Gold, Currency IOUs and Inflation
by Gary Christenson
GoldSeek.com
Wednesday, 12 September 2018
The financial world runs on “funny money” or debt based currencies. More currency = more debt. How much debt? In a word – “unimaginable.”
But another important word we should consider is “unsustainable.”
WHY?
The world abandoned gold backing and replaced it with debt based currencies. Those dollar bills, yen, euros etc. are DEBTS issued by your central bank. They are as valuable as… someone believes they are. Unlike gold or silver coins, they have no intrinsic value.
The quantity of debt and circulating debt based currencies has increased exponentially (doubles every 10-11 years) for decades. $44 trillion of debt in 2018 will rise to $100 trillion and then $200 trillion. What happens when another $50 trillion in debt is created in the next decade?
Unbacked fiat currency systems function if politicians and the banking cartel don’t abuse the system. Have abuses occurred? Ask yourself the following questions.
Do governments mismanage their finances, spend more than their revenues, and encourage deficit spending?
Do bankers create currency units via fractional reserve banking to increase their profits and interest revenues?
Has congress ignored Generally Accepted Accounting Principles to increase spending, hide deficits and conceal fiscal irresponsibility?
Has the U.S. Treasury Department removed gold and silver from circulation and replaced it with Federal Reserve Notes (debts)?
Has the Treasury Department refused to audit the gold supposedly stored at the Fort Knox Bullion Depository and other authorized storage facilities?
Has the central bank endorsed “inflation” as policy? Inflation of the currency supply leads to consumer price inflation—higher prices—and destroys both the currency and society. Has inflation damaged the people (excluding the top 1%) of Zimbabwe, Argentina, Venezuela and hundreds of other countries that have over-printed paper currencies? Read: “How Inflation Destroys Civilization”
The answer to the above questions is “YES!” Politicians and the banking cartel have abused the unbacked fiat currency system, as expected. The consequences are dire and will become worse.
The Rest…HERE
