posted on Aug, 8 2009 @ 01:46 PM
I usually agree with this guy, however, his solutions of 'just cut government' and 'create new jobs' is disingenuous.
Our nation is in deep trouble - true enough. However, the only way we are going to get fixed is with government direction and leadership. However
unlikely that may be, in our democracy, its the ONLY way. Trusting the Free Market forces - those that have run the very 'ponzi schemes' he mentions
in this video - is simply not going to work either. Its like asking the robber to give you back your stuff.
Instead, I believe this problem will only get fixed when our government takes truly bold, agressive, and permanent steps to rectify the core problem:
re-adopt a 'Gold Standard' and reject an economic system of economic manipulation through the creation of a fiat money system that undermines the
Constitutional basis of our government.
In fact, the Constitution itself recognized this fact. That's why our founding fathers rejected currency based on anything but gold or silver. They
did acknowledge the potential occassional need for paper money, but they called it what is was - a 'bill of credit', hence we use the term a ten
dollar bill or a hundred dollar note. Think about that - the words bill or note imply that paper money is nothing more than an IOU for real money,
which was gold or silver. For those of you that want to argue this Constiutional fact, please look in the Constitution and you will find that money is
mentioned seven times, and in the only two times it defines money, it is with gold and silver. Mention of paper money is clearly defined as a bill
(meaning you owe somebody money). In fact, up until the last part of the 20th century, US paper money used to carry words to the effect 'this is
redeemable for lawful money', or even more specifically used the words gold or silver.
Now before everyone jumps on me with things like 'there's not enough gold', or 'why gold', I would just like to say, that I do not know exactly
how to extricate ourselves from this mess. But I know that any permanent solution must bring us back to our Constitutional roots - gold and silver.
And here's why. You can't fake gold and silver. You either have it or you don't. If you don't, you can't simply type in a few numbers and create
it. Which means that if you want to spend money, you must already have that money. If not, you must borrow the money based on the ability to repay in
real gold or silver. Now think about it, if you only have 300 billion in the treasury (like Fort Knox) and you want to borrow xxx trillions, the folks
with common sense will simply respond with a huge horse laugh. Gold instills all the economic responsibility, stability, and reasonable expectations
that we currently seem to lack.
I contend that by the abandonement of the Gold Standard, that the government has desensatized us to it real meaning: million, bilion, trillion....
it doesn't mean anything anymore because the Fed will simply keep creating 'it' because nothing keeps it in check - there is no real cap, there is
no real consequence of continuing to create. Savings, Credit, etc, etc, its all BS without an immutable anchor. And until we find our way back to
Gold, whateve programs or actions the government takes is just another meaningless computer keystroke.
I think Peter Schiff knows this, its just too bad that he doesn't say it here.