QUESTION: Hello AE…so gov’t “cash” (fiat foreign money) will turn into just a few summary floating measurement of worth, an digital entry in an digital account within the cybersphere. As these varied so-called gov’ts turn into much less dependable, even between themselves, do you see the opportunity of them merely skipping their phony currencies, & buying and selling immediately in gold. Russia may ship a selected amount of crude to China, for a certain quantity of gold bars. Your argument in regards to the impracticality of a gold-backed foreign money is smart, however what about massive transactions being settled in gold?
ANSWER: The whole drawback that folks don’t grasp with regard to any return to a gold customary is that if the cash provide is FIXED in any means, that necessitates the collapse of SOCIALISM. The 2 are immediately linked. Politicians solely know how you can run with deficits. Vote for me and I gives you this or that!
The Bretton Woods gold customary collapsed as a result of they FIXED the value of gold at $35, however they continued to print cash far past the provision of gold at that mounted value. As well as, you will have a enterprise cycle. There can be occasions when it doesn’t matter what the cash could be, there can be increase occasions when the worth of cash declines and the asset values rise.
This argument over gold v fiat is totally simply nonsense. The wealth of any nation is the productive capability of its folks. For hundreds of years, the enterprise cycle has existed and that’s the total trigger for the “inflation” in property when cash declines in worth, after which the “deflation” in property with the worth of cash rises. Arguing over what we use for cash will NEVER cease the enterprise cycle.
The cycle can also be partly pushed by all governments. It turns into a drug of energy that’s abused. It could not matter what we use for cash proper now, they wish to create World Struggle III to allow them to default, and escape from the abuse of this Marxism that they’ve changed into a system of borrowing yearly with no intention of paying something again. However we’ve reached the confrontation between Keynesianism the place central banks are anticipated to stop inflation by rising rates of interest, however that has no influence on the federal government which has turn into the largest borrower within the system.
We’re going BUST not due to the cash we use, however due to the abuse of energy in authorities which has all the time existed since historic occasions.
Belief me. Neglect gold requirements. They’ll by no means work as a result of all governments act solely in their very own self-interest. You must have discovered that with COVID. They’ll by no means admit any mistake EVER! It is much better to maintain gold on our aspect of the desk and we are able to then use it as a hedge towards governments. They’re looking for to maneuver to digital currencies ONLY to allow them to monitor whenever you employed the 16-year-old lady subsequent door to babysit for you to allow them to go after her for the federal government’s 50% share.
Even Bitcoin is fiat. There is no such thing as a backing. Folks have dived headfirst into cryptocurrency on your complete proposition that they’re restricted. All they’ve completed is confirmed my level. Cash, traditionally, has been all the pieces from seashells and cattle to bronze, silver, and gold. Of all the varied types of cash, solely bronze and cattle had any actual commodity worth primarily based on utility.
The Egyptians actually invented paper cash for the farmers would deposit their grain and obtain a receipt which was a bearer instrument utilized in commerce. Additionally they used uncooked metallic, not cash, and traded primarily based on weight, because it said within the Bible. Here’s a piece of pottery from Egypt recording a criticism about taxes written in Greek. It said the sum amounted to a complete of 90 abilities of silver with 15 abilities of tax on the switch of land – 16.6%.
For hundreds of years, Egypt had no cash till it was conquered by Alexander the Nice, and upon his loss of life, his basic Ptolemy I (305/304 – 282 BC) took the throne and it was his Greek line from which Cleopatra VIII got here – not Egyptian.
Our system is beginning to implode. By no means within the historical past of human civilization have governments demanded taxes on revenue requiring reporting yearly. This was the reward of Karl Marx. Simply as this Egyptian tax on the switch of land, we see that property taxes and a type of gross sales tax had been the norms.
The American Structure was supposed to present the nationwide authorities higher energy to boost income as a result of the earlier Articles of Confederation had been a fiscal catastrophe. Nonetheless, most individuals remained petrified of taxation by governments. Oblique taxes had been to be the way in which to safe our liberty from tyrannical governments. It was usually understood that oblique taxes meant taxes on consumption like a retail gross sales tax and/or excise taxes on imports. It was believed that oblique taxes didn’t lend themselves to abuse by tyrannical governments. Consequently, the overall perception was that “direct taxes” needs to be taken off the desk. Incomes taxes, throwing out the window of all of the knowledge of the ages, had been imposed by the brand new age of Marxism in 1913.