Though many would be tempted to say better late than never, this does not detract from the absurdity that the specialized press as, indeed, professionals in finance and economics, should finally be coming around to the mathematical reality of our monetary system.
Status Change: Gold Moves From Investment To Money
“Why the movement to gold per se? It is an emphasis on asset-based rather than debt-based money. As Stoferle puts it, “The possession of gold is tantamount to pure ownership without liabilities.”” […] “The pump priming meant to nudge the economy out of the early 2000s recession spawned the housing bubble and its disastrous endgame. No central bank action, and virtually every possible one has been tried, has turned things around. The Erste report acknowledges a system failure: interest rates cannot go any lower, government debt has saturated the economy, and the misery index (the sum of the unemployment and inflation rates) in the U.S. is close to its average in the 1970s. Indeed, the real economy in addition to the financial system is deeply flawed. Forty-four million Americans are on food stamps and the effective unemployment rate is closer to 20 percent than the reported 9 percent.
Stoferle deftly links the rise in inequality in the U.S. to its monetary policy. Today, a CEO earns 425 times the average worker’s wages; in 1980 the disparity ratio was 24:1. “Monetary dispersion is not neutral,” he writes. “Market participants who receive the new money early and exchange it for goods benefit in comparison with those who get the newly created money later. We can see a transfer of assets from late money users to early money users.”” […] price inflation is relative and staggered as “newly created is distributed neither equally nor simultaneously among the population.”
I will take only minor issue with the statement by the writer (not excerpted above): “Investors and central bankers have woken up to the reality that paper currencies decline over the long run because governments cannot resist pump priming in the face of economic slowdown.”
The problem is not that governments cannot resist pump priming. The problem is woven in the monetary fabric. Debt Based Fiat Money can only exist in a world of constant pump priming. If that were not the case, then any other monetary system would do. The reason banks propose the system and politicians impose it on society is exactly because the system mandates constant pump priming (so banks make profits and politicians can fund their pet projects) AND BECAUSE those entities that have access to the newly created money first (banks and politicians) gain disproportionally more than entities that have access to it further down the line like the consumer… i.e. you and me.
Do any of you reading this blog still harbor any doubt that the particular variety of monetary system that has been imposed in the West is a deliberate policy of impoverishment of the many for the benefit of the few?
If so, I submit you truly need to revise your elementary arithmetic skills.