Martin Armstrong on Gold.

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Jimux
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Martin Armstrong on Gold.

Armstrong's latest on gold is a good read.

http://armstrongeconomics.files.wordpress.com/2011/07/armstrongeconomics-gold-final-frontier-071311.pdf

Edited by admin on 11/08/2014 - 06:31
Elijah Craig 18
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Armstrong's Thoughts on return to Gold Standard

Thanks for posting this. Armstrong's articles are always a good read, if not a bit cryptic.

What really interests me are his (very critical) thoughts on a return to a gold standard starting on page 10 of your linked article. His condemnation of such a standard agrees with the conclusions reached by the producers of the sound money "Wizard of Oz" videos floating around.

While I do not agree with all of their conclusions, I have really begun to question my previously held beliefs on the subject. It's not really a return to "sound money" that we need, rather it's regaining control of the money supply and ending the monopoly of its creation/destruction by central bankers. Until that day comes, your only rational option is to protect yourself with physical PMs. God forbid they ever get their hands on the total supply of gold again.

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TheGoodDoctor
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Well, I have to say I am pro

Well, I have to say I am pro a gold standard. So, we do need sound money. Simply because they can't increase the money supply without increasing the gold supply and thusly end their damned spending sprees.

This would allow the dollar to be strong once again and maybe even eliminate the painful inflation that we are all experiencing. And then the purchasing power can't be stolen from us.

That being said, I can see why the BRICS want to instill some sort of basket of currencies and some commodities as a measure of a world reserve currency. But like some others have mentioned, they may just make a global currency that can be used for trading between nations and local currencies for trade within the country or region.

I don't know the whole could be complex. Of course China could just become the world's reserve currency by proxy of owning everyone's ass. The point is, something has to change. And it will.

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Elijah Craig 18
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It's the Central Banks

Hunter S,

I hear your concerns and share them. But the truth of the matter is that a gold standard has never saved us from booms and busts. The multiple periods of inflation and deflation during the 1800's, the incredible devastation of the Great Depression and the "irrational exuberance" of the Roaring 20's all occurred under a gold standard. The real enemy are the Central Banks that control the supply of money...increasing supply when they want to inflate our assets away and decreasing when it suits THEIR needs. Even under a gold standard they still control the amount in circulation. Adding insult to injury is the fact that anytime the banks create paper currency, whether backed by gold or any other commodity, it still will be created as debt to the nation and as an asset to the Central Bank. We must end central banking.

I also have no doubt that these sociopaths will pass laws confiscating our gold if we return to the standard. They would have no other option.

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stalking wolf
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Elijah Craig 18 wrote: Hunter

Elijah Craig 18 wrote:

Hunter S,

I hear your concerns and share them. But the truth of the matter is that a gold standard has never saved us from booms and busts. The multiple periods of inflation and deflation during the 1800's, the incredible devastation of the Great Depression and the "irrational exuberance" of the Roaring 20's all occurred under a gold standard. The real enemy are the Central Banks that control the supply of money...increasing supply when they want to inflate our assets away and decreasing when it suits THEIR needs. Even under a gold standard they still control the amount in circulation. Adding insult to injury is the fact that anytime the banks create paper currency, whether backed by gold or any other commodity, it still will be created as debt to the nation and as an asset to the Central Bank. We must end central banking.

I also have no doubt that these sociopaths will pass laws confiscating our gold if we return to the standard. They would have no other option.

Very Interesting statements.  It's seems by default, you are implying we embrace an abundance based economy.  Like the Native Americans, we work less then or equal to 15 hours a week.  But, this time we use machines to carry out every job that requires routine.

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TheGoodDoctor
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Well if fractional reserve

Well if fractional reserve banking was ended I think this problem wouldn't surface. The majority of the problems have been caused by a 5% or less reserve system. It's the leverage. It's CDS. It's MBS. It's a joke. We are being held hostage by the big banks.

I agree that at least two of your historical references were on the clock of the Federal Reserve. And the 1800's at least one was due to the Civil War. And I know Jackson killed the national bank during that time too. I'd have to study the history a bit more. But yeah I am for ending Central Banking too.

I think the only way that you can really fix it is if you do go to a silver coinage system again like Mexico or China have been discussing. But that could lead to a shortage now too.

In the end though it has been proven time and time again through history that a fiat paper money system is destined to fail. Even the Romans diluted their coinage. I guess unfortunately whether the Romans, the Brits, or Amercia, we all seem to be repeating history.

Ok, I guess I will just take my chip to buy and sell and wait for the apocalypse then. cheeky

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Elijah Craig 18
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The Great Reset

You'll get no argument from me as to fractional reserve banking and leverage. And remember, leverage IS debt. TheGoodDoctor's signature is spot on: "debt is the money of slaves". Every dollar created under our Central Banking system is created as debt owed. Fiat currency isn't just printed into existence, it's placed on the people's books as a liability and as an asset for the central bankers. The system itself makes us all slaves to central banks.

The trick is to manage money's creation/destruction and to make sure that the "optimal supply" stays in the hands of the majority. Your examples of the Romans, the Brits and every other fiat currency to ever exist are all true, but none of history's examples include Republics or Democracies. Kings and Emperors will manipulate the supply of money to suit their needs whenever expedient and bankers are no different. The bankers unfortunately got their hooks in the USA early and never let go. Our weak willed politicians simply bow to banking's desires.

To fix it, we need to end central banking and we need a really hard reset of our debt based system. Globally, this debt needs to come off of the books...and it will, your apocalypse. Silver would be preferable to any other existing solution, but silver has backed other fiat currencies that have all undergone periods of unsustainable inflation and deflation.

For me the solution is a broad-based basket of several strong currencies and commodities (including silver and gold). This would allow scarcity or abundance in several areas to have a minimal impact on the whole.

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Jasper Puddlemaker
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Armstrong - Gold v. Money

Here is a new one that discusses why we don't want to see a gold standard (but why we should be buying gold).

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http://www.martinarmstrong.org/files/Gold%20v%20Money%2007-19-2011.pdf

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My reasoning for NOT wanting a gold standard is there MUST be something outside the official system that can act as money; something independent of the "system" that people intuitively gravitate to when confidence erodes.  Something not controlled by the system.  I think gold fulfills that role best, so I am in sympathy with Armstrong.

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