The Federal Reserve has
been printing a trillion Dollars a year and slipping it to Wall Street for the
term of the Obama Presidency because the people there are great political
contributors whilst supping on other people’s money, sweat and tears.
The “other people” have not been born as the T-Bonds justifying the new money have been “put on a shelf” as there were no open market buyers per law. Had our laws been observed this money would not have been printed. It is without basis or legality. It will be paid for by the next two or three generations of taxpayers or we will collapse completely and entirely. The store shelves will be bare, the electricity and water will stop. The New Gestapo will be at your door. It is just that simple in the world of “fiat” money; that printed without basis.
The “other people” have not been born as the T-Bonds justifying the new money have been “put on a shelf” as there were no open market buyers per law. Had our laws been observed this money would not have been printed. It is without basis or legality. It will be paid for by the next two or three generations of taxpayers or we will collapse completely and entirely. The store shelves will be bare, the electricity and water will stop. The New Gestapo will be at your door. It is just that simple in the world of “fiat” money; that printed without basis.
Before 1971 our money was
backed by gold. When seriously examined this is a
silly concept, but for the fact it limits the amount of money that can be printed and
prevents inflation to that degree, but it also curbs appropriate growth. Now inflation has reduced the value of the Dollar
98% since 1913 with most of the decline since 1971 after Richard Nixon’s action
of taking us off the gold standard.
Gold really has very little value other than that imputed to it by rarity, luster, permanence, use in jewelry and electronics, but not enough to justify today's price. A far better standard would be grain as that has been the real wealth of nations for thousands of years.
Gold really has very little value other than that imputed to it by rarity, luster, permanence, use in jewelry and electronics, but not enough to justify today's price. A far better standard would be grain as that has been the real wealth of nations for thousands of years.
If we stop wasting
grain on ethanol production to make bad motor fuel and restore it to its’
rightful place in the economy it is a simple matter to write the equations to
determine the amount of money that should be in circulation to support the
amount of commerce justified by said grain. Please believe this is a simple math problem in three easy equations and two hard ones.
When the harvest is great
we will see more economic activity and when it is not, less and excess
banknotes in circulation only produce inflation with the destruction of existing
deposits and asset value. That is the real disaster of "fiat" money. The damage of “Quantitative
Easing” has yet to be realized, but it will be in years to come. Count on it.
Grain market prices decline
on greater than normal harvests, but that can be due to government not using
grain to promote international objectives. This is a hungry world; grain is the key and
all the more reason to be standard for the printing of money.
More than anything this is
a mathematical problem in a computer age well able to deal with it.
What could be more important for us than to solve the ever-present
question and eliminate manipulation by government with the stability of
our currency? The key is a grain
standard.
Adrian Vance
Adrian,
ReplyDeleteI see and understand the rationale of a grain standard. There are some drawbacks, as I see them. In a bad year, with either too much rain, heat, or not enough of either, the country's potential is not diminished, it's only temporarily interrupted. I believe you're heading in the right direction and on the right road, but we should also include other commodities, perhaps iron and steel, perhaps our manufacturing abilities which are not weather related and dependent on. Certainly our intellectual creativity should come in play. But to say that because grain "has been the real wealth of nations for thousands of years" that it should continue to be. For thousands of years man hasn't had the rest of the important commodities our life depends on.
You are quite correct and this is not the full concept: I only wanted to present an easily understood idea here. Fully fleshed it would include mineral production and a few other basic commodities that enable or constrain GDP. I also want to be sure to use materials that cannot be manipulated, i.e. where the production is widespread and not in a few hands and subject to manipulation.
DeleteIn 1990, Paul Zane Pilzer wrote a book entitled "Unlimited Wealth". It's basic premis is, as I understand it, money should be based on the GDP, or total wealth of the nation. His sub-title is "The Theory and Practice of Economic Alchemy". Interesting concept that may be ready for it's time? Vede Gilchrist.
ReplyDeletePaul's concept calls for honest people managing it and there lies a problem, but as vexing are the machinery of it like the "Velocity of Money" based on the idea that a Dollar spent by you has to go through the seller or service person you gave it to, then to a bank, your employer and back to you, but economists argue about other steps that have to be included and accounted for. This makes the equations nightmarish and very difficult to write.
DeleteI have based my idea on things for which many people know the truth and would tend to keep the evil folk at bey or easy to prosecute when caught. It is the chance of getting caught that keeps people honest and if you can raise that to high level, you're safe.
The trouble with GDP as currently understood, is that it includes government spending. I say let's consider government spending what it really is--a TAX, a drag on production.
ReplyDeleteThere is one solution to the US and worlds financial problems - we hunt down and execute the international bankers (Illuminati, Bilderburg Group, Zionists, whatever name you want to give them) that have created this entire financial empire for their control and greed. Then every nation institute their own currency as it should be. This great (but long) video explains exactly what has been created by these shysters - http://youtu.be/HfpO-WBz_mw.
ReplyDelete