Reasons Why We Should Return to the Gold Standard Whenever destroyers appear among men, they start by destroying

money, for money is mens protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into arbitrary power of an arbitrary setter of values. Ayn Rand, Atlas Shrugged

The Depression of the Past

The real great depression that began in 1929, after the stock market crash, lasted for well over ten years but never really ended until the United States and its allies got sucked into World War Two. The U.S. came out of the war with our banks still financially sound and war machine factories still intact. We came out of it with a vast amount of power worldwide and credit using both to create at the time what looked like prosperity. Even back then we have been living this illusion while trusting in the credit card to pull us through.

In 1933 Gold was Illegal

Gold was made illegal to use for most Americans in 1933 when FDR killed the gold backed dollar. In other words we have been

using fiat money backed with nothing but our good will which in the real sense is not money at all.

Living on Credit

Since 1933 we have really been living on fiat currency, with no intrinsic value of its own that in the pure sense is not actually money at all. It is only a promissory note, like a credit coupon, whose value only declines as the federal government prints more. Gold is something of worth; paper fiat money is only a mortgage on wealth that actually does not exist. Paper is just like a check drawn by legal looters upon an account that is not theirs. We must pay attention to the day the account becomes overdrawn that will be our day of reckoning.

Richard Nixon

In 1971 Richard Nixon, who ended the Vietnam conflict, also put an end to the last tenuous anchor tying gold to what back then was called Eurodollars. That is dollars held by European central banks that were allowed to redeem gold at $35 an ounce.

When Nixon cut the line that secured the dollar to gold its value quickly lost value by almost a third. The result during the Jimmy Carter years was rampant hyperinflation, mortgages as high as 20%, gas shortages, and oil embargos by suppliers upset with being paid with devalued dollars.

The Wolf is at the Door

Taking a glance back at financial history we can see the U.S. Consumer Price Index (CPI) was fairly stable until Nixon cut the dollar adrift in 1971. From then until 2010 the CPI has jumped by more than 500%! The reason for this, of course, is uncontrolled money printing and unsustainable credit creation.

U.S. Debt

In 1971 total American debt was $9 trillion dollars increasing to $59 trillion in 2010. Since 2010 United Stated debt has ballooned to perhaps $67 trillion dollars, a total that is hard to discern amidst deceptive creative government accounting practices. Gross Domestic Product (GDP) went from $1.1 trillion to $14. 5 trillion between 1971 and 2010.

Facts are it has taken an increase in borrowing of $50 trillion to produce an annual GDP of $13 trillion in 40 years. Not very good bang for the buck most economists would say.

Borrowed Money Prosperity

Negative growth would have been in our economy if we would not have had this huge increase in debt since 1971. Such relentless negative economic growth is the true definition of being in a prolonged recession that leads into a full blown depression.

Credit Fueled Vacation

What we are in fact doing is taking a credit funded vacation from reality creating a superficial fools paradise built on goods and money borrowed from others. If that is not living in the land of Oz I dont know what is. The world extended trust and goodwill to America after the war to end all wars was ended but was overdrawn by politicians and Americans living beyond their means for decades. The politicians will not stop printing money, 85 billion a month at last count, money that just happens to be the Reserve Currency on whose stability the rest of the world economy depends. The stock markets are so

addicted that even a word of tapering sends it into the doldrums.

America the Adult Superpower?

The world gave the United States self-serving politicians a unlimited credit card to spend as they seen fit. Unfortunately this was like giving car keys to wasted teenage alcoholics; trusting spendaholic lawmakers with this kind of power is not the American dream but an American scheme for the elitist to get over on society.

The truth is American politicians in the global economy eye have gone from hero to big spender to deadbeat as we pay back the nations we trade with continually debased American dollars whose value keeps falling. This of course has cheated our creditors out of the true value of what we owe them. The world thinks crooks are in charge.

Deeper in Debt

Officially we continue to go in debt by $1 to $2 trillion annually. Because we continually keep dancing with the true accounting numbers, like the growing liabilities with Social Security &

Medicare that they keep off the books, our true debt continues to grow at $5 trillion a year. If you kept books like this for a private company they would throw you in the slammer and throw away the key!

Conclusion

Grown up super powers should have known to not live beyond their means; living in a world of fantasy money (like video games) will soon bring down this fraudulent house of cards with a crash heard worldwide. What will the nations think then? A replacement world currency will then be in the offing. The road ahead will then be rocky if not downright dangerous. Think nations declaring war against us. An Austrian economist once wrote, If it were really possible to substitute credit expansion for the accumulation of capital goods by saving, there would not be any poverty in the world. Wrap your head around that and noodle for a while. Paper funny money does not actually make anything real. People will eventually stop believing in this illusion when its value decreases. We will need good ambassadors then to bring us back to being believed again in the world. Good luck with that!