Posted on 12/01/2008 12:36:26 PM PST by rabscuttle385
As the printing presses for the bailouts run at full speed, those in power are no longer even pretending that the new giveaways will fix our problems. Now that we are used to rewarding failure with taxpayer-funded bailouts, we are being told that this is “just a start,” more funds will inevitably be needed for more industries, and that things would be much worse had we done nothing.
The updated total bailout commitments add up to over $8 trillion now. This translates into a monetary base increase of 75 percent over the last two months. This money does not come from some rainy day fund tucked away in the budget somewhere – it is created from thin air, and devalues every dollar in circulation. Dumping money on an economy, as they have been doing, is not the same as dumping wealth. In fact, it has quite the opposite effect.
One key attribute that gives money value is scarcity. If something that is used as money becomes too plentiful, it loses value. That is how inflation and hyperinflation happens. Giving a central bank the power to create fiat money out of thin air creates the tremendous risk of eventual hyperinflation. Most of the founding fathers did not want a central bank. Having just experienced the hyperinflation of the Continental dollar, they understood the power and the temptations inherent in that type of system. It gives one entity far too much power to control and destabilize the economy.
Our central bankers have had a tremendous amount of hubris over the years, believing that they could actually manage a paper money system in such a way as to replicate the behavior and benefits of a gold standard. In fact, back in 2004 then Fed Chairman Alan Greenspan told me as much. People talk about toxic assets, but the real toxicity in our economy comes from the neo-alchemy practiced by the Federal Reserve System. Just as alchemists of the past frequently poisoned themselves with the lead or mercury they were trying to turn to gold, today’s bankers are poisoning the economy with accelerated fiat money creation.
Throughout the ages, gold has stood the test of time as a consistently reliable medium of exchange, and has frequently been referred to as “God’s money”, as only God can make more of it. Seeking superhuman power over money in the way alchemists did in ancient times caused society to shun them as charlatans. In much the same way, free people today should be sending the message that this power and control over our money is no longer acceptable.
The irony is that even had the ancient practice of alchemy been successful, and gold was suddenly, magically made abundant, alchemists still would have failed to create real wealth. Creating gold from lead would have cheapened its status to that of rhinestones or cubic zirconia. It is unnatural and dangerous for paper to be considered as precious as a precious metal. Our fiat currency system is crumbling and coming to an end, as all fiat currencies eventually do.
Congress should reject the central bank as a failure for its manipulations of money that have brought our economy to its knees. I am hoping that in the 111th Congress my legislation to abolish the Federal Reserve System gains traction so that the central bank can no longer destroy our money.
Ping!
Precious Metals Ping!
Inflation is not caused by the actions of private citizens,
but by the government:
by an artificial expansion of the money supply required to
support deficit spending.
No private embezzlers or bank robbers in history have ever
plundered people’s savings on a scale comparable to the
plunder perpetrated by the fiscal policies of statist
governments.
AYN RAND
Gold. Backed. Monies.
And your point in this idiocy is precisely what, may we ask? The Primaries are over, Dr. Paul lost, now the general election’s over and you still want to post this bilgewash. Why?
My point in this idiocy (the thread) is to mock L.Ron and goldbuggery. Done and done.
Why not do so by posting an intelligible response? Anyone can mock, but it gets us no closer to truth. I think Dr. Paul’s article here is quite reasonable. If you do not, please show it with reasoning, not emotion.
If my response were not intelligible, you would not be protesting. I’m responding with reasoning, not emotion: L.Ron is nuts.
The idiocy to which I refer is your post, which contributes NOTHING to the discussion... and never did in the past. What, for example, would be YOUR solution to the problem? More of the same? Since you so virulently eschew the marketplace and its solutions, what do YOU propose? Enquiring minds want to know.
Petronski was, at one time, a fairly reasonable kinda guy. I don’t know for sure, but I suspect he had one large swig too much of the RINO-flavored Koolaid. He has gone so far overboard with his hatred for Dr. Paul that I think he’s certifiable and possibly could be of interest to the Secret Service or other authorities as an actual threat to Dr. Paul.
I know who the “nutter” is and it isn’t Ron Paul.
“If,” he said tersely, “we could for a moment move on to the subject of fiscal policy ...”
“Fiscal policy!” whooped Ford Prefect, “Fiscal policy!”
The Management Consultant gave him a look that only a lungfish could have copied.
“Fiscal policy ...” he repeated, “that is what I said.”
“How can you have money,” demanded Ford, “if none of you actually produces anything? It doesn’t grow on trees you know.”
“If you would allow me to continue ...”
Ford nodded dejectedly.
“Thank you. Since we decided a few weeks ago to adopt the leaf as legal tender, we have, of course, all become immensely rich.”
Ford stared in disbelief at the crowd who were murmuring appreciatively at this and greedily fingering the wads of leaves with which their track suits were stuffed.
“But we have also,” continued the Management Consultant, “run into a small inflation problem on account of the high level of leaf availability, which means that, I gather, the current going rate has something like three deciduous forests buying one ship’s peanut.”
Murmurs of alarm came from the crowd. The Management Consultant waved them down.
“So in order to obviate this problem,” he continued, “and effectively revaluate the leaf, we are about to embark on a massive defoliation campaign, and ... er, burn down all the forests. I think you’ll all agree that’s a sensible move under the circumstances.”
The crowd seemed a little uncertain about this for a second or two until someone pointed out how much this would increase the value of the leaves in their pockets whereupon they let out whoops of delight and gave the Management Consultant a standing ovation. The accountants amongst them looked forward to a profitable Autumn.
-Douglas Adams, The Restaurant at the End of the Universe
Someone thought I should ping everyone on the Precious Metals Ping List, So here it is.
I have 2 or 3 articles I want to post, after this great day for gold and silver BUYERS, but too busy at the moment. I’ll try to get them up tonight.
Liar.
No, it just makes YOU fell good~! Have at it..cheers!
So post something we can actually LOOK at and see what solution you might have in mind. Otherwise, you have nothing but vitriol to offer and that is what I said in my post 13. You done drunk the Koolaid, brother. Why?
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