We look at the motorcar and the airplane and the computer and all these things that have progressed mankind forward. And so the people assume that that translates to every facet of human existence.
But unfortunately human nature is not necessarily progressive, it’s cyclical.
And so we see these turns where we see monetary debasement as far as back as the Romans. Since the dawn of money there's been monetary debasement. Back then it was all physical. It didn’t have computer generated money; they would clip silver out of the coins. So monetary debasement, extended credit, over extension, rises and falls of empires—these things happen much more regularly than people believe .. You look at hard money standards; in the last 200 years the world has been on and off some kind of metallic standard and has in fact been on some kind of hard money standard more than it’s been off in the last 200 years. It just so happens that we have all coincided with the period in the last 40 years where it’s been off. So it seems almost impossible for people to grasp the idea that we could go back that way, but humans are cyclical in nature. And again, we are getting to that point where what’s happened, what’s been allowed to build up is unsustainable and historically when we've reached those points, you tend to have rather violent outcomes as widespread changes are forced onto a system that no longer works. And when I say violent I mean volatile."
- Grant Williams*
[Once again, Grant Williams makes one of our 5* theme points: Everyone wants to believe that we are better, smarter & more progressive than people of the past. The founding fathers of the United States understood the importance of keeping the dollar honest. 'Tricky Dick' Nixon removed the one remaining restraint to keep the dollar honest. That wasn't progress. It was a move backward.]
LINK HERE to our weekend post