Greenback Gases, Gold & the Coming Shift
Source: Bullion Bulls Canada, Darryl Robert Schoon (9/17/09)
"Bankers in charge of our economies makes as much sense as candy makers being in charge of our diets"
The removal of gold from the global monetary system was not by accident. It allowed governments to do what they could not otherwise do. Gold cannot be printed. Paper money can. Therein lays the cause and consequence of what is happening today.
Increasingly, the sound-bites of politicians, economists and the media are becoming more positive, indicating that an economic recovery is underway. It is not. If it were, governments would be able to slow or stop the spending they are desperately hoping will rescue their respective economies. None are so doing.
But despite trillions of dollars, the global economy is still contracting. Signs of improvement are due only to the massive amounts of government aid being spent in the hopes of reviving private demand, demand irrevocably crippled by now unpayable levels of debt.
China, holding the vast majority of U.S. debt, now finds itself in the incongruous position of having underwritten U.S. wars in Iraq and in Afghanistan along with tax cuts George Bush dispensed to the wealthy.
China and the world has, in effect, been held hostage by the U.S. as a result of the U.S. dollar still being the world reserve currency even after the U.S. defaulted on its gold obligations in 1971.
The world's acceptance of a fiat currency as a world reserve currency has now destabilized the global economy beyond its ability to recover. The increasingly fragile house of cards constructed of credit and paper money is now in its final stages of collapse.
The Last Waltz
The current economic crisis is now moving toward resolution. How and when it will end is as uncertain as that it will.
We are moving from one era into the next. Change is never easy and significant change is significantly more difficult. The bankers' credit was responsible for much of what happened in the last 300 years. It is impossible to imagine what life will be like in its absence.