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What If We Never Left The Gold Standard? Part II

Part I ended by challenging readers to engage in a difficult, mental feat: imagining sanity. Our present pseudo-reality (dubbed “the New Normal” by the Corporate media) has been so insane, for so long, that few of us have any recollections at all of living in even quasi-sane societies.

More specifically; we live in an upside-down world where virtually all commerce is conducted by swapping worthless scraps of paper (“fiat currency”) for valuable goods and services (or doing so “virtually”). Engaging in commerce where one exchanges value-for-value (i.e. exchanging valuable money for hard assets and services) is now a totally alien concept to the members of our societies.

So imagine sanity. Pretend that we have been sent back in time, to when we had both honest government (enforced through “the golden handcuffs” of a hard, gold standard), and honest money with which to conduct our commerce – gold and/or silver currency. Readers have had a few days now to prepare for this ‘journey’, so hopefully you’re now ready for that leap.

As sophisticated readers understand (and readers of previous commentaries); a hard gold standard enforces fiscal discipline upon governments. They must be able to back all of their spending with gold, thus practically eliminating any/all debt-financing. It is little different than a law requiring governments to “balance their budgets”.

This is a policy for which many right-wing pundits have clamoured for years/decades, yet (strangely) these same pundits (except for Ron Paul) never demand a return to a gold standard. Why not create a monetary system which physically enforces the law (i.e. a balanced budget)? It can only be because these “balanced budget” zealots on the Right are being less-than-honest about what their own “balanced budget” policies really represent.

Putting that aside; with a gold standard mandating balanced-budgets, we have a self-correcting, sustainable economic system. This is another concept which will be totally alien to almost all readers. Simply mention the phrase “sustainable development” in our societies; and one will immediately be pigeon-holed by the entire (ultra right-wing) business community (and media) as being some sort of left-wing radical and/or “environmentalist”.

In the New Normal; “sustainable development” is considered insane. By logical necessity; this means our entire Establishment subscribes to the mantra of unsustainable development: deliberately creating (and managing) an economic system which we know – by definition – cannot survive. This is the only path of (supposed) “sanity” for those living in the Wonderland Matrix: more insanity.

In the world of our gold standard, however, we have sustainable economies as well as sane societies. But it only starts with balanced budgets. Balanced budgets mean no debt. No debt means no interest payments (to the parasitic One Bank). No interest payments means our governments get to (productively) use 100% of every revenue-dollar they receive. This introduces readers to yet another concept which will be alien to all: efficient government.

Why have our governments gotten more and more “inefficient” each year? One reason is because every year they waste a larger and larger percentage of every revenue-dollar making interest payments to parasites. All of these massive, Western bond-debts are fraudulent (and thus legally unenforceable), but that is (and was) a topic for another commentary.

Read more: What If We Never Left The Gold Standard? Part II

 

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