Let's Return To The Gold Standard

Mon, Feb 13, 2012 - 6:41pm

Last week, I was perusing the latest issue of The American Spectator (yes, I'm a subscriber and have been since 1994). In it I found a terrific article about returning to The Gold Standard.

First, though, you should read this note from Santa. It fits in well here as he discusses the future and a likely return to a gold-based monetary system.

by Santa Sinclair
My Dear Extended Family,

The replacement of lost liquidity is NOT arithmetic. Booms, like busts, turn geometric on their liquidity effect because of the impact of mass financial psychology. Management of Perspective Economics primarily operated by mainstream media can make the gestation period of this event long, but it cannot reverse the underlying process.
With there being no question whatsoever that a credit event is on the near horizon for Greece, there is no avoidance of a further haircut in the valuation of Greek debt held by international banks, primarily Euroland institutions. What you take away with one hand you must provide with another if the banking system of Euroland is to remain viable. As you haircut (reduce in value for balance sheet considerations) Greek debt you reduce the value of that debt held as assets of financial institutions, therein reducing their viability to borrow in order to conduct their banking activities. This mark down is in full gear as speculation advertises to the world that the next step in this Greek tragedy is a haircut of value to just 30%.
How is it possible for the Euro wizards of words to punish Greek debt severely but not hammer others equally now under assault both by mainstream media as well as the undertakers of bond ratings in the USA?
The argument takes a position that the International Swaps and Derivative Association, which is made up of the manufacturers of these devices, will not self immolate by declaring credit events to be credit defaults. This is the ultimate irreversible can kick directly into the dead end sign at the end of the road of postponement to perdition.
Financial currency inflated hell by global debt monetization is the condition from which there is no escape, except though burning down the old system and making a new one. This is the dead end sign at the end of the road for can kicking. It is the condition of financial perdition. It is not something coming in a distant future. It is here and now, clear and present, if you have the eyes to see.
The means to this end is the combination of sick sovereign debt, risk insurance issued against the default of debt without sufficient liquid capital to do so, and the fact that those entities who issued this insurance are themselves and in truth illiquid under strain thanks to the capitulation of FASB on true market value of their legacy and other assets. This is the construction of the house of financial cards that will not survive intact during the period of 2012 to 2015. This is what gold at $1700 is indicating to those unfortunate enough to understand the practical workings of a system whose life force has been stolen to a degree that can only be deemed epic.
Never in written history has anything this size occurred where trillions has been bled away from an economic system with impunity. In all history when this has occurred the then monetary system imploded, to be replaced always by a commodity based money. That is what the Retenmark was in the Weimar experience. This is what the virtual reserve currency will be that replaces the US dollar in the next three years. The commodity currency definition will be derived by a connection to the gold held by the central banks of all the currencies that make up the Western world averaged virtual currency. This virtual currency will be a computer based settlement mechanism that cannot be traded in by other than central banks on behalf of trade settlement. Each contributing nation will also contribute to a universal M3 that will be the percentage measure of gold’s value to determined percentage-wise appreciation of depreciation, constituting value of the position held by each central bank in gold. Few if any central banks need to make transactions to adjust value as the squids of the world will invent derivatives upon which to speculate on the value of gold as a product of the growth or contraction of the western world M3.
This is not by any means a gold convertible system. This is not by any means a perfect system. There will be automaticity in this system but an agreement only by members to perform as above. However this system will work the same as the Retenmark worked. When the need becomes so great to believe in something solid anything that sounds solid has and will again work.
Only a resurgence of business based on solid foundations of equity and not debt can do the final clean up and provide a door to a better future.
No politician anywhere can do the necessary without causing the explosion of the results being heard almost as a new big bang. We are going to inflate this debt away or those in power will be swept away by the violence inherent in the suffering citizen.
Gold and only those things gold will provide the bridge to maintaining a lifestyle, maintain some freedom of choice and most importantly give you options you would not otherwise have. This has been as it always has been and will continue so. The drama of the market is nothing but that – sound and fury presaging but not defining change.
Do not allow anything to deter you from holding that which will build your bridge to tomorrow safely.
I am personally 100% in. It is my intention to hold as much gold as possible lending to me leverage without borrowing or margin. What was done in the 70s cannot be done now because we are only on the cusp of the volatility in the price of gold and it is already impossible to carry leverage except in the manner I have devised for myself participated in by others. I invite you to join with me.
This is a lonely road we are on where its direction does not tend to make friends. The road to freedom of any kind never does.
Stay focused. “Non Carborumdum Est,” do not let the hateful, vengeful bashers get you down.

So, anyway, back to the article in The American Spectator. After I read it, I immediately headed to my MacBook to see if I could find a digital copy. No such luck...the article wasn't yet available. Then, today, turdite "Kevin" published a link in the previous thread. Hooray!

Here's the thing: We all know that the current, fiat-based system is failing and will likely soon die a spectacular death. However, there is so very little good information on a gold-based monetary system that anyone looking for something useful to help persuade others is often frustrated by the ignorance and outright disinformation that permeates academia and the media. This article by longtime WSJ writer and editor George Melloan successfully refutes the nonsense spouted by gold's opponents while simultaneously making a clear and understandable case for a gold-based system. First up, here is a link to Mr. Melloan's bio:


And here is a link to the article, via The American Spectator website. I encourage you to read it carefully and perhaps consider printing it and/or sending it to your friends.


Have a great evening. TF

p.s. My fledgling presidential campaign is off to a slow start. Anyone interested in supporting the group AmericansElect and/or my candidacy can visit the site here:



(thanks, Pining!)

About the Author

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BUDDHA PRINCESS · Feb 14, 2012 - 3:37pm

Turk foresees 'buying panic' when gold hits $1,750

GoldMoney founder and GATA consultant James Turk tells King World News today that he's encouraged by gold's holding its big recent gains during a consolidation, and he predicts a "buying panic" when gold regains $1,750.

An excerpt from the interview is posted at the KWN website...and the link is here.

TheObsoleteMan · Feb 14, 2012 - 3:50pm

SORRY, NOT HAPPENING {just yet anyway}

As long as TPTB are in control, you can forget about a gold standard of any kind. And the general public wouldn't stand for it either, once TBTB explaines to them what all it would entail. Things like: The end of the massive entitlement society. Virtually 90% of the current structure would have to just be rolled up, and go away. A large part of our populace today depends on the continuance and expansion of entitlement programs. Social Security, medicare/medicaid, SNAP {know as the food stamp program}, day care assistance, student aid, and on and on, the list is seemingly endless. With the exception of veterans benefits, the federal government doesn't owe the people squat. For the federal gubmint, it would mean abolishing many departments like Education, Energy, Agriculture, etc, etc. The massive military outposts of it's empire would have to close. I look at fiat currency much like opium {LSD too, but that's another story} and we are addicted to it. These are the same reasons Dr.Paul and libertarians never get much more support {real support, not just lip service and pole numbers} than 20% at best of the electorate. No, it is going to take COMPLETE COLLAPSE. We could have changed our monetary system just up until recently on our own accord, and the changes could have been gradual, and it would have been allot less painful. Instead, it is going to be forced on us, ruthlessly and suddenly, and there will be hell to pay. Either way all of the above is going to happen, as there is no national will to change course. Even post collapse of the US$, I believe they will just try to roll out another fiat currency. But I doubt the rest of the world will allow it. That is when the entire world becomes Greece, and the global bankers are either strung up like Mussolini, or we all get chipped and barcoded.

Be Prepared Stratajema · Feb 14, 2012 - 5:28pm

You've just made my point even clearer

At some point..... whether $15+ official Trillion or actually $300-$500 Trillion if you count off-balance sheet debt, derivatives and the kitchen sink.... it still means the government is too freaking big and the Experiment won't end well. By the way, I enjoy a good discussion but saying "Now how do you feel knowing that you were wrong....." isn't the best way to create a positive environment. :o)

Halo · Feb 16, 2012 - 6:28am

Slipping Standards

Old Standard:


A "unique" medieval coin from the reign of William the Conqueror has been discovered in a field near Gloucester.

The hammered silver coin was found by metal detectorist Maureen Jones just north of the city in November.

...Kurt Adams, finds liaison officer for the Portable Antiquities Scheme, said the penny coin would have been "quite valuable" at the time that it is thought to been lost by its owner more than 900 years ago.


A More Modern Standard (they wish):

Apparently "...a massive step forward in the mobile money space":


Barclays has developed the app, called "Pingit", as a free service for its customers to make payments, though customers with other banks will be able to receive payments.

I know which one I'd rather use. enlightened

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