News here in the U.S.A. has had plenty of the current farce called raising or not raising the debt ceiling. After the typical dog-and-pony show, a budget offer was reached. But was it advance? It was an inescapable conclusion that the financial obligation ceiling would be raised, yet once again, for the basic mathematical reason that unless the budget plan is cut, through spending cuts or boosts in taxes, it can do absolutely nothing else.
With the deficit spending forecasted to be (hold on to your hat!) $1.5 TRILLION, that is a political impossibility. Notice that I used the adjective “political.” Obviously, technically it isn’t difficult to stabilize the budget or even run a surplus. But under the present monetary regime of fiat money that can be produced in any amount at the click of a computer system at the Fed, there is no support either in Congress or amongst the electorate to do so.
Everybody are damaged jointly, as described by German financial expert Thorsten Polleit. Because the sky will not fall, yet, by printing more fiat money, nobody can be expected to support genuine budget plan cuts– not the military, retirees, Medicare and Medicaid receivers … the list continues. The Fed will continue to print cash to support the rising government financial obligation, in nominal terms just, until the dollar’s acquiring power is ruined.
The only method to avoid this disaster is to go back to sound money; i.e., linking the cash stock to a commodity, almost certainly gold. By “connecting” I suggest that what individuals call “cash,” whether in the form of paper certificates, bank accounts, or some other type such as digital currency, is backed one hundred percent by the product. The commodity is cash. Nothing else. Certificates, savings account, or other kinds are merely practical ways to transfer ownership of claims upon the money stock.
Yes, this is the only way. Ignore electing or selecting the “ideal” people to Congress or the Fed. As long as any person or entity CAN print fiat money, it WILL print fiat money. It is illogical to support a monetary program in which printing fiat cash is allowable and anticipate that anyone exists who will refrain from doing so. For that reason, shut off your TV. Stop reading business press. The US federal debt will grow and grow, and nothing can stop it under the present financial regime.
The Return of Gold as Money
So, is that it? We are doomed? NO! Gold will return! Why? For the simple and logical factor that gold and only gold works. For 5 thousand years gold was cash and money was gold. Gold permits complete strangers to take part in productive exchange. Not just total strangers but even opponents can take part in efficient exchange. You don’t like the Russians? OK, but you don’t have to like them in order to purchase their gas. Cooperative exchange indicates, per se, that both parties anticipate to benefit.
For all I understand my local hardware shopkeeper might be an Atlanta Braves fan, about as low as it gets for a Philadelphia Phillies fan like me. Nonetheless, I appreciate the benefit and quality of his store’s products and services, and I’m sure he appreciates my patronage. This is not a pointless matter. Gold allows everybody to benefit from a worldwide division of labor that requires no vetting of personal or political views or affiliations. To put it simply, gold leads us to a world of peace and prosperity.
The “East” Will Lead the Way, and Eventually the “West” Will Follow
The age of fiat money and dollar hegemony is coming to an end. Russia, China, India, the Arab nations, South Africa, Brazil, and others– let us call them the “East”– quickly will settle their international sell gold. It will work. Then the Western fiat money nations, led by the United States, will view as, one by one, previous allies start jumping ship. This does not indicate that they are willing to be controlled by Russia or China, for instance, just that real prosperity depends on sincere cash; i.e., gold. The dollar will be tossed on the ash heap of history just like the French assignat, the Confederate dollar, the German papiermark, and more recently the Zimbabwean dollar. Naturally, real statesmen, particularly American, would understand this and start preparing their countries for this immense change in which military power is unimportant.
Time for Humility
It never ever hurts to advise ourselves that the world is a very big place and America is simply one little part of it. We need to find out to be excellent people of the world, sincere in our business affairs, friendly and considerate toward all, and meddle in the internal affairs of no one. For a country that has arrogantly assumed that it is unique, this will be a really tough tablet to swallow. American military power and the dollar as the world’s premier reserve currency created a hubris that appears in many locations.
Preposterously we declare the power and authority to change the weather and the earth’s temperature, to manage the health results for billions of individuals through global vaccine requireds, the capability and perhaps authority to alter an individual’s biological sex … the list continues. It is time for a return to humility, honesty, and above all freedom of the specific to live his life as he, and just he, chooses.