The Road to Serfdom . . . RT's Capital Account w/ Lauren Lyster hosts Michael Maloney to discuss fiat money, sound money and debt-based currency systems in this program which originally aired 1/22/12.
Michael Maloney, founder of GoldSilver.com is also the author of the world's best selling book on precious metals investing. Since 2003 he has been advocating gold and silver as the ultimate means of protecting wealth from the games played by our governments and banking sector.
James
Turk outlines the stark fiscal facts about government debt problems
across the developed world, and why central banks' determination to
devalue the currencies they issue is causing a bull market in precious
metals. He demonstrates why gold remains undervalued, despite the great
gains seen in its price over the last 11 years, and a means of
assessing whether or not the yellow metal is fairly valued or not.
James
argues that we are living in "fiat currency bubble", similar though
many magnitudes greater than the recent housing bubbles seen in
America, Ireland, Spain and other countries, or the "Tech bubble" in
NASDAQ stocks in the late 1990s. The USA is racing towards
hyperinflation, courtesy of the Federal Reserve's monetization of US
government deficits.
James Turk
has specialized in international banking, finance and investments
since graduating in 1969 from George Washington University with a B.A.
degree in International Economics. His business career began at Chase
Manhattan Bank (now JPMorgan Chase & Co.), which included
assignments in Thailand, the Philippines and Hong Kong. He subsequently
joined the investment and trading company of a prominent precious
metals trader based in Greenwich, Connecticut. He moved to the United
Arab Emirates in December 1983 to be appointed Manager of the Commodity
Department of the Abu Dhabi Investment Authority, a position he held
until resigning in 1987. Thereafter he held various advisory roles in
money management until founding GoldMoney, which was launched in 2001.
He is a director of the GoldMoney Foundation.
As posted on the Schiff Report You Tube Channel on 1/10/13
In this clip, Peter Schiff explains that the U.S. Bureau of Labor Statistics "Consumer Price Index" (CPI) is no longer a tool to accurately measure inflation, but rather an instrument of deception the government uses to hide accelerating inflation from the public and financial markets. Modest CPI increases over the past several years do not reflect an absence of inflation, but rather an intentional design flaw in the index that fails to fully capture the magnitude of price increases. Central bankers drawing economic conclusions regarding inflation and monetary policy based on this highly flawed data point are making a major policy error.
Example:Prices for the twenty items in our basket rose 44.3% during a ten-year period despite an official rise in the CPI of just 27.5% during the same time frame. But that is using official government numbers to evidence those price increases. However, judging by the inaccuracy of government numbers on other items, such as newspapers and health insurance, the actual rate of increase of the prices of the goods in our basket was likely much higher than what the government claimed!
Peter Schiff, is an American businessman, investment broker, author and financial commentator. Schiff is CEO and chief global strategist of Euro Pacific Capital Inc., a broker-dealer based in Westport, Connecticut, and CEO of Euro Pacific Precious Metals, LLC, a gold and silver dealer based in New York City.
For the uninitiated, this podcast provides an excellent primer on how our current monetary system operates.
Interviewee Ben Dyson, is Founder/Director of Positive Money,
a UK not for profit research and campaign group focused on monetary
reform. It believes that the root cause of many of our current social,
economic and environmental problems lies in the way we allow money to be
created out of debt.
Dyson explains that 97% of the money supply is being created by banks
through credit extension in form of a mere book entry (i.e. money is
created out of nothing). In essence, what is happening is:
Every time money is borrowed at a bank, that money is created
because, today, all money is backed by debt, not a physical asset such
as gold as it had been in the past.
Unfortunately, the money to pay the interest does not yet exist and
so more money would have to be created for that purpose as well.
Since the foregoing scenario proves that it is mathematically
impossible for all debt and the associated interest to be paid off, the
current monetary system relies totally on continually expanding debt to
function.
Therefore, the only way we can increase spending is to encourage
people to take out more debt which is why you have a situation in which a
monetary crisis occurs because people have too much debt, and the
government’s solution is to lower interest rates to make it cheaper for
people to borrow more money.
This causes a great deal of dependency on the banking sector.
While
our monetary system relies on the continuous extension of debt in
order to keep functioning, only little of this credit is being provided
to businesses (13%), while the bulk of it went into mortgages (40%),
consumer finance (10%) and financial markets (37%) in the decade
running up to 2008. Dyson also shows how this is deleterious to wealth
creation and also causes redistribution mechanism benefiting those who
are close to the issuers of money on the backs of to those who aren't.
Also discussed is the environmental consequences of this debt money
system.
Finally Dyson's proposal for monetary
reform is discussed, which involves the transfer of power over the money creation
from banks to a newly established, transparent, public monetary body
which decides how much money should be added to the economy through the
government to pay down existing debt. They also discuss the viability
of using metal as money again, the emergence of alternative currency
systems and whether an authority can really be trusted with managing the
money supply.
Here
is an excellent must see short video about gold bullion vs cash. It
shows how gold has retained value throughout history and why gold is
safer than cash in the long term. Legendary investor, institutions,
central banks and the prudent are buying gold today. It is the opinion
of your blogmaster that gold is an important safe haven asset and an
essential investment and savings diversification in these uncertain
times.
Disclaimer:the posting of this video is not intended to represent an endorsement of it's creator, www.goldcore.com.
