Tuesday, December 06, 2011

Unintended Consequences Of The Financial Gold Bubble

The financial speculators ramming gold prices have little understanding of the ripples they create for often poor and underprivileged people around the world.  And, the polluted, often unrecoverable devastation of the environment.   The speculative gold bubble is substantially harming innocent people around the world just as is Wall Street’s criminal speculating in other commodities. 

I saw the PBS story, link below, about a month ago and the issue has intensified with the state of emergency recently instituted in Peru.  Needless to say, local publicly-elected officials in Peru want to stop the mining practices of, to no surprise, a North American gold company.   Economics should all be local.  And, that means in a localized economy, the people of Peru would determine if and how they wish to mine gold and what practices would be used.  But, I am sure Peru’s central government is under the same corrupt corporate duress just as Washington is here.  Remember, democracy is local self-rule.  Corporatism and Globalism has destroyed this dynamic across many societies including in the U.S.  But, as we have uniquely said for years, globalization is dead.  We are simply waiting on the status quo to run out of bullets as they continue to push democracy down the road for their own personal avarice.  

Once again, as we have said numerous times, the status quo is the driver behind the gold bubble.  Gold is an always has been used by those who have it to deny those who don’t.  And, a gold-based monetary system is no different.  Those who have placed their ideology behind a gold-based monetary system are unknowingly playing the role of useful idiots on behalf of the status quo.   Nothing would benefit the status quo more than a return to gold-based money. 

I have to laugh when I hear the endless drum beat of ideologues telling us that fiat money always goes to zero and gold is the only honest money.  Actually, all prior money has gone to zero.  Not because it was fiat or gold or juju beans or cacao or anything else.  But, because every past society has collapsed.   A little bit of self-serving manipulation in that message. 

The only form of money consistent with democracy is commodity money; money that is freely available to everyone in our society who has an idea or an economic dream or is sending their children to bed hungry.  Gold is exactly the opposite of commodity money.  It restricts the availability of money and historically has been used to restrict it from African Americans, Chinese immigrants, poor European immigrants and other “undesirables” in the eyes of elites.  Was our gold-backed money honest money when it was used to destroy our society and cause the Great Depression and its 30% unemployment?  Ahem.   Gold-backed money is a weapon.  And, it has always historically been used to subvert economic rights while perpetuating hate and violence.

Gold advocates like Ron Paul and countless bloggers know just enough about money to be dangerous.   If Paul had a chance to institute some of his monetary “reforms” he would send the U.S. into a spiraling depression with no end in site.   I would love to publicly debate some of these gold pinheads.  They are nothing more than radical religious ideologues who have an ego-driven belief system based on a poor understanding of money.   They preach from a pulpit without actually having to have a reasoned debate on their views.  Views that are not well-thought out and show a very limited and even ignorant view of money.   The sad thing about it is, as with any religious ideologue, they gain many followers (worshippers) who help ignorantly perpetuate a tainted reality of what money should be. 

As I have said before, I would not be surprised to see the status quo propose returning to gold-backed money as a way of enslaving the world in all of its debts.  Because that is exactly what it would do.  It would put massive and artificial limits on the amount of money available, would ensure no economic competition ever arises, and it would act as a form of debt-slavery for those now indebted to American and European banking criminals. 

The status quo wants you to focus on debt.  They want you to believe that is the primary issue the world is dealing with.  Debt is a myth.  We were the only voice in the financial world to write during the 2008 collapse that the Federal Reserve should start printing money.  Not to save Wall Street criminals but to save our economy and to start to redeploy its resources into constructive and productive use.  Interestingly, there are now more and more voices who are starting to understand that debt is a myth.  And that we could and even in some situations should wipe the slate clean.   And that printing money is desirable in many circumstances when it is managed properly.  The hyperinflationary myth behind forgiving debt or printing money is simply another fear-based form of terror used by the status quo in some attempt to keep us enslaved in their anti-democratic criminal economic model.   Unfortunately, many unwittingly become useful idiots for this myth because of their ideological and limited understanding of money.

As we have said on here before, we will eventually have a society where money no longer exists.  I have no idea when that will come to pass.  Whether it will be in my lifetime or some future lifetime.  But it will happen.  What would the gold-money advocates say were that to happen today?  That everything they told all of their worshippers was nothing more than a myth?  Because that is exactly what their message is.  A myth.

Peru declares state of emergency due to gold mining

Illegal Gold Miners Rush to Peru’s Rain Forests (PBS video)

posted by TimingLogic at 11:02 AM