Wednesday, June 29, 2016

5*! The Never-Ending Fiasco
Just a snippet from the transcript of a speech that you should link to & read: "Central banks have no choice but to keep pushing down interest rates if they want to pump up fiat money to keep the whole system afloat. People want and need gold for all kinds of reasons—industrial applications, jewelry, investments, and, yes, even for monetary purposes. As malleable as this precious metal may be, the bottom line is that gold really is money. In fact, it's the ultimate means of payment. Former Federal Reserve chairman Alan Greenspan summed it best when he said in 2014: 'Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it.' ..  History bears this out. Money has taken on many guises over the centuries, but precious metals have always been the preferred format, and gold and silver especially .. Fiat money is just brightly colored paper and intangible bits and bytes that can be produced at any time, and in any amount deemed politically expedient.
Governments want to exert total control over the quantity of money so they can manipulate its buying power to suit their political ends.
Fiat money is inflationary. Its buying power dwindles over time, and history has shown that this entropy is almost as irreversible as gravity. Fiat money enriches a select few at the expense of many others. The first to get new money benefit to the detriment of latecomers. What's more, fiat money fosters speculative bubbles and capital misallocations that culminate in crises. This is why economies boom and bust. Fiat money lures states, banks, consumers and firms into the pitfall trap of excessive debt. Sooner or later borrowers find themselves in a deep hole with no way out. Fiat money is easy to come by so the state can finance its adventures and misadventures. Easy money; easy come, easy go. And the government keeps growing as it keeps spending. As the state expands and flourishes like weeds in an untended garden, this outgrowth strangles the free market economy, causing production and employment to decline."
- Thorsten Polleit
LINK HERE to the essay

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