Saturday, 19th November, 2,011.
There was no massive robbery, of course!
However, THEY did take us off a standard of VALUE, and put us onto a standard of NO VALUE!!
We WERE on GOLD. Now we are on paper! (As The U.S. Dollar.) Bank-note paper. Which(The TOKEN value thereof hinges on how much gold it buys! Or anything else of value.)
Paper money is easy to create. Gold,etc. is not.(THAT is its advantage. But once the token representation OR value goes,then it becomes ONLY the value of the paper. Almost nothing!)
The worth is in the CONVENIENCE of the token. Easier to handle than gold,etc.
However, when what the token REPRESENTS fails(If The Nation or issuing government or set-up fails.), then its value becomes paper, NOTHING!! That is the trouble with TOKENS.
This is WHY it is SO important to have a token of INTINSIC VALUE!! Like GOLD. Or silver.
So THOUGH they have not highway robbed us, they have deprived us of a token of VALUE!!
That was the trouble with coming off gold!
If and when anything goes wrong, paper is worthless. Whilst gold and silver would have their value!!
The reason for the critical factor taking us into debt – is the realization that the token is only PAPER. Worthless.
If the powers backing gold failed, you still had the value of the TOKEN ITSELF!
But PAPER, even as The U.S. Dollar, is worthless in ITSELF.
Buyers knew that if all failed you still had the value of THE TOKEN PER SE. So GOLD scored. Whereas bank-notes, being paper, will not(score)!!
Thus going off the gold standard in 1971 saw an additional descent into debt and deficit. Sending gold and silver up, because being bought more. And the dollar down.
This descent should continue so long as we remain off the gold standard!
The need is to slash spending.
And increase cuts.
I think that it is too hard to do it enough. So we are doomed to crash.
The dominoes will run fall through all the countries.
Minimum: Civil war.
But other wars too. Including world war. Which I think will come ANYWAY!!
People don’t mind being lax, but when it comes to tightening belts, it is too hard for them. And they rebel.
And they only elect governments(per elect governments) that promise the moon, and don’t get austere!
Which in the climate prevailing is just out of the question!!
The trick is to meet the need without alienating the people.
But how does one do that?! I don’t think that you can.
So I expect trouble.