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History
See other History Articles

Title: Hitler's Monetary System
Source: Rense
URL Source: http://www.rense.com/general77/hitn.htm
Published: Jul 15, 2007
Author: Rense
Post Date: 2007-07-15 00:50:08 by robin
Keywords: None
Views: 1247
Comments: 85

Hitler's Monetary System 7-14-7

"We were not foolish enough to try to make a currency coverage of gold of which we had none, but for every mark that was issued we required the equivalent of a mark's worth of work done or goods produced. . . .we laugh at the time our national financiers held the view that the value of a currency is regulated by the gold and securities lying in the vaults of a state bank." -Adolf Hitler, 1937 (CC Veith, Citadels of Chaos, Meador, 1949.)

"And it proved sound. It worked. In less than ten years Germany became easily the most powerful state in Europe. It worked so magically and magnificently that it sounded the death knell of the entire (Zionist) Jewish money system. World Jewry knew that they had to destroy Hitler's system, by whatever means might prove necessary, or their own [system of usury] would necessarily die. And if it died, with it must die their dream and their hope of making themselves masters of the world. The primary issue over which World War II was fought was to determine which money system was to survive. At bottom it was not a war between Germany and the so-called allies. Primarily it was war to the death between Germany and the International Money Power." --William Gayley Simpson, 'Which Way Western Man' (p.642)

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#20. To: Red Jones, robin (#9)

The insane inflation experienced in germany was in the 1920's. the NAZIs came to power in 1932. The NAZIs very quickly brought great prosperity to ordinary germans. The innovations they had in money creation were enormously successful.

This prosperity was due to the exertions of Dr. Schacht the German Finance Minister. After Hitler came to power, the world banks were trying to force their way in but Schacht kept them out.

In 1938 when Hitler was intent on using his armaments for aggressive war, Schacht refused to go along with it and was sacked. In 1943 Schacht was imprisoned on orders from Hitler.

After WW2, I was friends with Dr. Schachts Godson for many years. He had lived with Schacht during the 1920s and 1930s.

Cynicom  posted on  2007-07-15   9:37:43 ET  Reply   Trace   Private Reply  


#21. To: Cynicom (#20)

After Hitler came to power, the world banks were trying to force their way in but Schacht kept them out.

In 1938 when Hitler was intent on using his armaments for aggressive war, Schacht refused to go along with it and was sacked. In 1943 Schacht was imprisoned on orders from Hitler.

He must have been a good man, Schacht.

Ron Paul for President

robin  posted on  2007-07-15   9:40:51 ET  Reply   Trace   Private Reply  


#22. To: Cynicom (#20)

After WW2, I was friends with Dr. Schachts Godson for many years. He had lived with Schacht during the 1920s and 1930s.

thank you for your almost-first-hand view of history.

I wish school-children all over the country would learn these lessons. They would too if the people who rule us would consent for it to be allowed in our schools.

Galatians 3:29 And if ye [be] Christ's, then are ye Abraham's seed, and heirs according to the promise.

Red Jones  posted on  2007-07-15   9:52:20 ET  Reply   Trace   Private Reply  


#23. To: robin (#21)

He must have been a good man, Schacht.

Indeed he was.

Dr. Schacht was the only one found not guilty at Nuremburg.

His Godson emigrated to the US after WW2.

Cynicom  posted on  2007-07-15   9:57:53 ET  Reply   Trace   Private Reply  


#24. To: robin (#21)

Some history of the Weimar hyperinflation.

In November 1923, a currency reform was undertaken. A new bank, the Rentenbank, was created to issue a new currency--the Rentenmark. This money was exchangeable for bonds supposedly backed up by land and industrial plant A total of 2.4 billion Rentenmarks was created, and each Rentenmark was valued at one trillion old paper marks. From that moment on the depreciation stopped--the Rentenmarks held their value; even the old paper marks held stable. Inflation ceased.

What was the secret of the "miracle of the Rentenmark"? After all, the new currency was not redeemable in anything. Its backing by real property was a fiction, since there was no way by which property could be foreclosed or distributed. Further, there we have the government distributing a vast new supply of money--2.4 billion trillion in terms of the old mark. Ought that not have led to a new wild inflation?

To understand this, we must recall that the real value of the money circulating in late 1923 was small--equal to a mere 168 million pre-war gold marks. The continued depreciation at this point was due to utter lack of confidence--to the belief that the printing presses would run indefinitely. But actually there was a great shortage of and need for money. New money could be introduced without price inflation if only people had confidence in it. How was confidence developed?

First, the government announced that the new currency would be "wertbestaendig"--stable in value. In their hunger for usable money people accepted this, at least until it should be proven false. Then the property backing seemed to give the currency value. True, the Assignats of the French Revolution, backed by fixed property, had depreciated, but still the backing helped.

Second, and certainly most important, the government limited strictly the amount of Rentenmarks which could be issued and it halted the issue and discounting of notes and the creation of paper marks. Finally, after April 1924, the Reichsbank stopped the expansion of credit to businesses which had been stimulating inflation. Businessmen were required to repay loans in gold marks, equal to the original value of the loan. Thereafter, incentive was gone to borrow except for legitimate needs.

Thus, the Rentenmark replaced the Papiermark. Due to the economic crises in Germany after the Great War there was no gold available to back the currency. Therefore the Rentenbank, which issued the Rentenmark, mortgaged land and industrial goods worth 3.2 billion Rentenmark to back the new currency. The Rentenmark was introduced at a rate 1 United States dollar = 4.2 RM.

The Rentenmark was only an intermediate currency and was not legal tender. It was, however, accepted by the population and effectively stopped the inflation. The Reichsmark became the new legal tender on 30 August 1924, equal in value to the Rentenmark.

The monetary policy spear-headed by Hjalmar Schacht - the Central Banker - together with the fiscal policy of German Chancellor Gustav Stresemann and Finance Minister Hans Luther brought the inflation in Germany to an end.

The Rentenbank continued to exist after 1924 and the notes and coins continued to circulate. The last Rentenmark notes were valid until 1948.

The U.S. Constitution is no impediment to our form of government.--PJ O'Rourke

DeaconBenjamin  posted on  2007-07-15   9:57:56 ET  Reply   Trace   Private Reply  


#25. To: DeaconBenjamin. everyone (#10)

The only way to purge public officials of corruption is to remove their power to regulate most aspects of human life. There is no prospect of avoiding corrupt public officials under our current governmental structure.

The U.S. Constitution is no impediment to our form of government.--PJ O'Rourke

Join the Ron Paul Revolution

Lod  posted on  2007-07-15   9:59:29 ET  Reply   Trace   Private Reply  


#26. To: DeaconBenjamin (#24)

The monetary policy spear-headed by Hjalmar Schacht - the Central Banker - together with the fiscal policy of German Chancellor Gustav Stresemann and Finance Minister Hans Luther brought the inflation in Germany to an end.

His full name...

Dr. Hjalmar Horace Greeley Schacht

Cynicom  posted on  2007-07-15   10:04:46 ET  Reply   Trace   Private Reply  


#27. To: DeaconBenjamin, aristeides, Red Jones, noone222, Cynicom (#24)

Most informative post and easy to follow. Thank you!

Ron Paul for President

robin  posted on  2007-07-15   10:07:30 ET  Reply   Trace   Private Reply  


#28. To: Red Jones (#22)

I wish school-children all over the country would learn these lessons.

Dr. Schachts Godson was a mentor to me.

He passed history to me that he had experienced first hand, without rancor, without an agenda, just hours spent recalling his life during the time after WW1.

He was probably the best educated person I ever had the privilege of knowing, plus an innate intelligence to match.

Cynicom  posted on  2007-07-15   10:13:43 ET  Reply   Trace   Private Reply  


#29. To: Cynicom (#23)

Papen was acquitted at Nuremberg. So was Hans Fritzsche.

Perhaps there were others who have slipped my mind.

To reason, indeed, he was not in the habit of attending. His mode of arguing, if it is to be so called, was one not uncommon among dull and stubborn persons, who are accustomed to be surrounded by their inferiors. He asserted a proposition; and, as often as wiser people ventured respectfully to show that it was erroneous, he asserted it again, in exactly the same words, and conceived that, by doing so, he at once disposed of all objections. - Macaulay, "History of England," Vol. 1, Chapter 6, on James II.

aristeides  posted on  2007-07-15   10:48:45 ET  Reply   Trace   Private Reply  


#30. To: aristeides (#29)

Papen was acquitted at Nuremberg. So was Hans Fritzsche.

True...However neither were major players as was Schacht.

No one ever understood why Papen and Fritzsche were ever charged.

"Hjalmar Schacht - Why Hjalmar Schacht was included in the list of defendants is unclear. In fact, the only charges brought against him were: contributing to Hitler's, and the Nazi Party's rise to power and promoting preparations for war. His dislike of the Versailles Treaty, his belief that the German military should once again be strong and his support of the Anschluss were well known, but these are hardly "war crimes." He was never in a position to exercise significant influence in any of the planning and preparation for war. Likewise, Schacht had never concealed his antisemitism and his agreement that Jews should be excluded from governmental and civil service positions"

Hjalmar Schacht was acquitted.

Cynicom  posted on  2007-07-15   10:57:44 ET  Reply   Trace   Private Reply  


#31. To: Cynicom (#30)

Papen had been the object of anti-Nazi propaganda works like Devil in a Top Hat during the war. Fritzsche was a stand-in for the dead Goebbels.

As for Schacht, I suspect the Soviets insisted that he be tried. Their theory was that Nazism was hypercapitalism.

To reason, indeed, he was not in the habit of attending. His mode of arguing, if it is to be so called, was one not uncommon among dull and stubborn persons, who are accustomed to be surrounded by their inferiors. He asserted a proposition; and, as often as wiser people ventured respectfully to show that it was erroneous, he asserted it again, in exactly the same words, and conceived that, by doing so, he at once disposed of all objections. - Macaulay, "History of England," Vol. 1, Chapter 6, on James II.

aristeides  posted on  2007-07-15   11:07:12 ET  Reply   Trace   Private Reply  


#32. To: aristeides (#31)

As for Schacht, I suspect the Soviets insisted that he be tried.

After the war, much of what was written concerning Dr. Schacht was his "anti-semitism", when in reality his first confrontation with Hitler was because Schacht had several Jews in his Ministry.

Hitler demanded they be thrown out and Schacht refused, telling Hitler to his face that he was in charge of the Finance Ministry and as long as they did their jobs they would stay. Hitler never forgave him for that.

Cynicom  posted on  2007-07-15   11:18:53 ET  Reply   Trace   Private Reply  


#33. To: Pinguinite, IndieTx, Red Jones, HOUNDAWG, Fred Mertz, Minerva, christine, Zipporah, farmfriend, Eoghan, wudidiz, wbales, Former Lurker, Jethro Tull, Yertle Turtle, robin, Diana (#4)

I'm curious, JC, what kind of monetary system you actually favor since you hold a gold backed currency in such contempt.

I just told you. Fiat based on fiscal, not monetary parameters, with a "storehouse of value" being savings of the excess productivity, released during the slow business cycle to be re-cycled into infrastructure and productive employment in rejuvenating the infrastructure. This and this only. Dedicated funds by Constitutional LAW.

Think of a farmer working his ass off in the summer and Fall and making one helluva lot of money and socking a portion of it away to grow 10% more crops the next year and pay his help over the slow winter months ( starving time) to fertilize and sow green manure ( rye grass) and fix the equipment for the next year so they can get off to a running start.

Imagine a factory with its own internal chits good for anything you want...all that is personal.

When times are booming and output is maximized so the employees are paid and the company profits to the maximun, the excess profit ( this can be an agreed upon tax base that is spent only to the X% level, i.e. the fiscal constraint, to support the factory's current obligations with the balance "saved" e.g. stock buybacks...) is saved then purposefully spent during a cyclical downturn to renew the factory's infrastructure, build new facilities, repair machinery, update systems and machinery, plan for the fiscal upturn etc employ the workers within the factory for meaningful CAPITAL REJUVENATION, i.e. infrastructure great for consumerism and the good of the work force) ...the excess profit is released during a slow time fo0r infrastructure rejuvenation and capital replacement and work force re-training/meaningful work.

For a company this would be internal, for a nation it would be release of excess funds for highway/bridge construction boom, Building and office upgrade/replacement, National/state Park expansion/updating, arts and humanities support, release of study funds, mineral/resource exploration and development, power grid updating, energy construction ( nuclear to hydrogen) ...

i.e. about every five years instead of a painful slowdown, there would be a cycle of renewal as the storehouse of value because this would put the nation, and its component parts, in position for the next boom and rather than a grinding start up, the new cycle could be maximized and thus more "value" saved to plow into more urgrading the next slow cycle.

This makes far more sense than basing a nation's weal on how much metal is extracted sometime somewhere then manipulated by the various international bankers, like gold and diamonds.

This is a fiscal rather than a monetary storehouse and release of value system of capitalism that makes productivity the driving force of economics, as it really is and should be, without the manipulations of bankers. Deficit spending is held strictly within limits set by productivity...i.e. YOU may buy a $300,000 home on credit IF and ONLY IF you make at least $75,000 and do not already owe much money.

JCHarris  posted on  2007-07-15   11:30:56 ET  Reply   Trace   Private Reply  


#34. To: Cynicom (#32)

Hitler demanded they be thrown out and Schacht refused, telling Hitler to his face that he was in charge of the Finance Ministry and as long as they did their jobs they would stay. Hitler never forgave him for that.

and I would say that you likely got that direct from your old friend who lived in Sschacht's house. That was likely not printed in any newspaper or book.

I'm not sympathetic to the NAZIs, but we should remember that the Germans had a lot of good people among them, and that what happened to germany was a horrible thing.

Galatians 3:29 And if ye [be] Christ's, then are ye Abraham's seed, and heirs according to the promise.

Red Jones  posted on  2007-07-15   11:39:06 ET  Reply   Trace   Private Reply  


#35. To: cynicom (#33)

Cynicom ping

sorry missed you

JCHarris  posted on  2007-07-15   11:40:52 ET  Reply   Trace   Private Reply  


#36. To: JCHarris (#35)

manipulated by the various international bankers

Therein lies the crux of the problem.

Bankers and speculators are the ruination of society.

For instance, the increased cost of producing one barrel of oil does not reflect the huge increase in the cost of gasoline.

I read your epistle without a ping. Thanks.

Cynicom  posted on  2007-07-15   11:48:55 ET  Reply   Trace   Private Reply  


#37. To: DeaconBenjamin (#24)

Great explanation. Please see my post 83 which actually folds into this fiscal system over a strictly monetarist manipulation, which includes gold held by bankers as a standard , and easily, correction, USUALLY manipulated by the international bankers.

JCHarris  posted on  2007-07-15   11:49:35 ET  Reply   Trace   Private Reply  


#38. To: All (#37)

typo

33

JCHarris  posted on  2007-07-15   11:50:14 ET  Reply   Trace   Private Reply  


#39. To: Cynicom (#36)

I do not have time to write a hundred page treatise on it, but think the system through and tell me what you think. This was first proposed by an economist, capitalist and America-loving man by the last name of Lennox during the 1920s. Notice the similarities to Ayn Rand's thinking although she had not published when he did publish this book ( I have a copy somewhere but the exact title escapes me...'A system of Infrastructure Renewal and Capital Replenishment as a Storehouse of Value to Replace the Gold Standard and Lessen the Deleterious Effects of the Business Cycle' ....close but not exact ) His son George Lennox married Cyrus Hall McCormick's great granddaughter and was himself an accomplished economist.

JCHarris  posted on  2007-07-15   11:56:35 ET  Reply   Trace   Private Reply  


#40. To: Red Jones, Cynicom (#34)

Hitler demanded they be thrown out and Schacht refused, telling Hitler to his face that he was in charge of the Finance Ministry and as long as they did their jobs they would stay. Hitler never forgave him for that.

and I would say that you likely got that direct from your old friend who lived in Schacht's house. That was likely not printed in any newspaper or book.

Most interesting.

Ron Paul for President

robin  posted on  2007-07-15   12:04:42 ET  Reply   Trace   Private Reply  


#41. To: Robin, Jethro Tull, Christine, Honway, Aristeides, Diana, All (#0)

Hmmmm! So that's where the "Fed" got the idea.


SKYDRIFTER  posted on  2007-07-15   12:16:50 ET  Reply   Trace   Private Reply  


#42. To: robin, Red Jones (#40)

Most interesting.

robin..

If I might digress, short story you and Red might find interesting and thought provoking...

During the waning months of the war the Gestapo was picking men up off the streets to put in uniform and sent to the Russian front. My friend was on his way to work , dragged off the street given a uniform, rifle and boots. There were about 150 of them waiting at the train station for cattle cars to take them East.

As they stood there waiting, a high ranking Gestapo officer came down the line, stopped in front of my friend, said my friends name as a question. He then told him he was free to go, turn in the uniform and leave.

My friend saw no one he knew there at the time, and after, no one came forward to say they had gotten him released. What intrigued him was the fact the Gestapo agent knew which man to pick out of the 150. He never knew who saved his life that day.

Cynicom  posted on  2007-07-15   12:27:33 ET  Reply   Trace   Private Reply  


#43. To: JCHarris (#33)

I mean this sincerely -- you're explanation is rather nebulous, and from what I can make of it, seems to offer nothing that a gold standard couldn't do. Savings is certainly possible in a gold backed economic system, and drawn upon during slow periods as needed.

Pinguinite.com

Pinguinite  posted on  2007-07-15   12:54:38 ET  Reply   Trace   Private Reply  


#44. To: Pinguinite (#43)

seems to offer nothing that a gold standard couldn't do.

This from Richard Cook two months ago.

The last paragraph explains it all.

"It was the gold standard that led to the bankers wrecking the U.S. economy in 1932 by shipping Treasury gold as a bail-out to England, at the same time the U.S. was trying to recover from the crash of 1929. The 1932 gold and currency contraction was the real cause of the Great Depression. President Franklin Delano Roosevelt removed this danger by eliminating the domestic gold standard in 1933."

But even when paper currency was supposedly convertible to gold, or even gold and silver, the metallic standard always was a fiction. There never was and never could be enough for banks to hand over the requisite quantity to the “bearer on demand” if more than a fraction of the currency in circulation was presented for redemption at the same time."

Cynicom  posted on  2007-07-15   13:08:43 ET  Reply   Trace   Private Reply  


#45. To: Red Jones (#7)

not backed by gold, money is just made out of thin air & spent

Gold doesn't have any more innate value than any other commodity (including labor).

Rupert_Pupkin  posted on  2007-07-15   13:36:08 ET  Reply   Trace   Private Reply  


#46. To: Pinguinite (#43)

seems to offer nothing that a gold standard couldn't do

Not true. The fallacy of the gold standard is the one that bankrupted the world for thousands of years.

The supply of gold is finite. You must have a set price or the value is identical to the printing presses running all night...i.e. a pure monetarist inflation of the currency.

Currency based on productivity is far different, elastic and accommodating in both directions. The RICH do not get RICHER from the blood of the serfs and the manipulations of the bankers as is and always has been the case with the discredited 'gold standard'.

I do appreciate and respect your skepticism. I argued with George for two years over it, mostly as a devils advocate, but it is strikingly similar to the system which is the subject of this thread and is eminently sound.

Gold does NOT allow for expansion to the people based on productivity and personal wealth accumulation while simultaneously allowing a 'storehouse of value' determined exclusively by productivity and released to once again PRIME that productivity instead of serving as the "King's Horde" while the masses and middle classes and more successful all starve.

JCHarris  posted on  2007-07-15   13:41:21 ET  Reply   Trace   Private Reply  


#47. To: JCHarris (#33)

An attractive theory. But, IMHO, there would be much too abundant opportunity for corruption under your system to guarantee that the self-interest of the "money managers" would correlate with the public interest. Thus, we would have a situation where the types of people who currently identify the government's official inflation rates in the US would be determining the appropriate levels of money production or withdrawal. Additionally, Congress and its special interest puppet masters would maintain incessant pressure for more money to be produced to be applied to their pet causes.

The U.S. Constitution is no impediment to our form of government.--PJ O'Rourke

DeaconBenjamin  posted on  2007-07-15   13:42:47 ET  Reply   Trace   Private Reply  


#48. To: DeaconBenjamin (#47)

Would this work in a Jew infiltrated and usurped society? Of course not...no more likely than you now pay an honest price for a diamond or a bank loan or a gold coin....which you do NOT.

I inserted Constitutional LAW as the mandate and a spelled out formula.

Nothing could be more corrupt than our European Rothschild banking and voodoo economics right now !

JCHarris  posted on  2007-07-15   13:47:13 ET  Reply   Trace   Private Reply  


#49. To: JCHarris (#39)

Your system sounds similar to a that of a book that I have purchased and read -- Money Creators by Gertrude Coogan, published by Sound Money Press in 1935. She does not mention Lennox, but she does reference Charles Lindbergh Sr. several times

The U.S. Constitution is no impediment to our form of government.--PJ O'Rourke

DeaconBenjamin  posted on  2007-07-15   13:48:55 ET  Reply   Trace   Private Reply  


#50. To: DeaconBenjamin (#47)

self-interest of the "money managers"

BTW.... that is why I do not buy gold to any extent today....the Jew banks in Europe manipulate that like it is hotcakes to a starving crowd for their own enrichment and the scalding of honest people who try to LOGICALLY embrace a gold portfolio, which you can not do over any important period of time .

Hell, cotton candy can be speculative in a starving crowd but its lasting value is ephemeral...thus it is with gold too.

JCHarris  posted on  2007-07-15   13:49:58 ET  Reply   Trace   Private Reply  


#51. To: Rupert_Pupkin (#45)

Gold doesn't have any more innate value than any other commodity (including labor).

From the beginning of time, mankind would disagree - gold and silver have always been an earthly store of value.

Join the Ron Paul Revolution

Lod  posted on  2007-07-15   13:50:59 ET  Reply   Trace   Private Reply  


#52. To: JCHarris (#48)

I guess in your reference to Constitutional Law, you indicate that your monetary system is under the same handicap as our Constitutional system of government, as identified by John Adams:

We have no government armed with power capable of contending with human passions unbridled by morality and religion. Avarice, ambition, revenge, or gallantry, would break the strongest cords of our Constitution as a whale goes through a net. Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.

Works of John Adams, Second President of the United States (Boston: Little, Brown, 1854), Vol. IX, p. 564. Letter from John Adams to Dr. Prince, April 19, 1790.

The U.S. Constitution is no impediment to our form of government.--PJ O'Rourke

DeaconBenjamin  posted on  2007-07-15   13:57:08 ET  Reply   Trace   Private Reply  


#53. To: DeaconBenjamin (#49)

Lennox, George , Sr. I believe; did spend some years in Greenwich Village during the 20s and 30s when it was not a kook neighborhood but rather a gathering place for people actually trying to figure out a system for the United States not tied to the European strangle hold on productivity and a fairer upward access to personal wealth creation that was so evident in the entanglements and millstone on the European nations imposed by the bankers and their gold hoarding/capital withholding leading to productivity stagnation....as the elite bankers want it..."I got mine a thousand years ago now SCREW YOU."

Is it any wonder that Germany was the industrial/science/invention/productivity capital of the world?? Scientific Literature was until recently preferred in German. Wissenschaftlicher Deutsch was a necessity before WWII.

They ( Lennox et al.) were also the last thing to socialists and reminded me in reading of Ayn Rand.

Lots of math, even then !! LOL but it WAS Isaac Newton who invented the calculus (slope-finding and limits) to simplify the convoluted algebraic calculations (-;

JCHarris  posted on  2007-07-15   13:58:54 ET  Reply   Trace   Private Reply  


#54. To: DeaconBenjamin (#52)

Always.

Identify the overall problem and throw the bums out.

JCHarris  posted on  2007-07-15   13:59:53 ET  Reply   Trace   Private Reply  


#55. To: Cynicom (#44)

"It was the gold standard that led to the bankers wrecking the U.S. economy in 1932 by shipping Treasury gold as a bail-out to England, at the same time the U.S. was trying to recover from the crash of 1929. The 1932 gold and currency contraction was the real cause of the Great Depression. President Franklin Delano Roosevelt removed this danger by eliminating the domestic gold standard in 1933."

The Fed Reserve bank was already in place at that time, so how can this be blamed on the gold standard?

But even when paper currency was supposedly convertible to gold, or even gold and silver, the metallic standard always was a fiction. There never was and never could be enough for banks to hand over the requisite quantity to the “bearer on demand” if more than a fraction of the currency in circulation was presented for redemption at the same time."

If so, then that itself should be/have been a capital crime.

Pinguinite.com

Pinguinite  posted on  2007-07-15   14:26:12 ET  Reply   Trace   Private Reply  


#56. To: Pinguinite (#55)

If so, then that itself should be/have been a capital crime.

Congressman Louis McFadden tried his best to strangle the Fed Res and paid for it with his life.

Someone in this discussion mentioned Congressman Lindbergh. He also tried to derail the Fed and its crooks and he was ruined politically. The hate that was put on his son the pilot was hate for the Father that the bankers never forgave.

Cynicom  posted on  2007-07-15   14:37:04 ET  Reply   Trace   Private Reply  


#57. To: Pinguinite (#55)

The Fed Reserve bank was already in place at that time, so how can this be blamed on the gold standard?

As JC explained gold or any physical commodity can be manipulated, exploited and speculated.

Two Presidents in our history have defied the bankers and issued money on their own. Both were assassinated.

Cynicom  posted on  2007-07-15   14:41:15 ET  Reply   Trace   Private Reply  


#58. To: JCHarris (#46)

Not true. The fallacy of the gold standard is the one that bankrupted the world for thousands of years.

The gold standard bankrupted the world for thousands of years??? Sorry, I'm not buying that -- no pun intended. The premise it requires is pretty absurd.

The supply of gold is finite. You must have a set price or the value is identical to the printing presses running all night...i.e. a pure monetarist inflation of the currency.

Yes, the supply is finite, but it cannot be manufactured, which is key. A printing press, on the other hand, can manufacture money, in which case you place your trust in the intergrity of the printer, and man has demonstrated time and time again that corruption will take root, given the chance.

With a gold standard, the free market decides how much an ounce of gold will buy. Government, as per the Constitution, merely gives Congress the authority to decide how much gold defines an "dollar", so that the free market can negotiate commerce more easily.

Gold does NOT allow for expansion to the people based on productivity and personal wealth accumulation while simultaneously allowing a 'storehouse of value' determined exclusively by productivity and released to once again PRIME that productivity instead of serving as the "King's Horde" while the masses and middle classes and more successful all starve.

The supply of gold as money will still fluxuate according to market demand. If gold becomes too common such that inflation begins to take hold, gold will natural seep from the market into it's many commercial and industrial uses, such that inflation is suppressed. If it becomes too rare such that an ounce of gold buys too much, market forces reopen mines and scrap gold is remonetized back into circulation. It's self regulating.

Why do you find it reasonable for people to trust a government money printing bureaucrat to not exploit his powers to his advantage? Gold has the advantage of not being creatable out of thin air.

Pinguinite.com

Pinguinite  posted on  2007-07-15   14:47:47 ET  Reply   Trace   Private Reply  


#59. To: JCHarris (#50)

BTW.... that is why I do not buy gold to any extent today....the Jew banks in Europe manipulate that like it is hotcakes to a starving crowd for their own enrichment and the scalding of honest people who try to LOGICALLY embrace a gold portfolio, which you can not do over any important period of time .

Then how do you store your wealth? FRNs? Another commodity? Land? Stocks?

You have to store it somehow, and FRNs are a bad choice as we all know. Commodities are good, and gold is a commodity.

Pinguinite.com

Pinguinite  posted on  2007-07-15   14:51:09 ET  Reply   Trace   Private Reply  


#60. To: lodwick, Rupert_Pupkin (#51)

Gold doesn't have any more innate value than any other commodity (including labor).

From the beginning of time, mankind would disagree - gold and silver have always been an earthly store of value.

I don't disagree. Other commodities (tin, lead, wood) have innate value too. But gold and silver (gold especially) have many unique properties and attributes that make it a good choice for money. (I.e. doesn't burn or rust).

Pinguinite.com

Pinguinite  posted on  2007-07-15   14:55:28 ET  Reply   Trace   Private Reply  



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