Total Pageviews

Friday, March 25, 2011

Gold And Capitalism


Can there be capitalism without a gold standard of currency? Almost everybody in America would argue that of course there can, and there is. America is the shining example.

But how are we Capitalist? We have a Central Bank, that issues money and distributes the money on a preferred basis to whomever it likes (the private banks that own the Central Bank), in whatever quantities it sees fit. The private banks can then lend or gamble twelve times that money in any market it sees fit. If they win their bets they keep their winnings. If they lose, the Central Bank takes the losses on to its own balance sheet and charges the public.

How is that capitalism? That is the definition of Socialism. It is a planned market economy.

True, within the Socialist Structure, we allow for private initiative. Any genius like Mark Zuckerberg of Face Book, or Larry Ellison of Oracle, can make billions.

But in Communist China they do the same. They also have a Central Bank that operates just as ours does. And they also allow for private initiative within the Socialist Structure. True, they don't have nearly as many social programs as we do. So they're not quite as socialist as America.

In all though the Chinese Communists are far more Capitalist than the Americans in that they encourage private ownership of Gold.

How does private ownership of gold promote capitalism? Because true capitalism can only flourish when Capital can be amassed privately, independent from government oversight and control.

But the Chinese use the yuan as currency just as we use the dollar.

Yes, true. But for how much longer? Why are they buying up gold mines at such an alarming rate? Why are they increasing their gold reserves as we decrease ours? Why are they actively campaigning for the citizens to amass both gold and silver?

Nobody knows for sure. But it's a sure sign that the communists in China are currently far more capitalist than the capitalists in America.

No comments:

Post a Comment