In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. – Alan Greenspan (1966)
by Jeff Nielson, Sprott Money:
Bloomberg News recently made an astounding proclamation in a news release , by nothing less than postulating a return to a gold standard. Let me repeat. Bloomberg, a part of the mainstream media propaganda machine which often bashes all things related to gold (including the gold standard), is now advocating a return to a gold standard.
However, a major caveat must be attached to this astonishing revelation. This media tentacle was not advocating that we abandon our fraudulent, fiat currency Ponzi-scheme and return to a gold standard at the global level. Rather, it was only advocating a quasi-gold standard, domestically, and in just one nation.
Time For A Gold Standard In China?
This is laughable and ironic on so many levels – too many to be covered within the scope of a single commentary. Instead, analysis will have to be saved for only the most obvious of ironies. We begin with the fact that this propaganda was no ordinary Bloomberg release. Rather, it was labeled as “BloombergIntelligence.” The debate as to whether this phrase is an oxymoron, or merely a non sequitur, must be saved for another time.
For now, all that is pertinent is the irony of such a label, as we explore Bloomberg’s pseudo-argument. We start with the reason given by Bloomberg as to why China, and only China, needs a gold standard: supposedly, it’s to prop up China’s “weak currency.”
This is almost too humorous for words. For the better part of two decades, one of the major themes in the slapstick theatre which the United States calls its Congress has been that “China is a currency manipulator.” When hundreds of U.S. political representatives made this accusation, chomping at the bit to articulate the words, were they accusing China of manipulating a “weak currency” upwards?
No. For nearly twenty years, U.S. politicians have serially accused China of holding down the value of itsstrong currency. Now, seemingly overnight, a different script has been handed to the mainstream media by their Overlords. Suddenly, we’re told, China has a weak currency, a currency so weak that nothing less than a gold standard could rescue it.
Why? How? What could have happened to precipitate such a rapid, monetary metamorphosis? Bloomberg had an answer for that, too, in a follow-up interview on the same subject, via Bloomberg mouthpiece Ken Hoffman:
China is quite the mess. There’s no other way about it. They have had a very hard landing in the commodities space, no question about that…
No question? Really? For well over a decade, as China has been the world’s premier manufacturing power, it has been a net-importer of nearly all categories of hard commodities as inputs for its manufacturing (particularly oil). The trough in these commodities prices, and the manipulated collapse in the price of oil, are highly stimulating for China’s economy.
Thus this is what we are supposed to believe, via Bloomberg Intelligence. Overnight, China’s strongcurrency has become a weak currency, and it’s all because of the “hard landing” which China has supposedly suffered as a result of the highly stimulative drop in the prices of hard commodities. Very “intelligent.”
Now back to the real world. China’s economy remains the growth engine of the global economy, but one which is clearly overdue for a significant consolidation. However, this is true for many of the world’s economies, as we near the end of another of the One Bank’s eight-year, bubble-and-crash cycles. It is absolutely no basis for any weakening of the renminbi, let alone some absurd reversal from its status as a strong currency to a weak one.
What, then, is the real reason for the sudden weakness of the renminbi in global currency markets? Why don’t we ask the Serial Currency Manipulators, the Big Bank tentacles of the One Bank, which were recently convicted of serially manipulating all of the world’s currencies going back to at least 2008? Maybe they can give us an explanation. Sorry – their lawyers have advised them to say nothing on this subject.
We still have plenty of additional irony that must also be covered here. We move on to a famous cliché, yet one which is apparently totally unknown, not just to Bloomberg, but to every major U.S.-based media tentacle.
People who live in glass houses shouldn’t throw stones.
Who really needs a gold standard, in order to rescue an otherwise worthless currency? Regular readers can answer that question, via an all-too familiar chart, which has surely now been burned into their minds. It is the last legitimate representation of the U.S. monetary base before this statistical data became completely falsified by the Federal Reserve.
As has been explained on many previous occasions, this is a chart of a currency (the U.S. dollar) which has already been hyperinflated to worthlessness. Neither China, nor any other nation except Zimbabwe, has diluted and debauched its currency to the degree of the United States.
Furthermore, this chart still omits trillions of dollars in additional counterfeiting, all part of the U.S. monetary fraud known as “0% interest rates.” Thus, if we were to pick only one nation on the planet that really needed a gold standard in order to restore legitimacy to its monetary system and restore value to its currency, only three letters would come to mind: “U-S-A.”
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