Wednesday, August 03, 2016

Why ‘Stable Money’ 
Means Gold-Backed Money
"'Stable money' means money that doesn’t change in value. In practical terms, this has always been achieved, as closely as has been possible, by linking the value of the currency to gold and silver, and finally, in the late 19th century, to gold alone. This was true for literally 5,000 years, from about 3200 B.C. to 1971. There has never been a 'stable money' system of any significance, which was not a gold standard system. 'Unstable money' and 'currency chaos' have always been a hard sell. For over 100 years now, the funny-money promoters have been selling their ideas as versions of 'stability.' This continues to the present day. Don’t be fooled .. 'Domestic stability' was a popular term among the Keynesians of the 1930s onwards. It meant manipulating the currency, and interest rates, as a form of macroeconomic management. 'We will not sacrifice domestic stability for the gold standard' meant: We will blow up the gold standard, and allow floating fiat currencies, so we can continue our money manipulation games. Arguments like these led to the dissolution of the world gold standard in 1971."
- Nathan Lewis
LINK HERE to the essay

1 comment:

Anonymous said...

GLD Sponsor dodges disclosure details of Bank of England as gold sub-custodian in latest SEC filing


It would be very interesting to see what the SEC thinks of this latest lack of disclosure from WGTS. It surely will raise some eyebrows at the SEC, since this is not what the SEC intended when it stated in its March 29 letter to WGTS that:

“Since the company and its management are in possession of all facts relating to a company’s disclosure, they are responsible for the accuracy and adequacy of the disclosures they have made.”

It also goes against the spirit of the request from the SEC’s Kim McManus, Senior Attorney Office of Real Estate and Commodities in her 29 March letter, and the promise by World Gold Trust Services’ CFO Samantha McDonald in her March 30, 2016 signed reply to the SEC that:

“We will, to the extent material, disclose in future periodic reports the amount of the Trust’s assets that are held by subcustodians”

It would be interesting to see what the audit comittee of World Gold Trust Services, which comprises WTGS board members William J Shea, Rocco Maggiotto and Neal Wolkoff, thinks of this latest evasive reporting language in the GLD's 10-Q statement.

I will contact WGTS directly and ask for their opinion on the above, and whatever response is received, if any, I will update readers via this forum.