Wednesday, May 6, 2015
Gold and Portability Part II
Anyone who argues that gold is no longer money has been irrevocably infected with the Statist mentality. Gold is not money according the Central Bank Dominated Western State Government Block.
Anyone who thinks for themselves can see that Gold still satisfies the Criterion that Aristotle set forth necessary to the Private Citizen. According to Aristotle, to serve the private citizen as well as the State, money must by "Durable, constant, divisible, PORTABLE, and it must have intrinsic value.
The problem the private citizen has is that the State no longer respects the private citizens' money. They have substituted money that is only Divisible and Portable. And now they seek to destroy the Portability.
This is a real problem. For almost all transactions in State Controlled Space the private citizen needs to use State Sanctioned Money.
And as long as the State can provide a relatively Stable Economic Space in which the Citizen can operate - the State's Will rules. Because in an Economically Stable Space, the Citizen has no need to circumvent State Will.
The current problem for both the State and the Citizen is that the Economic Space is becoming increasingly Unstable.
The entire global economy crashed in 2008. Every major bank went functionally bankrupt during this crash. The State bailed out the banking sector and restored a temporary Stability through the use of A) taking massive amounts of bad financial paper onto State Run Central Bank Balance Sheets. And B) a perpetual program of Extreme Financial Repression regarding the Private Citizen.
This regime of Financial Repression includes (but is not limited to)
A) Perpetual Zero to Negative interest rates that crush citizen savers.
B) Trillions of dollars of taxpayer money made permanently available to Big Banks through a myriad of "Windows" and "Programs" not available to the private citizen.
C) The refusal to prosecute any type of Bank Financial Crime.
D) Massive New Tax Farming programs that attack all forms of private wealth of the private citizen.
Many of the Tax Farming programs are justified under the guise of "preventing terrorism" or "respecting cultural property" or just "Information Sharing programs" (Like Facta). Yet they exist simply to to confiscate ever greater quantities of private citizen wealth in order to feed the Central Bank dominated global governmental bureaucracy.
And now this Tax Farming has extended into a War on Cash, wherein the State is actively seeking to crush the Portability of Money so that all transactions will be Electronically monitored, sanctioned and Taxed by the State.
This entire system of Temporary Stability has yielded Seven Years of Relative Stability during which time we managed anemic Sub 2 Percent Global Growth. During the entire period wages for the Private Citizen have DECREASED while Big Bank Wealth has skyrocketed.
But now we have gotten back to the point where growth is very near ZERO and in danger of going Negative again.
The fact that Stability is waning is obvious to everyone (except maybe Larry Kudlow.)
The question every Private Citizen must ask right now is "How safe is my State Sanctioned Money?"
And: "What happens when money that is no longer durable, constant, and has no intrinsic value - loses its Portability?"
We are being asked to believe that we give up autonomy and privacy for Stability.
But how illusory is this stability?
And when the majority believes the stability is Illusory what happens to the value of State Sanctioned Money?
Look at the State Currency Markets right now. They are far from stable. The euro dropped from 1.60 to 105 in a few months and has climbed back to 114 in a few days. The Dollar Index has been the flip side of this wild move. The Yen has been even less stable. And this is all during a period of some positive growth.
What happens to Stability when Global Growth goes decidedly Negative?
And how can you preserve wealth during the coming massive instability?
This is the question we will explore in Gold and Portability Part III