The Institution of Money

To obtain a definition of the word “institution” I went to Wikipedia and found the following which I have condensed somewhat:

“An institution is any structure or mechanism of social order and cooperation governing the behaviour of a set of individuals within a given community. Institutions are identified with a social purpose, transcending individuals and intentions by mediating the rules that govern cooperative living behavior.

The term "institution" is commonly applied to customs and behavior patterns important to a society, as well as to particular formal organizations of government and public services. Institutions are also a central concern for law, the formal mechanism for political rule-making and enforcement.

As mechanisms of social interaction, institutions are manifest in both formal organizations, such as the U.S. Congress, or the Roman Catholic Church, and, also, in informal social order and organization, reflecting human psychology, culture, habits and customs, and encompassing subjective experience of meaningful enactments. Most important institutions, considered abstractly, have both objective and subjective aspects: examples include money and marriage.

The institution of money encompasses many formal organizations, including banks and government treasury departments and stock exchanges, which may be termed, "institutions," as well as subjective experiences, which guide people in their pursuit of personal well-being.”

If you accept this Wikipedia content as being accurate, and I do not have any significant argument with it, then the role of money as an institution controlling social order must be acknowledged.

An institution is a form of organization, organizations assume an identity, and it is in the nature of most organizations to resist forces that might lead to the end of their existence.

Now here comes a paradox:

If money is an institution like Congress, or the Fed, or JPM, or the church, or marriage - then money has a collective identity which will collectively work to try to ensure its survival into the future. Any institution would try to ensure its own survival, right?

So if money and all its component partner organizations want to survive, then it must (collectively) oppose those elements within its own institution which threaten its survival.

Now that leads to the conclusion that if the (for my example I’ll stick with the US but it could be anywhere) Congress or the Federal Reserve continually devalue the USD currency (which is one tool of the institution of money) until it’s very existence is under threat, then this should cause a falling out, and the other forces which support the institution of money should begin to oppose the sources which threaten it. These positive member institutions would demand sound currency practises be observed to safeguard the institution of money."

So where are they? Sound money activism seems to emanate from outside the dollar (as an institution) rather than inside it’s other connected institutions.

Gold bugs support sound money, and that is an alternative currency, so in this particular regard they don’t count. The reason for  gold bugs not counting is based on the idea that long term holders of a company stock have an interest in the wellbeing of the business. But traders who go long, and later go short the stock, or buy another different stock will always be,  and be seen to be less loyal. No matter how well intentioned, their words are regarded as less constructive than those whose fate is tied to the stock. In short gold bugs are not listened to because they are outsiders of the institution of money - outsiders as regards it's present state to which it has been perverted to by corrupt insiders.

This is where the world seems to be at right now. The supporters of a strong dollar are abroad in possession of dollars and T-Bonds, and those entities at home have converted to a bizarre situation where like characters in The Manchurian Candidate they profit more from its continued slide and demise than its success and become sleeper agents for “the other side”.

Dollar support from orthodox internal sources has somehow been eradicated. Where are the pensions and insurance industry spokespeople in all of this? Do they have a deathwish for their own industry? Bill Gross’s tweets stand proud in this regard, but they occupy a rather lonely space. A trader can switch sides, but a bond holding company would be expected to fight the good fight with its public relations department.

I wonder has Mr Buffet said anything about this, or is he another dollar bear wrapped in a red, white and blue flag?

It looks like in some way the major fixed income earning corporations have been silenced to the point of not having anything to say to represent their fiduciary clients interests. Isn’t that interesting?

After an extended period of this state of affairs, the status of debtor has become almost universal. Debtors prefer inflation and want some of it. Inflation kills the dollar so that’s ok with them. A nation of debtors, in their own self interest, can go short money by borrowing to buy stuff. With interest rates where they are would you want to be a depositor? Saving is so 20th century!  And so everyone somehow has come to want the destruction of the home currency to continue. And they are in debt too.

I try to remember that when just about everybody has gotten on the same side of a trade, it's not got long to continue.

The main part of this game is being played abroad at the moment as inflation has been exported pretty well so far. All it requires is for the banks to be motivated to lend and the home game can resume. For the moment the really big borrowers, wealth funds and banks, seem to have the field for their own use as they borrow free money from the Fed to go and buy stuff with.

The organizations which comprise the institution of money and who have benefited from money down the years are actually the ones who destroy it today.

It’s a funny old world.

Argentus Maximus

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The author posts daily commentary on the gold and silver markets in the TFMR forum: The Setup For The Big Trade. More information about the author can be found here: RhythmNPrice

87 Comments

El Gordo's picture

One?

First on Saturday nite?  Guess who doesn't have a life.  So what does it mean when you say someone needs to be institutionalized?

Island Guy's picture

Questionalble Premise

The idea of there being forces in the world who will seek to defend fiat money sounds good, but I see no evidence of it in the real world.  As has often been pointed out on TF Metals, throughout all of history fiat money has never survived.  Never.  If there are any forces striving to defend fiat money they are either not very powerful, or they have not been around for most of the last several thousand years.  

REALPMONLY's picture

Just one word ,WHAT!!Dude we

Just one word ,WHAT!!Dude we need turd back. This site is getting boring.

argentus maximus's picture

I think confiscation of gold

I think confiscation of gold in the 1930s counted as defense of fiat.

Mind you almost 100% devaluation since then confirms your point. The government defense of it's own fiat currency is bipolar: incredibly weak at the centre, and draconian at the edge. A new economic theory waiting to be derived in that maybe?

¤'s picture

Interesting

@REALPMONLY ....The subtle depth of the post might be beyond your comprehension or willingness to even try as all you've done on the site is complain since day one.

Thank you Argentus for a well thought out and interesting take on money. It's in our DNA more or less. It's hard to live without it and it's sought after or dwelled upon almost like food.

The largest banks and those folks who have mega amounts it have loyalty only to the flag of money no matter what countries ink is on it.

Various-World-Currencies-Dollar-Yuan-Yen

John Galt's picture

Is the Institution Money or Debt?

Perhaps it is not (fiat) money that is the institution, but debt.

And fiat money is the tool of that institution of debt.

Looked at this way it would be logical for the debt institution to debase the money tool as a means to increase the indebtedness of those enslaved to the institution.

And when the old tool finally breaks it can be replaced with a new currency tool to continue the cycle.

In this regard real money a.k.a. Gold and Silver can then also be seen as a threat to the institution of debt, which explains why it is being fought and resisted so vehemently by the keepers of the institution of debt.

Thanks Argentus for a thought provoking post.

sengfarmer's picture

question

What are the implications of the new currency that is supposed to come out in October?

department of truth's picture

drunk with power?

maybe we give them too much credit, if they were so damn smart we would have a sustainable system

http://www.paulcraigroberts.org/2013/08/02/obamas-debt-ceiling-raises-a-hoax-2/

ReachWest's picture

Dollar = Greed, Fear and Debt

Thanks Argentus for a thought provoking article. It's truly interesting how we have all been brain-washed/conditioned since we were young children to believe that fiat paper is money. It's only over the past half dozen years that my thinking has shifted and my eyes have started to open.

When one looks at what has happened to the value of the dollar over the past century, it becomes apparent that the dollar is not real money - it really holds little to no value over time. It is merely an instrument that can be manipulated to control the masses. Pluses and minuses in an accounting ledger or an electronic database that are not a true reflection of wealth. If the dollar (or any fiat currency) was real money then the Central Banks would not be able to conjure it out of thin air - to increase the amount of it with the click of a computer button. Our collective ideas, our sweat, our resources - these are what create real value. No human sweat or effort was expended doing QE1, 2, 3 and so on. (Well Ben B and few of those Fed folks may be sweating - but not because they are working) No value of anything was added. Just a smidgeon of bafflegab and some smoke and mirrors to keep the debt paradigm rolling along a bit longer.

Greed and Fear - these are the emotions that are keeping those groups/institutions that are working against the dollar and for the dollar to keep chugging along. It's a sorry state of affairs - a state only possible because there is no sound money system remaining on the planet. A state that creates moral hazards everywhere - from wars to poverty to famine and mismanagement of resources. A sad state.

I must say I think that John Galt is correct in that under all of this - the real paradigm being protected is 'debt'. 

AlienEyes's picture

Time for a snooze.

If the SHTF and people start lynching banksters, politicians, gang-bangers and child molesters, please wake me so I won't miss anything.

Spartacus Rex's picture

"Money" Semantics 101?

Perhaps it is to be expected, since the U.S. carries the mantle of having the world’s “reserve currency” that A.M. not being an American Citizen, wouldn’t be any more formally educated on the subject matter presented herein than the vast majority of Sheople (who nevertheless do claim citizenship here in the U.S.) such as they might actually distinguish between an actual “Dollar”, and what merely attempts to pass itself off as a “Dollar Bill” or “Bills” for a “Dollar”.                                                                                       .                                                                                                                                         Actual “Dollars” can neither be folded, nor reduced to ashes by either a match or a Bic lighter, and FRNs are not “Dollars”, and they sure as hell are not “Money”, as they are nothing but a Federal Reserve Accounting Unit Device, and what A.M. refers to as merely a “devalu(ation)” of “the institution of money”, is more accurately described as a perversion of the institution of Money, being carried out via the Coinage Act of 1965 signed by LBJ, just as TPTB.S. are presently attempting to pervert (not merely “devalue”) the institution of Marriage which has existed unchanged ever since the time of Genesis in Holy Scripture.                                                                                                                                                             .                                                                                                                                                   .                                                                                                                                                                Perhaps A.M. presumes that the U.S. Dollar is actually defined anywhere in the U.S. Law to be something other than a specific weight and fineness measured in either Gold or Silver, and thus assumes that “supporters of a strong dollar are abroad in possession of “dollars”…”, or worse, believes that any “T-Bonds” purchased with mere fiat rag paper, constitutes an actual bona fide, and thus lawfully binding Contract?
 
                                                                                                                                                            
                                                                                                                                               .                                                                                                                   .                                                                                                                                              .  .                                                                                                                                                             It seems that no one has yet taken the time to explain to A.M., the legal difference between “Currency” ( i.e. “cash”) and actual “Money”. As well, many mistakenly presume that they actually understand the true meaning of “Legal Tender” Status. Don’t feel bad however, since 80+ % of what passes as attorneys these days are wholly clueless to the fact that there is no Federal statute mandating that a private business, or person must accept fiat FRN currency or clad coins for payment for goods and/or services.                                                                                                           .                                                                                                                                                .                                                                                                                                              Anyone else having trouble grasping the Maxim:                                                     IGNORANTIA JURIS NEMINEM EXCUSAT (?)                                                     Don't expect the Banksters to explain it to you!
emotionallyrational's picture

Dear Turdville, Bitcoin Study?

Since we are on the topic of money (I mean we always are, this is a PM site ;) ), what say Turdville and all the great minds that this community hosts come together and give the whole subject of bitcoin a good ole honest crack!

While I have been only reading random interviews on this P2P currency up till late, the recent comments by the German finance minister have forced me to take notice. HE EVEN QUOTED HAYEK!! Report below:

http://en.europeonline-magazine.eu/reports-german-finance-ministry-recognizes-bitcoin-as-currency_293511.html

It seems the govts are seriously preparing themselves for a future with private digital currencies.

A post where an honest objective study of how bitcoin could influence finance, and the role we think it might play in the future? Would love to hear the comments and insights that this broad community have on the topic. It is interesting to me at least as I feel that it has the potential to be a dud but also a game changer.

There are so many opinions out there on the subject, but I haven't seen a place where sound money advocates have come together to discuss facts rather than notions. What do you guys think? Worth a shot?

HAT TIP IF YOU WOULD LIKE TO FIND OUT MORE!

Peace,

ER

argentus maximus's picture

Re: "Money" Semantics 101?

@Spartacus Rex:

I have researched the history and legal status of the US Dollar a teeny bit more than the average "Sheeple". But I confess to you that I was not formally educated in the ways and history of the US Dollar. I don't feel diminished in any way to say that because I have self educated on subjects I was not formally educated in. I read!

You spoke about cash and gold and silver dollars in all four paragraphs of your reply.  I never mentioned cash. 

The institution of money is the government, the Fed, the Banks, the whole political-financial management apparatus down to the social values it promotes and imposes on the people. Those institutions are for enforcing power down the social pyramid on the people.

My discussion article was to define the monetary problem in terms of what are the modes by which monetary power is exerted on the people. Many people are not aware that money is "an institution" so I drew that to readers attention. The institution of money is an application of power. It is a confederation of other financial institutions.

To sort out the problem which I can know you are very aware of, it is first necessary to completely understand the power structure which created the problem. Changing the top few individuals won't succeed.

argentus maximus's picture

Re: Is the Institution Money or Debt?

@John Galt

That's a very good way to put it.

Orange's picture

Syria

Western and Middle East powers led by Washington began moving Saturday night and Sunday morning, Aug. 25, toward a first strike against Syria following the Assad regime’s large-scale chemical attack in eastern Damascus last Wednesday. The first targeted strike may well signal the start of a series of US-led attacks aimed at toppling the Assad regime, DEBKAfile’s military sources report. They may consist of imposing a no-fly zone and the sealing off of sectors in northern and southern Syria against government forces.

Russian forces also went on war alert
President Barack Obama and UK Prime Minister David Cameron spent 40 minutes on the phone Saturday night amid the strongest indications to date from Washington that direct military intervention by the West was approaching, following a change in the US president’s posture. He has become convinced that the strike would have to be conducted outside the United Nations.

http://www.debka.com/article/23220/Western-Mid-East-military-action-prepared-for-Syria-Israel-Jordan-Turkey-face-up-to-Syrian-counter-attack-Russia-on-war-alert

Be Prepared's picture

An Application of Power...

The institution of currency and who has the power to print the medium of exchange has been purposefully obfuscated from the public lexicon.  The average U.S. citizen.. if asked... would indicate that they believe that the U.S. government prints our currency.  Few understand just how much we have lost and how the ivory towers were built around the greatest theft in American history.  The founders understood just how dangerous banking institutions were to freedom and they were keenly aware of how corrupt the Bank of England had become as a private enterprise in control of the British Empire.  A quote from the Rothchilds in 1863..

"The few who understand the system, will either be so interested from it's profits or so dependent on it's favors, that there will be no opposition from that class."

As an awakened group, it's hard to swallow just how overt this institutional conspiracy has been massively implemented to look legitimate and the law of the land has been warped to protect and propagate its authenticity.  The currency's of most countries, like the U.S., are instruments of debt, which you, as an individual don't even own, even if they are in your possession.  It's have been lent to you as a controlled representation of your labor, but is beholden to a private, for-profit institution posed to make a statutory return for every "bill" produced and in circulation.  Most of the U.S. has forgotten where the true vestment of power lies regarding the issuance of sound "money"....  we have allowed ourselves to be given the micro benefit of a large currency supply supported only on the concept of unsustainable growth and leveraged up debt.  This system allows no one to be sovereign with money that is free from private control.

I agree with AM that knowledge is power and that changing a few top individuals won't succeed.  Without great leadership from within that is determined to restore the constitutionality of "money," the massive current of the system has to reach its natural thermodynamic end as all potential energy is expelled.  The hope lies in an external repudiation of the fraud and a soulful thirst drives us back to seeking a wealth that is our own without any tenders or liens.  Great job, AM... appreciate the presentation!

daveyboy's picture

Debka are such a poisonous,

Debka are such a poisonous, pernicious group of parasitical scum bags masquerading as an informative outlet. They know who carried out the attacks, they were likely a party to it, at least informed before hand.

As for Argentus, thank you once again for delivering an excellent piece of writing.

treefrog's picture

risky business

 
Offloading risk onto the state does not make the risk vanish; it simply concentrates the risk of collapse into the state itself.

 
 
 
sengfarmer's picture

Argentus

I guess I am having a problem understanding your thesis.  Are you talking about "fiat currency" or "real money gold and silver" in the following paragraphs?

"If money is an institution like Congress, or the Fed, or JPM, or the church, or marriage - then money has a collective identity which will collectively work to try to ensure its survival into the future. Any institution would try to ensure its own survival, right?"

Does this use of the word money refer to "fiat currency" or real money?

"So if money and all its component partner organizations want to survive, then it must (collectively) oppose those elements within its own institution which threaten its survival."

Same question.

"Now that leads to the conclusion that if the (for my example I’ll stick with the US but it could be anywhere) Congress or the Federal Reserve continually devalue the institution of money until it’s very existence is under threat, then there should be a falling out, and the other forces which support money should begin to oppose the sources which threaten it."

This paragraph makes it pretty clear you have been talking about "fiat currency", in that case we all know that the CBs are opposing the sources which threaten "fiat currency", that being real money, gold and silver.

"Gold bugs support an alternative currency so in this particular regard they don’t count."

I don't think gold bugs support an "alternative currency", they support "real money". This sentence would make a lot more sense to me if it read:

Gold bugs support real money so in this particular regard they don't count. ??? Why wouldn't  they count?

Orange's picture

For those that don't like Debka

While Britain is against sending "boots on the ground", military action could range from enforcing no-fly zones to air strikes against the Syrian regime.

http://www.independent.co.uk/news/world/middle-east/special-report-syria-to-allow-to-un-to-inspect-site-of-attack-as-david-cameron-and-barack-obama-warn-assad-that-military-action-looms-closer-8783679.html

daveyboy's picture

Orange, I wasn't disputing

Orange, I wasn't disputing the content, I was disputing this bordering on absurd statement that it wasn't the wahabbi psychopaths aided by the west parasites that carried this out.

¤'s picture

The Ascent of Money: A Financial History of The World

Niall Ferguson follows the money to tell the human story behind the evolution of finance, from its origins in ancient Mesopotamia to the latest upheavals on what he calls Planet Finance.

http://www.niallferguson.com

Bread, cash, dosh, dough, loot, lucre, moolah, readies, the wherewithal: Call it what you like, it matters. To Christians, love of it is the root of all evil. To generals, it's the sinews of war. To revolutionaries, it's the chains of labor. But in The Ascent of Money, Niall Ferguson shows that finance is in fact the foundation of human progress. What's more, he reveals financial history as the essential backstory behind all history.

Through Ferguson's expert lens familiar historical landmarks appear in a new and sharper financial focus. Suddenly, the civilization of the Renaissance looks very different: a boom in the market for art and architecture made possible when Italian bankers adopted Arabic mathematics. The rise of the Dutch republic is reinterpreted as the triumph of the world's first modern bond market over insolvent Habsburg absolutism. And the origins of the French Revolution are traced back to a stock market bubble caused by a convicted Scot murderer.

With the clarity and verve for which he is known, Ferguson elucidates key financial institutions and concepts by showing where they came from. What is money? What do banks do? What's the difference between a stock and a bond? Why buy insurance or real estate? And what exactly does a hedge fund do?

This is history for the present. Ferguson travels to post-Katrina New Orleans to ask why the free market can't provide adequate protection against catastrophe. He delves into the origins of the subprime mortgage crisis.

Perhaps most important, The Ascent of Money documents how a new financial revolution is propelling the world's biggest countries, India and China, from poverty to wealth in the space of a single generation—an economic transformation unprecedented in human history.

Yet the central lesson of the financial history is that sooner or later every bubble bursts—sooner or later the bearish sellers outnumber the bullish buyers, sooner or later greed flips into fear. And that's why, whether you're scraping by or rolling in it, there's never been a better time to understand the ascent of money.

Pining 4 the Fjords's picture

Fiat and Argentus' game theory

I think Argentus makes a number of subtle and important points here- particularly about self-interest, power, and game theory.

1.  In the US, what broad alliances have developed "in support" of the institution of fiat? The government, the banks, crony capitalist businesses, and  large voting block of the recipients of governmental services.  This alliance  forms (at present) a strong, controlling force connecting the interests of those controlling the levers of power (media, corporations, government) with a wide, numerically significant power base within the broader citizenry.  With little effective opposition domestically, power structure and base controls decision making.

2. In the rest of the world, however, there are myriad interests much larger and differentiated from that (provincial, domestic US) structure-  and most significantly, the "opposition to US fiat regime" forces are aligning in visible ways, most obviously China, Russia, and to a lesser extent India, Brazil, and other producers.  Other nations (particularly in Europe) are tied to the US Fiat creation model to varying degrees. 

3.  Powerful groups within each nation must decide whether the present (USD based) system works to their benefit or detriment, and are fighting it out over time to determine the question.  Those leaders and political parties most heavily invested in the Eurozone model, for example, have clearly decided that the status quo money system is crucial to them, though their citizenries appear to be leaning in a different direction causing great internal tensions.  The business and political leadership in China, on the other hand, have largely decided it does not and their national direction is clear. 

So the international ebb and flow of news, action and reaction politically, economic alliances, trade agreements, etc. is working through the question of the fate of the current (USD based) system.  As struggles for power over this question are resolved in one place, it changes the equation for those fighting the same fight in other places. 

This is a complex, ever-changing system with flows of power, capital, information, all in a great tumult.  The lack of foes domestically in the US (and the silence of groups or people who otherwise should be opposition, Bill Gross notwithstanding) does not mean there is no opposition, its that the opposition operates at a much higher level than merely US domestic economics and politics.  So the domestic US power alliance may be unchallenged at home, but these questions will not be resolved by local US politics or laws.  They are being resolved at a higher level and will ultimately be answered by forces beyond the control of the US. 

So sound money advocates and gold investors may not have the numbers to effect change or have much sway in politics, but we are nonetheless betting on which model will win-out in the long run, and are positioning ourselves accordingly.  In my opinion, anyway!

argentus maximus's picture

Hi Sengfarmer You found an

Hi Sengfarmer

You found an inaccuracy in my thesis which I will correct in a moment. But first, I an talking about the administration organization of all money, be it Dollars, TBonds, or any derivative of money that inventive minds create.

Think about organized crime as an extension of theft, and consider organized religion as an extension of spirituality. Marriage is an organized version of partnership. The more people in a society, the more "it" gets organized, whatever "it" happens to be. Well money is an extension of barter. Money has become organized. For the better in some ways, and for the worse in others. I think "organized money" has become connected to "organized crime" but this idea of mine is not an accepted concept yet.

Now if it is desired to tackle such a situation to reform it, the whole organizational structure must be understood. A simple request to "turn the clock back to simpler more honest times" has no chance of being considered as serious. We cant clear the vegetable garden or we starve, we must go after the weeds, even if they are tangled and wrapped around the valuable plants to the point of killing them.

So I decided to write my beginnings of thoughts and early ideas about the way money is required by society, just like religion, and government, and marriage, money is an institution. But now many other organizations have attached themselves to this institution and perverted it, and changed it into something else.

So we need to acknowledge this, and somebody someday will do an exercise like what gets done before an organized crime trial, or before a takeover of a conglomerate corporation. And only then can corrective surgery be performed, if the motivation exists to overcome the pushback by vested interests.

So I wrote thoughts about the institution of money because institutions are the means whereby power is projected outwards by those who have it. This is an early stage, and I am not the one to follow it up and flesh it out, professional experts and resources are required for that, and a disaster must occur to provide the motivation. Even then the insiders of the money institution or "organized money" will wheel out a pre-prepared plan B which merely starts up a new (and certainly a digital) currency but with all the same old apparachik parasites still included.

So I wrote about a thought. And the fleshing out has began with posts by other free thinkers. I hope that provides an answer to your first question, such as I am able to answer questions about a new (to me) concept.

Now the quote you included which was a couple of questions together:

" sengfarmer:

Quoting AM: "Now that leads to the conclusion that if the (for my example I’ll stick with the US but it could be anywhere) Congress or the Federal Reserve continually devalue the institution of money until it’s very existence is under threat, then there should be a falling out, and the other forces which support money should begin to oppose the sources which threaten it."

This paragraph makes it pretty clear you have been talking about "fiat currency", in that case we all know that the CBs are opposing the sources which threaten "fiat currency", that being real money, gold and silver.

"Gold bugs support an alternative currency so in this particular regard they don’t count."

I don't think gold bugs support an "alternative currency", they support "real money". This sentence would make a lot more sense to me if it read:

Gold bugs support real money so in this particular regard they don't count. ??? Why wouldn't  they count?

: "  "

I should have phrased that paragraph a bit differently to clarify my thought. How about this:

"Now that leads to the conclusion that if the (for my example I’ll stick with the US but it could be anywhere) Congress or the Federal Reserve continually devalue the USD currency which is one tool of the institution of money until it’s very existence is under threat, then there should be a falling out, and the other forces which support the institution of money should begin to oppose the sources which threaten it by demanding sound currency practises be observed to safeguard the institution of money."

I will edit the article to show that.

Now the point about gold bugs not counting is based on the idea that long term holders of a company stock have an interest in the wellbeing of the business. But traders who go long, and later go short or buy another different stock will always be  and also be seen as less loyal, and less constructive than those whose fate is tied to the stock. In short gold bugs are not listened to because they are outsiders of the institution of money as regards it's present state to which it has been perverted to by insiders.

So you see that the article is a concept discussion paper. I do think that it represents something that must be done, in public, and accepted by a great many before any meaningful reform can ever hope to succeed. 

Stratajema's picture

I disagree

I disagree with this line in the article.

>>Gold bugs support an alternative currency...<<

No! Gold is money. Gold bugs do not support an alternative currency.  They support gold backing a currency or currencies to create fiscal discipline and to give a tangible value to currency.

argentus maximus's picture

As a fellow gold bug I agree

As a fellow gold bug I agree completely. But we are outsiders, and therefore anything we promote is "an alternative", and according to the corrupt insiders all alternatives are "a crazy alternative". The corrupt will support the status quo right up until it crashes and burns. 

That's just how it is unfortunately.

pontiac's picture

As be prepared pointed out

As be prepared pointed out from the Rothchild quote: "The few who understand the system, will either be so interested from it's profits or so dependent on it's favors, that there will be no opposition from that class."
This answers AM's question of why anyone in the financial world will not challenge the current dollar damaging policies. I have seen many similar quotes that persons of means or power will not challenge a corrupt or failing system if it means sacrificing their position of power or wealth. Meanwhile, as long as the fiat system continues to function, even in the extreme, they can continue to add to their wealth and make preparations to insure their success even if the eventual failure should occur. And, many of these people do not or will not even see that there is something seriously wrong. This eliminates cognitive dissonance and allows them to continue to accrue asset wealth with no worries.

So I have to agree with Pining that there will be no change from within the U S and it must come from Asia and the rest of the world as no one will listen to us.

FFF's picture

HOW TO DESTROY AMERICA Dick Lamm speech delivered in Washington

My apologies if this has already been posted.  I have not had the time to keep up with TF lately, but thought this article was spot on!!!

Wherever you stand on this issue, please take the time to read this;

it should awaken us from a careless slumber on this important truth.



We know Dick Lamm as the former Governor of Colorado. In that context

his thoughts are particularly poignant.

Last week there was an immigration overpopulation conference in

Washington, D.C., filled to capacity with many of America's finest

minds and leaders. A brilliant college professor by the name of Victor

Davis Hansen talked about his latest book, "Mexifornia", explaining

how immigration - both legal and illegal was destroying the entire

state of California. He said it would march across the country until

it destroyed all vestiges of The American Dream.



Moments later, former Colorado Governor Richard D. Lamm stood up and

gave a stunning speech on how to destroy America.



The audience sat spellbound as he described eight methods for the

destruction of the United States. He said, "If you believe that

America is too smug, too self-satisfied, too rich, then let's destroy

America. It is not that hard to do. No nation in history has survived

the ravages of time. Arnold Toynbee observed that all great

civilizations rise and fall and that ‘An autopsy of history would show

that all great nations commit suicide.’”



"Here is how they do it," Lamm said.



"First, to destroy America, turn America into a bilingual or

multi-lingual and bicultural country. History shows that no nation can

survive the tension, conflict, and antagonism of two or more competing

languages and cultures. It is a blessing for an individual to be

bilingual; however, it is a curse for a society to be bilingual. The

historical scholar, Seymour Lipset, put it this way: ‘The histories of

bilingual and bicultural societies that do not assimilate are

histories of turmoil, tension, and tragedy.’ Canada, Belgium,

Malaysia, and Lebanon all face crises of national existence in which

minorities press for autonomy, if not independence. Pakistan and

Cyprus have divided. Nigeria suppressed an ethnic rebellion. France

faces difficulties with Basques, Bretons, Corsicans and Muslims."



Lamm went on:



"Second, to destroy America, invent 'multiculturalism' and encourage

immigrants to maintain their culture. Make it an article of belief

that all cultures are equal; that there are no cultural differences.

Make it an article of faith that the Black and Hispanic dropout rates

are due solely to prejudice and discrimination by the majority. Every

other explanation is out of bounds."



"Third, we could make the United States an 'Hispanic Quebec' without

much effort. The key is to celebrate diversity rather than unity. As

Benjamin Schwarz said in the Atlantic Monthly recently: 'The apparent

success of our own multi-ethnic and multicultural experiment might

have been achieved not by tolerance, but by hegemony. Without the

dominance that once dictated ethnocentricity and what it meant to be

an American, we are left with only tolerance and pluralism to hold us

together.' Lamm said, "I would encourage all immigrants to keep their

own language and culture. I would replace the melting pot metaphor

with the salad bowl metaphor. It is important to ensure that we have

various cultural subgroups living in America enforcing their

differences rather than as Americans, emphasizing their similarities."



"Fourth, I would make our fastest growing demographic group the least

educated. I would add a second underclass, unassimilated,

undereducated, and antagonistic to our population. I would have this

second underclass have a 50% dropout rate from high school."



"My fifth point for destroying America would be to get big foundations

and business to give these efforts lots of money. I would invest in

ethnic identity, and I would establish the cult of 'Victimology.' I

would get all minorities to think that their lack of success was the

fault of the majority. I would start a grievance industry blaming all

minority failure on the majority placation."



"My sixth plan for America's downfall would include dual citizenship,

and promote divided loyalties.. I would celebrate diversity over

unity. I would stress differences rather than similarities. Diverse

people worldwide are mostly engaged in hating each other - that is,

when they are not killing each other. A diverse, peaceful, or stable

society is against most historical precedent. People undervalue the

unity it takes to keep a nation together. Look at the ancient Greeks.

The Greeks believed that they belonged to the same race; they

possessed a common language and literature; and they worshipped the

same gods. All Greece took part in the Olympic games. A common enemy,

Persia, threatened their liberty. Yet all these bonds were not strong

enough to overcome two factors: local patriotism and geographical

conditions that nurtured political divisions. Greece fell. "E.

Pluribus Unum" --

From many, one. In that historical reality, if we put the emphasis on

the 'pluribus' instead of the 'Unum,' we will "Balkanize" America as

surely as Kosovo.



"Next to last, I would place all subjects off limits. Make it taboo to

talk about anything against the cult of 'diversity.' I would find a

word similar to 'heretic' in the 16th century - that stopped

discussion and paralyzed thinking. Words like 'racist' or 'xenophobe'

halt discussion and debate. Having made America a

bi-lingual/bi-cultural country, having established multi-culturalism,

having the large foundations fund the doctrine of 'Victimology,' I

would next make it impossible to enforce our immigration laws. I would

develop a mantra: That because immigration has been good for America,

it must always be good. I would make every individual immigrant

symmetric and ignore the cumulative impact of millions of them."



In the last minute of his speech, Governor Lamm wiped his brow.

Profound silence followed. Finally he said, "Lastly, I would censor

Victor Davis Hanson's book 'Mexifornia.' His book is dangerous. It

exposes the plan to destroy America. If you feel America deserves to

be destroyed, don't read that book."



There was no applause. A chilling fear quietly rose like an ominous

cloud above every attendee at the conference. Every American in that

room knew that everything Lamm enumerated was proceeding methodically,

quietly, darkly, yet pervasively across the United States today.

Discussion is being suppressed. Over 100 languages are ripping the

foundation of our educational system and national cohesiveness. Even

barbaric cultures that practice female genital mutilation are growing

as we celebrate 'diversity.' American jobs are vanishing into the

Third World as corporations create a Third World in America. Take note

of California and other states. To date, ten million illegal aliens

and growing fast. It is reminiscent of George Orwell's book "1984." In

that story, three slogans are engraved in the Ministry of Truth

building: "War is peace," "Freedom is slavery," and "Ignorance is



strength."



Governor Lamm walked back to his seat. It dawned on everyone at the

conference that our nation, and the future of this great democracy, is

deeply in trouble and worsening fast. If we don't get this immigration

monster stopped within three years, it will rage like a California

wildfire and destroy everything in its path, especially The American

Dream.



If you care for and love our country as I do, take the time to pass

this on just as I did for you. NOTHING is going to happen if you

don't!



"If we ever forget that we're one nation under God, then we will be a

nation gone under" - Ronald Reagan



http://www.snopes.com/politics/soapbox/lamm.asp

pontiac's picture

Money as an institution

AM, I like this concept.  The popular belief in the U S dollar (even the current worthless one) stems from the history of it being real money.  The paper dollar was freely exchangeable into gold or silver coins and this has been imprinted on the national consciousness.    Even though the gold exchange was taken away in 1933, we could still swap it for silver until 1965.   Each time the dollar was debased in this manner, we held strong to our belief in it because it still "seemed" to hold its value and was still accepted globally with no challenge even after 1971 when the international gold standard was eliminated.   It was implied that the industrial might and later the military might of the U S was now backing the dollar.  Who could argue with that?  (well of course we real money people could)

    Now that the U S has lost its industrial supremacy, and our ability to financially support endless wars is in question, the dollar looks doomed to us.  However, the dollar as an institution still stands and the gradual erosion of its backing over the last  hundred years has not yet fully entered into the global consciousness.  When it does, the faith in it will decline extremely  fast.

Quixote2's picture

Confiscation of gold

There has been multiple bank failures to deliver deposits (allocated gold).  According to Jim Willie, up to 40,000 tons of allocated gold has been leased (sold) into the market.  If the banks call for return of the lease, the response is I don't have it, sue me.  Depositors of allocated gold in Europe have found their allocated gold is not available and have started many court cases in Europe according to Willie.  You do not disclose the theft (confiscation), break the bank, and shut it down.  You negotiate for the insolvent bank to return your gold or cash value over several years.  Germany negotiated for the US to return their 300 tons of gold over 7 years.  If the holders of the reported 40,000 tons of missing (confiscated) gold have the banks replace the gold or take fiat in kind to repurchase gold, the market will reflect this new demand.  Assume that 1/2 of the confiscated gold is returned/repurchased over the next 7 years and vaulted in secure vaults (not a bank's allocated holdings).  This additional 3,000 tons per year will have a significant effect on the price of gold.  I would guess $3,000 next year and $5,000 in 7 years.

The confiscation of 40,000 tons of allocated gold (directed by the governments to protect the value of fiat currency) is the largest in history.  The participating banks would be bankrupt and all accounts zeroed out if this was disclosed.  A bail-in of all accounts would not make the banks solvent.  The banks are the largest Ponzi scheme in history and are currently operating (and not closing the doors) with new fiat printed by the reserve banks.  As long as the new electronically printed fiat currency flows the bankers will continue to skim the economy and convert productive assets to their own (stock, farms, mines, etc).  The bankers and corrupt politicians will retire to their secure compounds when the greatest theft/Ponzi in history is disclosed and all fiat currencies become worthless in the great debt write-off that results.

The bulk of the confiscated allocated gold probably belonged to mid-east interests (oil).  If you noticed, the US does not get much of their oil imports from mid-east producers any more.  They have no threats to the US for participation in the theft of their gold.  If the mid-east former gold holders start a war they will come out with nothing.

Consider this.  Zeroing out the allocate gold accounts can also be considered a "bail-in" just like fiat currency accounts.

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