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Who Really Needs A Gold Standard?

 -- Published: Monday, 8 February 2016 | Print  | Disqus 

By: Jeff Nielson

Who Really Needs A Gold Standard? - Jeff Nielson

Bloomberg News recently made an astounding proclamation in a news release , by nothing less than postulating a return to a gold standard. Let me repeat. Bloomberg, a part of the mainstream media propaganda machine which often bashes all things related to gold (including the gold standard), is now advocating a return to a gold standard.

However, a major caveat must be attached to this astonishing revelation. This media tentacle was not advocating that we abandon our fraudulent, fiat currency Ponzi-scheme and return to a gold standard at the global level. Rather, it was only advocating a quasi-gold standard, domestically, and in just one nation.

Time For A Gold Standard In China?

This is laughable and ironic on so many levels – too many to be covered within the scope of a single commentary. Instead, analysis will have to be saved for only the most obvious of ironies. We begin with the fact that this propaganda was no ordinary Bloomberg release. Rather, it was labeled as “Bloomberg Intelligence.” The debate as to whether this phrase is an oxymoron, or merely a non sequitur, must be saved for another time.

For now, all that is pertinent is the irony of such a label, as we explore Bloomberg’s pseudo-argument. We start with the reason given by Bloomberg as to why China, and only China, needs a gold standard: supposedly, it’s to prop up China’s “weak currency.”

This is almost too humorous for words. For the better part of two decades, one of the major themes in the slapstick theatre which the United States calls its Congress has been that “China is a currency manipulator.” When hundreds of U.S. political representatives made this accusation, chomping at the bit to articulate the words, were they accusing China of manipulating a “weak currency” upwards?

No. For nearly twenty years, U.S. politicians have serially accused China of holding down the value of its strong currency. Now, seemingly overnight, a different script has been handed to the mainstream media by their Overlords. Suddenly, we’re told, China has a weak currency, a currency so weak that nothing less than a gold standard could rescue it.

Why? How? What could have happened to precipitate such a rapid, monetary metamorphosis? Bloomberg had an answer for that, too, in a follow-up interview on the same subject, via Bloomberg mouthpiece Ken Hoffman:

China is quite the mess. There’s no other way about it. They have had a very hard landing in the commodities space, no question about that…

No question? Really? For well over a decade, as China has been the world’s premier manufacturing power, it has been a net-importer of nearly all categories of hard commodities as inputs for its manufacturing (particularly oil). The trough in these commodities prices, and the manipulated collapse in the price of oil, are highly stimulating for China’s economy.

Thus this is what we are supposed to believe, via Bloomberg Intelligence. Overnight, China’s strong currency has become a weak currency, and it’s all because of the “hard landing” which China has supposedly suffered as a result of the highly stimulative drop in the prices of hard commodities. Very “intelligent.”

Now back to the real world. China’s economy remains the growth engine of the global economy, but one which is clearly overdue for a significant consolidation. However, this is true for many of the world’s economies, as we near the end of another of the One Bank’s eight-year, bubble-and-crash cycles. It is absolutely no basis for any weakening of the renminbi, let alone some absurd reversal from its status as a strong currency to a weak one.

What, then, is the real reason for the sudden weakness of the renminbi in global currency markets? Why don’t we ask the Serial Currency Manipulators, the Big Bank tentacles of the One Bank, which were recently convicted of serially manipulating all of the world’s currencies going back to at least 2008? Maybe they can give us an explanation. Sorry – their lawyers have advised them to say nothing on this subject.

We still have plenty of additional irony that must also be covered here. We move on to a famous cliché, yet one which is apparently totally unknown, not just to Bloomberg, but to every major U.S.-based media tentacle.

People who live in glass houses shouldn’t throw stones.

Who really needs a gold standard, in order to rescue an otherwise worthless currency? Regular readers can answer that question, via an all-too familiar chart, which has surely now been burned into their minds. It is the last legitimate representation of the U.S. monetary base before this statistical data became completely falsified by the Federal Reserve.

As has been explained on many previous occasions, this is a chart of a currency (the U.S. dollar) which has already been hyperinflated to worthlessness. Neither China, nor any other nation except Zimbabwe, has diluted and debauched its currency to the degree of the United States.

Furthermore, this chart still omits trillions of dollars in additional counterfeiting, all part of the U.S. monetary fraud known as “0% interest rates.” Thus, if we were to pick only one nation on the planet that really needed a gold standard in order to restore legitimacy to its monetary system and restore value to its currency, only three letters would come to mind: “U-S-A.”

Naturally, Apologists for all things American will immediately demand an explanation. How could the Mighty U.S. Dollar possibly be “worthless,” as it soars along at an especially absurd exchange rate versus the world’s other currencies?

Why don’t we ask the world’s Serial Currency-Manipulators if they can explain how or why the U.S. dollar is currently propped up to such an absurd and suspicious exchange rate? Sorry – their lawyers are saying that they shouldn’t answer that question, either.

However, all this leaves out an even larger, central irony in Bloomberg’s cynical call for a return to a gold standard, but only in China. It leaves out the real reason why we need a gold standard, not just in the U.S., or China, but for the whole global economy.

In revealing this reason, we immediately uncover an even greater irony. In a recent White Paper for Sprott Money, this reason was a central theme of an 8,000 word analysis as to why (more than ever) we require a return to a hard gold standard.

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation [emphasis mine].

- Alan Greenspan (1966)

The extraordinary irony in this quote should be immediately apparent to any reader with a reasonable knowledge of the U.S. monetary system. It was roughly two decades after articulating this famous warning that Sir Alan Greenspan became one of the principal Villains who was responsible for “confiscating” the savings of Americans (and people all over the world) via deliberately manufactured inflation. This is the inflation which always exists within any monetary system based upon fiat currency (and “fractional reserve”) fraud.

The following was also covered in the previously cited White Paper:

All fiat currencies are Ponzi schemes. This is not an assertion, but rather an elementary statement of fact. It is a principle which can be demonstrated in a variety of different manners, both direct and indirect.

However, this puts the cart before the horse. What is a “fiat currency”? It is currency which, by definition, has no intrinsic value of any kind. Rather, the sole basis for accepting it as a medium of exchange is because of government decree (i.e. the “fiat” of our government). Worthless scraps of paper that we are forced to accept as payment for goods/services because of government decree. Is it any surprise that such a scam has never been able to withstand the test of time?

The world’s first fiat currency originated in China roughly 1,000 years ago. In the millennium since then, every fiat currency ever created has either plunged to worthlessness (like all Ponzi schemes), or simply been removed from circulation before that final plunge could occur. One thousand years, and “a perfect record.”

A fiat currency monetary system provides the ultimate vehicle for stealing-via-inflation. And a gold standard provides the ultimate impediment for such systemic theft. This principle is verified, accidentally, by the world’s ultimate gold-hater and banker-lover, John Maynard Keynes. Keynes famously whined that a gold standard functioned as a set of “Golden Handcuffs.”

Not only does a gold standard restrict Keynes’ patrons – the bankers – from stealing-via-inflation, it also prevents the bankers’ lackeys – our governments – from enslaving us in debt. The Golden Handcuffs preclude our governments from running large deficits, which is also a central reason why entities such as Keynes, the Big Banks, and Bloomberg all refer to a gold standard with unmitigated contempt – almost all of the time.

In addition, by restricting the amount of currency in circulation to a non-fraudulent level, a gold standard automatically reduces the size, and thus the power and influence, of the financial sector. As the current Big Bank crime syndicate is caught committing one mega-crime after another, the commensurate need for a gold standard has never been greater at any time in history. The White Paper summarizes these reasons via two different perspectives.

Positively, a gold standard ensures the following economic/monetary virtues:

a) It protects and preserves the wealth of all citizens/residents of that economic system.

b) It protects and preserves the integrity of the monetary system itself.

c) It ensures (relatively) fiscally responsible governments.

d) It ensures (relatively) rational, sustainable, economic development.

e) It reduces the size/severity/frequency of financial crimes, systemic and otherwise.

Negatively, this is what we have actually seen in the 40 years since Paul Volcker (et al) successfully assassinated our gold standard:

a) Our standard of living has fallen by more than half.

b) Our monetary system has not merely “lost its integrity,” but has been corrupted in any/every way possible. Our paper currencies are literally worthless.

c) Our governments are bankrupt. Our once-prosperous economies lie in ruin. The real unemployment rate has roughly tripled.

d) After decades of unsustainable growth; our bubble-exhausted economies now no longer respond at all to the most extreme monetary stimulus in history.

e) Our natural resources are being consumed/cannibalized at an increasingly unsustainable rate. Our environment is being degraded (if not completely contaminated) at a geometrically increasing rate. Entire species are being rendered extinct, at an exponentially increasing rate.

f) Systemic financial crime has exploded at a rate at which most readers cannot even conceive. In 1971 the most serious financial crimes were measured (at most) in the $100s of millions of dollars. Today, the banking crime syndicate perpetrates crimes six orders of magnitude larger: crimes measured (literally) in the $100s of trillions of dollars.

Who really needs a gold standard? We all do, immediately.

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Jeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers/investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but soon decided this was where he wanted to make the focus of his career. His website is

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