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Endgame: Return to the Gold Standard?

December 27, 2011


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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/







Scruples - the game of moral dillemas

Comments for "Endgame: Return to the Gold Standard? "

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


Robert said (December 28, 2011):

Unfortunately, Dan didn't identify who Frederick Soddy was. He was an English radiochemist who with Ernest Rutherford explained that radioactivity is caused by the transmutation of elements. For this and other achievements he was awarded the Noble Prize for Chemistry in 1921. A crater on the moon bears his name.

Soddy was an independent thinker who undertook his own study of economics and came to his own conclusions about the grave deficiencies in the current financial system. While he was not on all fours with the analysis of C.H. Douglas, the British engineer who founded the Social Credit movement, he did honour the latter with the public statement that "Science without Social Credit is sheer suicide."

This undoubtedly referred to the fact stressed by Douglas that in a technologically advanced society conventional methods of distributing consumer income fail increasingly to permit the ongoing liquidation of accumulating costs of production.


Diane said (December 28, 2011):

THANK YOU for the columns from Anthony Migchels. This is his best yet, and rings true to me.

Next, Henry, can you please connect for your readers this likely return to gold with the slow, steady trajectory of Ron Paul toward the presidency.

I do not believe that Ron Paul is a willing conspirator with the globalist satanist elite. (If he is a Mason he is most likely one of low degree.) But his dogged pursuit of Austrian economics shows him to be a dangerous commodity for voters.

What if there is a contingency plan of the elite to gradually and imperceptibly steer voters toward Ron Paul? It seems as if all other candidates are being discredited before voters one by one. This is step one. Step two: at some point it will become obvious that Ron Paul was cheated out of a win in one or more states, and the public will rush to support the wronged underdog. Step Three: a very big and very hot war with Iran and or Syria will be triggered by a false flag event so slick that Ron Paul will feel obligated to support the war effort. He will lead the effort in Congress to actually declare war this time, and he will succeed. Once war is declared, the elite can trust Candidate, later President Ron Paul to prosecute it vigorously, and to rally the public to support the rigorous economic austerity measures that the elite want put in place. Of course, the wheels will continue coming off of the global economy during all this, and the economic crisis will be greatly heightened by blocked shipping lanes in the Middle East.

Who better than Ron Paul to sell the public on a new gold standard, on higher interest rates, and on reducing government spending for social services while raising spending for the war machine? The globalist new world order will get its most important piece, the gold standard, locked into place with the approval of most of the anti-NWO people.


Dan said (December 28, 2011):

We cannot return to a gold standard simply because there is only 142,000 metric tons of gold in existence. The current value of all the gold in the world is only 6 trillion dollars. For this reason, if gold were made the standard of currency tomorrow, gold price would skyrocket because there's not enough of it for this purpose today.

The gold standard was an 18th century scam out of England. It favors nations with the most gold, ie. the international Colonial powers, like England at the time. Small nations with small gold reserves were forced to cough up their real wealth, such as bountiful agricultural harvests and 'sell dear' to the fat cats in London and Amsterdam. Gold in fact enabled the international bankers to impoverish productive economies to loot their real commodities.

One must dig back to find books by writers that were versed in the nature of the economics that built Western Civilization. Economics in healthy cultures is entwined with a culture's ethics and long range goals. Our civilization's economics has largely been hijacked to transfer wealth and power to an invasive, usurping culture.

There was a book by Frederich Soddy published in 1935, 'Money as nothing for something ; The gold "standard" snare' which has been eliminated from all booksellers and removed from Internet Archive and Gutenberg Project since Google took over those sources.

Other books by Soddy if you can find 'em are 'Wealth, Virtual Wealth and Debt. The solution of the economic paradox' (George Allen & Unwin, 1926), and, The Role of Money, Frederick Soddy (George Routledge & Sons Ltd, 1934. Internet Archive Gutenberg)
http://www.archive.org/details/roleofmoney032861mbp


Henry Makow received his Ph.D. in English Literature from the University of Toronto in 1982. He welcomes your comments at