Guest Post by Martin Armstrong
Hugo Salinas Price raised the introduction of silver as a duel currency in Mexico. The 1 ounce coin with no number of pesos listed on it (possible no date either) would be a dual currency. The value, like gold and silver bullion, would be listed each day so everyone would know the value. If the paper peso decreased in value, the value of the silver coin would rise, as it would be worth more paper pesos. The government should not be allowed to control its value. Is there any value to this?
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Today, everything floats with the exception of a few governments who foolishly attempt to create pegs. You can buy silver or gold and it fluctuates every day. So the government issuing no denominated gold or silver coins that still fluctuate would not really do much. The question is not the question of government trying to control a currency, the question is socialism that is the justification to spend money. This is why the gold standard collapsed. They attempted to fix the price of gold at $35 under Bretton Woods but they did not restrict the spending. Bretton Woods broke down the same as the futile attempt of Switzerland attempting to peg the franc to the euro.
Everything is in a state of flux. We cannot create a fixed currency when you do not create political reform and end the government spending and borrowing. The historical problem has NEVER been what we use for money be it gold, paper, or sea shells. The problem lies with those who try to rule the world. We seriously need to reform the system, not what we call money. Just look at the resistance to Trump simply trying to reform a very small part (since he too does not grasp this problem). They will not let him reform anything, so there is no hope of ever solving our problem. This is why I say we must crash and burn. There is no way to prevent what is coming. So let’s just prepare the best we can.
It might be worthwhile to take a close look at how the new economic and monetary system emerged in the former Soviet bloc countries after the collapse of the Soviet Union.
For a while, there was actually barter exchange of produced goods between factories where something someone else made and they needed was traded with factories where their goods were needed but not made. It was obviously awkward and didn’t last long but laid a basis for a new monetary system to emerge to serve the purpose of trade.
“Hugo Salinas Price raised the introduction of silver as a duel currency in Mexico.”
I like that idea, the winner gets the coin and the loser gets buried.
The problem is ALWAYS government. The only reason you see fluctuations in gold and silver today is because you are comparing them to other FIAT currencies (and also because both metals are being heavily influenced by the presence of a fraud and corruption-ridden “paper” metals market). Were gold, silver, platinum,, etc. used solely as a means of exchange, the ONLY thing that would matter to you or anyone else would be how they fare relative to their purchasing power for things you need to buy. The “fixed” value of $35 was as arbitrary a number as the previous $20 and the entire system was undermined by fraudulent “counterfeiting” of money by the treasury (and before that the banks – under the government-controlled gold standard of the late 1800s). The minute the government steps in an tries to control the market, the system will ALWAYS fail. Governments control money because they are filled with greedy criminals – all of them. ONLY by controlling the money can they inflate away their debts, create money out of thin air, and spend with reckless abandon without as many concerns of angry taxpayers as they would if they were forced to tax everyone enough to pay for their reckless spending and waste. A FREE MARKET in currency (as proposed by the great champion of freedom, Ron Paul) would provide the ideal mechanism for “softly” undermining the failed Federal Reserve system and its criminal mechanism of fiat currency. An alternative MUST be provided or, as was seen in Russia and other countries, barter will be the inevitable first step. While at least “free”, barter is highly inefficient, and ultimately gold, silver, or some other “sound” currency will be chosen by the market (so long as government is kept at bay).
The role of the federal government is to regulate the weight and purity of a coin, (article 1, section 8) whether copper, silver, gold, or platinum. This is no different than how they check pumps at a gas station, to ensure that it is a gallon of gas being dispensed. So a silver coin with standardized weight stamped into it, say 1 0z or 28.35 gm, along with its assayed purity, should be sufficient for market-based money. We forget that a dollar was once a unit of weight and now it’s nothing more than a brand name for a counterfeit FRN.
If there is ANY role for government (and I fully believe there is NONE), that would be all they should do. A reputable and respected assay company could just as easily “certify” a coin’s purity, weight, etc. and have their “mark” imprinted on every coin as well.
Do we think the private banking corporations and the global
banking institutions are planning on retirement?
I believe they are willing to wage murderous wars to keep their
status and to increase their profits. That is an understatement.
Well, we’ve had a shitload of those for a long time, for that very reason, so yeah, of course you’re right.
Every war that has EVER been waged has been rooted in the actions of the global banking cartel.
After our crash and burn along with the whole global economy, we are the largest aren’t we? Bartering will be the currency by default, Weimar Germany and Zimbabwe are examples of fiat currency with welfare mentalities, we are no different along with the Euro, and all the others. It always leads to shooting wars to protect the guilty parties with millions of innocents sacrificed. History always rhymes and repeats, it’s just the way it is!
I might add that Armstrong, in my opinion, has always been wrong about money in general. He always refuses to address the concept of market-based money. The market, in the absence of legal tender laws, will choose the best currency to meet the necessary criteria of good money – maintenance of purchasing power, divisibility, durability, portability, and universal acceptance. In other words, gold and silver.
He harps about pegs and fixes. With a silver or gold coin standard, what is fixed is its purity and weight. The market then determines its value in the form of goods and services it can purchase. If the government is doing its job, regulating the standard, then this money is also immune to debasement. Today, money is debased daily, which is evident in the rising prices for just about everything, and despite their lying about it.
There isn’t a nation in the world that isn’t debasing their money to gain an edge over other nations – a modern form of mercantilism. Debasing there way to prosperity. Why the fuck not take it to zero and we’ll all be billionaires, or trillionaires, like in Zimbabwe?
One of my peeves is how you never hear anyone – “expert” or “media-type” – talk about the role of bad money in the decline of the nation – it’s culture, politics, and economy. Like Armstrong, it’s the fault of bad people, or a bad system. Well, bad people and bad systems have been around since Adam and Eve begat Cain and Abel, and if there’s one thing lowlifes are good at it’s how to connive and scheme their way to riches with little effort, and few better ways than through counterfeiting money. It just so happens that modern politics and government now allows it to happen legally, so long as you are a state-licensed counterfeiter (the banks).
In addition, the government encourages and guarantees, fractional reserve banking, which allows these crooks to create money out of thin air, and lend it at interest. Supposedly, they have cash reserves at 10% of loans but with structured finance and lax regulations, the reserve is probably 3% or less.
And since wages have in no way kept up with the decline in the purchasing power of the FRN, debt explosion has been necessary to keep the whole standard of living/real growth illusion going. The circularity is print currency, debase wages, increase welfare entitlements and other government schemes, increase price and asset inflation, increase government and consumer debt, increase interest income to bankers, print more currency to service debt, and so on.
Unsound money creates unsound government, and sound money creates sound government. Government unbounded by good money becomes corrupted and, as we have witnessed over the years, corrupt government begets corrupt people running it. And when the top is corrupt, it doesn’t take long for the remainder to follow. So despite the constitution stating what money is, it is absolutely disregarded like so much else therein, when it’s in their wealth enhancing interest do so.
Governments created fiat money, legal tender laws, and central banks to allow them to have unlimited access to money, whenever they require, without having to tax the economy into oblivion, with the side benefit for insiders to enrich themselves, enormously and surreptitiously. Sound money limited the power and scope of government and contained its abuses. Today no such constraints exist, including the constitution. I submit this is all attributable to unsound, counterfeit money.
Governments today don’t need to tax, they can buy what they want with counterfeit money, anytime. Income tax is a means of putting a break on inflation caused by money printing. It creates a demand for cash balances in the banking system for tax installments.
But since fiat money is debt-based, it has an inevitable ending – collapse. We know all debt edifices collapse eventually, we just don’t know when. When the current, historical debt pyramid goes down, and rather soon I think, that is when market money will reappear, if only until the next gang of political crooks start the phony money cycle all over again.