bankers and their allies in government.
We’ve already heard quite a lot about the War on Cash this year. The opening salvos have been volleyed.
It is because of things like “Investor-state dispute settlement” (ISDS) legal code that in theory and often in practice (mostly elsewhere) can overrule the laws and judicial decisions of sovereign states that has brought together many libertarians and “liberals” on the Trans Pacific Partnership.Though originally constructed to be used in rare instances of nationalization of assets or shakedowns from 3rd world governments, ISDS has reportedly become a monster.
ISDS legal code was written into NAFTA and is also in the proposed TPP according to BuzzFeed News.
Of course even when Nixon completely detached the dollar from gold we had a very very modified gold standard. But at least there was some tie to reality.
Now we live in an almost completely fiat system, though it can be argued – well – that oil is the de facto backer of US currency these days, the so called petrodollar. (Though some do not buy this argument.) Regardless we live in a highly financialized world with lots and lots of cheap money floating around.
So these younger people pay payroll taxes which then are funneled via Social Security to their parents who then funnel it back to their kids. This makes sense.
This is a great explanation of why gold is money and it comes from all places – NPR. Hey, sometimes they get things right. Nice job here.
The answer to the question is – no. However Japan is going to go the long route before it gets to this answer.