Cold Turkey Thanksgiving 2009
Darryl Robert Schoon
JK Galbraith's statement that complexity is used by modern economics to confuse the truth about money is a fact. Simply put, bankers replaced money with credit and debt in order to profit by the indebting of others. It's why bankers are now so rich. It is also why others are now so poor.
Understanding money is not rocket science. Modern currencies are a fraud, a fraud that has escaped detection much as did Bernard Madoff's ponzi-scheme. Bernard Madoff's scheme was based on the fraud that investor's money was, in fact, invested. The fraud of modern economics, however, is that money isn't actually money - and they don't want you to know it.
MERRY OLD ENGLAND
From the time of Charlemagne until the 12th century, the silver currency of England was made from the highest purity silver available. Unfortunately there were drawbacks to minting currency of fine silver, notably the level of wear it suffered, and the ease with which coins could be "clipped", or trimmed, by those dealing in the currency.
In the 12th century a new standard for English coinage was established by Henry II - the Sterling Silver standard of 92.5% silver and 7.5% copper. This was a harder-wearing alloy, yet it was still a rather high grade of silver.
It went some way towards discouraging the practice of "clipping", though this practice was further discouraged and largely eliminated with the introduction of the milled edge we see on coins today.
By 1696 the currency had been seriously weakened by an increase in clipping during the Nine Years' War to the extent that it was decided to recall and replace all hammered silver coinage in circulation.
CLIPPING CURRENCY BIG TIME
The real clipping of money began in 1694 when the Bank of England was allowed to issue its paper banknotes to circulate alongside silver coins. Over the next three hundred years, the bankers' debt-based notes would replace gold and silver; and, as a consequence, the entire world would eventually become in debt to the bankers.
The triumph of private bankers in replacing money with banknotes was to be universal as all nations would eventually succumb to the banker's easy credit and inevitable debt. Today, the central ingredient of money is not gold or silver but confidence, confidence in banknotes no longer backed or convertible to anything of value.
Modern economics is a highly successful confidence game run by bankers. The following is from the Bank of England's own website emphasizing its considerable efforts to maintain the necessary confidence in its on-going con game:
The Bank of England has been issuing banknotes for over 300 years... Gaining and maintaining public confidence in the currency is a key role of the Bank of England and one which is essential to the proper functioning of the economy. [bold mine]
THE BANKERS CON GAME
The long-running and lucrative confidence game, however, is about to end. Its breakdown is now underway as constantly compounding consumer, business and government debt can no longer be carried and/or paid for by existing or future productivity, especially as economies are contracting, not expanding, and collective debt levels are skyrocketing to levels which can never be repaid.
The collapse of economies such as the US, the UK, and Japan etc, will eventually render the bankers' IOUs and government currencies worthless; and when this happens, the three hundred year stranglehold of bankers over human endeavor will be over.
GOLD MAKES A RUN
Two powerful forces, paper
money and gold, are now locked in mortal combat. The combatants,
however, are proxies for far more fundamental forces. Paper money
is a proxy for private banking and government power - and gold
is a proxy for freedom.
The complete breakdown of the global economy was necessary for people to understand what is happening. Economic elites had banished all inquiry into monetary issues that did not conform to their special interests. Keynes and Friedman were popularized not because they were right, but because their theories suited those in power. Truth was ignored. Today, its revenge is here. Popular theories supporting paper money will soon give way to economic realities exposing their failings.
Against the formidable opposition of central banks and Western governments, the price of gold has more than quadrupled in ten years. The forward selling of unmined gold by large gold mining companies in collusion with central bank gold leasing did much to constrain gold's advance but the power of its intractable rise should be seen in the light of that opposition.
Currently, the fall of the US dollar is currently pushing gold to new highs. Tomorrow it will be the fall of the pound, the euro or the yen that will do so. The fraud of paper money is being exposed and it is only a matter of time until the global edifice of credit and debt it supports will collapse.
In The Great Wave (Oxford University Press 1996), Professor David Hackett Fisher, an economic historian, tells of the great waves that periodically destroy existing epochs to make way for the new and better eras that follow.
Such waves, Professor Fisher found, always culminate in total economic collapse. We are nearing the end of what Fisher believes is perhaps history's greatest wave; and yet, the economy is still standing (though currently quite wobbly). Since great waves last from 80 to 120 years and this wave began in 1896, it means an economic collapse is imminent.
It does seem to be a possibility, doesn't it?
THANKSGIVING AND THANKFULNESS
For those invested in gold and silver, their recent rise is cause for thanksgiving. But our thanksgiving for gold and silver's rise must be tempered with what the rise of gold and silver signifies. Gold and silver are barometers of monetary turmoil and economic distress; and the higher they rise, the more severe and closer the collapse will be.
For the few who saw the collapse coming, it will be a vindication that the truth can and will triumph, that monetary fraud no matter how ubiquitous or long-standing cannot last forever, that gold and silver are money and that paper currencies are not.
Professor Antal Fekete said the day gold and silver explode upwards will be a sad day for humanity. He is right. The explosive ascent of gold and silver will be caused by the global collapse of paper assets and paper money. Suffering and loss will be the experience of most.
Although that day will be one of tragedy, it will also make way for the new and better world that is to come. Give thanks for that. Life is a miracle and we are a part of it. It is not done with us yet. That much is obvious.
Buy gold, buy silver, have faith.
About Darryl Robert Schoon
In college, I majored in political science with a focus on East Asia (B.A. University of California at Davis, 1966). My in-depth study of economics did not occur until much later.
In the 1990s, I became curious about the Great Depression and in the course of my study, I realized that most of my preconceptions about money and the economy were just that - preconceptions. I, like most others, did not really understand the nature of money and the economy. Now, I have some insights and answers about these critical matters.
In October 2005, Marshall Thurber, a close friend from law school convened The Positive Deviant Network (the PDN), a group of individuals whom Marshall believed to be "out-of-the-box" thinkers and I was asked to join. The PDN became a major catalyst in my writings on economic issues.
When I discovered others in the PDN shared my concerns about the US economy, I began writing down my thoughts. In March 2007 I presented my findings to the Positive Deviant Network in the form of an in-depth 148-page analysis, "How to Survive the Crisis and Prosper In The Process."
The reception to my presentation, though controversial, generated a significant amount of interest; and in May 2007, "How To Survive The Crisis And Prosper In The Process" was made available at www.survivethecrisis.com and I began writing articles on economic issues.
The interest in the book and my writings has been gratifying. During its first two months, www.survivethecrisis.com was accessed by over 10,000 viewers from 93 countries. Clearly, we had struck a chord and www.drschoon.com, has been created to address this interest.