Posterity's Debt To Me
The Party Fades
Commitment to Posterity
FDR & History
Fools, We Mortals
One of our favorite scribes is Bill
Bonner. Here's his take on BREXIT:
"After a majority of Britons voted to end their 43-year
membership of the EU in a referendum, the Bank of England, the
European Central Bank and the Bank of Japan issued statements
stressing the availability of liquidity to keep the banking system
"But there’s a problem…
"The Deep State can control Congress. It can control the state
bureaucracy… Wall Street… and Big Business. It can even – usually
– control the voters.
"But it can’t control the credit cycle." Viva
Former Fed'l Reserve chairman Alan Greenspan has been
somewhat in the media spotlight the last several days, having reached the
age when he can and will say anything he chooses about events. In a
fascinating review by Zero Hedge he endorses the reintroduction of honest
money (a gold standard) and says he thinks we're in a stagnant spot in the
economy which will lead to a sharp increae of the money supply resulting
in....inflation. He admits to being a "gold bug" and being laughed
at, but we can attest from long years of experience one can get used
to the chuckles and snide remarks from the experts who have their faith placed
solidly in fiat currency.
Following the article are remarks from the public. They are anonymous and
therefore a waste of time. But they reflect the hatred of bankers by many
Americans, and the love of anonymous writers to use coarse language.
point he raised, which is entirely verboten everywhere, is the
enormously expensive welfare burden on the economy. It's deadly
for a politician to even mention that the cost of welfare is a
problem. By "welfare" we mean the myriad programs called
"entitlements," including Social Security and Medicare.
Imagine what would happen to any public figure who dared suggest that
these programs are unsustainable for the long run and must be trimmed to
"Supreme Court decisions in affirmative action cases are the
longest running fraud since the 1896 decision upholding racial
segregation laws in the Jim Crow South, on grounds that 'separate
but equal' facilities were consistent with the Constitution.
Everybody knew that those facilities were separate but by no means
equal. Nevertheless, this charade lasted until 1954." THE FRAUD GOES ON
Thomas Sowell may be getting long in the tooth (he's an
octogenarian) but his mind is as sharp as ever. Moreover, he
write3s with a clarity that's quite rare in an era when Internet
blogging is open to almost anyone with a computer and a server
passerby) "Ma'am, a survey question: Are you concerned
about the financial burdens society is placing on posterity?"
(Passerby) "Heavens, no! Posterity has never done a
damned thing for ME!"
(To 2nd passerby) "Sir, what about the financial burdens society
places on posterity?"
(Man) "Nobody should put a burden on
prosperity, especially government. Government should guarantee our
(Reporter) "No, we're talking about POSTERITY."
(Man) "Oh. Umm....what's a posterity?
COMMITMENT TO POSTERITY
WAS A FLOP IN VENEZUELA
matter. When a country experiences hyperinflation, the cause is not a
mystery. It is government policy. When there are no groceries on the
shelves, the cause is obvious: it is price controls. When a once-rich
country descends into abject poverty, the cause is not bad luck.
it is socialism. Socialism is, always and everywhere, an economic and
human rights disaster. The fact that most members of the Democratic
Party do not understand this means that the United States could be in
for hard times." Clueless
|| < This article describes an interview by
left-leaning National Public Radio with a Venesuelan based left-leaning
New York Times reporter. The interview apparently avoided any
direct blame of socialism for the economic distress in
The popular attraction of socialism is understandable, until one begins
to hunt for any examples in history where it succeeded for
a standard for the dollar.
An argument favoring
a pre-election debate about sound money.
by John Wrisley
What a mess civilization
would be in if there were no universal standards of measurement.
Could there be civilization in the first place?
We take for granted that 16 ounces constitute a pound and
that 8 furlongs (5,280 feet) equal one mile. No one questions there are
2 pints in a quart or 60 minutes in an hour. Weight, distance, time -
there are precise standards for measuring almost everything. Except
Strangely enough, people are willing to measure their
economic transactions with something that is based on no fixed
standard at all! The U.S. dollar.
The U.S. dollar once had a precise physical dimension. It
was a coin containing 371.25 grains of pure silver. It was
also defined as 22.32 grains of gold. U.S. dollars now exist chiefly as
digits in countless computers and also as paper notes circulating in
denominations from $1.00 to $100.00. By definition the notes are IOUs,
although they are generally accepted in payment because the government
has declared them legal tender and is also willing to accept them as
tax payments. (Some merchants refuse higher denominations of notes
such as $50.00 and $100.00. They are entirely within their
Circulating coins, the smallest fraction of
the money supply, are not IOUs. However, with the exception of
the five-cent and one-cent piece they don't contain metal that is
valued anywhere near their face value. When the dollar was a silver
coin the half-dollar, quarter-dollar, and dime contained silver
proportionate to their stated face value. That is, a dime contained
1/10th the amount of pure silver as the dollar. The cent and nickel
were minted for change-making in small transactions and contained no
silver. Hence, their dimensions had nothing to do with those of the
dime, quarter-dollar, half-dollar, and dollar. Also, they did not
have milled edges as silver coins did to discourage scraping metal from
the edges. (An ancient practice called "clipping".)
Gold and silver coins emerged as useful money because they
were perceived as valuable and durable. They became widely accepted as
media for exchanges in the marketplace. The intrinsic value of
money was about the same value as the items exchanged. A bushel of
corn, for example, might be worth 30 grains of silver which, in turn,
might trade for a pair of leather sandals. The actual exchange was corn
for sandals, but a small silver coin containing 30 grains of silver
became the conventional medium to expedite that exchange.
The coin was also a store of value. The exchange
of goods or services didn't have to occur on the spot. Goods
could be traded for money and the money, a carrier of actual value,
could be exchanged for goods or services of like value at a later
Money was a standard of measure. The silver
content was guaranteed by a trusted authority whose mint struck coins
of equal quality and precise content.
That was it in a nutshell; To be an efficient measuring
device money had to 1/ be widely accepted as a medium of exchange,
2/ store value over time, and 3/ be a reliable standard of
measure. Modern currency has lost all but the first
The above is
not just an opinion by a crackpot curmudgeon. Arguments
supporting sound money have been circulating for centuries. The
famous scientist/economist Copernicus wrote: "Coinage is imprinted gold
or silver, by which the prices of things bought and sold are reckoned.
. . It is therefore a measure of values. A measure,
however, must always preserve a fixed and constant standard.
Otherwise, public order is necessarily disturbed with buyers and
sellers being cheated in many ways - just as if the yard, bushel, or
pound did not maintain magnitude. (1517)
Among other observations, Copernicus also came up with the Quantity
Theory of Money and an early version of what became Gresham's
Law. He also noted that the earth was not the center of the
universe and our planet revolved around the sun.
Copernicus was born in the old Kingdom of Poland. We can dispense
with the jokes about "dumb Polacks."