by Jeff Nielson, Sprott Money:
We need a gold standard. For those (newer) readers who don’t understand why this is so, the explanation couldn’t be simpler. Among other virtues, a gold standard performs two, essential functions. It prevents (corrupt) governments from drowning us in debt. It prevents (criminal) central banks from stealing all of our wealth, via the “inflation” they create with their excessive money-printing.
It is these noble properties which earned the gold standard its scornful nickname, from history’s most-infamous gold-hater, John Maynard Keynes. The great Charlatan Economist called the gold standard “the Golden Handcuffs”. A gold standard handcuffs corrupt governments, forcing them to operate somewhere near a balanced budget, at all times. A gold standard handcuffs criminal central banks, restraining the speed with which they steal-by-inflation to a near-zero rate.
For those readers who don’t accept the assertion of this writer, and who don’t trust the words of Charlatan Keynes, we have a more contemporary and even more-infamous authority here.
In the absence of a gold standard, there is no way to protect savings from confiscation [i.e. theft] through inflation.
– Alan Greenspan , 1966
No way to protect ourselves. The language is unequivocal. This warning was uttered well before Greenspan himself became a servant of the banking Crime Syndicate , and the world’s foremost Inflation Thief. We either have a gold standard, or we are permanently vulnerable to the systemic, monetary crimes by the fraud-factories which call themselves “central banks”. Pretty simple.
Another of the great truths in our societies is what that when we have a crying need for some change in public policy, there will be no shortage of politicians who pledge such changes – and then break their word. Generally, we have no way of easily separating the Posers who promise reforms (like the cynical liar, Barack “Change” Obama) from the tiny minority of politicians with the integrity to carry out such reforms.
However, in the case of a gold standard, there is a very straightforward “test” to separate the Posers from the serious advocates. This brings us to the subject of Debt Jubilee .
For those (newer) readers who are not familiar with either the definition or the concept behind this term, a brief historical synopsis is required. Going back to literally Biblical times, one of the constants of human government is that sooner or later (usually sooner) ruling regimes end up drowning their populations in debt. Once this occurs, that society/economy is faced with one of two alternatives.
The economy can continue to wallow in their unpayable debts, i.e. Debt Slavery . All of the productive efforts of the Workers of that society are consumed paying “interest” to the banker oligarchs who hold all of the IOU’s. Obviously this is unjust, corrupt, and simply economically insane. There could never be a rational justification for choosing Debt Slavery.
There is, literally, only one alternative to Debt Slavery: Debt Jubilee. A “jubilee” is the complete renunciation of all debts. Any/all debt instruments become null-and-void. Debt Slavery is abolished. The Workers are allowed to retain the fruits of their labours, and use their productive efforts to build and improve their societies – rather than simply fattening financial Criminals.
The policy of Debt Jubilee is completely straightforward. The economic justifications for such a policy are absolutely indisputable. There is only one element of uncertainty in this economic equation: when has an economy reached a level of indebtedness where Debt Jubilee becomes a mandatory policy decision?
There is no precise formula here, but there is certainly general agreement. Throughout the modern history of our economies, it has been universally acknowledged ( until the present) that when any nation’s debt-load exceeds 100% of GDP that no other alternatives remain. Once an economy is saturated with this magnitude of debt, it is never possible to reduce (let alone retire) such debts.
A debt-spiral has begun. From that point onward, the only mathematical/economic possibility is ever-worsening indebtedness, and ever-larger interest payments on these unpayable debts, the precise definition of Debt Slavery . Throughout virtually the entire Western world, we are now well past this point-of-no-return.
These economies are not “slightly insolvent”, they are bankrupt. During last year’s “Greek crisis” , Greece’s government spent six months begging to be allowed to declare bankruptcy. The banking Crime Syndicate which holds these debts refused to allow this, via their lackeys at the ECB. Ultimately, Greece’s bankrupt economy was force-fed large amounts of additional debt – piling more debt onto a bankrupt debtor. Increasing Greece’s Debt Slavery. Pure criminality.
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