Gold vs. Debt

The Death of Paper Money

Today we are witnessing why in paper fiat-land debt is a four letter word; and a nasty one at that. The only thing the Federal Reserve has accomplished since its creation in 1913 is the loss of 95% of the dollar’s purchasing power; and they are hard at work destroying what little is left. Incompetence does not even begin to describe their actions.

This means that you and I – all of us, except the elite few – are becoming poorer by the day. Our standard of living is decreasing – not increasing. We owe more than we own: a prescription for debt-servitude – not the accumulation of wealth.

A paper fiat monetary system can only do what we are witnessing – self-destruct, as the more of it that is issued – the more it loses purchasing power. It is like a cancer that eats its host from within. What is occurring is the systemic destruction of money, of the “system” – of paper fiat debt-money.

 

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THE GOLD STANDARD STRIKES BACK…
…WITH A 36-YEAR LAG (

By

Antal E. Fekete,
Gold Standard University Live
October 2, 2008

The way to resolve the credit crisis:
Recapitalize the banks with gold

The credit crisis could be solved through the recapitalization of banks with gold. The Treasury should pledge to match subscriptions of new private capital, in gold, at the ratio of two to one. This means that two gold shares of capital stock subscribed by the private sector (individuals, firms, and institutions) shall invite one share of capital stock subscribed by the Treasury. Gold subscribed by the private sector should be constitutionally guaranteed against capital levy and confiscation.

There is no better use to which Treasury gold can be put which has been foolishly idled for the past 36 years. What is needed is the mobilization of gold hoarded by the Treasury, as well as of gold hoarded by the private sector. The trouble is that much of the privately owned gold is in hiding and won’t surface for reasons of lack of confidence in the monetary system. But as soon as there is a market for the shares of the recapitalized banks, private gold can be coaxed out of hiding and made to participate actively in the great task of rebuilding world credit.

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