Endgame: Return to the Gold Standard?
December 27, 2011
Central bankers may be planning to reintroduce the gold standard in lieu of a single world currency.
by Anthony Migchels
(henrymakow.com)
One of the more persistent memes circulating on the internet is the idea that central bankers, or the "Powers that Be," hate Gold.
The idea is often repeated, but it is a strange notion. After all, we lived under a Gold Standard up to 1971, when Nixon ended Bretton Woods.
The Money Power has ruled through Gold for a very long time. So why would they hate it?
No, the Bankers love Gold and in fact, there is reason to believe they are planning to reinstate it as the monopoly currency of their choice. In fact, this may be the fundamental factor driving Gold prices up. It's not just a hedge against inflation: if Gold becomes the standard again, it will become very, very expensive. And more and more of the smart money is betting on this.
Here are a few more of the reasons why Bankers want their Gold Standard back:
1. Gold is the de facto World Currency. If Gold as currency is used everywhere, the central bankers basically have what they want. It would be much easier to control us with their gold, than to impose a single world fiat currency. Alternatively, they could do that by backing it with their gold.
2. With Gold, interest is easier to justify. When you lend Gold you can say: I need interest. I can't use the Gold myself while you use it.
When you just print money, interest is harder to justify. The money didn't exist when it was lent out, and will cease to exist after it has been repaid.
3. They own it all. And the little they sold us they will regain quickly when compound interest mops up the rest, after which their monopoly will be completely restored.
The fact is, nobody knows where most of the Gold is. This is a clear sign the central bankers may reintroduce the gold standard. In the meantime, while Gold appreciates, so do their reserves.
4. They prefer deflation over inflation. Interestingly, under Gold, deflation is the norm while under paper inflation is the norm. Both see the boom/bust cycle, but each with its own 'natural' condition.
Paper sees continuous 'mild' inflation alternated by deflationary busts.
Gold sees structural deflation, alternated by asset bubbles.
Bankers prefer deflation. It makes their Gold and the interest they rake in worth more. It hinders economic growth, keeping the middle classes small. This is so because deflation invites hoarding currency (the currency is appreciating against other assets) instead of investing it.
Under inflation, everybody is getting rid of his paper because it is losing value, promoting both consumption and investment.
5. But surely, they suppress Gold, don't they? Of course they do. They have their mouthpieces explaining it's just 'a barbarous relic'. They have their banks suppress it's price.
By doing so, over the years they have convinced many to surrender whatever stash they had, greatly enhancing their grip on it. To them, it is just another dialectic: paper versus gold.
When the time comes to release the valves, Gold will appreciate further and further. Greatly enhancing the value of their own Gold holdings, probably more than enough to compensate them for any paper losses.
That's basically more or less their style, isn't it?
Whether they will succeed this time is another matter, though.
So there are plenty of reasons to assume the Banking Fraternity would be quite pleased with a new Gold Standard. A Gold Monopoly Standard, that is. In a free currency market Gold would play no role.
Keep in mind: they control Gold and are capable of creating the boom/bust cycle with it. History is proof of this. Worse still: we'd be paying interest over the money supply and this is the most important way the plutocracy drains our wealth from us.
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Anthony Migchels is an Interest-Free Currency activist and founder of the Gelre, the first Regional Currency in the Netherlands. You can read all of his articles on his blog Real Currencies
The Daily Bell weighs in on this article
Migchels Replies here:
http://realcurrencies.wordpress.com/2011/12/29/discussing-interest-and-gold-with-the-daily-bell/
Derek said (December 28, 2011):
Excellent article on how a gold standard has benefited a finance plutocracy at the expense of the general population. Why should our purchasing power be determined by something as irrelevant as who holds how much of a shiny metal? Why should our prosperity depend on the whims and schemes of a self-interested, manipulative cartel? That situation benefits those few families (such as Oppenheimer's and Rothschild's) who ruthlessly control that particular supply chain.
Here's a great presentation on gold price fixing:
http://www.abeldanger.net/2011/02/gata-gold-market-manipulation-huge.html
And here's a great article on a better way:
http://www.abeldanger.net/2011/09/more-time-for-leisure-national-dividend.html