http://www.goldstandardinstitute.org/Article....Name=PB20110519
Less than two and a half years ago, the very idea that the world would
ever return to a Gold Standard was regarded as absurd, even by the vast
majority of the gold community. In 2011 it is evident to most thinking people
that this is precisely what is going to happen; in fact it has now come to
seem rather obvious. Not only did The Gold Standard Institute begin that
formal debate in January of 2009, but that debate has now progressed into a
discussion on what form of a Gold Standard will eventuate. My, how times have
changed.
That the subject has moved from the outermost fringe of the Internet to
the mainstream press in such a sudden manner should not startle anyone. It is
not in the nature of monetary change to stealthily and discreetly creep into
existence over a generation or two. When degraded monies collapse it is
always a relatively âovernightâ experience.
âOver the course of 600 years, five dynasties had implemented paper
money and all five made frequent use of the printing press to solve problems.
Economic catastrophe and political chaos inevitably followed. Time and again
officials looked to paper money for instant liquidity and the immediate
transfer of wealth. But its ostensible virtue could not withstand its tragic
legacy: those who held it as a store of value found that in time all they
held were worthless pieces of paper.â Fiat Paper Money â The History and
Evolution of our Currency by Ralph T. Foster (referring to the first five
paper currencies of the world in China)
The inevitability of a return to the use of gold as money was never a
matter of conjecture, it simply required an awareness of historical precedent.
When governments have degraded their money beyond redemption, as they never
fail to do, a nation has two choices: either return to real money that holds
its value over time, or continue on the same sorry path to the result of
personal, social and geo-political disaster, quite possibly accompanied by a
complete or partial loss of national sovereignty. Itâs not a hard choice
really. Those who hold such commanding and seemingly invulnerable positions
in the current order will be ignominiously cast into oblivion like old
roosters, along with their thoroughly discredited theories.
In January of 2009 there was not a single organization in the world with
the goal of promoting a Gold Standard. That we were the first to blaze this
trail should be a source of pride to all of our members. That we have
inspired others to begin similar organizations is a most rewarding
development. Our Purpose was and remains âthe dissemination of the virtues
of the Gold Standard so that they become widely understood and appreciatedâ;
this Purpose is greatly helped by the formation of other organizations all
over the world with the same goal.
The two key points that must remain foremost in the minds of those seeking
the instatement of a Gold Standard are:
- Any paper representations of money must be fully
redeemable,
- Real Bills must be allowed to re-emerge to perform their
integral role.
Without Real Bills even the mighty Gold Standard will fail. A Gold
Standard without Real Bills is like a high performance, internal combustion
engine without oil.
Any monetary system that lacks full redeemability (100% gold or Real Bills
backing) is only referred to as a Gold Standard by those who are intent upon
mischief. In its effect, any fiduciary component means that gold is no longer
the measure, but the measured. A fiduciary component determines that such a
monetary system is merely another paper standard masquerading as the Gold
Standard.
There is no shortage of people who would love to see the return and
subsequent failure of a gold based monetary system. This they could then
blame on the âGold Standardâ. Those who argue against full redeemability
and/or Real Bills are in this category. They are the witting or unwitting
stooges of the paper money paradigm that bleeds honest producers in order to
keep champagne flowing to the non-productive politicians and bankers.
If you have any sort of an organizational bent and a desire to hand over
to your children and grandchildren a world that is more honest and decent
than the one that we currently inhabit, this is your chance. Never has the
need been greater for people of integrity to roll up their sleeves and
actually start DOING something. There are many who will endlessly speak in
praise of the Gold Standard, but far too few who will actually spend a couple
of hours a week doing anything to achieve it. Talk is cheap, but âdoingâ
is pretty cheap also and far more rewarding. Not only are you working for the
achievement of something worthwhile and feeling pretty good about it, but you
can look your children and grandchildren in the face.
What about you? Are you a doer, or just a talker? Email me if you are in
the former category. Maybe we can help to get you started in doing your part
in the achievement of that better world. I have all the time in the world to
help anyone who is in favour of a bona fide Gold Standard and who is looking
to establish something in their own area. Please donât email me if you just
wish to talk about it though. My in-box is daunting enough already.
Philip Barton
President â The Gold Standard Institute
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