Beyond Diabolical by James Jaeger
>Two observations:>1. There isn't enough gold and silver in the world to even begin to finance the economy of the United States. We wouldn't be able to build factories or houses or much of anyting else if we were limited by the amount of gold and silver abailable to us. The shortage would cause its value to become astronomical.
I wish I had $10 for every time I was asked this question or heard this objection. It's called The Misleading Theory of Quantity-question and it is fully answered starting on page 141 of THE CREATURE FROM JEKYLL ISLAND by G. Edward Griffin. Since I'm tired tonight and don't feel like answering this question again in my own words, I don't think Mr. Griffin will mind if I just quote his well-written answer to this most basic of misunderstandings of the money supply.
Mr. Griffin says: "It is often argued that gold is inappropriate as money because it is too limited in supply to satisfy the needs of modern commerce. On the surface, that may sound logical - after all, we DO need a lot of money out there to keep the wheels of the economy turning - but, upon examination, this turns out to be one of the most childish ideas imaginable . . . the supply (of gold) is not important. Remember that the primary function of money is to MEASURE the value of items for which it is exchanged. In this sense, it serves as a yardstick or ruler of value. It really makes no difference if we measure the length of our rug in inches, feet, yards or meters. We could even manage quite well in miles if we used decimals and expressed the result in millimiles. We could even use multiple rulers, but no matter what measurement we use, the reality of what we are measuring does not change. Our rug does not become larger just because we have increased the quantity of measurement units by painting additional markers onto our rulers. If the supply of gold in relation to the supply of available goods is so small that a one-ounce coin would be too valuable for minor transactions, people simply would use half-ounce coins or tenth-ounce coins. The amount of gold in the world does not effect its ability to measure any given transaction... The reason so many people fall for the appealing argument that the economy needs a larger money supply is that they ZERO in only on the need to increase THEIR supply. If they had paused for a moment to reflect on the consequences of the TOTAL supply increasing, the nonsense of the proposal becomes immediately apparent."
>2. Gold and silver are no better than paper as currency.
Yes they are because they cannot be created out of nothing as is the case of printing up fiat paper currency. When the paper currency of a nation is tied to something that cant be counterfeited (such as gold or silver) the banks and the gov can't screw around with the money supply, thus diluting its purchasing power - as is now the case.
>If we don't have the money to hire the people who produce and build the factories that allow them to do it, the system will collapse and life will return to the days of being brutish and short and run by criminals as is taking place in Russia today. Then, instead of buying a car, the toughest guy in the neighborhood will just step in and take it.
The system is now in the process of collapsing because you have been asleep at the switch and allowed a bunch of elite bankers and the government to get together and form another money-printing cartel (as has been done three times before in this country's history). Now they have created so much fiat currency (see my earlier posts on this) that your purchasing power has been slowly taken from you. In 1913, the year the Federal Reserve (and the IRS) were established, the average annual wage in America was $633 (or 633 Federal Reserve Notes) . . . in terms of gold that was 30.6 ounces of gold at a value of $20.67 per ounce. 77 years later in 1990, the average annual wage in America had risen to $20,468 (or 20,468 Federal Reserve Notes) . . . in terms of gold that was 52.9 ounces of gold at an exchange rate of $386.90 per ounce. In other words, in the same period of time it now takes 3,233% more Federal Reserve Notes to live a year of life in America yet it only takes 73% as much gold to live for the same year. Thus in this 77 year period the Federal Reserve Notes ($) had lost purchasing power at the rate of 42% PER YEAR while the gold had only lost purchasing power at the rate of less than ONE (1) percent a year. Now give me a break, those Federal Reserve Notes, what you revere as *money* are really nothing but *shit* -- and they are monetized (printed up) by the Fed-Gov cartel with abandon. Wake up! You have been brainwashed by Keynesian economics. And the joker is: the IRS was installed the same year as the private collection agency for the FED banksters to collect interest on the national debt, which is held mostly by Fed-related bankers. I love it! I wish I were a criminal so I could join their scheme. It's brilliant. Beyond diabolical. Not even AI could dream up such a perfect Alien System.
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