The gold standard will precipitate a massive deflation. The ensuing chaos will help usher in their coveted New World Order and World Currency.
by Anthony Migchels
What has been in the cards for decades is now fully on the agenda: the return of the Gold Standard. Gold as currency is a weapon. It is a wealth transfer to those holding Gold, which is not the 99%, and will precipitate a massive deflation. The ensuing chaos will help usher in their coveted New World Order and World Currency.
Numerous stories pertaining to Gold as currency have appeared recently. Last week alone, it was reported that India will pay Iran in gold for their oil imports. In another development, China, Japan, Russia, France and a number of Arab states will pay each other with a basket of currencies, including Gold.
Yet another story was about World Bank President Robert Zoellick, who has been promoting a Gold Standard for years, ‘admitting’ the demise of the dollar reflects ‘a changing balance of power’ in the world. Even Newt Gingrich has jumped aboard the gold train.
These stories are framed as resistance against the dollar hegemony and of course that is only a part of the story. Another dialectic, US against the Rest of the World.
But were these Nations really acting independently, they would barter amongst each other, based on current account bookkeeping and basically crossing off all mutually outstanding debt. That would save them massive sums of currency and associated capital costs. They would need ‘hard currency’ only to settle negative balances.
Of course, when these developments run their course it could have a devastating effect on the dollar, as it would mean trillions of dollars would be repatriated from overseas as they are no longer used to finance international trade.
It helps the Money Power in its plan to bring the US down a few notches, which is indispensable to World Government.
But the decline of the dollar is only part of the story. The dollar is only the current vehicle the Money Power uses to rule international finance. It doesn’t care for the vehicle itself, as long as it has a suitable successor and that will be Gold.
And in the US itself there also is a strong drive towards Gold as currency.
The onslaught by Austrian Economics in the Alternative Media comes to mind. And Ron Paul of course. He openly calls for Gold as currency. In this respect, he clearly is the ultimate internationalist candidate. This contrasts sharply with his patriotic ‘constitutionalism’.
But when he must chose between constitution and the monetary, it is clear what his priorities are. Ron Paul lies about ‘constitutional money’, saying the constitution says we should have Gold as currency. But it doesn’t, it says we may have Gold as currency. But other units are also allowed.
This ‘little detail’ is really very telling. It is typical of a Money Power change agent. They hide behind a sympathetic and credible theme, meanwhile sabotaging or actually actively supporting the implementation of a worse and more important agenda.
And control of the money supply is all important. To the Money Power, anyway.
It also reminds us of how internationally the Money Power operates. We must not allow our national priorities to obscure the international context.
Austerity and Deflation
A Gold Standard would be an unmitigated disaster. It will lead to an excruciating deflation. Deflation is a horror for debtors, who see their debts and the interest they pay over them grow worse in real terms. And since everybody is complaining of debt, we might reconsider making it worse with deflation.
Winston Churchill, who was involved in the reinstatement of the Gold Standard in Britain in the twenties told the House of Commons in 1935, when the deflation of the Great Depression had made Gold untenable:
“Look at the enormously increased volume of commodities which have to be created in order to pay off the same mortgage debt or loan. Minor fluctuation might well be ignored, but I say quite seriously that this monetary convulsion has now reached a pitch where I am persuaded that the producers of new wealth will not tolerate indefinitely so hideous an oppression. . . . I therefore point to this evil, and to the search for the method’s of remedying it as the first, second and third of all the problems which should command and rivet our thoughts.”
Deflation destroys the economy, because people have an incentive to hoard cash, instead of using it for production and consumption.
The Banking Fraternity is well aware of the disastrous deflation that Gold promotes. For instance, the Protocols say in their financial program (Protocol 20): ‘You are aware that the gold standard has been the ruin of the States which adopted it, for it has not been able to satisfy the demands for money, the more so that we have removed gold from circulation as far as possible.’
This quote also confirms that they are able, willing and known to withhold vast amounts of Gold from the market. So the idea that Gold is a safe bet because ‘it cannot be printed’ does not stand: the volume can be manipulated, because most of it is in the hand of the Money Power, who can inflate and deflate at will.
The social and economic havoc it created through the Great Depression led to the rise of fascism. It is quite likely that weaponized Gold is being used for similar purposes this time.
And of course we should also consider the one off wealth transfer that reinstating Gold as currency brings: it’s price would have to go up maybe 10 or 20 fold to replace all the fiat currency in the world. The 99% having no Gold will as usually be holding the bag.
Far from a ‘solution’, the coming Gold Standard is the logical next step in the Money Power plan of destabilization and order out of chaos. We will have a long and painful depression.
Although it is not certain that Gold will completely replace paper, it is obvious that we will know scarce money and contraction for years to come.
The austerity and deflation that the Money Power’s agents in the IMF, Bank of International Settlements and (Central) Banks are promoting will set the stage for major upheaval and the usual problem-reaction-solution, dialectically driven march to World Government.
Our answer must be to have the Government reclaim the monopoly it has surrendered to a private Central Banking Cartel. But the goal is not to ‘end the Fed’. The goal is better money.
Government must print debt free money, preferably Social Credit. Since this is not going to happen any time soon, we should build free market currencies, which can actively compete with national currencies. Ellen Brown’s Public Banking is another approach in the Populist spirit.
And we should take our money out the banks of course. Why would we patronize a business that is enslaving us with credit by bookkeeping, slapping interest on it, creating booms and busts and taking trillions of bail outs?
Migchels is an Interest-Free Currency activist and founder of the
Gelre, the first Regional Currency in the Netherlands. You can read all
of his articles on his blog Real Currencies
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