History can be a cruel mistress – at least
when one is able to find it via Google’s increasingly “forgetful” search
engine. Who was it that made the following remark, on
November
21, 2002
?
“Like gold, U.S. dollars have value only to the extent that they are
strictly limited in supply.” [emphasis mine]
Here is a hint for regular readers. It’s
the same person responsible for the chart below.
That’s right, B.S. Bernanke. The same
Federal Reserve Governor who stated that the U.S. dollar can only have value as
long as it is strictly limited in supply
quintupled
the supply of U.S. dollars in less than five years as Chairman of the Federal
Reserve: the Bernanke Helicopter Drop.
Strictly limited in supply.
Did Benjamin Shalom Bernanke even
understand those words, either when he first uttered them 14 years ago, or six
years later when he began hyperinflating the supply of U.S. dollars? As anyone
with a sophisticated understanding of mathematics knows, the chart above is the
mathematical representation of the phrase “out of control”.
As a chart of the money supply of a major
currency, the message above could not possibly be clearer. This is a one-way
trip to worthlessness, an illustration of a
hyperinflation-in-progress.
However, the quoted sentence above is
not when Bernanke defined the U.S.
dollar as being worthless. Bernanke did this in the sentence immediately
following, in what could be the most incongruous two sentences ever uttered in
sequence.
…But the U.S. government has a technology,
called a printing press (or, today, its electronic equivalent), that allows it
to produce
as many U.S. dollars as it
wishes at essentially no cost
.
[emphasis mine]
The first quotation is utterly shocking in
that it was made by the same person who would quickly become the
least-responsible Chairman of the Federal Reserve in its 104 year history, in
terms of not strictly limiting the supply of dollars.
The second quotation is even more shocking,
but for an entirely different reason. It is so shocking because it is certain
that Bernanke did not understand his own words, or he would have never
advertised the worthlessness of the dollar.
As an elementary proposition of logic,
anything that can be produced in infinite quantities and at zero cost must be
worthless. Why? Because if this infinitely abundant, free commodity was not
worthless, one could literally use that infinitely abundant commodity to buy
every asset on the planet. No matter how microscopic the unit value of the
infinitely abundant (free) commodity, its total supply would represent infinite
wealth – more than enough to purchase every asset on the planet.
This is why, as a basic principle of
economics, all fiat currencies must be worthless. They can be created in
infinite supply, at zero cost. It is (not surprisingly) why every fiat currency
ever created has plunged to worthlessness, or been removed from circulation
before that final death-spiral could occur.
Worthless by definition.
Ponder those words. Now ponder that one of
the premier authorities for this proposition of logic/economics is a former
Chairman of the Federal Reserve. Newer readers always respond to such logic
with the same retort.
If
the U.S. dollar is worthless, why has its exchange rate risen (dramatically)
versus other fiat currencies?
The facetious reply to that question is
that 1,000,000 X 0 is still equal to zero. Saying that one (worthless) fiat
currency is “more valuable” than another (worthless) fiat currency brings to
mind the old joke about the man who jumps off the roof of a 100-storey
building.
A man
jumps off of the roof of a 100-storey building. As he sails past an open window
on the 50
th floor, someone sitting in an office inside hears him
exclaim, “so far, so good.”
How does this joke relate to the world of
worthless fiat currencies? Picture two men jumping off of a 100-storey
building, with one man standing on the shoulders of the other. What is the only
real difference between the two men? One goes “splat” slightly sooner than the
other.
This is what the “high value” of the U.S.
dollar really means: splat – a little bit later.
However, there is a much more serious
rebuttal to that previous question:
currency
manipulation
. Western Big Banks have been convicted of serially manipulating all of the world’s currencies,
going back to at least 2008. Look again at the chart above and see if that date
strikes a familiar chord.
Since 2008; these convicted currency
manipulators have (primarily) manipulated the U.S. dollar higher, and
manipulated all other currencies lower. That’s not a “theory”, that’s a fact,
verified by a criminal conviction.
This is the world of fiat currencies,
confirmed by 1,000 years of history, confirmed by an inadvertent admission from
no less than the Chairman of the Federal Reserve. It is not only the U.S.
dollar which is worthless. All of these Western fiat currencies are worthless,
because they have all been conjured into existence in grossly excessive (i.e.
reckless) quantities. But if we were to rank all of this worthless paper, the
U.S. dollar would rank at the bottom of the heap, debauched to an even greater
extreme than all the rest of this banker paper.
It is a mere 46 years since Paul
Volcker
assassinated the last vestige of our gold standard. Regular readers
understand the significance of this as well.
“In the absence of the gold standard, there is no way
to prevent the confiscation of savings through inflation.”
-
Alan
Greenspan
, 1966
It is an infamous quotation from another
Chairman of the Federal Reserve, but a confession which was uttered by
Greenspan before he had the slightest understanding of
who would “confiscate” all our savings (i.e. steal all of our
wealth).
In 1971; the U.S. dollar was still
relatively fully valued. By implication, so were other major currencies, since
their value was a direct derivative of the value of the dollar. Forty-six years
later; the U.S. dollar is worthless, meaning that
the entire supply of U.S. dollars no longer holds any wealth.
Forty-six years later; none of these Western currencies hold any wealth.
To where did all that stolen wealth
disappear? Into the pockets of the Criminals in control of the U.S. printing
press – as well as the other printing presses of the Western world. Theft by
money-printing. Regular readers also know the identity of
those
Criminals
.
Give me control of a nation’s money, and I care not
who makes its laws.
-
Mayer Amschel Rothschild (1744 – 1812)
One of these criminals (Greenspan) warned
us what would be done to us if we were ever foolish enough (and weak enough) to
allow our governments and their
central
bank overlords
to rob us of our gold standard. Another one of these
Criminals (Bernanke) accidentally told us what was being done to us, shortly
before the crime was finally completed.
What is the lesson to be learned from these
events? It is the same lesson explained to readers in a
recent
commentary
, entitled The Secret of
Wealth Preservation
.
Our currencies are already worthless. Our
wealth has already been stolen. But like a collection of cheap magicians, these
convicted currency manipulators have created
the illusion of value in our paper currencies.
They have been greatly assisted by the treasonous
acts of our own governments. “There is no inflation,” the bankers hiss, as food
and housing costs spiral out of control. The bankers get away with this lie
because of the laughably fraudulent inflation statistics produced by our
governments, with the U.S. government in a league of its own when it comes to
lying
about inflation
.
Thank the bankers for this. It is because the bankers continue to
maintain the illusion of value in these worthless Western currencies that we still
have a last chance to exchange this worthless paper for assets of real value.
Which assets?
For over 4,000 years; the answer has always
been the same when seeking a “safe haven” from economic calamity (and/or the
financial crimes of bankers):
gold
and silver
. As explained in that recent commentary, gold and silver have a
multi-thousand-year track record of perfectly preserving our wealth (and they have
never plunged to zero value).
In contrast, in 46 years the U.S. dollar
has lost almost all of its value. And fiat currencies have a perfect track
record over the last one thousand years: they
always plunge to zero value.
How desperate have the bankers become as
they see their precious fiat currencies entering their final death throes? At
the eleventh hour, these Criminals are seeking to engage in a sleazy hand-off:
banishing their present collection of worthless, paper currencies, only to be
replaced by something that is not even a currency.
Ask any Western banker where the future is
heading with respect to our monetary system, and he or she will simply parrot three
letters, S-D-R: the “special drawing rights” of the IMF. What makes this so
special? Nothing. It is simply a line of credit.
It is not even possible to logically
envision how a line of credit could be stretched and twisted, and end up being
called a “currency”. Special Drawing Rights are nothing of the kind. They are
not units – of anything – they are simply an amount.
However, in our Wonderland
Matrix
, where the Corporate media oligopoly censors any/all discussion
which contradicts these serial frauds, the bankers simply believe that they can
now call
anything “money”.
Note that this desperate crusade also explains a concurrent obsession of the
banking crime syndicate: the
War on Cash.
Can you imagine walking around with a
pocket full of Special Drawing Rights? Almost certainly not. Who can imagine
walking around with a pocket full of
credit?
But, in a world where we are no longer allowed to hold currency, where the very
concept of “money” becomes totally ethereal, then in that world, perhaps the
bankers can pass off their “SDR’s” as money – or at least currency.
Note also how this nearly obliterates the
distinction between debt and value. By definition; SDR’s are increments of
debt. The bankers are attempting to pass them off as
instruments of value. Even for these Machiavellian criminals, this
ranks as one of their most audacious attempted crimes.
Readers have a choice. They can play
Russian Roulette with their wealth and financial stability, and hope that the
bankers can perpetrate their SDR hand-off, and delay the final collapse of the
bankers’ fiat currency Ponzi-scheme. Or; you can flee to safety. The
only
safety.
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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 and investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but with a background in economics and law, he soon decided this was where he wanted to make the focus of his career. His website is www.bullionbullscanada.com.
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The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.
