by Bob Livingston
Government printing press money distorts economic reality and dilutes morality.
Financial speculation rises with the increase in paper money and the general work
ethic deteriorates. The something-for-nothing mentality pervades society.
Paper money promotes the “quick buck” syndrome like narcotics peddling and
hookers on the streets. Hookers, incidentally, were widespread in the Weimar
Republic in Germany in 1923 because the women had to sell their bodies for food
for themselves and their families. The social order visibly deteriorates. The morality
of the stable gold standard gradually changes to the amorality of fiat. Few people
see the cause and effect and the politicians try to legislate human behavior. They
always fail as the system is overrun with jails and prisons.
Fiat promotes an illusory reality where non-substance such as financial speculation
and gambling replaces the substance of industrial production and long-term value.
When consumption surpasses income, as the government and the politicians promote,
distorted human emotions replace stable behavior. Social breakdown increases and
real values are forgotten. Prices of labor and craftsmen escalate beyond all reason
when there is never enough money. Service repairmen charge like medical doctors.
When labor and supplies are valued in fiat, everything becomes distorted. In the final
stages of hyperinflation there is no anchor to sanity and common sense.
Paper money expands consumption way beyond income. This eventually guarantees
debt collapse and social breakdown. The foundation of the household collapses and
the middle class is destroyed. Paper money is an illusion because it is non-substance
and can be created by the government to infinity. When the people accept numbers
on green strips of paper or computer symbols for money, they accept illusion for
reality. They accept non-substance for substance. Real money (gold and silver) comes
from the earth and human production. It is no illusion. Future generations are cheated
out of life because working mothers give up newborns for fiat paper money. They
unwittingly exchange new life for paper money, and more paper money and
consumption. This is what the system promotes.
What Comes Next?
I believe that I can assure you that three years from now the dollar purchasing parity
will be about 30 cents as compared to the present. I don’t know why it is not obvious
to people who have dollar savings. There are many controls coming. As paper
currencies come to their end, governments greatly step up suppression of the people.
They start foreign wars. They attack their own population with high-sounding
hypocrisy. Government makes criminals out of honest men—“in the public interest,”
Default of the United States? Not formally but by stealth, depreciation of the currency
(inflation). Will the U.S. world system hold? Yes, as long as world fear factor dominates
as a result of superior military power.
Much press about vast U.S. debt? Yes, but sober people understand monetary realism,
to wit, that fiat implies stealth (slow) default. No payment is ever intended and
impossible even if intended. The main feature or attribute of sovereign debt default is
gradualism. The public cannot grasp gradualism even as they are impoverished. The
debt propaganda is a cover for the fiat regime. It’s a hoax!
Scarcity of gold? Already evident.
New taxes? A value-added tax (VAT) as in Europe, income tax increases on the
American “rich,” currency controls, strict rules on cash transfers and withdrawals,
more reporting requirements on asset wealth. These are some of the controls alluded
to earlier. The system will try to defeat all attempts by individuals (and collectively)
to protect their savings and personal security. Destruction of the middle class? It’s
already begun. It is impoverishment through currency depreciation and class warfare
between the perceived haves and have nots, i.e. the politics of envy. A huge
percentage of population will be pushed below the poverty line. Savings and pension
fund assets? They will be forced conversion into treasury bonds. There is plenty of
precedence for this, Argentina being the most recent example.
Martial law? Yes, at some point.
Will confidence deteriorate in the banking system? Yes, by stealth (quietly) resulting
in restrictions of withdrawals and frozen bank accounts. Price of gold? When all is said
and done it will be measured in U.S. dollars to about $4,000, then in Swiss francs
because of the nebulousness (no meaning) of the U.S. dollar.
First Rule of Government—control its own people. America is occupied by government.
Possible good news? The current economic depression will extend the system (via
nationalization) and the precious metals market and gold stocks. I foresee inflationary
prosperity for a while with massive infrastructure rebuilding. If so, get your house in
order for the final deluge. Do all the things you know to do such as long-term food
storage. Inflationary collapse creates shortages of everything.
The stock market turns up before the economy. Sentiment is black, getting close to
time to buy stocks. Never stop buying gold! Don’t wait for exchange (currency)
controls to transfer some funds into Swiss francs via Swiss annuities. Take delivery of
all your stock certificates. Soon you will not be able to. This cuts brokers out and takes
your stocks out of the system. They will tell you anything to stop you. They will not
tell you that they loan your stocks out for shorting and make income on them. Also
they fear the loss of re-sales when you decide to sell, perhaps through another broker.
They get directions from above to stop the delivery of stocks. Don’t be dissuaded!
My friends, the “change” promised by politicians should remind us that some power,
both political and economic, is built upon destructive forces. We have reminded you
many times of the destruction of the middle class in the U.S. now going on. When a
segment of the population becomes impoverished they clamor for “change.” This is
exactly what happened to bring about the rise of Adolph Hitler. The German population
was largely impoverished as a result of depreciating paper currency. No U.S. politician
would dare mention depreciating paper money, as Hitler did not. He had his own paper
The destructive forces in America are in full appearance for the few who can see. But for
the majority, they are blind to the biggest and greatest transfer of wealth in the history
of the world. Yes, there is change for exactly the same reason as the destructive change
that gave rise to Hitler. Inflation they call it, but it is really depreciating currency in all
forms. And depreciating currency is the system used to transfer wealth from the savers
and producers to the money creators.
In the early phase of paper currency the people go to work and accumulate wealth. In
the final stage of the speedup of depreciating currency, wealth and savings is returned
to the source, i.e., the money creators. And all appears to be natural economic forces.
There is no bloodshed.
Yes, the people can be economic slaves without chains, without the rack or the
thumbscrew, but with depreciating paper money. Alchemy is a reality. Non-substance
(depreciating currency) is used to steal substance. “Whoever controls the volume of
(paper) money is the master of all industry and commerce,” said President James A. Garfield.
People who understand depreciating currency will do as necessary to survive and
maybe prosper under the nose of despotism.