This page has been archived and commenting is disabled.
Fans of Central Banking Have an Achilles Heel
by Keith Weiner
Most of my writing about the gold standard is about how it works, and how the paper dollar standard doesn’t. A casual conversation I had with someone recently underscored that there is an even stronger argument.
Our opponents, those who support central banking and irredeemable paper money, have to make two cases. One is to defend the theory and practice of central banking, that central bankers are wise and honest and that their debt-based paper money works. They have to argue that the dollar does everything you want money to do, such as hold its value, enable proper accounting, encourage savings, support a stable economy, etc. Well, they can go through the motions and fool the ignorant.
The other is that they have to defend the use of force against innocent people.
Central planners constantly run into the problem that people are not willing cogs. We don’t want to be jammed into the machine where directed. The central planners never have our best interest at heart. Quite the contrary, they seek to sacrifice our property, liberty, goals, and well-being. Supposedly it serves some sort of public good, though it’s never the good of any particular member of the public.
Anyways, no one ever goes along voluntarily. Central planners have to pass laws, in order to do whatever good to us that they feel needs doing. Safely backed by the law, they need not worry about our petty little concerns. They can force the unwilling to obey, under threat of loss of property, liberty, and ultimately life.
If you don’t agree with this, think about what will happen if you refuse to pay your taxes. It may take a few years, but sooner or later, armed agents of the government will come to arrest you. If you don’t want to be arrested, they will force you into handcuffs. If you are able to fight that off, at some point they will shoot you dead.
In the case of irredeemable paper money, there are several ways that the government forces people to use it. One is the capital gains tax on gold. Another is the legal tender law. There are others.
The economic arguments for irredeemable paper and central banking are fallacious and often frivolous. We can and should confront every falsehood, every logical error, every misrepresentation of the gold standard and its defenders. We must also make the affirmative case for the benefits of the unadulterated gold standard.
However, we have one more weapon. It demands to be used, when the context is appropriate. Our adversaries are confessing to the very failures of their system. If paper scrip were truly superior to gold, people wouldn’t need to be forced to use it. When a bully can’t prevail in an argument using reason, he becomes violent. Our monetary opponents are bullies. They resort to force, which is their moral failing.
This is their Achilles heel, and it’s even more important than their economic errors.
At best, central bank advocates are Machiavellians, seeking to use people as a means to their own ends. At worst, they are little Hitlers and Stalins, rationalizing their actions with the tired cliché “you have to break a few eggs to make an omelet.”
We need to strip their veneer of respectability. Many people will get that, even if they don’t understand monetary economics.
You are cordially invited to The Gold Standard: Both Good and Necessary, in New York on Nov 1. There hasn’t been a real recovery from the crisis of 2008, and there won’t be until we return to the use of gold as money. At this event, you will hear Andy Bernstein present the moral case for capitalism, and Keith Weiner present the case for the gold standard as the monetary system of capitalism.
- advertisements -
Those who advocate gold standard as opposed to gold as money may themselves have an agenda they are not divulging. What is a gold standard? It is a system where an institution like a bank generates liabilities promising gold upon demand in proportion to the gold it holds in reserve. Note that in every single instance of a bank under gold standard, the bank's liabilities always exceeded the amount of gold they held as reserve.
So why would anyone advocate gold standard? Why not say abolish all banking (the authoritarian way)? Or better still, why not boycot the banks and deal exclusively in gold and silver (the freemarket approach)?
For every action there is an opposite and equal reaction. This has and will always be true. In fiat the reaction is when the wealth inreases of the one who is given authority to create currency, with interest.
"Here, this is currency, use it to do business and pay me back with interest." To which you ask, "but where did you get it?" To which the answer is, "that is not important, what is important is that I have more than anyone and can loan you more anytime you need it. Run along now, you have money to spend."
A gold standard is a very general term. To be specific you have to talk percentage. You can in fact have a fractional system where currency is a mix of Fiat and gold backing, choose your mix essentially. The best options is a 100% backing. This completely eliminates Fiat but not banking and not lending. The lending comes in the form of a bank simply having ownership of the gold. You get the cash which are certificates for the gold. When you pay them back (the loan plus interest) you will transfer the ownership of your gold to them. No one needs to carry gold coins around, you just keep carrying paper. Banks and vaulting services will hold the gold and when the balance is large enough between two or more banks they will transfer good deliver bars to one another. Life will be as it was before only more stable over time. Surely there will be market crashes and corrections but they will correct themselves faster and people and business will have to suffer the consequences directly for their mistakes.
So you want the convenience of paper and electronic currencies and yet want someone else to guarantee they can be redeemed for gold upon demand. Well, that is what the 19th century banking was all about and in every country that evolved into Central Banking and later into pure fiat currency systems. What magic formula do you know of that will make it any different if you restored the 19th century gold-"backed" currencies?
Capital gains on gold? Ha, I guess they'd have to know how much you have, and where it is...
Keep moving, nothing to see here...get to steppin'...
The most common tool our government uses to control us is fear. So we willingly believe the lies not wanting to admit were cowards.
The Illuminati own the government, all NATO govs, and they assasinate with impunity. Do not blame your gov. JFK wanted to abolish the FED. There will never be a NWO. Thanks be to God!
The most powerful weapon the American people have against the DC US and Rothschild ponzi-empire is Rejection.
The system of fraud and theft that has been built up upon the backs of the American people is dependent upon our backs. Withdraw our backs, and the whole scheme collapses. This is our greatest weapon.
Quit Paying--Put it into food, and precious metals, etc.They stole what ever "debt money" they loaned you in the first place (fractional reserve banking) and soon you won't be able to pay them anyways.
Quit Obeying--If they are in violation of the Constitution then they are not legitimate anyways.
Quit Playing--Quit being a tool for them to use.
The Four Rs
Rejection: Quit paying, quit obeying , quit playing
Revolution: It is inevitable, so prepare, as they are.
Retribution: The guilty must answer for their crimes against the American people and the Constitution.
Restoration: Restore the American people, country and Constitutional republic.
Huh?? Dollar is up and PMs are falling. You would be a fool to buy gold. Wake up.
They sell stupid upriver. How many days have you been floating?
Same as it ever was, same as it ever was, same as it ever was. T. Heads...
I believe we have a long enough history now to understand that man cannot rule himself. That is why he feels the need to rule others. It will be a thousand years before we evolve enough maturity to overcome this. In the meantime, expect wars, rumors of wars, and insurrections.
I would rather die on my feet than live on my knees.
Man can rule himself. He just needs to keep expecting to be ruled.
An American, not US subject.
Many who seek power over others do so because they are unwilling to discipline themselves. I would call that a type of weakness. I have heard it said that "the most powerful force on Earth is human addiction". I don't expect human wars to end until something changes homo sapiens.
We need to strip their veneer of respectability. Many people will get that, even if they don’t understand monetary economics.
indeed.... so exactly how ? talk is cheap, and it seems they keep on getting away with their shit
so long the US dollar continues to be the base currency (as reserve and trade), it will be impossible to break their hold on power.
so... i am ALL ears.
"so... i am ALL ears."
Though there are many great sources, the fast way is to read Griffin's "Creature From Jekyll Island" and then tell and talk to every sheeple that you can. Tell them about how fraudulent-reserve banking works. How the banksters coop the pols and crats, etc.
Don't try to convince them, just inform them. As things get worse, the truth you told them will begin to make things clearer, and then it will take on a life of its own--"The truth will always flow to the sea."
I use this one a lot: "If you have a $1,000 saved and prices go up and you cannot buy the same amount of things, gas, rent, electricity, etc., then where did the value of your money go? It went to the banksters and their government puppets..."
A more active approach is to evaluate how you can stop Paying, Obeying, and Playing their game and weaken their ponzi-empire. Everyone's situation is different, but if you have student loans, quit paying and then request a deferment. If you are struggling with paying on your home, quit paying, save the cash (not in a bank), and when the time is near move--better than being forced out while destitute. Have a struggling small business, switch to hiring employees under the table. They'll earn more and you'll pay less. Etc...
Think and be creative and do your part for yourself and your fellow Americans--"Don't sell them, keep telling them."
An American, not US subject.
A friend of a friend took my advice--changed his mindset about repaying on debt that was actually stolen from him via "printing"--and quit paying on his home. I met him at a BBQ, and as is my annoying custom, I informed him of what the real deal is, and that he should just quit paying--he has no real obligation to repay what was initially stolen, and that by not paying he could better prepare for the future. He quit paying, and saved the payments for nearly 18 months, then moved out a few weeks before being evicted.
During that 18 months he did indeed lose his job like he suspected was coming, however: His rent is now much less than his mortgage was, was able to go on vacation to Florida after moving to clear his head, and now has thousands in gold and silver hidden away, and an also ample supply of steel and lead. In other words, he does not know what will happen in the future, but he is much better off, and has more flexibility, than he otherwise would have been if he had continued to struggle to pay the criminals. Oh, and he got a hardship student loan deferment and is now "glittering" that as well.
Look at your situation and see where and if you can stop Paying, stop Obeying, and stop Playing.
Fiat currency is a money substitute. This can be proven from the fact that historically accounting principles were derived using gold as money, including accounting formulas like future value for any credit instrument.
All the formulas assume the standard unit of account are a constant value over the term of the credit instrument. This is mostly true of gold when annual production is around 2% a year, but not with currency or credit/debt circulating as money substitutes.
.
"Fiat currency is a money substitute."
Fiat money is nothing more than certificates of theft.
They print them, trade them for real goods and services, and then mandate that the sheeple use them in trade so as to for stall the discovery of their theft. Increasing prices are just some of the evidence of their theft via fiat.
An American, not US subject.
"Guillotine the Fed!"
if fiat money is nothing more then certificates of theft, then answer my question: who was robbing who, when Nixon closed the Gold Window on August 15th, 1971?
the American citizens, who were not allowed to hold gold since 1934 anyway?
this just as my usual reminder that all this stuff has an important international component
if Nixon had not intervened, what would have happened? would european warships have carried all the Treasury's gold east? this is an importan question, and it is regularly neglected
The Acting General Counsel for the IBRD states International Bank for Reconstruction and Development has offered to distribute physical gold for issuance of gold coin, to all nations.
Source:
https://s3.amazonaws.com/khudes/ltokyoembassiesoutoftokyo.pdf
Background:
https://s3.amazonaws.com/khudes/mboard3.pdf
http://youtube.com/watch?v=qwArKDgOMtU
Why has we heard nothing on this since July? Neil Keenan insists that he has superior authority to administer the Global Collateral Accounts since he was entrusted by the owners, compared to Wolfgang Struck’s Deed of Assignment from a previous assignee.
http://neilkeenan.com/sample-page/
more details:
http://jhaines6.wordpress.com/2013/06/30/repost-new-to-my-blog-interested-in-getting-the-full-story-of-financial-tyranny-here-is-the-best-expose-of-it-youll-find-david-wilcock-lays-it-out-there-like-a-lawyer-pr/
https://s3-us-west-2.amazonaws.com/groupkltd.com/NoFlyAccords.pdf
David Icke Overview:
https://www.youtube.com/watch?v=xesn6DXbvWE
http://davidjgregory.files.wordpress.com/2011/05/murdering-liberty-killing-hope.pdf
http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:23590490~pag...
Maybe it might be prudent to do a bit more homework.... lol
Interesting, I had never read all that before. It needs to be put out there more.
Umm...the purpose of a gold standard is to make sure the state's obligations are always paid for. If you think letting Ebola into the US healthcare system is "statism run amock!" you need to have your head examined.
RACISM run amuck maybe...but not Statism you phucking wacko.
That friggin dude with the Winchester walked RIGHT BY THE PRIME MINISTER'S OFFICE.
HOW THE PHUCK IS THAT EVEN POSSIBLE?????
Too bad the dumb fuck couldn't read.
Sorry can,t make NY. Nov 1st.
My Loss. :0(
We have been lulled into complacency by the extraordinary actions taken by central banks and governments over the last six years. Have these actions really worked or merely masked over major flaws and problems? I contend that by not demanding the right kind of growth and by throwing money at problems we have only delayed and added to festering issues that face us in the future.
Modern Monetary Theory often referred to as MMT by its many believers is to remove much of the risk ahead and guarantee that we will always be able to muddle forward. MMT is a economic theory that turns to newly acquired tools like derivatives and currency swaps are suppose to allow us to print and manipulate away problems. This has created an "almost surreal" feeling of indifference towards reality. More on why debt does matter and the system is about to fail in the article below.
http://brucewilds.blogspot.com/2014/01/have-we-been-lulled-into-complacency.html
We don't need a gold standard, but we do need to get rid of the FED and fractional reserve banking. It's really not that complicated. Cf. the German National Socialist money system or that of the American Monetary Institute.
http://www.monetary.org/intro-to-monetary-reform
https://www.youtube.com/watch?v=KFiDiLb1ZZ0
Salzburg
You're right, we don't need a "standard" or a "system." We just need the ability to trade in whatever units suit us. It would most likely shake out to be silver and gold, but there you have it. The article is right though, that ultimately the paper money fiasco is ultimately backed by force - it has to be. I for one am sick of the threats and implied threats.
The ticker is: GOLD.
"Central planners constantly run into the problem that people are not willing cogs. We don’t want to be jammed into the machine where directed. The central planners never have our best interest at heart. Quite the contrary, they seek to sacrifice our property, liberty, goals, and well-being. Supposedly it serves some sort of public good, though it’s never the good of any particular member of the public."
Dictatorship of the proletariat.
The payment of taxes must be in Dollars.
The medium of storage of value does not have to be in dollars.
Separation of the various roles previously All attributed to dollars.