Uncharted Territory, LRC podcast #331
Bill Haynes and Lew Rockwell discuss why the US has avoided hyperinflation and why the dollar may long be the world’s reserve currency, despite the Fed’s promises of unlimited money creation. The Fed, as Lew notes, came into existence after major bankers met on Jekyll Island, Georgia, and formulated plans for a central bank and plans to sell the concept to Americans as means to protect them from the big banks and from inflation.
Central banks are ploys for the ruling elite classes to extract money from the people in a manner that “Not one man in a million will detect,” a statement often attributed to Vladimir Lenin. Actually, John Maynard Keynes, the great inflationist, made the statement in about 1915, and it can be found in his 1920 book The Economic Consequences of the Peace. The precise statement: “By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft.”
Keynes’ positions—but especially his 1936 book The General Theory of Employment, Interest and Money—became widely accepted as the way to “run economies” and were adopted by leading Western nations after World War II. Since then, inflation has become as accepted as sunshine. Sadly, inflation has become almost as welcomed as sunshine. Shinzo Abe, Japan’s newly elected Prime Minister, is calling for unlimited money creation with the expressed goal of higher inflation (rates of price increases).
Lew noted that the rescue packages designed to bail out several struggling Eurozone countries are not really bailouts of the countries but are bailouts of the banks that hold the debt of those countries. Such bailouts are facilitated by the European Central Bank’s and the Fed’s ability to create money out of “thin air.”
With money being so easily created, and with banks being able to count on central bank relief, banks enter the world of moral hazard, where the banks make reckless loans. When the loans turn out to be repaid, the banks reap huge profits. (And, bank management reaps bonuses literally in the millions of dollars.) But, when the loans go sour, the losses are shifted to the people as central banks create money out of thin air to take the bad loans off the banks’ balance sheets. This can readily be seen by the explosion in the Fed’s balance sheet.
Bill also noted that banks, via fractional-reserve banking, are a major source of inflation.
The fifteen-minute podcast can be heard by clicking here, and it is well worth the time. Investors need to gain a better grasp of how our monetary system works, and this podcast is a good start.
www.lewrockwell.com is the most popular Libertarian site on the Internet, receiving thousands of visitors daily.
http://whatreallyhappened.com/ (‘What Really Happened’ website)
http://www.justin.tv/michaelrivero#/w/3652259152 (Live Daily Video Feed of Program)
http://www.youtube.com/watch?v=gf-_KiDlp74 (All Wars Are Banker Wars)
For all those who are interested in hard and relevant news as a supplement to Bill Haynes excellent blog site, I highly recommend Michael Rivero’s ‘What Really Happened’ radio program. No fluff, but rather pertinent news and information that directly effects all of us and our investments – especially those of us in the precious metals markets. Mr. Rivero’s website can be accessed by clicking on the above attached link. His radio program airs Monday thru Friday at 11 A.M. MST on the Republic Broadcasting Network (RBN). The program can also be heard commercial-free after it airs by accessing the second link and then scrolling down to the video recorded version of his latest show.
Mr. Rivero’s has also produced an excellent documentary entitled: ‘All Wars Are Banker Wars’ that can also be heard by clicking on the third link above. This video has gone viral on the internet and is an excellent synopsis of how fractional reserve central banking has been at the heart of most of the world’s ills since it’s inception.
Kudos to Bill Haynes and Lew Rockwell for their unending efforts in deciphering current market trends and making sense of the current geopolitical scene.
Ray-O
I initially heard about the EU wanting Cyprus’ gold on the Michael Rivero Radio Show. I think the precedent has already been set with the Greeks and their gold as part of their getting their last bailout. It’s really not all that surprising, is it? The fiat Ponzi scheme always winds up getting real things in the end for worthless paper and at a greatly reduced price.
Also, right about the time Germany asked to have their gold repatriated, they are told they’ll have to wait seven years and then the French launch an invasion of Mali immediately afterwards. Why? Because gold is Mali’s biggest natural resource. The criminality and utter deception is becoming so overt these days it’s almost laughable. Please see the above attached link regarding the Cypriot’s gold and a possible confiscation of it with regard to the current crises.
Lasty, Governor Perry of Texas is now wanting all of Texas’ gold shipped back to the State instead of rolling over the profits in gold future contracts. I think that’s what’s goin’ on. Anyway, I attached a link for that as well.
All of this goes down this week and gold and silver are static. Go figure.
Buz