Posted on 12/29/2016 10:49:07 AM PST by Tours
Vice President-elect Michael Pence is currently the most powerful single political influence on President-elect Trump. Among other things, he is in charge of the transition team. He will also be in charge, after the inauguration, with dealing with Congress. For leftists, hostile to gold, that is a problem. However, for those of us who believe that the only way to solve our long-term economic problems is by a return to honest money, it is a godsend.
The editor of the New York Sun realized this quite a while ago. He wrote, back in July, about the wise choice of then-Governor Mike Pence as a running mate:
“Donald Trump’s choice of Mike Pence for vice president would — if it is confirmed tomorrow — be a promising pick for those of us who see a restoration of sound money as the essential precondition for returning America’s economy to a trajectory of jobs and growth…“
Why did the paper write this? Left-wing economists and politicians have a long standing case of aurophobia. They hate gold because it inhibits both corporatist and government control over the economy. Don’t bother telling them that the dishonest system of “debt money” enslaves the very people they claim to protect. Don’t bother pointing out that debt based money favors the accumulation of capital by a narrow portion of society who receive the money first. I am, of course, talking about the bankers on Wall Street. Don’t bother warning them that the constant inflation, inherent in debt money, will eventually destroy the hopes, dreams and savings of the middle class. They don’t want to listen.
In contrast, Vice President Elect Mike Pence views gold from the standpoint of a person who does not want the large corporations and government to have complete and detailed control over the economy. His view, therefore, is diametrically opposite. He believes that gold is important to the system because it provides a base against which other things can be measured. In a speech at the Detroit Economic Club in November 2010, he said, and I quote:
“…My dear friend, the late Jack Kemp, probably would have urged me to adopt the gold standard, right here and now in Detroit. Robert Zoellick, the president of the World Bank, encouraged that we rethink the international currency system including the role of gold, and I agree. I think the time has come to have a debate over gold, and the proper role it should play in our nations monetary affairs. A pro-growth agenda begins with sound monetary policy…”
President-Elect Trump, himself, can be said to be a bit of a gold bug. He bought the yellow metal in the 1970s at about $185 per ounce, and sold it at $780. After that experience, the taste for gold never left him. During the campaign, he stated:
“Bringing back the gold standard would be very hard to do, but boy would it be wonderful, because we’d have a standard on which to base our money.”
In contrast, starting with a not-so-secret executive order, signed on April 11, 2013, President Obama seems to have authorized a raid on American gold reserves to bolster his administration’s claims of economic success. The banksters’ scheme was designed to control the chirping “canary in the coal mine” (rising gold prices) because it was singing too loudly of failed economic policies. It was also designed to put a lot of private profits into banker’s pockets. Thankfully, things are going to be different.
The new administration is looking very gold-friendly. Neither Pence nor Trump have outright stated that they intend to restore the gold standard, although Pence did hint at it. Does that mean it’s going to happen? Probably not. The stupidity of the Obama administration, in giving license to the banksters to drain away America’s gold reserves, has made it nearly impossible. The only way would be to institute an secret program to buy back the gold. Issuing new dollars in exchange for gold would increase the money supply, a form of economic stimulus, so it might fit into the new President’s plans.
It’s not only the President and Vice President who like the gold standard. Dr. Judy Shelton was one of the two economists named to Donald Trump’s economic advisory team in August. She is now a member of the President-Elect’s transition team, and is a very strong gold standard supporter. Shelton first rose to prominence among economists when she predicted the economic collapse of the Soviet Union in 1989, two years before it happened. She says that many of the same issues are now appearing in the American banking system. Her answer: reestablish the gold standard!
In an article in Fortune magazine, Dr. Shelton stated, and I quote:
In terms of gold being involved, some people may think of that as a throwback, but I see it as a sophisticated, forward-looking approach because gold is neutral and it’s universal.
The pre-election statements of President and Vice President, as well as the opinions of their most loyal advisors, answer the question many worry about. Some worry that “too many” people associated with Goldman Sachs are being appointed to positions in the Trump administration. Perhaps. However, that does not mean that banksters will be given free reign to continue doing what banksters have done in the past. In this case, banksters will not be allowed to continue pissing away America’s precious gold reserves. Top Trump administration people will surely see the schemes for what they are — personal enrichment programs for the banksters that support them.
The “Gold Reserve Act”, passed by Congress in 1934, requires the consent of the President before the Secretary of the Treasury can authorize tapping into America’s gold reserve. That’s what the meeting with President Obama and the CEOs of the biggest gold dealing banks, on April 11, 2013, was all about. It took place one day before the biggest attack on gold prices ever undertaken. The fact that the meeting took place at all, however, indicates that even left-wing Barack Obama was questioning the wisdom of raiding America’s gold.
Donald Trump appreciated the money that Steven Mnuchin, his only well-connected Wall Street fund raiser, brought in during the Presidential campaign. It is natural to reward someone after something like that, and that is why Mnuchin is now going to be US Treasury Secretary. But, even if he wanted to, which is not at all clear, it is very unlikely that Mnuchin would be able to convince President Trump to leave Obama’s gold reserve blasting executive order intact. Remember, Mr. Trump took issue with the idea of spending $4 billion worth of easily printable paper dollars on several new “Air Force One” 747s. Do you think he’s going to be convinced by anyone to piss away gold reserves, which are very difficult to replace?
The decline in gold prices, during November and December has been designed to allow manipulators with large, long-standing short gold positions, to shell-shock markets, facilitating an orderly escape with minimal damage. The hyping of India’s tax law changes was part of that, and is part of the strategy used to demoralize long speculators. The truth, however, is that even if India stopped importing gold, entirely, given the current excess of demand over supply, demand would still far exceed mining and scrap refining supplies. With that gap unfilled, the price must rise substantially. For more information about the true supply/demand situation for gold, see this article.
Going forward, the unplugged gap between supply and demand will be closed by the real market, not from further donations from the American treasury. Prices will rise once the banksters see the prospective cutoff from access to America’s gold reserves come too close for comfort. At that point, which will probably come in late December to early January, they will spin off whatever small short position they still have left, at any price they must pay to do it, and the upward movement will begin in
I can grow a crop or build build a house or even create a factory that build 10000 cars or a million computers ect ect ect.....ive created new wealth in the world....so the money supply representing that wealth should correspondingly increase
And also all those things as well if I just created above those things can be destroyed or they age and deteriorate and that value goes away and the money supply decrease accordingly
But all.the time this wealth is increasing and decreasing in the world....it value if tied to gold is tied to something that is static the amount of gold in the world neither increased or decreased during that entire time wealth of the world changed very dramatically
Yes, the genie would be difficult to stuff back into the bottle...having 100+yrs to fark over the Republic and steal its wealth through illegal\fiat currency.
$120T+ in unfunded liabilities (political promises) and a welfare state; both of which could NOT exist except for the Fed. Reserve and its printing press of fluff.
Perhaps one of the most important POSSIBILITIES Trump has available to him to unscrew this insane, unfair and destructive financial system. The Founding Fathers would agree! And if you knew that history, so would you. BTW, if you don’t know that history, let me know and I’ll help.
Perhaps one of the most important POSSIBILITIES Trump has available to him to unscrew this insane, unfair and destructive financial system. The Founding Fathers would agree! And if you knew that history, so would you. BTW, if you don’t know that history, let me know and I’ll help.
No. The money supply should remain constant (or nearly so.)
As the wealth (manufactured goods) increases, the prices for those goods will decrease. I know that's a scary prospect for those of us who've been raised on Keynesian baloney, but it shouldn't be.
You are correct that wealth lies in the goods we produce and we certainly want that production to grow. There is no reason, though, for the money we use to exchange those goods to increase, too.
Good. It may have problems, but it keeps a check on fiscal insanity.
The value of the existing gold increases. More goods chasing fewer bits of metal make the metal more valuable.
Amen. Having a fixed standard precludes these schemes that have enriched those who control the money supply over the rest of us.
Since 1971, the rich got the wealth, and the Middle class got poorer. It is well documented.
Readers of this thread may be interested in the following quotations on the subject from a Bicentennial Volume entitled, "Our Ageless Constitution." Dr. Edwin Vieira, who contributed to that volume, has written extensively on the Founders' protections for liberty through their provisions for a sound money system. A search of his books and writings provide a great resource for understanding the dangers of paper money, and the wonderful protections of the Founders' system.
Thomas Jefferson:
"Paper is liable to be abused, has been, is, and forever will be abused, in every country in which it is permitted."
". . . although the other nations of Europe have tried and trodden every path of force or folly in fruitless quest of the same object, yet we still expect to find in juggling tricks and banking dreams, that money can be made out of nothing. . . The misfortune is. . . we shall plunge ourselves in unextinguishable debt, and entail on our posterity an inheritance of external taxes, which will bring our government and people into the condition of those of England, an nation of pikes and gudgeons, the latter bred merely as food for the former."
"Stock dealers and banking companies, by the aid of a paper system [paper money] are enriching themselves to the ruin of our country, and swaying the government by their possession of the printing presses, which their wealth commands, and by other means, not always honorable to the character of our countrymen."
Then there is John Maynard Keynes observation in "The Economic Consequences of the Peace - 1920":
"Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. . . . Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. . . . (It) does it in a manner which not one man in a million is able to diagnose. . . ." - J. M. Keyenes
Kudlow as well has wanted a return to a basket of commodities.
Well that the point
Lets say I own one pound of gold...
My neighbors around me have no gold but they create things build houses grow crops build businesses ect.
the wealth of the world has increased but we’re saying since gold sets as the standard of the wealth of the world the value of my gold increased while I did nothing
There can’t be a direct 1:1 relationship if you increase the wealth of the world. You have to increase the wealth of the world you account for on the books
Reality is gold is a zero-sum game the wealth of the world never increases everybody trying divvy up the same static slice of the pie that never grow that’s how leftist view the world ... static wealth
When your cows grow fat, and your trees bear fruit, what have you done?
Reality is gold is a zero-sum game the wealth of the world never increases everybody trying divvy up the same static slice of the pie that never grow that’s how leftist view the world ... static wealth
Even if your argument is true, which I currently dispute, how is this worse than this system which created trillions in waste and enriched countless non-productive robber barons?
Do you have any idea of the waste and destruction which has been created by fiat currency manipulation? The primary cause of the destruction of nations begins with debasement of the currency.
You can’t create gold, but you can mine it. Every year, a considerable amount of new gold is added to the world’s above ground supply.
The gold standard is not perfect, but it does lend a certain honesty and discipline to the economy that fiat credit can’t.
When trillion$ can be created by the pushing of a computer key....
I agree that money needs (must) be based on something real...else fiat currency that is totally arbitrary in value and will be manipulated
In affected its the flip site of gold.
Gold is static so can not reflect the real world creation/growth of wealth
And fiat currency is arbitrary something created out of thin air so also does not reflect the real world wealth that exists
Neither is the answer because neither reflected reality
Placemark.
So what then, do you suppose is the answer?
From what I can see of history, the problems with fiat currency dwarf the problems with a gold standard.
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