Dishonest Money Will Die…I Hope

Honest money – gold and silver – are not supported by governments and central bankers for obvious reasons.  The Fed can “print” $85 Billion per month to buy dodgy paper to support the banking system, but the Fed can’t produce 75 million ounces of gold each month.  Consequently we use dishonest money.

A FEW QUESTIONS:

If The-Powers-That-Be (TPTB) wanted honest money, why do they encourage dishonest money (the digital and paper stuff)?

If counterfeiting is illegal and wrong, why do TPTB encourage fractional reserve banking, which is legal counterfeiting?

If TPTB did not want inflation, why do they encourage central banks to devalue their currencies and create price inflation?

If TPTB did not want ever increasing debt, why do TPTB encourage congress (and almost all global governments) to excessively spend and borrow the shortfall?

Clearly, TPTB want dishonest money, fractional reserve banking, devalued currencies, massive and increasing debt, and price inflation.  Why?  Greed and more control – GMC – are dominant in our global economies.  Consequently gold and silver prices will continue rising, on average, as they have for over a century as currencies are devalued.

A SHORT VERSION OF MONETARY HISTORY:

1. Bad money drives out good money – Gresham’s law. People hoard the good stuff and let the fake stuff circulate.  Long ago gold and silver circulated as money.
2. And then … paper silver and gold certificates circulated and silver and gold coins were hoarded.
3. And then … Federal Reserve Notes (debt) circulated and silver certificates, silver dollars, gold certificates, and gold disappeared.
4. And now … digital dollars circulate in cyberspace and Federal Reserve Notes are used less and less.  (The War on Cash!)

WHY?  GMC!  (Greed and more control over the currency and the citizens.)

But the Inevitable Result is that Dishonest Money Will Die.

Perhaps within a few years, perhaps longer, even TPTB will not be able to maintain a basically fraudulent and dishonest monetary system.  Clearly the system is maintained for the benefit of TPTB to support their greed and control over the financial system.  But history has shown:

1. All unbacked paper currency systems crash or drastically reset.
2. All Ponzi systems, such as our current monetary system, crash.
3. Debt cannot increase forever. (Lookout below!)
4. All dishonest systems eventually crash or reset.
5. Dishonest systems can persist longer than most believe possible, but they do NOT last forever. The crash can be sudden and devastating.

Signs of the coming reset:

Zerohedge reported that:

“Central banks around the world, including China’s, have shifted decisively into investing in equities.” [This should not be necessary.]

 “a cluster of central banking investors has become major players on world equity markets…. Confirms $29.2 trillion in market investments.”  [How real are prices when $29 Trillion of “funny money” has levitated markets?]

From Egon von Greyerz:

“Unprecedented money printing by the Fed, European Central Bank, Bank of Japan, Bank of Canada, International Monetary Fund, and others is guaranteed. There are global debts of $225 trillion and derivatives of $1.5 quadrillion that can never be repaid with real money. With interest rates at zero or even negative, central banks have run out of tools to save the world economy. The only thing they have left is money printing, though they probably know that this will have no effect because you cannot create wealth with worthless pieces of paper.”  [Dishonest money becomes more desperate.]

CONCLUSIONS

First TPTB killed honest money in the western world – gold and silver are valuable but no longer circulate as money.  China, Russia, and India understand the value of gold, even if the Fed and other central banks do not.

Eventually GMC – greed and the desire for more control – will kill dishonest currencies such as the US dollar, the euro, the yen, and the British pound.

Debt cannot increase forever, unbacked paper currencies all die a horrible death, greed and more control will not last forever, and it seems likely that blood will be spilled as governments and central banks scramble in desperate moves to preserve their dishonest financial systems.

Paper Dies, Gold Thrives!

Paper Dies, Silver Thrives! 

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Gary Christenson

The Deviant Investor