Posts Tagged ‘gold standard’

Military force or gold: which backs a currency?

July 14, 2013

Carmen asked: “what happens if China amasses enough gold to back its currency?”

Paul retorts: “Do they have weapons of mass destruction?”

US gold certificate (1922)

US gold certificate (1922) (Photo credit: Wikipedia)

Paul’s answer is interesting. Is it possible that military force is important in economics? Isn’t it obvious?

Is it possible that military force is important in the relations between nations (like when they set up things like trade treaties or colonial exploitation agreements and war reparations)? Is it possible that military force is important when a governing institution dictates what form of payment is accepted within their court system?

Consider the importance of military violence in enforcing these kinds of tax extortion systems: “If you do not pay us in government-approved salt (or gold or diamonds or whatever), then, after 3 years, your property will be subject to a real estate ‘tax lien foreclosure’ and the court will take BACK ‘your’ property.” Why would courts (and legal documents) refer to “land owners” as TENANTS? Why do courts have the authority to rule that someone is no longer the tenant or owner (or whatever) and then send military troops (deputies) over to evict or arrest the people who are suddenly legally defined as “trespasssers?”

Could military force be important in economics? It is possible, isn’t it?

Combination of four currency symbols

Combination of four currency symbols (Photo credit: Wikipedia)

Most of the comments that I have ever seen on this group [a group on LinkedIn] are based on presumptions which I consider absolutely false- even silly. We might as well ask “how many miles north do I have to travel to get to where I already am?”

There is no issue of “enough gold to back a currency.” Gold itself cannot give a currency purchasing power. Military force gives a currency purchasing power.

When one understands what currency is, everything about it is simple and obvious. Until then, things may be rather complicated and there may be much arguing and ridiculing and hysteria.

English: The Confederate Unknown Cemetery in G...

English: The Confederate Unknown Cemetery in Gainesville, Alabama. Gainesville was the site of Buckner Hospital, an official Confederate government hospital during the American Civil War. Most of the wounded here came from the battlefields following the Battle of Shiloh. Many of Buckner Hospital’s unknown dead soldiers were interred at this site. A Brooke Rifle can be seen to the left of the central obelisk. (Photo credit: Wikipedia)

In the US Civil War, when the Confederacy was “invaded” and defeated by the invaders, the confederate currency was RULED to be worthless. The military force that had been backing that currency had been defeated and suddenly another system of organized coercion/extortion was ruling that geography.

If the Confederate government had made lots of promises in paper coupons to redeem those coupons in gold, would that have changed things? Well, the invaders could have simply confiscated whatever gold the Confederate government (or private bank) might have amassed.

A contractual promise for gold not only requires gold to back it up, but someone to perform the redemption of the paper coupon, plus a few armies to protect the territory (not just to protect the gold, but to protect the borders of the governing operation from external invasion, plus protect from internal rebellion). Gold does not back a currency. A promise on paper does not back a currency. Only military force backs a currency. Without a functioning operation of organized violence, there can be no extortion system of taxation and no currency system creating demand for the exclusive form of payment for those dictated tax claims invented out of thin air. (Out of thin air- using mere words- tax liabilities are invented and then an exclusive form of payment is dictated, creating demand for that form of payment for that currency… in direct proportion to the military dominance of the rulers of the extortion system who are doing the inventing, claiming, and dictating.)

emblem of the Papacy: Triple tiara and keys Fr...

emblem of the Papacy: Triple tiara and keys Français : emblème pontifical Italiano: emblema del Papato Português: Emblema papal. (Photo credit: Wikipedia)

However, can China amass enough gold to scare the Vatican? That is an intelligent question and that is probably the direction Carmen was going, whether she knew it or not.

If the Vatican (for instance) is trying to set up a new operation of military force to further establish global control of human resources by enslaving billions of people through tax extortion systems, then a monopoly on gold COULD be important for their system to function. IF that was their plan, but then China amassed just as much gold as the Vatican, then that would give China the economic capacity to “flood the market,” disrupting the public perception of scarcity and religious glamour around gold.

A gold-rich China would become a PRIMARY military target of a global police state. Or, their gold could be a key bargaining point for negotiating a high-rank within the Vatican hierarchy.

Is using gold as the sacred object behind a global currency *required* to create a global system of organized coercion? Not at all! A much more efficient method would be to use chip implants and simply force everyone to use a credit account (like a social security number) in order to get food or housing or a job, then entice or force everyone to receive a chip implant.

Most people who read this, if they do understand it, still may not have the emotional maturity to simply get the information presented without reacting emotionally. Instead, they will respond in terror with things like “how can we stop this?” or maybe even with “how can we help China advance the global salvation method of a gold-backed currency?”

Gold is not very important to you. What you can later acquire in exchange for accumulated gold may be much more important to you than gold itself, which is why you would plan to eventually EXCHANGE gold rather than USE it.

Gold is not a primary economic resource (like gasoline). At the absolute most, it is a legal form of money, with an immense network of military force creating hysterical demand for it (as in the phrase “the gold standard”).

Gold is one of the most obviously speculative investments. The bubble in gold that has been “deflating” since 1980 is arguably the most enormous speculative bubble in the history of human civilization.

However, that does not mean that some network of military force (and profiteering) will not eventually catapult demand for gold through propaganda or through threatening to use nuclear weapons unless the masses stop giving attention to diamonds or silver or salt and instead exclusively worship the holy object of the Vatican treasury: gold. The God of the Vatican is a jealous god, after all, right?

how to be a patriotic hero

December 3, 2011

The thing about how to be a patriotic hero is in there, but please start at the beginning, simply because that is the actual order of the sequence of words….

I wrote this to my associate Petros B.:

The crown of the Holy Roman Empire in the Vien...

The crown of the Holy Roman Empire in the Vienna Schatzkammer (Photo credit: Wikipedia)

Here’s a video on the diamond cartel (DeBeers) & how it MONOPOLIZED extraction of diamonds, restricted supply, used Hollywood (starting in the 1930s) to create a demand by associating diamonds with stardom, beauty, sex, marriage, & engagement rings, and even influenced GE so that GE discontinued the production of synthetic diamonds that would challenge the prices set by the DeBeers diamond cartel on diamonds used for gemstones (as well as industrial diamonds used for cutting).

http://www.youtube.com/watch?feature=player_profilepage&v=i8A9JXLyRwc

Now, I mention this not just because of similar comments by you (and I) about oil (such as the PR campaigns of the American Petroleum Institute), but about GOLD. The monopolization of gold mines & use of that metal as a currency by government courts, requiring that people purchase gold coins from the government in order to pay taxes, is a historical dynamic that I have mentioned several times. Again, why not platinum or aluminum or cobalt? Why gold? Because kings and their armies could more easily monopolize access to gold.
I did recently mention the Hunt Brothers and what they did with silver in the late 1970s. That is the same issue, though in a small & brief instance.

Now, let’s consider the use of the term parasites or even patriotic hero. I have absolutely no moral objection to the existence of parasites or the use of that term to describe certain biological organisms or certain human institutions or anything else. You would be correct to conclude that I do not stop to think if parasites are right or wrong. I have no such anxieties or mental illnesses. I do not even stop to think if patriotic heroes are patriotic or heroic!

You may continue to refuse to live in the world as it is without condemning some aspect of it (some aspect of God‘s creation). However, consider that refusing to live in the world makes absolutely no difference in that you still live in the world even if you say that you refuse to do so.
So, try to change it. You are part of the world. Try to change yourself. Resist yourself. Fix yourself.

Do it fast. Do it right. Stop being how you should not be, according to you or whatever ideological indoctrinations you have championed as defining for you how you should or should not be. There are many providers of such ideologies who will promote your compliance with their standards of how you should or should not be, such as the Mormon Church or the Democratic Party.

As for me, I command you not to be a parasite and not to use that word. Also, be a parasite and use that word. That about covers how you should or should not focus on consciously avoiding or otherwise giving attention to the word parasite or not.

You either should or should not believe that the world is fundamentally flawed and that you are also fundamentally flawed. That is the ideology of a slave, by the way. Please continue to invest in shame and in correcting your past, or at least compensating for your original sinfulness like any good Catholic adherent to the Holy Inquisition of Protestant Counter-reformation.

Spanish Inquisition Necklace

Spanish Inquisition Necklace (Photo credit: cliff1066™)

You are responsible personally for immediately or sooner making the world a better place (in accord with the ideologies that the 1% elites have implanted in you as to what would be better and what would not be better). If you fail, you will or will not be doomed to an eternity of hell in which you will then come to define wherever you live as a hell that should not be how it is and is fundamentally flawed and must be corrected and changed and reformed by you personally in order for you to avoid eternal damnation in a hell of shame and mental illness and anxiety about how to change hell in to how it either should or should not be. It’s all your fault, but if you can just fix everything real quick, then as a reward you will get 77 vrigins and go directly to heaven “without passing go,” but also without collecting $200, which is a little bit of a bummer and thus I am very sad about all of this world being so much like God told me that it should be.

Now, before it is too late, which could be absolutely any time, fix the system. Define the system as broken and flawed and screwed up (in contrast to screwed down, which is morally preferable). Also keep in mind that the holiest color is seven, because that is what it says in the Holy Constitution of the state of Alaska, which is the best state in the entire history of the Holy Roman Empire. Also, remember that the color seven cannot be in a speculative bubble because the number red is inevitably hyperinflating because the number red is in fact just a linguistic construction created out of thick air, such as fog.

Also, I am a very smart person- perhaps even a true American hero- for having figured all of this out and knowing that the Fed is actually the root of all evil and if we could just remove the surface of the earth from the earth, than the earth would be a better place, except that whenever we remove the surface of the onion from the earth, another layer of surface mysteriously does not appear out of thick air. That really is the only problem with the unpredictable and chaotic world which does not make any sense. If we can just fix that one core problem then all of the other symptoms will turn in to pickles, which is the kind of world that I would want to live in… or maybe not live in but at least visit.


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