Currency

China’s Insurmountable Global Weakness: Its Currency

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currencyCharles Hugh Smith – Quick history quiz: in all of recorded history, how many superpowers pegged their currency to the currency of a rival superpower? Put another way: how many superpowers have made their own currency dependent on another superpower’s currency?

Only one: China. China pegs its currency, the yuan (RMB) to the U.S. dollar. It adjusts the peg a bit here and there, but the yuan’s value is set by the Chinese state, not by the market of buyers and sellers.

(Yes, various nations have used gold coins minted by rival powers (Spanish pieces of eight were money everywhere, for example) but we’re talking about fiat currencies, backed by nothing but supply and demand, not intrinsically valuable gold coins.) Continue reading →

How to Crush the Gold Cartel

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circulationPaul Rosenberg – I have friends who are convinced that a cartel is manipulating the gold and silver markets. I have other friends who disagree, but today I’ll hang with the former. And they plead a good case, with there being 100 times more paper gold than physical and a small group in full control of daily price setting… among other things.

Accordingly, many holders of gold and silver go on about breaking this cartel, even though nothing ever really changes.

Today, however, I’m going to tell everyone exactly how to break the cartel. I’m not sure how many people will take it to heart – there are easier “solutions” being thrown at them all the time – but I’m going to explain it all the same. Each holder of metals can do with it as he or she wishes.

The Simple Plan

If you want to crush the cartel, there’s one simple thing that must be done. Here it is: Continue reading →

Inflation is a Policy Decision

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Inflation results from policies implemented by governments, commercial banks and central banks.

A Few Consequences

currencyGary Christenson – More currency placed into circulation devalues all currency units. We can thank fractional reserve banking, deficit spending and QE.

1- Stock markets rise as each currency unit buys less.

2- Commodities rise in price.

3- Incomes, taxes, debt and government expenditures rise.

4- Politicians spend more currency units as they reward friends and buy votes.

5- The wealthy become richer and the poor and middle class suffer as prices rise while wages stagnate. More stagflation is coming in 2018 – 2020.

6- Inflation discourages savings and encourages spending and debt creation.

Examine official national debt and M3 currency in circulation at ten year intervals on a log scale for a big-picture perspective. Continue reading →

News And Views From The Nefarium – May 4 2017 [Video]

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The state of Texas is joining other American states in considering legislation to recognize gold and silver coins as legitimate currency; while the revolt against the Fed is growing…there’s a problem…

Texas Bill to Establish Gold & Silver as Legal Tender, Dealing Massive Blow to Federal Reserve

A bill recently introduced in Texas seeks to obliterate the Federal Reserve’s much-maligned monopoly on currency by establishing gold and silver as legal tender — but the groundbreaking legislation, if passed, would also prohibit those precious metals from being seized by State authorities. Continue reading →

Globalist’s Biggest Scam – Fiat Currency. It’s Debt Not Money

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Michael Noonan – Last week, in “Fiat ‘Dollar’ Says Gold And Silver Will Struggle,” we said the following [See 4th paragraph]:

Money does not exist in this country.  In fact, money does not exist anywhere in the world. What is money?  So few people know, and many who profess to know do not. Money is a commodity with a recognized value.  Gold and silver remain the last known standard of real money.  Remember J P Morgan’s famous words:  “Gold is money.  Everything else is credit.”

The globalists, through their creation of the Federal Reserve, have sold the biggest lie ever to the world and continue to get away with it.  People everywhere believe the fiat-created Federal Reserve Note, falsely called the “dollar,” is actually a monetary dollar.  We have often stated how Federal Reserve Notes are evidences of debt issued by the Fed.  We also always add that debt is not and can never be money, yet almost every American wrongly believes debt is money because they believe the Fed “dollar” is money.

Only gold and silver are money!

Gold and silver each are a commodity.  They have universal recognition and acceptance.  Their value is determined by the market by what people choose to accept as payment for goods and services offered.  By contrast, the Fed “dollar” is not money.  It is a currency.  A currency represents the actual money.  In today’s world, there is no currency that represents actual money.  Fiat is imaginary.  It does not exist except in one’s mind.  Yet, around the world, everyone’s imagination believes their local currency is money.

Only gold and silver are money!

If you go to a restaurant and use valet parking, you receive a stub to reclaim your car by the valet at the end of dinner.  The ticket stub is not the car, it represents the car to be “redeemed” upon presentation.  There is no currency in the world that represents money, and no currency can be redeemed for money.  Always remember, Only gold and silver are money! 

Continue reading →