by Jeff Nielson, Sprott Money:
Almost certainly, everyone reading this piece will have heard the phrase “barbarous relic” used in reference to a particular currency in our current monetary system. The problem is that (invariably) this label is attached to the wrong currency.
“Gold is a barbarous relic.” This phrase was originally articulated by the notorious economic charlatan, John Keynes. Keynes preached a doctrine of infinitely expanding sovereign debt, as the supposed path to economic health and prosperity. In reality, this is a recipe for nothing except inevitable, economic destruction, which is patently obvious to anyone who understands the term “compound interest” – and is capable of operating a calculator.
Yet despite the obvious absurdity of “Keynesian economics”, it has spawned legions of sycophants who have followed in Keynes’ fraudulent footsteps, and continued to peddle the nonsense that the arithmetic of compounding interest simply does not apply to sovereign debt. Indeed, those in the field of economics who do not subscribe to this fiscal/monetary lunacy are labeled “Austrian economists”, and they are hailed for no other reason than that they do have the capacity to operate a calculator. This is how low the “bar” has been set in the pseudo-science of economics.
Conveniently, the concept of infinite sovereign debt (and the rapidly expanding money-supply needed to issue all that debt) produces the ideal conditions for Big Banks to perpetrate massive, financial crimes , as we see with the current crime syndicate, which regular readers know as the One Bank . We thus see the motivation for continuing to propagate “Keynesian economics”, via the vacuous mouthpieces of the mainstream media: to facilitate the serial crimes of the banking crime syndicate.
Why did Keynes, the false-prophet of infinite debt/infinite money-printing, hate gold so much? Keynes himself supplies the answer to this question, through another attempted smear of gold (and the gold standard). He referred to a gold standard as “the Golden Handcuffs”, and he was very specific about whowas being “handcuffed” and how they were being handcuffed.
A gold standard (drastically) limits the capacity of governments to issue new debt. It absolutely restricts the capacity of central banks to issue new (gold-backed) currency, as new money can only be issued in direct proportion to the reserves of gold which back it. “Keynesian economics”, and the systemic financial crime which accompanies it, cannot exist with a gold standard firmly in place.
In the absence of a gold standard, there is no way to protect savings from confiscation through inflation.
– (future) Federal Reserve Chairman, Alan Greenspan , 1966
As a result, the “Keynesians”, and the banking crime syndicate which sponsored this academic fraud, found it imperative to first denounce the gold standard (with their intellectually bankrupt rhetoric), and then to assassinate it – with central banker, Paul Volcker, claiming personal credit for this dirty deed. It was only once the Handcuffs had been removed that the current era of fiscal/monetary insanity (and crime) could begin.
Since the abolition of the last vestige of our gold standard (the Golden Handcuffs), our governments have quickly managed to drown themselves (and us) in sovereign debt. Our currencies have already been debauched to worthlessness.
In a mere 40 years; our governments and central banks have demonstrated absolutely/unequivocally that neither of these entities can be trusted as stewards of our economies, without being firmly bound by a set of Golden Handcuffs. However, gold is not just the only-and-ideal basis for a sound monetary system. It is (along with silver) the best money which our species has ever been able to devise. To understand this requires understanding the nature/definition of “money” itself, which is the subject of a previous analysis .
Gold is the best money. Gold is the best basis for a monetary system . Gold is universally considered to be money in all of our monetary rules and regulations, created by the same bankers who refer to it as “a barbarous relic”. Gold is universally considered to be a premier monetary asset by all of the world’s governments. It is anything but a barbarous relic.
Then we have the U.S. dollar.
Please follow SGT Report on Twitter & help share the message.