Sunday, May 11, 2008

From the Mouths of Dragons.

"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process."

--Alan Greenspan, 1966

Yeah, thats right, the same economist Greenspan who went on to chair the Federal Reserve, and lowered the interest rate to a meager 1%, thereby plunging the united states into a lending fit, resulting in the highest rate of inflation since the Great Depression.

At least you cant say he didn't know what he was doing.

Whether or not Bernanke knows what he is doing, as he repeats his predecessors strategy, remains to be seen.

If you would like to know what he was doing exactly, and what is being done, and i hope you do, i think we ought to start from the begining, a base line, so we are all on the same playing field. The story here, really, starts in 1913, in a place called Jekyll Island. For a very good rundown of this Creature from Jekyll Island, please watch G. Edward Griffins short documentary film of the same name, HERE

Now if you want to do something about this additional tax you are paying, there are many options, one of which is the Liberty Dollar, a private organization who aims to replace the current fiat system, with a form of currency backed by a concrete tradeable commodity. Currently you can buy gold and silver, in coin form, not just as bullion, but marked with an approximately current value, and will, therefore lock in its face value, even as the dollars that purchased it, continue to lose buying power. Since 1913, when the federal reserve dollar was created, it has lost 96% of its buying power. While i am apprehensive about the day to day feasibility of spending liberty dollars in day to day life (even though a quick search shows 52 businesses within 50 miles of me who do accept Liberty Dollars) I cannot see any downside to converting long term savings into a form of currency that will not lose that same value. In less than 100 years, those original dollars went from being able to buy a $1.00's worth of goods, to being able to buy what was $0.04 worth of goods. Leaving money to sit, in dollars, is to ask for that downward trend to continue, and to allow your money to evaporate into private coffers were they will then be spent on more chains for your necks.

These are problems.

There are Solutions.

Tempus Fugit

No comments: