Liberty Forged

the State has no money of its own, so it has no power of its own. ` Nock

Posts Tagged ‘Gold’

World Reserve Currency – China says yes.

Posted by Jesse on March 23, 2009

Bernanke: Oh no, no, no. No ones talking about a World Reserve Currency. We can print our way out of this mess.

Barack Obama: Geez, ya know. We’d be taking a stronger lead towards achieveing the goals I set forth during the campaign, but all these setbacks….this crisis, you know, we couldn’t have anticipated it.

Ron Paul: We are going to have a dollar crisis. I ran for Congress in the 70’s because Nixon removed the last remnants of the gold standard and I knew that would lead to disaster. We need to have sound money, move towards a new gold standard and abolish the Federal Reserve. (Also see: The Case for  a Genuine Gold Dollar)

Financial Times: China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.

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Why were most people wrong about the economy?

Posted by Jesse on November 14, 2008

Posted in america, anarcho capitalism, antiwar, barack obama, business, campaignforliberty, capitalism, central banking, congress, Constitution, Current Events, democrat, economics, economy, Education, federal reserve, free market, Gold, government, history, iran, iraq, Libertarian, life, Politics, Rights, Ron Paul, technology | Tagged: , , , , , , , , , , , , , | Leave a Comment »

The Hypocrisy of Greenspan

Posted by Jesse on October 24, 2008

Can Greenspan provide stable markets and prosperity? All evidence is again to the contrary. Smart? Obviously. Principled? Ha!

Those who tirade against President Bush do not believe what Bush says. Naturally the opposition will use examples provided by Bush’s failures to bolster and re-enforce the position that theirs is the correct view.

And Greenspan? Same principle. Opposition forces will employ the same means and exploit such failures to the same end.

Yet, what evidence is given to prove the opposition is therefore correct?

Let’s reproduce the evidence given by the opposition:

·”Greenspan claims to be representative of the practice of “laissez-faire capitalism”

·“Greenspan admitted there was a “flaw” in his ideology”

·“Therefore, “laissez-faire capitalism is to blame for the alleged “crisis”

Not only is this lacking in substance, but the facts are incorrect.

How does the Federal Reserve, of which Greenspan was the Chairman, in any way, represent laissez-faire capitalism? This question is never asked. Instead the emphasis and attack is on Greenspan’s alleged ideology.

Read it and weep. Greenspan abandoned “his” laissez-faire ideology a long time ago:

Under a gold standard, the amount of credit that an economy can support is determined by the economy’s tangible assets, since every credit instrument is ultimately a claim on some tangible asset. But government bonds are not backed by tangible wealth, only by the government’s promise to pay out of future tax revenues, and cannot easily be absorbed by the financial markets. A large volume of new government bonds can be sold to the public only at progressively higher interest rates. Thus, government deficit spending under a gold standard is severely limited. The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. They have created paper reserves in the form of government bonds which — through a complex series of steps — the banks accept in place of tangible assets and treat as if they were an actual deposit, i.e., as the equivalent of what was formerly a deposit of gold. The holder of a government bond or of a bank deposit created by paper reserves believes that he has a valid claim on a real asset. But the fact is that there are now more claims outstanding than real assets. The law of supply and demand is not to be conned. As the supply of money (of claims) increases relative to the supply of tangible assets in the economy, prices must eventually rise. Thus the earnings saved by the productive members of the society lose value in terms of goods. When the economy’s books are finally balanced, one finds that this loss in value represents the goods purchased by the government for welfare or other purposes with the money proceeds of the government bonds financed by bank credit expansion.

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.

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I would recommend listening to a man who has stayed principled and cannot be blamed for any of the current economic “crises” but instead has served as a teacher and voice of reason on these issues of our day.

The Economics of a Free Society [mp3]

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The Prospect by Marc Faber

Posted by Jesse on October 23, 2008

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°For a more in-depth perspective I would recommend Frank Shostak, adjunct scholar the Mises Institute and chief economist at MF Global. Recently interviewed by Jefferey Tucker (Sept 30, Oct 13, Oct 22) and Lew Rockwell (Oct 10), his analysis is clear, sound, and priceless. [see: Is the Fed an Inflation Fighter or Creator]

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Jörg Guido Hülsmann, Senior Fellow at the Mises Institute, author of a new publication, The Ethics of Money Production. Interviewed by Lew Rockwell [Aug 4, Aug 11, Sept 28, Oct 8, Oct 12]

______________________UPDATE——-Friday Oct 24——–UPDATE___________________

°Just watched Charlie Rose interview David Smick, well known for his book The World is Curved, and more-so as Founder of The International Economy. This Magazine is “edited for … central bankers, politicians, and members of the financial community including professional investment managers, macroeconomic specialists, and high net-worth global investors.

I’d give it a 2 out of 10. (And keep in mind please, I like Charlie’s show!)

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Also see: °Matthew Beller’s , Inflation, Deflation, Red-flation, Blue-flation, [mp3] that talks about, you guessed it, definitions. More importantly it pinpoints the importance of each in the economy and how each is caused by the various actions within the market.

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Posted in Current Events, economy, Education, free market, Mine, Politics, Ron Paul | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment »

Its not too late to show your support for Liberty

Posted by Jesse on October 15, 2008

It’s never too late….the time is now.

It’s about change, responsibility, peace, freedom. Challenge the world with the ideas of liberty.

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First published in 1982, The Ethics of Liberty is a masterpiece of argumentation, and shockingly radical in its conclusions. Rothbard says that the very existence of the state--the entity with a monopoly privilege to invade private property--is contrary to the ethics of liberty. A society without a state is not only viable; it is the only one consistent with natural rights.

for a more advanced study in liberty, check out one of my favorite books “The Ethics of Liberty

Here is the Intro written by Hans Herman Hoppe and read by Jeff Riggenbach

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