Monday, July 21, 2008

"Pure-strain gold"

This comment, sent to the GOP by a Ron Paul supporter, makes me smile:
Says Bob in Clemons, North Carolina: "We need to abolish the Federal Reserve and go back to the gold standard. Not just any gold though, I heard about this stuff, pure-strain gold that has been around since God created the universe. That's what we should base our currency around since it is so close to God."
Sounds like a great idea. I recommend getting it directly from the source.


phyzome said...

I'm pretty sure gold is only forged in supernova-level stars, with miniscule quantities produced in nuclear breakdown chains. As far as I'm aware, the "original" elements were hydrogen, helium, and a smattering of lithium, with everything else produced in fusion reactions in star cores.

Darth Kabbalist said...

I don't care what kind of gold we are talking about. If it's referring to a metal that is owned primarily by the world's wealthiest banking families, I don't see much advantage in returning to such a standard. After 500 years of debt-free, tax payable "tally sticks", the Bank of England managed to bankrupt it's own nation in less than 100 years on a gold standard. There is no marketable difference between gold standards or fiat standards, if the money has to be borrowed.

If that "awful, horrible" fiat currency wasn't BORROWED from a bank, it would be debt-free. Inflation would pay for itself by the goods, services, infrastructure and prosperity that could be had if money (no matter WHAT KIND) was responsibly produced.

Examples such as the pre-Napoleonic Bank of Venice prove that fiat bank notes can command higher premiums than gold, if the nation in question issues it's money interest-free and produces goods and services other nations want. Other examples include Lincoln's greenbacks or "United States Notes" and colonial scrip. Both of the latter examples were ruined BECAUSE of gold standards and bankers leveraging debt against REAL assets, causing those monies to tank.

If a nation PROTECTS it's money, not only from overprinting, but from allowing international banksters to control it and issue it with interest, there is no fear in producing a sovereign money system, as long as the nation in question is productive.

Gold is not the answer. It tends to end being the problem. Unless the United States owned 100% of the world's gold and it wasn't an international "money", I don't think it's wise to return to such a standard, since the majority of it is owned by foreign credit pirates. Ron Paul and Co. are apparently against the "New World Order" and it's "One World Currency", but then advocate returning to a standard for which international banksters can manipulate it's value at will.

I don't get it.