The Gold Standard and Debt Jubilee - Jeff Nielson

August 23, 2016

We need a gold standard. For those (newer) readers who don’t understand why this is so, the explanation couldn’t be simpler. Among other virtues, a gold standard performs two, essential functions. It prevents (corrupt) governments from drowning us in debt. It prevents (criminal) central banks from stealing all of our wealth, via the “inflation” they create with their excessive money-printing.

It is these noble properties which earned the gold standard its scornful nickname, from history’s most-infamous gold-hater, John Maynard Keynes. The great Charlatan Economist called the gold standard “the Golden Handcuffs”. A gold standard handcuffs corrupt governments, forcing them to operate somewhere near a balanced budget, at all times. A gold standard handcuffs criminal central banks, restraining the speed with which they steal-by-inflation to a near-zero rate.

For those readers who don’t accept the assertion of this writer, and who don’t trust the words of Charlatan Keynes, we have a more contemporary and even more-infamous authority here.

In the absence of a gold standard, there is no way to protect savings from confiscation [i.e. theft] through inflation.

- Alan Greenspan , 1966

No way to protect ourselves. The language is unequivocal. This warning was uttered well before Greenspan himself became a servant of the banking Crime Syndicate , and the world’s foremost Inflation Thief. We either have a gold standard, or we are permanently vulnerable to the systemic, monetary crimes by the fraud-factories which call themselves “central banks”. Pretty simple.

Another of the great truths in our societies is what that when we have a crying need for some change in public policy, there will be no shortage of politicians who pledge such changes – and then break their word. Generally, we have no way of easily separating the Posers who promise reforms (like the cynical liar, Barack “Change” Obama) from the tiny minority of politicians with the integrity to carry out such reforms.

However, in the case of a gold standard, there is a very straightforward “test” to separate the Posers from the serious advocates. This brings us to the subject of Debt Jubilee .

For those (newer) readers who are not familiar with either the definition or the concept behind this term, a brief historical synopsis is required. Going back to literally Biblical times, one of the constants of human government is that sooner or later (usually sooner) ruling regimes end up drowning their populations in debt. Once this occurs, that society/economy is faced with one of two alternatives.

The economy can continue to wallow in their unpayable debts, i.e. Debt Slavery . All of the productive efforts of the Workers of that society are consumed paying “interest” to the banker oligarchs who hold all of the IOU’s. Obviously this is unjust, corrupt, and simply economically insane. There could never be a rational justification for choosing Debt Slavery.

There is, literally, only one alternative to Debt Slavery: Debt Jubilee. A “jubilee” is the complete renunciation of all debts. Any/all debt instruments become null-and-void. Debt Slavery is abolished. The Workers are allowed to retain the fruits of their labours, and use their productive efforts to build and improve their societies – rather than simply fattening financial Criminals.

The policy of Debt Jubilee is completely straightforward. The economic justifications for such a policy are absolutely indisputable. There is only one element of uncertainty in this economic equation: when has an economy reached a level of indebtedness where Debt Jubilee becomes a mandatory policy decision?

There is no precise formula here, but there is certainly general agreement. Throughout the modern history of our economies, it has been universally acknowledged ( until the present) that when any nation’s debt-load exceeds 100% of GDP that no other alternatives remain. Once an economy is saturated with this magnitude of debt, it is never possible to reduce (let alone retire) such debts.

A debt-spiral has begun. From that point onward, the only mathematical/economic possibility is ever-worsening indebtedness, and ever-larger interest payments on these unpayable debts, the precise definition of Debt Slavery . Throughout virtually the entire Western world, we are now well past this point-of-no-return.

These economies are not “slightly insolvent”, they are bankrupt. During last year’s “Greek crisis” , Greece’s government spent six months begging to be allowed to declare bankruptcy. The banking Crime Syndicate which holds these debts refused to allow this, via their lackeys at the ECB. Ultimately, Greece’s bankrupt economy was force-fed large amounts of additional debt – piling more debt onto a bankrupt debtor. Increasing Greece’s Debt Slavery. Pure criminality.

This brings us back to the gold standard. As previously explained, a gold standard can prevent irresponsible regimes from drowning their nation in debt. What a gold standard cannot do is to erase the (fraudulent) debts which have been incurred by previous, corrupt regimes.

By definition, a gold standard involves “backing” the monetary system of a particular economy with gold, via backing that nation’s currency with gold. Obviously, such backing must also include all of the debts which are denominated in that nation’s currency . It is here where we encounter a simple, yet fundamental premise of arithmetic.

No insolvent economy can “back” their economy with gold.

This should be completely self-evident, yet it is apparently beyond the comprehension of the charlatan economists. When these frauds consider the gold standard, what we hear continuous from these vacuous mouthpieces is that “there is not enough gold” for a gold standard.

What the charlatans actually meant, if they were capable of expressing themselves coherently, is that our debts are too large for any of these insolvent economies to actually “back” their currencies (and economies) with gold. And this brings us to the connection between a gold standard and Debt Jubilee – in an era of Western insolvency.

It is absolutely mathematically and economically impossible for any of these corrupt regimes to implement a gold standard until after they have declared Debt Jubilee . Even the Charlatans have acknowledged this, they are just incapable of doing so in an intelligible manner. In turn, this brings us back to the Poser politicians, and the intellectually bankrupt “economic advisors” who shill on their behalf, via this headline:

Trump Advisor calls for Gold Standard: “Money that transcends borders and time”

Isn’t that special? Donald Trump and the charlatan economist who speaks on his behalf supposedly want a gold standard. Read through the happy-talk which follows this headline, and two words will be notably absent: Debt Jubilee.

Donald Trump and this “economist” (supposedly) want the United States to go back to having Honest Money. The problem? There is absolutely not one word from these Posers about transforming the U.S. into an Honest Economy, i.e. one that either pays its bills, or openly renounces those bills as being unpayable (Debt Jubilee).

It is obviously mathematically impossible for any Western economy to return to a gold standard without first declaring Debt Jubilee. To have Honest Money, one must begin with an Honest Economy.

Posers like Trump (and others) want to “have their cake, and eat it too.” They want to talk about bringing Honest Money (and the Golden Handcuffs) back to our nations, while notably omitting any mention of the necessary precondition before this could ever happen – Debt Jubilee.

This test to separate the Posers from serious advocates of a gold standard is absolute. If someone touts a gold standard without first acknowledging the necessity that Debt Jubilee precede this change, there are only two possibilities. The individual in question is lying about their intent to implement a gold standard, or they simply lack the economic sophistication to even understand the dynamics which are involved. Either way, such individuals are unequivocal posers.

How many writers, politicians, and charlatan economists are talking about a gold standard? Lots. How many are informing people that we must have Debt Jubilee before we could ever move to an Honest Money monetary system? Just this writer.

We absolutely require a gold standard. We absolutely require Debt Jubilee. As a matter of the simplest arithmetic, it is totally impossible for us to ever have the former until after we have the latter. Ignore the Posers. They are not serious individuals.