A few weeks back I thought about writing an article on “honest weights and
measures” and why they are important. There has been so much
news recently, I almost forgot it as a topic. A funny thing
happened since then. Last week while in church during the sermon,
the pastor quoted from the Bible, Proverbs 20-10. This verse states
“differing weight and differing measures, the Lord detests them both”.
I thought this was quite a coincidence, my thinking of the topic and then
being reminded of it in church.
The CIA of course says “there are no coincidences” but I assure you there
are, or a much higher power at work here. You see, I began reading the
Bible a few months back and just so happened to be reading “Proverbs”
currently. I didn’t know where this quote regarding weights and
measures was in the Bible so I called our pastor and asked him. Lo and
behold, it was on the very next page where I had last left off reading!
As for the topic of weights and measures, of differing ones, this is the
very core of the problems in the world today. I say this not so much
because the weights and measures are “differing”, no, we are far far beyond
that. The weights and measures are just outright FALSE and have been
since 1971, or even as far back as the 1944 Bretton Woods agreement.
In ancient times, false weights and measures (stealing) was done in
several manners. Coins could have their edges either shaved or
clipped. They could also have lesser valued metal than gold or silver
“mixed in” and no one would be the wiser until Archimedes discovered the
“weight to volume” relationship. Then along came “fractional reserve”
banking where a bank would hold only 10% (or not!) of the gold to back notes
or currencies they had written.
Of course now in modern day, “money” really hasn’t anything to do
with weights or measures. “Money” is printed (mostly digitally) in any
amounts that central banks choose. Millions, billions, trillions, and
then these amounts are levered even further …and further again …it
doesn’t matter! Well, this is not true, it DOES matter, just not
yet. There is a saying, “a fair day’s wage for a man’s work”. In
today’s world this is no longer so from several vantage points. First, back
in the day of “Leave it to Beaver”, Ward could go to work and provide
comfortably for his family of four. This is not so today, both Ward AND
June have to work, and in many cases this is still not enough to provide
comfort.
The second vantage point is from that of “settlement”. A worker bee
shows up to work for the week and then is paid in dollars, euros, pounds, yen
or even yuan. None of these are actual settlement, they are all
“liabilities” of the issuer and only considered an asset by the holder
because he can trade it to someone else. All of these currencies have
value because they are “accepted as payment”, what value would (will) they
have if they are not accepted? Of what value do these notes or digits
have on their own other than their “acceptance”? Is there any cost
whatsoever to their creation? Ask yourself the most basic of questions,
if something is “free” to create in any quantity, what then is its
“value”?
“Manmade” money (fiat) has created the problems we have today and now
after many years is coming to a head. The ONLY way for a fiat currency,
or in the current case a fiat world to continue is to have inflation.
If inflation were to cease or worse, deflation takes hold, then it is “system
over” as in game over. The world has reached a point of debt saturation
where more debt cannot be taken on and any new debt actually takes away from
an already declining system. “Good inflation” (markets going up) is
about to end, you can clearly see this as VOLUME is and has been drying up
over the last 12 months. You can also see this in the real
economy. The U.S. has been through the biggest inventory build in
history while China’s trade seems to be going into a freeze mode.
This chart is particularly scary because China has been the economic
engine pulling the world along since the financial crisis. A 20% drop
in trade in just one quarter is ominous!
I mention China above because it is my belief they will
ultimately inherit the financial throne. The Chinese have been
voraciously accumulating gold because they realized the West’s “weights
and measures” were becoming criminally out of control. I believe China
will at some point (when there is no more gold for them to accumulate) will
revalue their currency the yuan versus gold. This will be the heart of
your reset and China will become the new arbiter of global weights and
measures. My guess is that the yuan will have an honest relationship to
gold for at least 25-50 years until they begin to face the same problems the
U.S. did after the Bretton Woods agreement.
Before, during, or immediately after China announces their holdings or
revalues their yuan to gold, the “paper” in the West will burn. We will
see the “everything is worth nothing” moment and those who stored their labor
in paper balances will be ruined. I will leave you with this thought,
would you do business with or deposit your hard earned savings with a bank,
broker or insurance company that refused to allow an audit? What if
this institution has refused to an allow an audit for each of the last 60
years? How much confidence would this “bank” have left? It is for
THIS very reason the Chinese have been “running” the gold bank, “trust” is
about the only thing left in Fort Knox!
