August 06, 2009

A world without the Federal Reserve and paper money

The Mogambo Guru has an interesting nugget of truth today that puts this whole economic mess into perspective. This is pretty much a follow up to my previous article "Gasoline Prices Haven't Changed in 45 Years".

The quote below explains how the world has changed since the US stop backing the dollar by gold on Aug 15th 1971. Pay close attention and see if you spot the trend.

He compares "How Much things cost on Aug 15th, 1971" to what they cost today.

Dow Jones Industrial Average 890 or 25 oz. gold in 1971, versus 9,000 or 10 oz. gold today.

Average Cost of new house $25,250 or 721 oz. gold in 1971, versus 250,000 or 277 oz. gold today.

Average Income per year $10,600 or 302 oz. gold in 1971, versus $70,000 or 77 oz. gold today.

Average Monthly Rent $150 or 4.3 oz. of gold in 1971, versus $824 or 1 oz. of gold today.

Datsun 1200 Sports Coupe $1,866 or 53 oz. gold in 1971, versus $28,400 or 31 oz. gold today.

The main lesson to learn according to the Mogambo Guru: "If your money is dollars, you live in an inflationary world. If your money is denominated in gold, you live in a deflationary world."

As of today, the 30 cents I mentioned in my "Gasoline hasn't changed.." article actually buys you more than one gallon of gasoline, 45+ years later. Whether its gold or silver, if you are shopping and saving in precious metals instead of worthless paper-shit money you will be better off in the long run. Take this advice before this depression gets any worse!

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June 03, 2009

Obama should resign


Obama is cute. He is charming. But there is something rotten inside him. Unlike the Republicans who backed George W. Bush, I won’t follow a terrible leader just because I voted for him. Obama has revealed himself. He is a monster, and he should remove himself from power.

I'm a few days late on this editorial by Ted Rall but damn does it sting!!! And I didn't even vote for the new emperor and I felt it.

Once again, I'm glad that the "progressives" are finally waking up to Obama's true Republican nature (tyrannical, warmongering and power-grabbing - like his hero Abe Lincoln) but It's frustrating that they didn't see it coming during the elections! (They should have been reading in 2008.)

In other news... buy gold!

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March 04, 2009

The Root of All Evil - 'nuff said!

Whenever I'm trying to argue and explain the virtues of using natural money (and not the fake, fiat paper notes we're accustomed to) I pretty much use the same reasoning that Paul Hein used in his article on titled The Root of all Evil.
Yet, his way of explaining it is so perfect that I'll share part of it here:

By contrast, today’s wages lose value – measurable only in a frequently redefined "purchasing power" – with every passing month. A "fixed income" means a constantly decreasing standard of living. So Mom goes to work, although that means giving part of her earnings to Uncle Sam, buying a second car, and putting the children in day care: in the end, not as rewarding as hoped. Maybe Dad gets a second, part-time, job. With all of this work, there should be some reward: maybe a boat, a country club membership, a larger home. Easy to obtain with easy money! It’s not hard to see how money, and getting more of it, could become a virtual obsession. You’re working so hard; why shouldn’t you have something to show for it? Living at the brink of, or beyond, one’s means has become all too common. Well, we’re witnessing what happens when that bubble bursts. But the bubble would never have existed if money was a tangible good, not created with the stroke of the banker’s pen.

Money is indispensable to civilization. Individuals or families living in isolation don’t need money; what would they buy? But put people together in cities, to enjoy the benefits of the division of labor, and they need some sort of common bartering agent. That is the role of money. Without it, civilization is impossible. When money is withdrawn from society slowly, and replaced with fiat, or imaginary money, society sickens. The process is gradual, like the heating of the water in the pot containing the frog, but sooner or later, the situation becomes unbearable. If there are no standards for money, other standards will fade away as well. Money circulates through the body politic; if it goes bad, that body deteriorates.

So look about once again. What you see is the collapse of a society built upon a bubble of deceit and dishonesty, a society which has been trying to borrow itself into prosperity. It’s happened before, many times. A fiat "money" eventually reaches its intrinsic value. Do we learn from experience? In monetary matters, the answer would seem to be "NO!" And civilization crumbles, on a foundation of fiat.

A sound society needs sound money.

Paul hit it right on the nose. Spread the word and reject this corrupt monetary system that is ruining our standard of living!

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February 17, 2009

Paper money is our downfall

From an article in the Times Online defending a gold standard, we get these great quotes:

In 1873 Jevons could already write: “It is hardly requisite to tell again the well-worn tale of the over-issue of paper money which has almost always followed the removal of the legal necessity of convertibility. Hardly any civilised nation exists, which has not suffered from the scourge of paper money at one time or another... Time after time in the earlier history of New England and some of the other states now forming part of the American Union, paper money had been issued and had brought ruin.”

Daniel Webster's opinion should never be forgotten. Of paper money he says: “We have suffered more from this cause than from every other cause or calamity. It has killed more men, pervaded and corrupted the choicest interests of our country more, and done more injustice than even the arms and artifices of our enemy.”

The paper money system enables the world wars and destruction in the first place. If you are truly anti-war / pro-peace then you must strike the disease of belligerent warfare at it's root: paper money.
(Hat tip

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November 15, 2008

Random signs of our times

This image of Lincoln's rules of conduct with Jesus Christ in the background was taken from inside a Catholic High School in Canada! An institution that supposedly promotes the message of the prince of peace... he who disarmed all Christians and promoted non-violence and non-retaliation to his very death at the hands of the state. Here Jesus is juxtaposed with America's favorite war-mongering and murderous tyrant! Lincoln basically used the state to retaliate against and murder thousands of tax rebels in the south. It's great to see that he is used here as a role model for proper "Christian" conduct.

At Sears you can now purchase Officially Licensed products of the U.S. Army! No longer are they just the brave men and women who defend our empire... liberty, but now they are a brand for all to consume and glorify! They gotta raise the money to fund the endless wars somehow.

Finally, this is the kind of economy where you cannot drink Goldschlager without feeling guilty about shitting out gold flakes... all while gold and silver are selling at top-dollar premiums because of the shortages! During the good times, the financial booms, the bubbles, yeah its fucking great to drink pure gold and crap it down the toilet for your enjoyment! But now its time to start filtering that stuff as if you were a 49er sifting for nuggets in the mud. There's gold in dem hills!

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