News Blitz: The Federal Reserve System’s War on Honest Money Will Eventually Create an International Monetary Crisis.
You may not know it, but the Fed’s currency manipulation schemes threaten to bring down the international house of monetary cards.
In Antony P. Mueller’s brilliant article What’s Behind the Currency War? from FEBRUARY 23, 2011 which is still pertinent, he states:
“The immediate cause of the currency war entering an acute stage is the policy of massive quantitative easing practiced by the US central bank. Whatever the original intention of this policy may have been, the consequences of the Fed’s measures include monetary expansion, low interest rates, and a weaker US dollar. With dollar interest rates approaching the “zero bound,” the United States is joining Japan in the effort to stimulate a sluggish economy with massive monetary impulses.”
With dollar interest rates approaching the “zero bound,” the United States is joining Japan in the effort to stimulate a sluggish economy with massive monetary impulses.”
He concludes his article by stating “Without a fundamental change of the monetary system itself, without a return to sound money, the international monetary system will remain in a state of permanent fragility — ever oscillating between the abyss of deflationary depression and the fake escape of hyperinflation. This is the fate of the world when nations implement fiat monetary systems and put them under political authority.”
Well, the Fed is in a bind. Its modest increases in the interest rate threaten to bring the economic house of cards down. In addition, this puts pressure on the currencies of other nations. China would much rather devalue the yuan. However, Trump continues to call China a currency manipulator. Still China will continue to look out for its own interests.
According to Bloomberg: “China has got the yuan in a sweet spot.
The nation’s authorities have let the currency rise enough against the U.S. dollar to put a spanner in President Donald Trump’s assertion that China deliberately undervalues its exchange rate. At the same time, it has weakened against a trade-weighted basket of currencies, giving China a competitive edge in exports.”
Yes, the dollar remains strong, at least against other paper currencies. In addition, you might ask “Hasn’t gold been taking a beating?” The year special interests created the Federal Reserve System gold was a measly $20.67 per ounce. Now it stands tall at more than $1200 per ounce. Does that indicate that the Fed has preserved the value of the dollar? I think we can see an obvious war on honest money.
Gold, Currency Wars and Dishonest Money
Since the abandonment of the gold standard, the global financial system has been in disarray. All established international monetary arrangements have ended in crisis and finally collapsed. For almost a hundred years now, The Elite and its Soldiers have attacked us with one interventionist scheme after another…all dismal failures.
Do you realize that the egregious monetary policies of the Federal Reserve System amounts to declaring war on other nations. Here’s why.
- A nation violates sound monetary policy and disrupts the sound global monetary order when it uses the exchange rate as a tool to gain an economic advantage or when it attempts to prevent damage to its domestic currency.
- One country’s devaluation of its currency means the revaluation of another countries currency in relation to its own.
- Obviously, the advantage one country tries to obtain places a burden on other countries.
- When countries hurt each other economically, conflicts are inevitable.
Fact: The Federal Reserve System’s disastrous monetary policies result in unnecessary pain and suffering, especially for the middle class. When people experience financial problems, their relationships often deteriorate into conflict and disharmony. In addition, conflict and disharmony breed warlike conditions among nations. What is true for individuals is also true for governments…whether their officials admit it or not.
Do you ever wonder why common sense tells a person that excessive debt leads financial and personal ruin for the individual…yet many people believe governments can endlessly spend, spend and spend—and deficits don’t matter. As Spock would claim, “How illogical.”
Governments never follow sound economic principles. Instead, they tamper with the marketplace…hampering its efficiency, destroying its smooth functioning. All the massive bailouts were deadly to our economy and the future of the dollar…nothing but wars on honest money.
You can bet your bottom dollar while it’s still worth something that currency wars can quickly spread…with deadly international consequences.
Gold and Silver
The Gold Standard would forever prevent the political establishment from embarking on quantitative easing schemes. Peter Schiff explains why the establishment abandoned the gold standard. “It’s the politicians who don’t like gold, because gold imposes discipline on politicians. It keeps them honest, and politicians don’t want to be honest. They want to get elected.”
Ayn Rand states “Gold and economic freedom are inseparable, … the gold standard is an instrument of laissez-faire and … each implies and requires the other.
What medium of exchange will be acceptable to all participants in an economy is not determined arbitrarily. Where store-of-value considerations are important, as they are in richer, more civilized societies, the medium of exchange must be a durable commodity, usually a metal. A metal is generally chosen because it is homogeneous and divisible: every unit is the same as every other and it can be blended or formed in any quantity. Precious jewels, for example, are neither homogeneous nor divisible.”
As you can see…The Federal Reserve System’s paper money scams amount to blatant dishonesty.
Silver expert Dr. Jeffrey Lewis states rather bluntly “In our fully propagandized culture and society, precious metals are among the great “misunderstood”; a grotesque illustration of the century-old financial/political movement to “free” liquidity. It takes a pillage to get this far down the rabbit hole; a broken economy, old systems spiraling out of control.”
Isn’t it time we stand up for sound economics and honest money. Sure you can speculate in stocks and bonds if that pleases you. You will definitely capture some excitement…and you may reap some profits. However, the long-term scenario requires protection from the Federal Reserve System’s egregious monetary policies. That means you might consider investing in gold and silver. Cryptocurrencies also offer some possibilities.
Let’s face it. You must protect your wealth now! Here’s something you need understand. Jim Rickards calls each possibility that could cause an economic avalanche “ a “snowflake.” You certainly don’t want to be caught in this unpredictable catastrophe.
Here’s a quote from Friedrich von Hayek: With the exception only of the period of the gold standard, practically all governments of history have used their exclusive power to issue money to defraud and plunder the people.
RA Meyer -The Objectivist Masters the Social Maze