I have several thoughts about this, but rather than share them, I’d like to hear what others are thinking. . . ~J
Every society that has had its monetary system under the control of one authority, usually the political government, has been corrupted! There is not one single historical exception to this corruption, including the United States. How can there ever be any expectation that this will ever change?
It is time to get real and design a central bank that is not under the control of one single entity, most especially the entity that had the power to determine what it needs money for and where it shall get that money!
All of this concern about gold – WHY? Where is there any actual value in gold? What is it that actually constitutes value? This is a very important question, it must be properly answered if we are to ever design a monetary system that cannot be corrupted by politicians or bankers.
What is it that actually constitutes value to humans? Everything we need and want is made available to us through the expenditure of human effort, either our own or someone else’s. What is it that we actually need or want?
Food, clothing, shelter and the various items that comprise these three basics. Please notice that neither money or gold is on this list. We do not actually want money; what we actually want is what we can get for our money.
If we all lived in a local society where everything we needed or wanted was locally available we could simply trade what we make for what we want that someone else makes – simple bartering. The problem is we do not live in such a simple society, what we make may not be needed or wanted by any close neighbor and what we need or want may not be available other than from someone on the other side of the planet. This is why we need some manner of money. The one single purpose of money, no matter the medium used, is to facilitate long distance bartering.
It requires substantial human effort to accumulate all the materials and equipment necessary for a shoemaker to make a pair of shoes; and likewise, to accumulate the materials and equipment to make a shirt, blouse or pair of trousers. The human effort expended to create these and similar items is recognized by everyone as being valuable and worthy of being paid for through the exchange of our own individual human effort, likewise expended to create similar items needed and wanted by other humans.
Where is there any such recognized need for the human effort required to be expended to accumulate gold or silver ore, to be refined and made into coins to be used as money?
Why are China and other countries now accumulating massive quantities of gold? Is it not only because the entities throughout the world, who have control over the creation and issuance of paper money have violated their trust and corrupted all of these paper money issuing central banks? Is there even one central bank of any country that has not been corrupted? Some more than others, yes, but still, corrupted!
Why is China accumulating gold rather than a commodity that would more readily provide for its massive population? Such as millions of tons of rice? Is it not because of the universal belief that gold is the only real money?
If all the FRNs in the United States were to be considered totally worthless tomorrow, what would the people of the United States be in dire need of, and scrounging everywhere to find? Would it be gold – or food? If looters were to come across gold would they then steal that gold and stop searching for food? Or would they steal that gold and then keep on looking for food, and if they located someone offering food for sale would the looters not then trade the gold they stole for food? The point here is, what would people need and want when their money is deemed to be worthless? Gold or food? And,, it they had gold, what do they want it for? Is it not to purchase food?
Where is there any true value in or need for expensive gold?
Again, when everything settles down after a major economic disaster, and everyone is then using gold as money, how long will it be before the powers that be, manipulate the monetary system to replace the gold with gold backed paper and then gradually remove the gold backing so that in a short time the only money medium is paper, unbacked by gold? And how long would it be before that paper money system was corrupted by that single political entity that had placed itself in control?
It has always been this way in the past, how can we expect any difference in the future? Unless we re-design the system to prevent this?
It is claimed by some that our Constitution established a gold coin money system where the use of paper as money was/is unconstitutional. However, the prohibition of the use of paper money is Constitutionally applicable only to the states, there is no such Federal limitation included in that document – it is only inferred in the minds of common people who read what they want into it, while politicians, the same breed who concocted that document, interpret it to serve their own criminal needs.
What we need to do is acknowledge all of this as being inevitable and design a paper money system where the management is under the control of the Legislatures, assembled, of the Fifty States of this Federation, with no authority allowed for any level of government to borrow money from such bank.
The People’s Central Bank (PCB) would be required to restrict its lending only to private sector borrowers, and all interest collected on such loans would be credited to the treasuries of all four levels of government, enabling us to eliminate all manner of taxation at every level of government.
I am Eric Williams, The Radical In The Twilight Zone