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#SHOW COMMENTS
Most if not all people fail to see the banks purposed obfuscation of our very own promissory obligations we have to each other (not to any bank) regardless what represents our promissory obligations whether its fiat, gold, coffee beans or rum or whatever it may be its what the banks do to our promissory obligations before any banking publication or before any bank book entry which is indeed the root cause of all adverse volumetric disposition or impropriety within any monetary circulation past & present.
The basic math no one can deny.
If one divides the gold on hand by the number of people. In the U.S, reported monetary reserves last time I looked are $80 billion, divided by a 300 million population = $266 per capita to do all your business & saving ,retirement etc.
A return to the gold standard CAN be artificially deflated so long as the represented property exceeds $266 per head , Which IS a case of PERPETUAL, MONUMENTAL DEFLATION.
Any proposal of a gold standard simply fails the math. Any competent mathematician would agree 🙂
” Even if there was that much gold out there the governments would have to each go into 10s of trillions into further debt to buy the gold to put into their treasuries so as to further represent any currency which in turn has to represent all our labour & production “
The projected worth of financial assets in 2020 would be nearly double the value of around USD 198 trillion witnessed last year
It has been estimated that all the gold mined by the end of 2009 totalled 165 THOUSAND tonnes
At a price of US$1900/oz., reached in September 2011, one ton of gold has a value of approximately US $60.8 million.
My calculation based on the estimated volume of all the gold mined by the end of 2009 .(see above ) at $1.700oz
* BASIC Calculations *
In short there are 16oz in a pound, & 2,000 pounds in a ton.
32,000oz is 16 x 2,000, or 1 ton.
$1,700/oz x 32,000oz = $54,400,00/ ton.
165 thousand ton x $54.4 million dollars (per ton)
The total value of all gold ever mined would not exceed US$9.2 trillion at that valuation.
The question I ask now does $9.2 trillion in current gold world wide = $198 trillion in world assets? Absolutely not no where near it .
Mathematically Perfected Economy ( The Gold bug )
Debate challenge to any gold bug?
Today’s fiat has value BUT its value is “NOT EQUAL” to our natural promissory obligations, not because its fiat, because of the banks misrepresentation or purposed obfuscation of our promissory obligations before publication of fiat..
The bank gives up no consideration of value of their own in any purported loan to one of us, only the true creditor did by giving up the property in question & likewise the obligor by signing the promissory obligation or note in any purported loan, so today’s fiat has no consideration of value given up by the bank itself ,rather today’s fiat is merely the evidence of our very own promissory obligations that doesn’t equal our labour & production or consideration of value we give up to each other.
I challenge any gold bug to disprove or debate fiat has no substance or representation of value what so ever today.
I challenge any gold bug to disprove a fact that fiat can equal & account for any growth of our labour & production we give up & receive from each other by our natural promissory obligations without the imposition of interest or banking exploitation.
I challenge any gold bug to prove how a gold standard with finite reserves can possibly protect us from its volumetric improprieties which are as follows.
1) Artificially sustaining the price of our production thus suffer a perpetual devaluation of gold reserves upon further production.
OR
2) Suffer from a perpetual deflation per represented wealth upon further production without the artificial sustention.
Those of you who think a gold standard worked in the past are greatly mistaken because you fail to see the U.S constitution artificially set or fixed the price of gold likewise this was a contributing factor by association to the artificial sustention of the price of our production thus as a result of golds inherent but contributing built in volumetric improprieties was in effect perpetually devaluing finite gold reserves upon any further of our labour & production it then had to further represent which was the very reason why the gold standard had to be removed simply to prevent a perpetual devaluation of the physical gold itself upon any further growth of our production period .
A gold standard not only resulted in a further adverse volumetric disposition on top of the already inherent volumetric fault of unwarranted interest, but the banks in the past under a gold standard were redeeming or stealing the principal & interest in physical gold, just like they do today, stealing principal & interest in fiat out of a general circulation that only ever consists of some remaining principal at most.
Real money respectively to any increase of circulation is a currency that equals our labour & production we give up & receive from each other without any adverse volumetric disposition or terminal exploitation by unjust intervention , what is real is what all money represents which is our labour & production , our hard earned blood sweat & tears we give up to each other.
John .F. Kennedy did not try to bring in a silver standard?
Actually JFK had no choice but to give the federal reserve bank more power to issue lower denomination notes, to eventually replace the silver coin because the silver reserve was devaluing due to its industrial demand & finite supply , what people parrot about JFK trying to bring in a silver standard is absolutely preposterous, unfounded & out right false , even JFK quoted himself :
“ I again urge a revision in our silver policy to reflect the status of silver as a metal for which there is an expanding industrial demand. Except for its use in coins, *silver serves no useful monetary function*. “
The reason the silver coin was removed eventually was because President Kennedy signed the bill HR 5389 into law on June 4, 1963 and also signed an executive order (11110) authorizing the Treasury Secretary to continue printing silver certificates during the * transition period * which repealed the Silver Purchase Act of 1934 & related laws, repealed a tax on silver transfers, & * authorized the Federal Reserve to issue one and two dollar bills * , in addition to the notes they were already issuing.
JFK had no choice, simply because of silvers built in finite volumetric improprieties, likewise gold , if JFK didn’t do what he did, it would of allowed the perpetual devaluation to persist on silver reserves upon further demand & production which it had to likewise represent in * equal volume * which is mathematically impossible , its either that or continue on with a monumental deflation on all property value upon further production .
A gold or silver standard has never worked & never will , however if we ever went back to a gold standard we would crash the economy literally over night & reduce everyone’s wealth down to diddly squat folks, its economic suicide & as you can see I have just demonstrated & proven a gold/ silver standard ,likewise imposed interest at any rate is as stupid as stupid gets.
Mike Montagne recommended broadcasts — founder, PEOPLE For Mathematically Perfected Economy™, author/engineer of mathematically perfected economy™ (1969)
20110611 mike montagne 027 griffin gop and paul all misleading us.
20110604 mike montagne 026 purported austrian economics.
20110917 mike montagne 041 von mises austrian economist robert murphy.
Downloads of these broadcasts can be found in: Audio archives .
Australia for Mathematically Perfected Economy™ 
“…there is clearly not enough gold out there to represent all our production or goods & services much less any increasing production…”
Why’s that? No matter how little gold there is, within reason, the value of the goods in the economy can be spread over the available gold. And if the stock of goods changes relative to the stock of gold, the prices of goods, as measured in gold, will fluctuate. That’s not a bad thing, it’s pretty much the whole point of pricing!
Your MPE scheme is just as arbitrary as the current fiat monetary fiasco. Under your scheme, government (you call it CMI, but government is the usual word to describe an elected body to administer public services) decides how much something is worth, and creates that amount of money to finance it. So if they wanted to build a motorway, they just wish the money into existence, and balance the books by saying the motorway is worth X and depreciates at rate Y. There is no limit to the amount they can wish into existence – who is going to argue?
The advantage of gold is that it can’t be wished into existence, no matter how powerful the government.
What I find distasteful about your MPE proposal is that you promote it simply by saying how deceitful banks are. No matter how bad our present system is, it doesn’t say *anything* about the validity of MPE.
Try explaining MPE without using the words like “obfuscate”, “purported”, “unexploited”, “alleged” etc. Explain how MPE works, not how the current monetary system doesn’t.
For example, under MPE, what if I have a hare-brained scheme to make clothing out of tiger’s eyelashes, or design a phone system that doesn’t need wires. What if the government thinks it won’t work? On what basis can I get the investment I want?
You write;
” No matter how little gold there is, within reason, the value of the goods in the economy can be spread over the available gold “ & this is perpetual deflation or perpetual devaluation of not only the gold but all our production we give up to each other, keeping in mind any price inflation caused by the very interest imposed on falsified debt is a theft of further principal value, paid into the coffers of thieving banks.
But you imply if the stock of goods changes relative to the stock of gold, the prices of goods, as measured in gold will fluctuate & rightly so ,but you only assume without proof or qualification this is not a bad thing when I have already proven & demonstrated any price fluctuation is primarily artificial due to a volumetric impropriety much like unwarranted interest imposed on a falsified debt while the true value is really being stolen by a bank X2 ,, right under your very nose mind you, indeed inflation & deflation on a whole today is the very evidence of a theft of circulation or purposed deceit by banks & political betrayers colluding to steal the true value of all our production ,if you & anyone with two brain cells to rub together was to actually read & think about what I have already written or read the entirety of this blog for that matter, including whats in the menu they can clearly see I have dismissed & disproved all your unqualified assumptions but you resort to circular reasoning now like all those who advocate their own exploitation assuming again without a shred of proof or rudimentary logic that the CMI or any government representative, public servant or otherwise, actually decides the consumption rate ,cost ,value or price of our production we give up to each other, its absurd to even suggest such a thing again after I have articulated this is not the case, it appears now your either testing my patience or playing me for a fool, or both .
You ask to explain how MPE works, not how the current monetary system doesn’t? On the contrary one has to logically first see how banks exploit the current monetary system to actually see the solution don’t they, I mean its rudimentary logic to first see the fault or root cause of problem so it can be then fixed, you could parable this lack of rudimentary logic to a broken down car & to suggest to me that its irrelevant whats wrong with the car just tell you how I’m going to fix it without using words that will pertain or even describe exactly how I will fix it?
May I suggest you see MPE for dummies in the menu & if you don’t like the words its because you haven’t the ability to use a dictionary, how hard can it be now really ? , words have meaning & these words are used on purpose in MPE to best describe context in which they are used, however I do try to make it as simple as I can in MPE for dummies but if I use the wrong words I may give the wrong message, or imply contradiction , its up to the individual to apply themselves here really.
As for your preposterous example pertaining tiger lashes & government deciding what you can or cant invest in MPE is nothing but utter nonsense because I have already proven the government representatives have no power to do this & there is nothing stopping you giving your earned savings away in MPE , its your loss & your loss alone ,however one cant issue a promissory obligation ( MONEY CREATION ) above the remaining consumption value of property which is a value we the people always decide on represented property either in the cost of production or upon the sale & likewise one cant issue a promissory obligation for absolutely nothing of value, keeping in mind if one pays above the remaining consumption from their own savings they take the risk on subsequent sale thereafter of not getting back what they gave away in the first place,, now is this a crime or not a true free market here ? of course not, therefore your arguments are flawed .
This type of circular nonsense or lack of rudimentary logic & intellectual reasoning coming not only from you but many others out there such as G.Edward Griffin for one is not new to me & from my experience I can only conclude its only the result of ones very own willful blind ignorance & pure desperation to deny what one cant prove or disprove isn’t it now ?
EG: What consideration of value a bank or mere publisher either risks or gives up in any purported loan to one of us?
Its we the people who hold all the purse strings in MPE BUDDY BOY because we the people give up the only consideration of value even when it comes to government spending on public infrastructure. You may want to study the amendment & to see this is fact in MPE & maybe then you can come back only after you have done your homework & importantly here, being totally honest with yourself as apposed to playing me for a fool with unqualified assumptions you can neither prove or demonstrate , now if your not capable of doing this & persist with your attack using mere unqualified assumptions I suggest you go elsewhere to advocate your very own exploitation .
“the U.S constitution artificially set or fixed the price of gold”
That statement in the article above, illustrates how you look at gold the wrong way up. When gold was set at $35/oz, it was actually the value of the dollar being set at just under a gram of gold. The dollar was supposed to be merely a *representation* of physical gold.
The failure of the “gold standard” in the 1930s to 1960s was that it was manipulated by governments. Had the supply of national currency been strictly coupled to the physical quantity of gold held by that government, that would have been a proper “gold standard”. And international exchange rates would then have reflected the productivity of each country through the buying power of their currency. But by increasing the supply of money, while keeping the price of money (in gold) fixed, they simply created unsustainable imbalances. The failure of that “gold standard” does not in any way suggest that a proper gold standard cannot work.
I find it amusing how you often say thing like, “represented property prices”, and “we give up & receive an equal representation of wealth to each other”, without saying what units that might be measured in, or in whose opinion those representations are true or equal. How do prices of different goods shift relative to each other? What if there’s a shortage of something?
Each individual in a free society puts a different value on different goods at different times. The principle of marginal utility (the most important concept in economics), underlies every trade we make, and is entirely subjective. Our currency is de facto the unit of measurement, but the more arbitrary the supply of currency is, the less meaningful it is to denominate value in terms of that currency.
However, having your Politburo (or CMI, as you call it) deciding what an asset is worth, over what lifetime, and approving an individual’s creditworthiness is not really to my taste… For reasons that are probably obvious.
Again your likewise not taking into account of the volumetric impropriety of gold itself where there is clearly not enough gold out there to represent all our production or goods & services much less any increasing production which will essentially result in three things here.
1) Artificially fix or increase the price of gold & all our production it has to likewise represent in dollars redeemable in gold ?.
2) Perpetually Devaluing the gold reserve & our production upon further of our production.
3) Interest imposed on any purported loan within a gold standard is essentially allowing banks to not only redeem or steal the principal & interest in physical gold but stealing /devaluing any further production at an even greater escalating rate.
You find it amusing when I write ” represented property value ” as apposed to price , which price today is primarily artificial on a whole only to steal further of our property & wealth? WELL maybe you will find the following paragraph(s) to your liking regarding your unqualified assumptions ;
It is true money today is just a volume of circulation that has volumetric improprieties without any banking representation as such, but every alleged debt today is collateralized to some degree is it not? well logic tells us if you foreclose on your mortgage the bank gets to keep the house do they not ?, so they the banks are pretending to redeem the property only as if they risked or gave up consideration of value that represents that house, do they not?, but it wasn’t their house to begin with, nor did they give up consideration of their own that represents the value of that house in any alleged loan to one of us, not even in their alleged creation of money, which is not only a monumental crime of theft here, because its we the people who give up the only consideration of value , but an inherent fault mind you ,which is a volume of circulation today that’s disproportionate or deficient in volume to the price or value of goods & services.
There’s no free lunch or unearned profits in MPE™, It is true one owes a true creditor ( someone who actually gives up property ) a like equal measure of ones own production over time for what production the true creditor gave up (EG: A house ) , however one is merely paying down out of circulation what one has paid in full to the true creditor from the outset of ones very own promissory obligation ( money creation ). No one is paying back as such because one merely pays with a like equal measure of ones own production for what one consumes of another’s production, which is rightfully retired, deleted, extinguished that guarantees the very integrity of the money circulating for its intended representation, which is most certainly not anyone’s to keep in fulfilling a promissory obligation, we give up & receive an equal representation of wealth to each other upon money creation, which also consists of the earned profit or entitlement from our labour & production we give up & receive from each other, without banks or government representatives intervening on our business & commerce stealing from us in the process.
Any further representation in MPE™ published from the outset of a promissory obligation on new represented property will always equal the former representation of one of our very own promissory obligations , money therefore, will be then our very protection that represents a true record of our exchange, so we categorically know we are giving up an equal representation of wealth to each other, that’s unexploited evidence, of our promissory obligations we have to each other, ( money creation ) , however if you want to give away your money, or labour & production, you cant issue a promissory obligation representing nothing of value in doing so, rather if you want to give away money, it has to come out of your earned savings or your own pocket thus it will be your loss & your loss alone, so buyer beware still applies in MPE.
Please let me be clear the obligatory schedule is a mathematical formula that proves it commits no crimes against us nothing more, where in fact the obligatory schedule, if one cares to even look at it proves to us all with logic & elementary 2nd grade math alone No one decides the value of property or our * labour & production * except WE THE PEOPLE because its we the people who takes all the risk & creates all wealth from the ground floor up , NOT the CMI , NOT any bureaucrat or government regulation & most certainly NOT any thieving bank who merely pretends to loan us money, artificially inflating prices by unwarranted interest essentially stealing true value we give up to each other , the CMI again does not determine original or subsequent value of the related property, the builder , producer determines value; “buyer + seller”, based upon materials, quality, workmanship etc, which may include any subsequent additional value attributed to the related property, before a proprietary determinate life span can be applied or reapplied by the CMI.
Here is the example again:
If I built a brand new house from the ground up at a cost of $70,000 in a Mathematically Perfected Economy™ with an estimated lifespan of 100 years ( which is no different to what current insurance companies do today estimating the price of anything really, only exception is when we actually look at MPEs obligatory schedule of payment we clearly see all property we consume, even a house depreciates at a rate we consume it much like everything else we consume just like today ) & I then decide to sell that brand new house for $100,000 consequently then that $30,000 excess on top of my cost is my * Earned Profit * which is * GREATER VALUE * that is most certainly NOT INTEREST but * Earned Profit * as a result where I gave up my labour /work & time to produce that house & what some one pays me for that house ( principal only ) by issuing a $100,000 promissory obligation ( money creation ) thus issuing 100,000 UNEXPLOITED DOLLARS into circulation upon the sale indirectly or directly is always an EQUAL representation of wealth we give up to each other, not that we give up to any publisher of money OR thieving bank who merely pretends to loan us money risking nothing of their own . Now on the other hand If I live in that house & neglect that house over a 20 year period of consumption then deciding to sell that house a respective buyer can then negotiate a price with me, if that buyer is smart they will see the neglect & offer me $70.000 instead of $80,000, & if I agree the house is refinanced by the CMI at $70,000 . Another likely scenario therefore if I add a NEW room on that house after 20 years of consumption, I may negotiate a value of $90,000 with a respective buyer & if the buyer agrees the house is refinanced by the CMI at $90,000, likewise if I add a second floor to my house I can even negotiate a value of $180,000 that’s indeed above any prior value, where its clearly ALWAYS WE THE PEOPLE WHO DECIDE THE VALUE OR THE RATE OF DEPRECIATION OR CONSUMPTION from the ground floor up when we produce anything in MPE™ really, in what will be a TRUE free enterprise market free of exploitation.
I think your argument is flawed. “$9.2 trillion in current gold world wide = $198 trillion in world assets”, here you should be looking at only liquid currency assets as the gold standard is designed only to replace those. Secondly the reason the value of gold is less than the liquid currency assets is due to it being severely undervalued. If every country adopted the standard demand for gold would rise and the price would significantly increase so as to equal the value of the liquid currency assets it was replacing.
Hi Christian
The 9.2 trillion is an estimate of gold value for that time that has to logically represent 198 trillion in world assets , which is not the case at all , so you have neither proved or qualified this blog post is flawed because the 198 trillion includes liquid assets, which logically any volume of currency has to further represent in liquidity?
All new money created is issued into circulation upon a sale when one of us only allegedly borrows a sum of principal from a bank, now logically the 198 trillion reflects this sum purportedly borrowed into circulation to produce these assets however this figure is subject to artificial inflation but nevertheless gives us an indication that even today there is clearly an insufficient volume of gold out there to represent all our production or the cost of all goods & services regardless of the banks purposed obfuscation of our promissory obligations.
Secondly your assumption pertaining to a fact the value of gold is less than the liquid currency assets due to being severely undervalued is because the past gold reserves were being severely devalued ( not undervalued ) upon any further of our production that a reserve of gold would have to logically represent, which has to likewise represent all our production that clearly exceeds the value of any finite gold reserve past & present & if we ever did go back to a gold standard contrary to your unqualified assumption it would in effect be decreasing ( not increasing ) the value of the gold reserves upon any further of our production that it logically has to further represent, which would in effect be perpetually devaluing all our production we give up to each other equal to the finite gold reserves as we increase our production over & above the value of those reserves, which this blog post clearly proves & demonstrates if you haven’t read its entirety already?
Now to merely assume without any proof or qualification a return to a gold standard would raise the value of a gold reserve is preposterous & absurd because your clearly not taking into account of the volumetric impropriety of the gold itself which cant possibly represent or even keep up in volume with all our current production or any further production we give up to each other, & secondly your not taking into account of the other volumetric impropriety caused by unwarranted interest imposed on all our falsified debts to all the local banks, which has allowed the banks in the past under any precious metal standard to not only steal all our production like today but to actually steal the physical gold itself by merely pretending to loan its value as this blog post clearly proves & demonstrates also.
Again this blog post has already proven your incorrect in your assumptions & proves a gold standard is a stupid as stupid gets & to return to any gold standard subject to unwarranted interest on a falsified debt is not only beyond stupidity its bordering on paranoid delusions of schizophrenia really.
In all seriousness how on earth can one actually think perpetual decreasing volumes of circulation ” per representation ” means an increasing value of the remaining volume of circulation whether that circulation is gold or fiat its beyond all rational reasoning to suggest such a thing but here is your testament to this lie ,,which amounts to suggesting a grain of gold the size of a grain of sand can perpetually increase in value as its perpetually decreasing in size, dividing that grain of gold essentially devaluing every division thereafter indefinitely as we perpetually increase our production to each other ? & this can somehow artificially inflate the price of the gold & our production ? but NOT its true value as I have clearly proven is the case here on this blog post, which not only applies to a theft of the physical gold in the past but likewise applies to a theft of fiat & what it represents today by the volumetric disposition of unwarranted interest on a falsified debt giving us the same result?
The Austrian economists are renowned for pushing this lie of economy in an attempt to preserve banking exploitation by assuming with out a shred of proof that any preexisting volume of circulation whether its fiat or gold can magically increase in value by increasing our labor which may cover the added cost of interest we may pay out of circulation on top of the principal without an increase in the overall volume of circulation above the sum of principal mind you? which is at the end of the day not only an epic failure of rudimentary logic & 2nd grade mathematics its likewise beyond all rational intellectual reasoning.
So are you willing to work for nothing or less if there is a insufficient volume of circulation under any gold standard ignorantly believing that devaluing dollar will buy more YES ?, most of us are already doing this today under the fiat system ignorantly believing that rising prices means rising value which is not the case at all because we have always been suffering from circulatory deflation caused by the unwarranted interest we all pay on our falsified debts, where price inflation is almost entirely artificial caused by the very interest all industry & commerce pays to thieving banks, which is logically an added cost passed onto the consumer in the price of goods & services , while the true value of our production or the money it further represents whether its fiat, gold or whatever is really stolen by thieving banks regardless & you can times that theft of principal value X2, because of unwarranted interest stolen then out of a pool of wealth that the Austrians mind you likewise advocate at even elevated rates of interest on a falsified debt .
Another lie the Austrian economists are renowned for, even by today’s alleged economists is the assumption that circulatory inflation can exist or has existed above the cost of all goods & services which is not the case at all, it never has in the history of banking, its mathematically impossible for circulatory inflation or even hyperinflation to exist so long as we are all paying principal + interest out of a volume of circulation that only ever consists of some remaining principal at most , unless of course you can prove & demonstrate how a sum of interest is created & issued into circulation above any sum of principal, which I categorically know you cant, not even under any gold standard which would make this volumetric disposition even worse, which is the very reason why they removed the gold standard in order to continue the dispossession of all our wealth not just the gold.
Most pretenders look at the irreversible sums of artificial debt or national debt & merely assume this sum has been created out of thin air which is not the case at all simply because this figure is a multiplication of artificial debt to perpetually re-inflate circulation over & over as we the people perpetually pay it out of circulation over & over on our very own falsified debts to local banks, so the remaining volume of principal in circulation even upon perpetual re-inflation is never increasing above the cost of goods & services or above the sum of principal we create to begin with , actually its the opposite where we have always suffered from circulatory deflation due to the unwarranted interest we all pay out of circulation upon all our personal but private falsified debts to all the local banks.
Its we the people who create & give value to all new money by issuing a promissory obligation only ever issuing a sum of principal into circulation from the outset of our promissory obligation regardless of the banks purposed misrepresentation of our contracts, which have the only consideration of value given up by the people NOT by any thieving bank or mere publisher public or private , we were doing it long before banks ever came into existence actually, long before any failed gold standard.
The imposition of currencies linked to commodities, such as gold and silver, was born out of a purposed exploitation of our universal right to issue promissory obligations to actual creditors who give up property where there were no loans, no borrowing & as result there was likewise no interest. ( see the origin of money )
Christian wrote:
I think your argument is flawed. “$9.2 trillion in current gold world wide = $198 trillion in world assets”, here you should be looking at only liquid currency assets as the gold standard is designed only to replace those.
—
Why your assertions are absolutely wrong:
1. The ramifications of whatever someone claims [whatever volume of…] “gold” “is designed” to do are *never* limited to “the design” *unless the design itself succeeds in limiting its ramifications to intended effects. Even your own testimony (claiming gold is somehow “undervalued”) indicates a failure to secure *any* ostensible object of sustained commerce *or value*.
No one can rightly claim that whatever we should examine should be limited to claimed means and objects which in fact have never been secured by what is merely a claimed means to sustain value in a volume of currency which is never even consistent with the volume of value it purports to sustain.
Thus indeed, the whole issue here is that “economics” *itself* is entirely bereft of formal proof or theorem:
THEREFORE THERE IS no bona-fide leg to stand on, to claim we should hold the failure of the gold standard (to accomplish *any* legitimate monetary object) to what the ostensible *design* of “the gold standard is.” Note in fact that not even the authors of the Constitution *EVER QUALIFIED OR PROVED* how fixing the value of gold in dollars *EVER FIXED THE VALUE OF THE DOLLAR IN TERMS OF WORTH — FOR ALL THE OTHER THINGS THE DOLLAR ***NEEDS*** TO BE SPENT ON*.
THIS OF COURSE IS THE VERY REASON THE “STANDARD” FAILS TO FIX THE VALUE OF THE DOLLAR *TO ANYTHING BUT GOLD* — BECAUSE ALL OTHER COSTS ARE FREE TO FLUCTUATE — NOT ONLY AS THEY “MIGHT,” BUT *AS THEY MUST AND WILL*.
THE VERY REASONS THE *SPENDABLE* VALUE OF “THE DOLLAR” ***WILL*** FLUCTUATE AGAINST A DISPARATE AND VACILLATING VOLUME *OF ALL OTHER THINGS* UNDER A “GOLD STANDARD”, IS THAT WHAT *CAN* BE SPENT:
a) IS LIMITED TO THE VOLUME OF GOLD (IN “DOLLARS”); and,
b) THAT THE VOLUME AND VALUE OF ALL THESE OTHER THINGS *THEREFORE COMPETES* ***FOR A NON-EQUIVALENT CIRCULATION***.
In fact, this disparity will itself force us “to borrow” (under a universal denial of our right to issue unexploited promissory obligations)!
2. But the reason for our very experience of the inevitably inconsistent, contradictory consequences then… is the very limitations we both see and understand if and only if we correctly examine the simple, elementary math imposed by a wholly artificial and unnecessary disparity between circulation and represented (or REPRESENTABLE) value — as is thus imposed by *ANY* purported standard in which the volume of circulation is never equal (and sufficient to sustain) either consistent value in all the other (further!) objects/production of commerce, nor sufficient to fulfill natural obligations rising in commerce (promissory obligations or contracts — which are inevitably introduced as the only justifiable means of increasing a circulation where the volume of money [representations of entitlement] is insufficient).
ANY legitimate analysis therefore has to get this math right; and as there is but one mathematical pattern to the issue (producing consistent volumes of money, as necessary to represent *whatever* vacillating volume of entitlement), so there is both one proper analysis (one proper identification of all irregularities, if any), and one veritable solution (if any injustice, deficiency, or failure to secure ostensibly intended [or obligatory] objects does indeed exist):
3. Christian wrote:
Secondly the reason the value of gold is less than the liquid currency assets is due to it being severely undervalued.
—
This likewise is just a claim — if not the hope of every “gold bug” whose objects thus preclude our vital achievement of monetary justice:
First of all, what gives *anything* any value, but what we do to produce it?
Secondly, if the value of the work of two different people is equal, then the volume of the result of their production has equal value; and if the value of their work is disparate then, thus the diminished value of the work of one is related to its proportion of a like value or volume of production.
The proper “value of gold” therefore is never rightly expressed as “the value of gold” — which, owing to every insistence we instead refrain from monetary justice, has never been consistent in all history!
On the contrary — as is the case for *all production* — the rightful value of the result of production renders a proper reward for the work of producing it.
The ostensible “value of gold” therefore is on the contrary, the value of the work of producing gold (which even varies according to conditions).
This being established by all history (however much or little you truly appreciate the only, restrictive factors which determine consistent “value” in truly fair, just, and free trade), nonetheless the present value of gold has precipitated in a virtual gold rush which could never be sustained if “the value of gold” (the value of the work of producing gold) were insufficient to sustain the work of producing gold.
In truly free markets, are we ever agreeable to disparate “value” (cost) imposed upon like volumes of work?
Never. Our whole idea of just trade is based on like value.
The only reason to assert otherwise is your hope for unearned gain — which can only come at the expense of fair trade and consistent value — which is the very object you only claim to pursue.
But your very statement raises this inconsistency in a purported “value of gold,” only ostensibly sustaining *other* “values” beyond its reach to sustain — as proven in all history. You do not argue for the fair value of the work of producing gold (which generally predicates not only our concept of proper wages, but of proper “value” *in all our trade*!). On the contrary, you argue for an unwarranted increase in “value,” which would deliver utterly unearned profit to mere holders of gold.
As much as this can only come at the expense of fair trade, just reward (for the relative value of the money and property of the gold producer is instead reduced)… your unwarranted and unqualified appeal *denies us monetary justice*.
4. Moreover, you contradict yourself in the very entirety of these assertions, for IF THE “STANDARD” WERE INDEED RE-ADOPTED (as you admonish without qualification), THEN *THE* ***PRICE*** OF GOLD (AS OPPOSED *TO VALUE*) WOULD INSTEAD BE FIXED!
But you say:
If every country adopted the standard, demand for gold would rise, and the price would significantly increase so as to equal the value of the liquid currency assets it was replacing.
In further words Christian, the very process of competition for a disparate circulation which you confess *would* artificially drive up *the price* of gold (as opposed to its value) IF THE “STANDARD” WERE ONLY REVISED AND REVISED AGAIN, is the very thing you hold the gold standard to eradicate.
Yes, the very process by which you hope to make a killing at our expense is indeed a force under the present obfuscation of our currency — *because* the obfuscation precludes a representative circulation as would dissolve any disparity or competition as artificially and perpetually drives prices hither and thither *for the lack of a consistent circulation*.
Yet you advocate the gold standard to escalate the *price* of gold — whereas on the contrary, the standard instead fixes the price — instead preventing you from what you evidently desire at our expense.
What we can all see then, is that what you really want is perpetual revision of “a” standard by which you and a few others would take a pittance of further unearned profit at every expense commensurable in a dramatically constricted circulation. All this mere double-speak then too, is only as if we could service all that we must and can’t already, under the perpetual escalation of falsified debt everywhere around you — and this perpetually revised gold “standard”… would it alleviate any implicit obligation to sustain a vital circulation by a perpetual escalation of purported borrowing?
Of course not. So not only does your admission confess utter failure of the gold standard *to maintain* “the value” (price) of gold (or anything else), NEITHER DOES YOUR PROPOSED REVISION OF THE GOLD STANDARD SOLVE ANYTHING ELSE!
Worse, ignorance of your double-speak only condemns us to suffer a further escalation of falsified debt, BECAUSE YOU WANT TO TAKE YOUR PITTANCE!
Just because some ever-subversive few of us hold gold — hoping (instead of “a standard”) for the price of a dollar to rise and its worth to plummet — would it be possible/practical under the “standard” you only hope to destroy, to maintain a vital circulation without borrowing principal and interest back into circulation — without re-borrowed principal sustaining every prior sum of falsified debt, and without re-borrowed interest therefore increasing every prior sum of falsified debt by so much as periodic interest on an ever greater sum of falsified debt… until we succumb to the very conditions manifesting everywhere around us?
A gold standard just fixes all that, just because you and every other gold bug says so?
Meanwhile, in standing for your pittance then, what do you cost the world in further multiplication of falsified debt?