THE FALSE STANDARD

Richard_NixonArticle by Barbara Cornell

Syndicated by Barbara Cornell’s personal blog.

August 15, 2011 was the 40th anniversary of our official abandonment of all pretense of having a gold standard.

And marks the last substantive opportunity to avoid our nation’s downward spiral into bankruptcy. (We’ve had times when our government voluntarily refrained from spending more than those of us who apply our efforts to useful production could compensate for, but they were brief, fleeting anomalies).

The reason being that once a currency has no inherent value, it can be manipulated and devalued by political machines.

But, in fact, gold itself is a currency with no inherent value.

Gold has always been a «false standard» because gold has no inherent value. You can’t eat it, can’t make shelter out of it, it’s too soft to make functioning tools or weapons. It has a few, limited industrial uses but few of them can’t just as easily be accomplished by other materials. Its only value lies in:

It’s pretty, it’s rare and difficult to get to and: people agree to take it in exchange for things that do have inherent value.

investing-in-goldThe fact that it has consistently for many centuries been widely accepted as a value holder is why it’s the standard. Gold’s increasingly «false standard» is displayed in its comparative «value» to silver better than anywhere else. Silver has exactly the same inherent value as gold (it’s pretty…), and for many centuries gold and silver held approximately the same «value» (people accepted gold in exchange for inherently valuable commodities at approximately equal or up to twice the rate of silver), but gold has been increasing in «value» much much faster than silver. (As of today, gold sells for $1818 per troy ounce and silver for $40, a differential of 45 times.)

The difference between gold and currency issued arbitrarily by an entity (currencies haven’t always been issued exclusively by governments) is that its perceived value has maintained its independence from policy makers and was one step removed from its direct manipulators.

The only thing that can assure a population’s currency is not subject to manipulation is direct barter. And that sucks.

For centuries, the next best thing was gold.

But nearly anything is better than letting the value of your entire life’s work depend on Ben Bernanke’s morning bowel movement being satisfactory.

PUTIN STASHES TONS OF GOLD, WHILE AMERICA BURRIES ITSELF IN PLAY MONEY

putinArticle by Tim Wikiriwhi.

Syndicated from Eternal Vigilance.

EDITOR’S NOTE: Mr. Wikiriwhi is a Transegoist sympathizer; not a Transegoist — our syndication of his article does not indicate that he endorses the Transegoist philosophy.

Ron Paul must be reading the News saying “I told ja! I told ja!”  Everything he said about the corruption of the Federal Reserve, its abandonment of the Gold standard, Its «quantitative easing» is all coming home to roost.

The American Dollar is finished.  Putin knows it.

From the New Zealand Herald (B8 18-2-13):

“When Vladimir Putin says the US is endangering the global economy by abusing it’s dollar monopoly, he’s not just talking. He’s betting on it.  Not only has Putin made Russia the world’s largest oil producer, he’s also made it the biggest Gold buyer.  His central bank has added 570 tonnes of the metal in the past decade…”

Read more about it here: Putin Turns Black Gold to Bullion as Russia Outbuys World.

Read about ‘Quantitative Easing’ and The collapse of the American dollar here.

Source on both links: [www.Bloomberg.com].

EDITOR’S NOTE: Mr. Wikiriwhi is currently running for mayor of the city of Hamilton, NZ, as the Libertarianz Party candidate.