Everybody has heard the term “Gold Standard” but very few people understand it. This is a brief explanation of the GOLD STANDARD.
Before we can understand the “Gold Standard”, we must understand some facts about people and how they function.
According to scientific nomenclature , all human beings belong to the same “Species.” Scientists had to classify living beings, and they were confronted with the problem of classifying species.
They decided by a common consensus, that a species is a group of living beings, plants or animals, that could interbreed and produce off spring which could also interbreed.
For example: Canines (dogs) have German Shepherds and Chihuahuas. These canines are in no way similar in intelligence or body shape, but they can interbreed and produce offspring, so they care considered the same “Species.”
This is a ridiculous method of defining species, but it is a practical one. Ideally, the concept of species should disappear and all groups of living things should be classified according to their genetic traits.
Amongst humans, the same classification is used. All living humans are considered of the same species since they can interbreed. It makes no difference if their genetic endowments are markedly different.
Several hundred years ago, the species concept was never used for humans. In its stead, the term RACE was used. Since the term RACE implied different genetic endowments, people used the concept of RACE as a a means of enslaving other humans.
It was considerate acceptable to enslave Africans, for example, since they were a different Race, and hence not human and special laws were enacted for their capture and slavery.
As we know, the concept of Race was discarded and all humans were grouped together as equal beings, with the same rights and privileges. Nonetheless, there are fundamental differences amongst all humans, in terms of their genetic endowments.
Some are more aggressive than others, some are less intelligent than others and some, are quite more brilliant than all others. This makes for a social and economic order that has severe problems.
The problems of inequality in wealth, inequality under the law, parasitism of the unintelligent by the intelligent and corruption in all its manifestations has emanated from the concept that all humans are equal.
A solution to ameliorate these inequalities, these corruptive forces and this tendency to compartmentalize society into the very rich and the very poor has been attempted for the last six thousand years.
THE BARTER SYSTEM
It is simply inefficient for a man or a family to produce all its needs alone.
A farmer and his family can grow crops, a full time job, but he cannot also make furniture and clothing and household articles. Accordingly, the Barter System came into being.
A farmer would bring his crops to a market, the carpenter his furniture, the dress maker her clothing and they would all haggle over the various values and ultimate trade this for that.
It was soon seen that this method was much too cumbersome and inflexible. A means of exchange had to be devised. That means of exchange had to be mutually acceptable to all the traders.
After experimenting with shells and various precious stones, people around the world, came to the conclusion that gold was the most durable and most desirable means of exchange. It was rare, it was malleable could be shaped into small coins and it was durable. Gold became the universal standard of exchange.
POPULATIONS AND GOVERNMENTS GROW
The human population has been growing exponentially since it became civilized.
Since there are great discrepancies in intellectual power between all humans, those who were the most clever elevated themselves to power; which meant that they increased their material wealth and their number of slaves.
Today, they are no longer called slaves; they are called bureaucrats or civil servants or politicians. These are all parasitic humans who produce absolutely nothing and earn more than anyone in the private productive center. The number of these parasites increased at a faster rate than the general population.
The money supply, dependent on the Gold Standard, could not keep up with their demands for more wealth. Thus in 1932, in the midst of the Great Depression of the 1930’s, Franklin Delano Roosevelt, President of the USA, made the first step to breaking the link between paper money and the amount of gold in the treasury.
President Roosevelt wanted an unlimited amount of money to “stimulate” the dying U.S. economy. He declared that no private citizens could own gold; thereby, effecting a severance between gold and fiat paper money.
However, since the rest of the world was still on the Gold Standard his order was generally ignored, and holders of gold transferred their gold abroad. But the pressure by the politicians and other parasites was immense.
The banks also liked the idea of having no control of the quantity of money in circulation. The banks saw that they could make immense profits if governments printed fiat paper money which they could then loan to the public and make enormous profits in interest. The banks were slowly gaining control of the governments by bribing the politicians and the bureaucrats.
Today, in the year 2011, banks control all the governments of Europe and the U.S. When the economy of the U.S. collapsed in 2008, the banks demanded money from the government to cover their losses.
Under the leadership of a subservient slave called Obama and a banking system which heavily bribed Congress with billions of dollars, the American government directed by Bernanke and Geithner, both of whom were also bribed, gave the banks two trillion U.S. dollars to cover their losses and maintain their control of the U.S. and European economy.
This was easily accomplished since the connection between the gold reserves and the paper money had been thoroughly severed thirty years before by a president called Nixon. The people of the U.S and the people of Europe had absolutely no say in the matter.
The economy of the world is rapidly disintegrating. Because of the severance of gold to paper money countries in the West have gone wild in printing paper money. This totally imaginary currency has no relationship to reality.
Debts by the public and by governments are beyond the pale of human recognition. America owes more than 60 TRILLION dollars in unfunded promises for social security, health plans, retirement plans and simply the payment of its parasitic bureaucrats and politicians who have their own health care system and their own retirement system!
Under no conceivable circumstances can a public, half of whom pay absolutely no taxes, repay or refinance this debt. America’s debt rating has already been downgraded. Within five years America must go bankrupt and issue new currency.
The countries of Europe are facing the same scenario. The debt of Europe is also beyond European repayment. The Europeans must also go bankrupt and issue a new currency.
A NEW GOLD STANDARD
The Central banks are seeing the writing on the wall. They are buying gold as quickly as possible. The country of Venezuela does not trust the European banks with its gold and has ordered it all back to Venezuela.
The price of gold has just passed US $1850 per ounce. When the new world wide gold standard is established gold should be valued over USD $5000 per ounce.
When the new world gold standard arrives countries will no longer be able to borrow unlimited amounts of cash. They will be constrained by the gold they own in their central banks.
The U.S Dollar will no longer be the world’s reserve currency. Commodities will be priced in ounces of gold, and with these ounces of gold, sellers of commodities will be able to buy whatever and wherever they wish, with no worries about foreign currency exchange rates.
Parasitic politicians will have their income compared in gold with the earners in the private sector. The conversion to the Gold Standard will be a step in the direction to end corruption.