I was reading this article here, and as usual, the global powers are utilizing the “financial crisis” as a mechanism for consolidation.  As Rahm Emmanuel recently said, “Never let a good crisis go to waste”:

Of course, the IMF is heating up the charge to stampede towards a global currency to

“The imperative of greater global currency stability means the world can no longer rely, as it has done since the end of the gold standard, on a currency issued by a single country, the head of the IMF said on Tuesday.”

Yes.  So instead of having central banks inflate the currency in concert, let’s do away with the pretence of sovereignty of nations (not that I am wedded to sovereignty)  and just flat out have one central bank.

So what should the value of fiat currency be?

Tick, tick, tick, tick, tick, tick, tick, tick…..tock.

Zero.

Why?

If I opened up “Gilligans’s Money Printing Shop” and printed up pretty pieces of paper with a uniform size and different inks on it, denominating different units of purchasing power (denomination) and told the market to use my money, what would happen? I’d be laughed out of town or utterly ignored. How could I prevent a competitor from starting the same enterprise?

People would rightly say, “Your money has no value! You didn’t do anything of economic value to create money! How do we know that you wouldn’t print a bunch of it up and give it to yourself or your friends to rob us of our economic output when you’ve done nothing to merit it! You’re a cheat!”

Now, if I had the biggest guns/thugs in town – a monopoly on violence – and demanded my form of money to be used to pay tribute (taxes) to me, then what? You’d cave. By way of violence, I have forced you to accept my form of money thus creating demand for my paper/electronic tickets. If you don’t pay property tax, I’ll take your f–king house. If you don’t pay income tax, my banking buddies will seize your accounts, deny you credit, have your employer garnish wages, or a whole plethora of devious tricks to prevent you from feeding your family. Don’t worry though. Once and a while I’ll let you replace some of the personnel in my system. I’ll call it voting. It’ll fool you into thinking you’re free. All hail me!

All of our money is created out of debt by the State/Banking cartel and backed by government violence via legal tender laws and taxation.

Now they control the value of our money. There is no way to escape theft through taxation and indirect theft through inflation in this “red market”.

We need to return to what money should have been before the government/banking cartel hijacked it.

Some say, “Gold is just a shiny yellow metal and no better than paper!  You can’t force me to use gold!”

As FSK noted, “People should be forced at gunpoint to use gold as money!”. rather, “People should be free to choose what they want to use as money!” In practice, this would mean a return to commodity money, such as gold/silver/copper and the exchange rates between the two being purely market (i.e. no government intervention) driven.

Money is not wealth. Money is not “value” – in this you are correct. Money is merely a commodity universally accepted in a market to trade for all other commodities.

The free market gave rise to the notion of money and historically it has been many commodities, eventually settling on precious metals as markets expanded and other commodities were displaced over time, as metals met a number of highly desirable features: portable, fungible, durable, divisible, scarce, and no one could create it out of thin air to an unearnd claim goods and services on the market, like the gov’t/banking cartel does today.

Commodity money is not created out of debt, like fiat is. Debt carries interest; interest paid back from future loans. Fiat is unsustainable requiring infinite economic growth to keep the shell game going.

Before government defaulted on money, paper money used to be redeemable in specie. It was backed by an objective weight of something, usually gold or silver. It was a promissory note. Some folks clamoured for government to monopolize the production of money as some private minters were debasing their coinage. So they got government to mint money….where it was *GUARANTEED* to be debased?

The US defaulted on their money twice in the last century. First in 1933, when FDR stole the gold from citizens at gunpoint and made gold ownership illegal, but foreigners could redeem their dollars, and again in 1971, defaulting on foreigners finally.

Unlike fiat money and bank credit (a substitute for money), commodity based money is not created out of debt (loans). Debt must be repaid. Debt carries interest. The interest on old loans can ONLY be paid by the principle of new loans which carry interest. Everyone see this? This is pure *PONZI* like the social security system. Madoff simply emulated these models and is chump change compared to this scam.

Some say, “We can’t have a gold/silver/copper standard because that would make the mining companies a monopoly on our money!”.

1) What do they pay their employees with?
2) What do they pay their stockholders with?
3) What do they pay their capital/operational expenses with?
4) What do they pay their taxes with?

In addition, that form of money doesn’t return to them to be slaughtered the way fiat/bank credit does. In other words, once it is spent into circulation it *STAYS* in circulation. Oh sure, some may save. Some may hoard. BTW, what’s the difference between saving and hoarding? Is a hoarder simply someone who is more uncertain than you are? However, rising interest rates encourage others to lend their money. The economic actor who collects that interest…what does he/she do with it? Savings is simply deferred spending is it not? Maybe they spend it on something today..or in the future.

This notion of a one bank monopoly sitting on all the gold is silly. Competition (assuming the bank did not seek and obtain rent-seeking by way of violence – government legislation/regulation) would create more banks, competing currencies, and serve us best.

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