We have always been and will always be on a gold standard. Either recognized or unrecognized makes no difference.

At the height of the bubble in 2007, central banks were net sellers of gold and the bull market that started in 2000 had still not been noticed by anyone except readers of this site and a few others. In 2012, central banks are buyers and the bull market in gold is understood by a few folks who are accumulating. But going back hundreds of years, even thousands of years gold has always been the cornerstone of the economy. The only thing that changes is perception. When Wall St. delusions reign there is a belief that paper can trump gold. Then the house of cards tumbles and we’re back to gold. This gold bull market will be clearly understood by all when gold and the Dow are 1:1 somewhere in the $7,000 – $8,000 range.

48 comments on “We have always been and will always be on a gold standard. Either recognized or unrecognized makes no difference.
  1. strats4ever says:

    Original article on the pyramid:
    All Paper is STILL a short position on gold

    For those still pondering the deflation/hyperinflation scenarios:

    Mike Maloney lectures banksters – deflation then hyperinflation

  2. Robert Mockan says:

    How far into the rabbit hole of apologists must one go to understand what is relevant?

    The concern of all rational people has always been trying to maintain, or improve, their standard of living, and that of family. But, the income received for services rendered did not keep pace with cost of living, the purchasing power of income decreased, taxes increased, and discretionary time and funds decreased, year to year. The ONLY reason people chose to live in society at all was to have at least some discretionary time and funds, as a consequence of accepting some debt slavery given how the system was organized. Take that gain away, and as far as every member of society is concerned, the system supporting life in society FAILED. Government FAILED. The monetary system FAILED. The work ethic FAILED. The economy FAILED. Productivity (by the services rendered) in America increased, but at the cost of having what people lived for taken away, and with a per capita average net reduction in standard of living.

    Hell on earth has been created. And the oligarchy is to blame. The schools became indoctrination centers for social experiments and providing workers for a debt slave EMPIRE. Governments, religious institutions, the controlled media, all became compliant institutions supporting debt slavery, and all wealth was moved from the workers to the oligarchy, BY DESIGN.

    People do not need more analysis to understand what needs to be done to fix this.
    More analysis at this point only continues the paralysis they are experiencing trying to cope with the problems that have been created for them.


  3. Yellowfish says:

    God’s money, isn’t it?

  4. F. Beard says:

    We have always been and will always be on a gold standard. Either recognized or unrecognized makes no difference.

    Baloney! Without government recognition of gold as money then it is just another commodity.

    Let’s have true liberty in private money creation and we’ll see that gold CANNOT compete against more modern and just money forms such as common stock or even government money.

  5. F. Beard says:

    God’s money, isn’t it? Yellowfish

    No it isn’t. God is concerned with justice and liberty, not shiny metals.

  6. OlympiaLogger says:

    While you bean counters delude yourselves with the SELF centered infantile notion that a few bullshit bookkeeping formulas somehow make you a Mathematician, here’s…

    Major confrontations in South China Sea as desperate cabal tries to steal Asian gold deposits
    Posted by benjaminApril 23, 2012
    Reports from Philippino tribes-people and the White Dragon Society members indicate a major military stand-off is taking place in the South China Sea and the Philippines over control of historical gold deposits in the region. A fleet of 8 US war-ships is being confronted by a joint Chinese/Russian fleet in the region. The Chinese have publicly announced they are willing to go to war over this dispute. The US warships are linked to a mysterious Hong Kong based individual by the name of “Rosenberg” (first name not known), the CIA sources say. Rosenberg is believed to be seeking physical gold to seize on behalf of the Nazi/Sabbatean cabalist owners of the Federal Reserve Board, these sources say. In the Chinese government and Western corporate propaganda news this dispute is described as being a Chinese Philippine dispute over an area, blocked out on Google Earth, known as the Scarborough Shoal by the West and the Huangyan Islands by China.
    This dispute is linked to the failed IMF and World Bank meetings that took place in Washington D.C. last week. It is also linked to an ongoing power struggle between the three factions in China, multiple sources say.
    The US, or should we say, Nazi (national socialist Zionist) forces have been systematically searching bunkers and caves in the Philippines even as they look for sunken gold ships around the Huangyan Islands and in other areas, the sources say.
    This is what an ASEAN White Dragon Society ally had to say to Neil Keenan on the subject:
    Hello Neil. In PALAWAN, those that are LOCALs are now terrified, letters have gone to us all last week…Re – so CALLED “wardens” ( accredited officers _ who are US army “scouts” going round to do a census on all local residents and buildings, saying it’s for our own protection…this has never happened before, they are with sophisticated equipment…loading huge cargo like hanger CONTAINERs, all of army material !!!!!! they already have taken on 6 islands and are now off to JOLO ( SULU islands) due to IMF and Rebel tribe bandits.
    There is definitely a WAR going to happen but what we are told is the ARMIES in / on the islands are for FUEL bases, ???? some of these ships are with FUEL/ something going on Neil it is same in Indonesia.
    These reports come as Chinese and Russian fleets converge on the area for exercises that coincided with US announcements of joint Philippine/US maneuver in the same region.
    Here is a US government propaganda report:
    Here is what the Chinese foreign minister had to say on the subject during an April 16th press conference:
    Q: The Philippine Foreign Ministry reportedly said that a Philippine ship conducting archaeological studies in waters off the Huangyan Island was harassed by the Chinese side. How do you respond to that?
    A: Currently the situation over the Huangyan Island has been eased thanks to the efforts made, and China and the Philippines are making further communication through diplomatic channels. According to relevant international conventions and Chinese laws, no organization or individual shall conduct such activities without the permission of the Chinese Government. China demands this archaeological ship to leave the waters off the Huangyan Island immediately.
    The “archaeological ship,” has so far failed to locate the gold deposits it arrived to search for, CIA sources say. In any case, this battle by the cabalists to steal gold is actually a sign of desperation after their failure, despite multiple attempts, to gain legal rights to the 85% of humanity’s gold held by Asians. This gold grab is seen by many as last minute looting by cabal members hoping they will still be able to control the world with gold even as their fiat financial rule collapses. That is not going to happen.
    This brings us to last week’s IMF and World Bank meetings in Washington. The Western propaganda media reports a “victory” by the IMF because it was able to get $430 billion worth of funding for Europe. Japan’s slave government, for example, handed over $60 billion in cabal money originally earmarked for post-tsunami reconstruction.
    However, a look at the fine print reveals the BRICs nations have made their funding conditional on reform of IMF voting rights. As Brazil’s Finance Minister pointed out, at present the UK, which has a smaller economy than Brazil, has twice the IMF voting rights as Brazil.
    The European nations are willing to increase BRICs voting shares in the IMF but the US is blocking it because it would then have to give up control of the World Bank. Certainly the European bond markets were not fooled by the announcements coming out of this meeting because Spanish bond yields actually rose after it.
    In any case, both the IMF and the World Bank are increasingly irrelevant.
    Think about it for a minute, the IMF, the so-called lender of last resort in the post war era, the group that once “bailed out” Russia, is running around with a begging bowl make it obvious to all this institution is no longer at the top of the international financial food chain.
    The World Bank, for its part, lent out only $42 billion in new money in 2011, compared to a world GDP of roughly $75 trillion. They are a puny organization.
    By contrast, the White Dragon Society is proposing the creation of a Long Term Infrastructure for Everybody (LIFE) planning agency with initial funding of $800 trillion. Of course at this level, numbers are meaningless.
    The current rules allow the Japanese to leverage their $8 trillion in hard foreign exchange assets 100 times, meaning 800 trillion dollars or over $100,000 each for every man woman and child on earth (as a Japanese reader pointed out, I miscalculated in previous reports by saying that was available on 10 times leverage).
    Even if you take the more conservative Basel 3 rules with over 10 times leverage, Japan can still legally make $10,000 available for every human, still plenty enough to end poverty and stop environmental destruction.
    If this money is delivered in the form of things that really exist, such as roads, schools, nature preserves, consumer products etc., then there is no limit to how much new money is created other than reality.
    Needless to say China, ASEAN, Brazil, Russia etc. can all make similar moves in harmony and parallel with Japanese efforts.
    The cabalists, for their part, have been making a desperate push to ensure their survival. They have blocked all efforts to create new organizations such as LIFE within the existing US dollar and Euro based systems even as they refuse fundamental reform of their organizations such as the BIS, the UN, the World Bank, the IMF, the “World Court,” etc.
    They also made a big push in China to convince leaders like Hu Jintao the White Dragon Society is a neo-colonialist organization controlled by the Rothschild family. The WDS has no Rothschild family members in its ranks and does not receive a penny from the Rothschilds or other cabal families like the Rockefellers and Bushes. It is dedicated to ending their terrorist misrule of the planet.

  7. Jayme says:

    “Without government recognition of gold as money …” – F. Beard

    Provisional self-esteem mandates the existence of authority higher than one’s self. John Taylor Gatto speaks about this in his books and lectures about how the educational system inhibits the psychological maturity of the industrial school system. That is, only citizens whom have given over their sovereignty to the government recognize government as a proper authority. These people recognize statute law as the law which governs their lives and actions. Under statute law, as the god (or parent) of these citizens, government may decree what money is but ultimately, if a citizen grows up and realizes they are not a child of the state, they become a person. Through practice of common law, they decide what is Lawful and what is legal. All the criminal behavior that is occurring now within the financial and political systems are legal but are not Lawful. That is, it is wrong. When the people decide that the government no longer reflects their sovereign nature and stand between themselves and their god (or nature), government is removed as their agent and they appeal directly to that which gives them everything. Without the authorization and confidence of the citizens, what government issues is not money. Money is a reflection of trust. Gold, if the citizens choose to trust it, is money. Since it has very nice physical properties (does not rust, corrupt, and cannot be eaten by moths and is shiny) it serves well as a physical representation for people’s money – provided the bankers don’t hoard it. A government that decrees what money is while simultaneously destroying the value of that money, is tyrannical. This is more about trust in our exchange among one another than the medium of exchange itself. The system is rapidly losing its trustworthiness.

  8. giggler says:

    8K metals, my arse. Not saying your totally wrong but you guys echo king world news and turk which is only one side of the coin… I mean anyone can stand on a soap box and say “The end of the world is comming” without actually stating when, it’s a fact for sure but without that missing date it’s almost pointless to consider.

  9. Nak says:

    Bitcoins question:
    If I am the man in this story how would Bitcoins help? Where can I take my $193,046 cash USD and convert it into Bitcoins onto a flash drive in Philadelphia? And then when I land in Jamaica where can I go to convert my Bitcoins on my flash drive back into cash US dollars or even Jamaican dollars?

  10. F. Beard says:

    “A government that decrees what money is while simultaneously destroying the value of that money, is tyrannical.” Jayme

    Correction: “A government that decrees what PRIVATE money is while simultaneously destroying the value of that money, is tyrannical.”

  11. Harry says:

    “It is not illegal, but very unusual for a passenger to attempt to carry out of the country such a significant amount of currency without reporting it,” said Allan Martocci, port director for the Area Port of Philadelphia. “This seizure and arrest attests to the serious consequences of violating federal currency reporting requirements, and the importance of Customs and Border Protection officers conducting outbound enforcement operations.”

    Not illegal, so why the reporting thing? Really stupid of them to think we are stupid.

  12. casper007 says:

    OK have all of you realized that the rest of the world has had enough of USA bullsh*t …. They are creating their own $$$ no more USA dolllar rule. We are not far from a collapse of USA, time to wake US citizens your gov’t has sold you out, oh their solution to all of this WAR !

  13. Robert Mockan says:

    @ Olympia Logger

    “..the White Dragon Society is proposing the creation of a Long Term Infrastructure for Everybody (LIFE) planning agency with initial funding of $800 trillion.”

    Now that is interesting. A paradigm shift like that would free people globally from debt slavery. No wonder the insane oligarchs are shitting their pants. If the insane do lose control, they become fair game for bounty hunters across the globe to take out. That means they will try to take the world to war as a distraction, sooner rather than later.
    Iran might not be a big enough target as a distraction. What will they do?

  14. Robert Mockan says:

    @ F. Beard

    That is splitting hairs. The key concept here is “tyranny”. How about every one agree to get rid of it?

  15. F. Beard says:

    That is splitting hairs. Robert Mockan

    It is NOT splitting hairs. Some would replace government counterfeiting of private money with private counterfeiting of government money. That would replace one form of tyranny with another.

  16. Nak says:

    The reporting thing is for the IRS. Any transaction of $10,000 of cash and you need to report it to the IRS, because “You got some splainin to do”.
    Just like in Greece and Spain, all transaction over 2,500 Euros are now illegal. The government’s coffers are running dry and it is threatening their life styles, so they will do anything to squeeze every last drop out of their citizens.
    A new bill they are bouncing in Congress scares me, if the IRS SUSPECTS you of owing $50,000 of taxes they can cancel your passport.

  17. OlympiaLogger says:

    @Robert Mockan,
    Yeah, how ’bout that.

    Puget Sound was a big part of my stomping grounds, so taking high school Japanese was pretty much second nature.
    I could see going back to that………. happily.
    … or maybe Nez Perce.

  18. Dan says:

    It looks like the top three of waist paper needs to go so that the rest of the paper can survive under the wait, and that means some too big to fail banks need to go with some people put in jail. That means fraudulent conveyance must be used to put these paper bugs out of business, and a wall put between investment banks and commercial banks that can never be broken. FDR didn’t do anything until the people led the way.

  19. Bruce says:

    One thing is for sure (at least to me):
    Gold and silver bullion rank amongst the most boring purchases I have ever made, if not the most boring.

    We are just doing what the bankers are doing (buying gold) and in one sense that really makes me check myself before I wreck myself, yo.

  20. Robert Mockan says:

    @F. Beard

    Sure, and tyranny has got to go. Tokens issued and representing the equivalent value of that part of an individuals irreplaceable life time used in service to support the society lived in should never be diminished in value after the fact. That means the benefit to the individual of the purchasing power of those tokens needs to be kept at least constant, and that in turn means a standard of reference needs to be used so that purchasing power can always be gauged in terms of benefit. The present monetary systems have debauched money (tokens), betrayed the original purpose of money, and done so through criminality. That is exactly the same as saying your life has been taken.
    These are crimes deserving of death, many times over when compounded by the effects on billions of human beings. When I say splitting hairs, I do not mean quibble about the variations in how the system works, but thinking that any answers to the money problem that do not recognize the purpose of preserving meaningful life for the individual, are not worth the effort of argument.
    Tyranny needs to end. Perhaps we need to redefine what tyranny is?

  21. Vonda Bra says:

    @ Robert Mockan | April 23, 2012 at 11:01 pm |

    you are right! … you have always said it:

  22. noone says:

    Glad to see F. Beard firmly mounted upon his One Trick Pony…..woner what he’ll do when gold and silver triple in value, or more, in the next 2-3 years?

    Word F.: there is no god.

    And about this pyramid: JFK wants to know where the silver be, Timothy?

  23. F. Beard says:

    One Trick Pony noone

    More than just one, I’d hazard.

    And if there is no God then in a few years there will be no you either. So why should I listen to someone who soon will be nothing by his own logic?

  24. F. Beard says:

    That means the benefit to the individual of the purchasing power of those tokens needs to be kept at least constant, Robert Mockan

    Ideally, money should neither gain not lose much purchasing power and only temporarily.

    and that in turn means a standard of reference needs to be used so that purchasing power can always be gauged in terms of benefit. Robert Mockan

    The value of a money is what it can be exchanged for. There is no natural standard of reference. For example, amusement park tickets could be used for a money but if the rides sucked they would not be worth much. However, if the management used ticket sales to fund better rides then the value of the tickets would increase. And then more tickets could be sold for even more improvements. So ultimately the value of a money supply is based on the management of it. A gold standard is stupid because it arbitrarily limits the rate of money creation to the mining rate of gold thereby limiting proper management of that money.

  25. ricin3000 says:

    @01.28 into the video: Is that our dear Maxime Verhagen, (now) demissionar minister of the department economics & farms of the Netherlands?

    Looks like he has cramps 🙂

  26. ricin3000 says:

    Sorry I meant the Mike Maloney video first part from the link way-way above.

  27. Jayme says:

    “The value of a money is what it can be exchanged for. There is no natural standard of reference.” F. Beard

    This is what the sustained value of gold reflects.

    “A gold standard is stupid because it arbitrarily limits the rate of money creation to the mining rate of gold thereby limiting proper management of that money.” – F. Beard

    An elastic money supply is a good thing. If I’m not mistaken, this is why I don’t completely agree with the Austrian school. Unfortunately, the bankers have decided it’s fun to blow bubbles. Max Keiser has stated in the past that any gold standard should incorporate some flexibility. I agree. I don’t believe it has been argued that a fixed money supply is a good thing. A gold standard simply means that this natural material resource would be used as a reference upon which to base economic reality. It certainly isn’t perfect but somehow, financial systems must stay grounded in the real world or the phoney facade of the financial ‘hologram’ begins to dominate the economy. Gold is primitive but the entire universe is, at it’s core, primitive. Since gold is a relatively compact and stable substance, it’s utility as a representative store of value at the human scale is not inappropriate. Of course for a system of currency intended for global domination and control, gold is insufficient which is what the inverted pyramid shows us. As with all of us, these holographic delusions of egotistical grandeur eventually return to dust. In the case of economies, that dust just happens to be gold. Tally sticks would be okay too but practically speaking a gold backed paper or electronic currency (assumes honest bankers) seems like a good basis for monetary policy.

    As for tyranny. Tyrants use the machinery of state to protect their megalomaniacal ambitions. Privacy becomes meaningless when it gets to this stage. As trust disappears (and the value of money and wealth of the people are destroyed), so goes the system. Good laws and ethical behavior of individuals are the only way to suppress tyranny. Vicious destruction of the oligarchs without very carefully considered justice will simply bring about more tyranny. I’m not saying there won’t be violence. I think there must be the very real threat of violence, or nothing will change. In this respect I agree with Derrick Jensen but such acts must be with full attention to justice.


    Derrick Jensen on Pacifism

  28. ricin3000 says:


    Thanks very much for the Mike Maloney link, very much enjoyed those vids.

  29. ricin3000 says:

    I’d like to see a sovereign-issued coinage/notes currency in direct competition with gold/silver/other PMs bullion or coins (might be issued by the same or not). If they want to devalue their fiat by such and such percentage they can have referenda about it. Heck they can even have any derivatives voodoo in the banking sector (personally i’d say ban it) but the banking sector is not the one creating currency anymore. Note that I say “currency”. The “Money” if any would be the PMs and arguably other items could be added (SDR-ish?). Personally I’d rather see them merely being PMs so they can be used in actual coinage.

  30. ricin3000 says:


    “Of course for a system of currency intended for global domination and control, gold is insufficient which is what the inverted pyramid shows us.”

    Uhm, no it doesn’t. It’s supposed to show liquidity and what happens if it dries up top down. It doesn’t show sufficiency or anything, just how it will cascade when liquidity dries up.

    Not too happy about the broad “commodities” placement in there. For one thing silver should be split out and moved way down into the monetary base triangle.

  31. ricin3000 says:

    agreed that tally sticks would also do if everyone agreed upon them.

  32. F. Beard says:

    It [gold] certainly isn’t perfect but somehow, financial systems must stay grounded in the real world or the phoney facade of the financial ‘hologram’ begins to dominate the economy. Jayme

    Common stock as money is entirely rooted in reality:

    1) Common stock as money requires no borrowing or lending. Assets and labor would simply be bought with new stock issue. Thus no PMs, usury, or fractional reserves are required. This is a huge benefit since PMs, usury (see Deuteronomy 23:19-20) and fractional reserves are all problematic.
    2) All price inflation is born by the owners of the corporation since every receiver of the new common stock money is by definition a part owner of the corporation. This is an important moral consideration.
    4) Since all money holders are part owners of the corporation then they could vote on how much new money is issued and for what purposes. Thus price inflation is under the control of only those affected by it.
    5) The assets of a corporation are typically performing assets though PMs could easily be accommodated too.
    6) Common stock as money shares wealth at the same times as it consolidates it for purposes of economies of scale. Labor problems should be non-existent since the workers would be paid in common stock and thus be part owners. The number of those with a stake in capitalism would increase. The need and desire for socialism should decrease.

    Get wise. The bankers have confused the population with shiny metals while they have gobbled up equity and debt. PMs are merely a diversion from real wealth.

  33. gordo says:

    Gold what a fucking joke.

    Just another right wing fraud to allow private interests to
    Rape the rest of society.

    Fuck Gold and Fuck you.

  34. Jayme says:


    Yes, the pyramid does not show sufficiency. I jumped over a few thoughts.

    My interpretation may be wrong. The order is a bit odd and I don’t get much of an explanation from the ZeroHedge article. Liquidity is availability of cash or readily convertible assets. I see this availability as equivalent to leverage representing control. Each layer represents greater and greater leverage with an associated risk. At the highest levels, ordinary people have no access (except as debtors who are bought and sold) yet this is where most of the leverage exists. Leverage is used to acquire assets and affect control of ownership over assets one would not normally be capable of affording. Unfortunately, the resulting leverage of derivatives and such came without regulation and are generally untraceable. The risk has been socialized is an effort to ensure that the derivatives bubble and all it leverages doesn’t collapse. At least this is how I’m interpreting.

    In a nutshell, the notional value of the paper market can be much larger than the underlying physical assets.

    Word of the Day: John Exter’s Inverted Pyramid of Assets

    In terms of a commodity based money such as gold – each layer represents an expansion of notional value. The highest layers have the greatest abstraction from physical reality. The physical gold supply is inflexible and may cover one to one fair commodity exchanges but it’s scarcity prohibits direct utility as a unit of monetary exchange and as such it is insufficient in the manner I used.

    A big problem with gold is that it can easily be hoarded by the central banks as is being done.

  35. Jayme says:

    “Get wise. The bankers have confused the population with shiny metals while they have gobbled up equity and debt. PMs are merely a diversion from real wealth.” – F. Beard

    Agreed. Money that is a fetishized collectible commodity that can be hoarded is ruin for person and nation.

  36. L T P says:

    Where the hell is SILVER, the #47, the shiny sideline, the argent in this? Shouldn’t it be just above Gold? Just Oinkin’

    God will indeed have His way in Justice during the Final Judgement. For now, we have to live in the world where we must place faith in Him. Gold is the best barometer to do this, with Silver a close second! OINK!!

    L T P -aka- Major Bacon – Silver Liberation Army
    This swine can be followed on Twitter: @lickthepig
    Keep stackin’ da Phyzz!

  37. Jayme says:

    “Just another right wing fraud to allow private interests to
    Rape the rest of society.” – gordo

    I’m not sure what your perspective is but I’m open.

    I don’t get much into left/right. I doubt any ism has the answer. I thought Marx was ‘left’ yet he supported gold as money (?). Anyway, I don’t think gold is limited to being a “right wing fraud” but do agree that money as it exists is a fraud and gold is no less vulnerable. Most of it resides in central banks and a few nations with very little possessed by the majority of people (except perhaps in a few locations).

    “Marx’s theory of money is therefore in the first place a commodity theory of money.”

    Marx’s Theory of Money

  38. Jayme says:

    As much as I dislike the way money works. The fact is, Max Keiser and other folks are essentially correct in that gold, silver, art, gems and such are where these guys will seek safe harbor and most other areas of investment will suffer catastrophically. When panic starts, it will be difficult to see a rational way through the mess. I don’t have a solution though many presented (such as Keen’s) seem to provide an extension to the life of the status quo.

    I think Noam Chomsky has said that the best protection against a depression is a job. When so many people are losing their jobs, and more time is wasted doing pointless activities for virtual currency, this is of little comfort. These people can’t afford necessities let alone gold or silver. The globalist corruption will have to be excised but people need information to make informed decisions. I’d be willing to give up all my shiny metal to see a truly viable economic system that isn’t run by crooks succeed. I just wish I knew what a ‘truly viable economic system’ looked like. Does it need money or gold or financial derivatives? I don’t know.

    Permaculture is the harmonious integration of all life kingdoms into agriculturally productive ecosystems and socially just environments producing sound economic outcomes through systems management. It is a regenerative design intention reflecting patterns in nature that seeks to build interconnections allowing for energy efficiency and abundance of yield.

    Sustainability Education & Ecological Design

  39. Jayme says:

    “… we can expect more and more instances of the dollar and Gold going up together. Indeed, a final spectacular rise in the dollar – lulling many dollar-deflationists into a false sense of complacency – will be our signal that the show is about to end. It is this collapse of the second-last layer – the dollar or the “Federal Reserve Note” layer – that will manifest as hyperinflation. Many dollar deflationists who realize the truth about Gold think they can time this, trade around it and switch to Gold when the time comes. However, there is no guarantee that Gold will be available at anywhere near today’s prices – or indeed available at all – at that point. Much of it will happen too quickly for many people to even comprehend what hit them. ”

    from the article link

    Mr. Denninger and Gold – Part Deux or: A Rebuttal to All Fiat Money Apologists

    I think I’m understanding this correctly. Most wealth is controlled through leverage at the upper layers. When this control becomes unstable and starts to break down, people begin fleeing the higher risk financial instruments and move down the inverted pyramid to safer and safer assets but this puts strain on these layers as this happens and begins building pressure that subsequently destabilizes the lower layers. As the last layer breaks down, federal reserve notes, hyperinflation blows up but there are insufficient hard assets (gold) to meet all the virtual wealth demands and the system goes broke. At least that’s what I read.

    I still see the fundamental problem in all this as the deceptive practices used to exploit and extort wealth from those who produce the real wealth. I still don’t see any fundamental flaw in any of what Max Keiser has been claiming all along nor do I see gold as going down. Certainly, I’d like that there was an alternative but practically speaking, the wealthy to a large extent, still control the a large portion of the assets as the house of cards falls. At some point – even if they do own most of the gold – they will lose control because gold is not wealth.

  40. Robert Mockan says:

    @ F. Beard

    You said: “..The value of a money is what it can be exchanged for.”
    True under all present systems, and you have pointed out the precise point where the paradigm shift needs to occur. That concept you said, in the future, will be obsolete (IMHO). Money should represent the value of a persons life time used in service to society, not from the perspective of society, but from the perspective of the persons value of what their life is worth. Without that perception, society essentially is a failure.
    Give it a hundred years, and people will look back at this time and before, as before the dawn of sanity.

  41. I_Cant_Believe_Its_Just_a_Dip says:

    Also Robert, the ”Age of Waste and Squander”

  42. Lover of Metal says:

    Whether Gold or other PMs are money (or not) is not important to me.
    I live in the Eurozone. My Currency can vanish overnight.
    What have I got if I don’t have PMs to trade in for the new Funny Money?

  43. trooper dave says:

    It’s all an illusion.
    You work in the system and are rewarded with system credits. The credits are paid back into the system and the system works to devalue those credits so that they are worth less in the future and this requires that you have to continue to work for credits and continue to pay back in to the system. It turns people into snakes that are eating their own tails for food.

  44. Badsey says:

    The exter pyramid is missing physical silver. Should be above gold whereas true SLA would have physical silver below. Lots of fiat instruments that are worthless on this pyramid. If the piece of paper does not construe ownership then most likely there is none (no physical value).

    Stocks that pay no dividends are more like gambling than investments. And at bankruptcy are typically deemed worthless. Unless you have >50% ownership you most likely have nothing when bankruptcy accrues. Stocks are a .0001%ers game and a great way to control an asset while liquidating value/ownership.

  45. Silverwillwin says:

    Seems like silver is equivalent to chopped liver in the above diagram.
    Just wait till gold is $ 10,000 per oz. , then they’ll wish they had put it in that chart.

  46. ricin3000 says:

    Sliver IMHO has always been and will return to be the people’s currency. With these ridiculous prices everyone should buy a little. Just a little. Instead of saving what 27 bucks, buy one ounce.

    If you can’t afford gold……..

    Best regards