The foundational lie for all fiat currency systems is that they’re as good as gold. From Matthew Piepenburg at vongreyerz.com:
Is gold calling out a broken global financial system?
One Big…Lie?
Earlier this year, I was asked to give my most “heretic” opinion about the global financial system.
This was an unusual yet bold question, and after a brief pause, I answered that the entire system was…, well:
“A lie.”
This may seem like a sensational response in an industry sometimes prone to the sensational; however, if we look at stubborn facts, the answer is truer than it is extreme.
When it comes to a financial system rotting from within, the Botox-like beauty of our ballooning S&P and centralized credit market hides an aging and decrepit disease.
That is, policy lies, like Botox, can’t hide reality forever, and the evidence of a fatally debt-sick system hiding financial truths behind forked tongues and euphemistic lingo is literally all around us.
A Long List of Truth-Stretching…
From the very era of my birth, the list of lies is almost comical.
Nixon:
In 1971, for example, when Nixon decoupled the dollar from gold [thereby allowing his own and future administrations the unfettered luxury (and sickness) of expanding (debasing) the money supply], he promised the measure would be “temporary” and that “our dollar would be worth just as much tomorrow as it is today.”
Both statements, of course, were open lies.
54 years later, the dollar remains un-chaperoned to gold, and when measured against a milligram of that same precious metal, the USD (and other major Fiat currencies) has lost 99% of its purchasing power.
