We are educated in such a way that we think we are millionaires by paper only. As soon as there is some catastrophe, millions of such dollars could not buy bread.
[Posted
Nov 9, 2010]Hyping up the dollar with the Yellow Peril Hype
What happens when government of the people for the people and by the people is made up of ignoramuses
Financial Sense Nov 8, 2010
- PETER D SCHIFF
The Currency War
While much of the attention has been focused on China and accusations that it is a "currency manipulator," the first shot in this war was clearly fired by the US Federal Reserve. Last month, the Fed came out with a statement that, for the first time ever, said inflation is rising at a rate "below its mandate." That is, they acknowledged that the deflation threat had passed, that prices were stable - but they still intended to send prices higher.
Since the Bretton Woods Agreement was signed in the wake of World War II, the global monetary system has been based on the US dollar. This means that when the Fed decides to create trillions of dollars of inflation, other countries can't simply say, "let them dig their own grave." Instead, because their international transactions are denominated in dollars, they feel a pressure to maintain relatively stable exchange rates between their currencies and the dollar.
...As the Fed seeks to blow up the global monetary system, I take comfort in the fact that gold cannot fight a currency war because it is not a currency. Gold is money. Currencies used to be backed by money until the global fiat system was introduced under President Nixon. Fiat currency can be printed at will until the economy collapses, as has happened many times in history. Money is impossible to devalue at the whim of politicians because it is naturally scarce. Even in the ruins of Europe after the Second World War, when there was no central authority and chaos reigned, an ounce of gold was worth what it always had been. go to story
Related:
Metropolis - PETER STEIN - Nov 6, 2010 As the debate rages over China’s trade and currencies policies, the 68-year-old Bloomberg, now in his third term as mayor of New York, was tough on China’s critics in the U.S. ...“If you look at the U.S., you look at who we’re electing to Congress, to the Senate—they can’t read,” he said. “I’ll bet you a bunch of these people don’t have passports. We’re about to start a trade war with China if we’re not careful here,” he warned, “only because nobody knows where China is. Nobody knows what China is.”
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The basic principle is falsity because currency notes are issued in value beyond that of the actual reserved gold. This artificial inflation of currency by the authorities encourages prostitution of the state economy. The price of commodities becomes artificially inflated because of bad money, or artificial currency notes. Bad money drives away good money. Instead of paper currency, actual gold coins should be used for exchange, and this will stop prostitution of gold. more
In the name of advancement of civilization
excerpt from Interview with the New York Times, September 2, 1972, New Vrindaban
PRABHUPADA: If one gets a diamond, he possesses something valuable. But in this civilization you are simply making plastic plates and plastic cups. Indeed, in Japan I have seen pasteboard homes. And everyone is thinking that he is advanced. Formerly people used to have golden and silver utensils, but now they have plastic ones, and still they are very proud to be so materially advanced. What is your position? You have a bunch of paper and think, "I am a millionaire." What is the value of that paper? Is that not cheating? However, if we possess gold or diamonds worth a million dollars, that is actual wealth. But we are educated in such a way that we think we are millionaires by paper only. As soon as there is some catastrophe, millions of such dollars could not buy bread. This actually happened in Germany; millions of marks could not purchase one piece of bread. All this is going on in the name of advancement of civilization, and the real purpose of life, God consciousness, is missing. So every thoughtful man should come forward to understand this movement and take it seriously. Why are the people being misled? We just have to try to understand this philosophy, the basic principles of God consciousness.
JOHN NORDHEIMER: Can you really expect to change the whole society?
PRABHUPADA: That I have already explained. The change is up to you; it is your choice. If everyone becomes God conscious, the world becomes the kingdom of God.
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Sri Guru and Gauranga
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