Peter Schiff Explains Quantitative Easing And Why You Are Screwed

Originally posted by mnemeth1
reply to post by JR MacBeth

 

Yeah, I think the virtues of colonial scrip are over-stated by some critics of the gold standard.

I know the movie "The Money Masters" promotes this kind of a currency system, but there is a reason for that. The guy who made the Money Masters was, and is still, an advocate of social welfare. He knows that it is nearly impossible for government to engage in redistributive schemes under a gold standard, which is why he so strongly advocates for a colonial scrip type system.

Of course, a colonial scrip type system is a thousand times superior to our current fraud, but it is still evil. It is still forced upon the public at gun point. It still gives government the power to inflate and redistribute to their cronies.

This is WHY the market must be given control of the money supply. If government has control over the money supply, corporations will be enticed to seize government for their own ends.

The only way to disincentivize corporations from seizing government is to take the ability to redistribute away from government. Only when the corporations realize that they can not gain by getting control of government will they stop trying to take control of government.

Government can not be trusted with the currency.

edit on 2-10-2010 by mnemeth1 because: (no reason given)

Just to clarify, Colonial Scrip should not be confused with "Continentals" alone. For a half-century prior, colonial bills of credit emerged, and were greeted by success. No gun was put to anyone's head, there were no legal tender laws, they functioned primarily in connection with the payment of the relatively low taxes that the colonies collected. The only "coercion" I see is that because the Crown refused the colonies sufficient coin, there was incentive to utilize non-coin substitutes that wouldn't have emerged otherwise.

Scrip is not the only example by the way. Two dead presidents might be called upon to testify to viable non-gold options, that were quickly squashed by the PTB, Lincoln and Kennedy.

As for Lincoln, his "greenbacks" may have led to his assassination, but they provide yet another example of an "honest paper currency" (perhaps it is not oxymoronic after all). To bring the Civil War to a conclusion, Lincoln needed money, and was seen as an easy mark by the banksters, who demanded huge interest, if they were to allow his success. Lincoln pulled the unexpected on them, and turned to Congress, who agreed to issue approximately $400 million in "United States Notes", completely "interest-free"!

Under the power granted by the Constitution, Article 1, Section 8, Paragraph 5, Congress simply issued currency based on the integrity and productivity of the US government. Bankers not needed. Interest payments, also, not needed! Not that that beautiful quality of integrity was much to brag about by that time, but it was still enough, and by today's standards, their era towers above ours.

Kennedy. He did it too! I've mentioned this in other threads, but collectors of old currency are usually aware of the famous red-seal "Assassination Note", $100 denomination, series of 1966. While Kennedy had already been long in the grave by the time they were released, they only came about because of his bold actions, which like Lincoln 100 years earlier, probably helped get him killed. At the top of the $100 bill was a line of very bad advertising for the Federal Reserve. Instead of "Federal Reserve Note", these simply said "United States Note"!

A half-century of reprogramming Americans was suddenly at risk, as the common man went to his bank, and received bills (we might say physical "proof") that proved the Federal Reserve apparently wasn't required at all. This would not do. Accordingly, the issue was withdrawn at lightning speed, and most of the "evidence" was destroyed. Today, the surviving bills sell at quite a premium, because there aren't many left.

Regarding corporate behavior, it is much like the mafia's behavior, they will exert whatever power they have, to manipulate government to their desires. Just as the mob may put "pressure" upon government officials, in order to have their companies awarded lucrative contracts, the same is true of corporations, even if they don't resort to actual violence, and prefer simple bribery instead.

This behavior has nothing to do with the power to issue currency. It "could" certainly, and does, but not exclusively, it is just another subset of the natural situation we all must deal with, called the Law of the Jungle.

Can governments be entrusted with giving us a useful and stable currency? Maybe, maybe not.

But is the "solution" the one our bankster masters have handed us? Is it the "gold standard"?

Well, at the risk of being called anti-Semitic, I'm going to quote the infamous Protocol 22:

"In our hands is the greatest power of our day, gold; in two days we can procure from our storehouses any quantity we may please."

No, I'm not a fan of one position over another regarding what is probably a slanderous forgery. That's not my point. Many believe that the Protocols are in fact a sort of "message" by the PTB, and as many things in the controversial document seem to have come to pass, they shouldn't be ignored. As in this case. I think they may tell us a whole lot, and at a bare minimum, we need to be cautious when it comes to "their" metal.

JR

Thanks for the history lesson, but I fail to see you demonstrating why such a system of scrip would be superior to a gold standard.

History is fine, but you need to demonstrate WHY history says it is better.

As far as I can tell, history says scrip is worse.

The greenback, the continental, and the colonial scrip all ended in hyper-inflation.

Gold can not be hyper-inflated to death by a criminal gang of thieves.

As for this:

government officials, in order to have their companies awarded lucrative contracts, the same is true of corporations, even if they don't resort to actual violence, and prefer simple bribery instead.

This behavior has nothing to do with the power to issue currency.

This has EVERYTHING to do with the power to issue money. The power to print money is the power to issue unlimited contracts, bailouts, subsidies, kickbacks, and bribes.

And there is CONSTANT violence in our system of fiat. People are not allowed to issue private gold backed currency. The threat of violence is constantly over the market.

Ron Paul makes the moral case for the gold standard.

Why is there no talk of SDR's in this discussion? Remember to follow the money. The people pushing gold own gold. Duh! Not to say that Gold won't skyrocket, but come on people.

SDR's provides an out for the crooks. It's a basket reserve currency which will include gold as it's main component, along with USD, Euro, Yen, # Just as countries have been pegged to the USD, now so the USD & every other major currency will be tied to each other and gold at the same time. It's an extra layer of complexity which aims to minimize the extreme swings which are coming into play. Once countries purchase enough SDR's, the gold suppression will come to an end, and whatever chaos will be, will be.

Personally, I'm purchasing silver every week, atm. I plan on continuing this until the price reaches triple digit numbers. I don't plan on selling until the dow/gold ratio is at least 1:1, and if the G/S silver ratio goes under 20:1, I will swap out the silver for gold, instead of going into something else.

reply to post by unityemissions


SDRs are indeed an "out for the crooks"

The SDR is a fraudulent system of crackpottery concocted by private commercial bankers that operates outside the influence of any political control.

It seeks to establish a private cartel of international banks and place them in control of the worlds money supply.

This is utter and total insanity.

Your theory that "people who have gold push the gold standard" is not telling the whole story. Rich people DO NOT WANT TO HOLD GOLD. Gold does nothing for them. All gold can do is provide a hedge against inflation.

-Gold can not provide a return on investment above the rate of inflation.
-Gold can not pay a dividend
-Gold can not create wealth in a society

Gold is NOTHING but a useless medium of exchange.

The billionaires of the world HATE the gold standard. They hate it with a passion because it restricts the power of government. It restricts the amount of money they can take from the people by force using government handouts, kickbacks, subsidies, and corporate contracts.

This is why they are pushing so hard to keep the federal reserve system unaudited and promote the SDR system.

SDRs are fraud.

Originally posted by mnemeth1
reply to post by unityemissions

 

Your theory that "people who have gold push the gold standard" is not telling the whole story. Rich people DO NOT WANT TO HOLD GOLD. Gold does nothing for them. All gold can do is provide a hedge against inflation.

-Gold can not provide a return on investment above the rate of inflation.
-Gold can not pay a dividend
-Gold can not create wealth in a society

Gold is NOTHING but a useless medium of exchange.

You're funny mnemeth1 !!

I get a good laugh out of your constant use of absolutes. I'm guessing you're an INTJ?

Anyways, gold certainly provides a return on investment above the rate of inflation. It has before, and will do so again. Now, does it do this for everyone? NO. You have to get in and out at the correct times. The absolutes you use are absurd.

Oh, btw .. some billionaries are heavily invested in Gold. It's not merely a hedge against inflation, it's also a stock that is publicly traded. The price fluctuates much more in recent times then it ever did in the past.

You could easily get rich off of owning gold or silver. I recall a story from the GD era, of a common man who saw the insanity of the 1920's, and instead of investing in stock, he purchased as much gold as he could. He did this for years, and once the depression hit, he bought a good chunk of California off the gold. Gold went through the roof, and property values declined. Now, are you going to tell me he didn't get wealthy off of investing in gold, and that this was just a hedge against inflation?

reply to post by unityemissions


In a free market, gold can not provide a return above the rate of inflation.

Logic makes this plainly clear.

In order to provide a return above the rate of inflation, gold must be capable of adding value to a society.

Since it is simply a chunk of metal with limited industrial use, it is impossible for it to do so.

And, as I said earlier, rich people do not want to hold gold. They only hold gold because they are forced into doing so. They would much rather invest their money where it can provide a return on investment in the form of dividends and increases in productive capacity.

Rich people want to use their money to create jobs and expand production.

They do not want to stick their money into a pile of metal that has limited uses other than as a medium of exchange. The epic money printing of government FORCES them to invest in gold to hedge their wealth against the evils of inflation.

Inflation is a government tax on existing wealth.

reply to post by mnemeth1


Yes, but why on earth would you think we live in a "free market".

Ride the waves of manipulation, mnemeth.

Be a winner!

Originally posted by unityemissions
reply to post by mnemeth1

 

Yes, but why on earth would you think we live in a "free market".

Ride the waves of manipulation, mnemeth.

Be a winner!

We don't live in a free market society.

That's the whole point of the thread.

The only way to get back to a free market society is to go back to a commodity based money (gold) and eliminate the federal reserve, the federal government, and most of the useless state government programs.

This video by investing legend Marc Faber demonstrates clearly how "rich" people view gold.

Faber tells the audience why and when they should hold gold.

Every American should watch this video.

reply to post by mnemeth1




That guy is one of the most evil people out there!

Don't listen to that jerk.

Seriously, you can do better than that to prove your point.

He gives advice only for political, economic gain.

Don't trust ANYTHING he says.

reply to post by unityemissions


You think he's evil because he's telling people how to protect themselves from government confiscation of their wealth?

Of course, Faber is speaking to a room full of Austrian economists, who all have the same views.

So, if you think Faber is simply creating a lot of hype, I can point you to dozens of other academics who hold the same views as Faber. Faber simply lays it out better than anyone I've seen.

reply to post by mnemeth1




Give me a second. I'll show you what I mean... brb

Just because he tells some truths, doesn't mean his overall game isn't deception and fooling people for gain.

Come on, man!

Well I can't find what I'm looking for, but if it pops up sometime in the future I'll put it in this thread.

Basically, it goes like this:

He's a trend setter. He has so much $$ that people listen to him. He says something will happen, which causes it to happen, and profits off of the trend he just set. Because he is the one setting the trend, he make the most profits. It doesn't sound too bad now does it? Well, when the trend puts a lot of jobs at risk, or destroys a currency, it's devastating to many people. He's done a lot of dirty work in his time. What about when he broke the pound?

reply to post by unityemissions


If I thought Faber was deceiving people, I wouldn't be posting his videos.

I have nothing to lose or gain by promoting gold as a hedge against inflation.

I am not a professional investor.

I am not rich.

I'm a simple software developer with a middle class income.

Faber is telling the truth.

reply to post by mnemeth1


The devil is in the details! He gives an accurate big picture, but profits off of small deceptions. Really wish I could find this piece that completely destroyed his credibility as a man with a conscience. I'll look some more..

Let me put it this way, in all actuality all of this talk of doom (that you are also propagating) , there becomes a higher risk of actualizing this potential. It's a self-fulfilling prophecy. Faber is one of the most outspoken people on the deception, but he does so deceptively! He does it not to benefit humanity, on the contrary, he does it for pure selfish reasons: political and economic gains. He has an interest in crushing the U.S. , obviously. You have one as well.

I just think you're very confused on a lot of things, and living in a naive bubble of possibilities rather than the reality of what is. Human nature will never allow for Anarchy. It could happen, if there were much more resources available, and much less people huddled together. Civilization, and government are the most logical outcomes of our evolution and population size. Corruption is inherent in the human psyche. I have no clue why you seem to have disowned this part of yourself, and your fellow man.

There's no people to fight, but ourselves. This is humanity, menmeth, welcome to the insanity!

reply to post by unityemissions


You have to demonstrate what you are talking about.

Faber is putting his money where his mouth is.

It is the investors who tell their clients one thing and then do another that you have to worry about.

For example, Goldman Sachs:
www.zerohedge.com...

reply to post by mnemeth1


That's exactly what he's done on numerous occasions. He was called out not too long ago by Max on the Keiser report. Really wish I could remember what exactly the claim was. I'll keep looking.

Originally posted by unityemissions
reply to post by mnemeth1

 

That's exactly what he's done on numerous occasions. He was called out not too long ago by Max on the Keiser report. Really wish I could remember what exactly the claim was. I'll keep looking.

I doubt that.

You are probably thinking of someone else.

In fact, Max has done interviews with Faber in the past because Faber is one of the few guys Max actually trusts.

Originally posted by mnemeth1

Originally posted by unityemissions
reply to post by mnemeth1

 

That's exactly what he's done on numerous occasions. He was called out not too long ago by Max on the Keiser report. Really wish I could remember what exactly the claim was. I'll keep looking.

I doubt that.

You are probably thinking of someone else.

In fact, Max has done interviews with Faber in the past because Faber is one of the few guys Max actually trusts.

edit on 4-10-2010 by mnemeth1 because: (no reason given)

Yep, you're right. I'm completely in the wrong here.

I was confusing Soros with Faber.



Soros is the evil man, for sure.

Faber, just a wise investor, it seems..

reply to post by mnemeth1

The greenback, the continental, and the colonial scrip all ended in hyper-inflation.

No, they didn't, look it up. The Continental was defaulted on, thanks mostly to British counterfeiting, colonial scrip never had a problem, and the greenback is perhaps the ONLY lawful currency in the land, even today.

I will say it again. The banksters control the world's gold. Beware of schemes that involve gold too much. Gold is wonderful for the individual who is taking charge of their finances, who is taking responsibility, but it may not be so great when our masters "suggest" that it is a cure-all it is for their decades of shenanigans.

Thankfully, I see someone else posting who understands that SILVER is the thing to focus on, we little people really DO have an out. But with all the gold talk, few will ever hear that message.

JR