Posted by: graemebird | January 20, 2008

The Death Trap We Have Created For Ourselves: RON PAUL MUST WIN.

This is of course an Australian blog.  But I must urge any Australians to use whatever psychic powers they have to try and influence the American primaries in favour of Ron Paul.

Its true that a Ron Paul Presidency will mean more troubles for the world in the decade after he steps into the oval office. But it will be an essential adaptation and consolidation period for the maintenance of humane society in the 21st century.

 Here’s one reason why. 

From Catallaxy: 

“That’s not a bad point, actually. I hadn’t thought about it that way before – can you develop this idea a bit more, as it’s the first time I’ve heard anyone make that link.”

People have linked inflation in history to growing violence both domestic and international.

Niall Ferguson did a bit of a taxonomy on Genocide and one of the four conditions he came up with is a destruction of money.

Think of when the cyclones hit New Orleans. The electricity down and no cash in the banks due to fractional reserve. People get stranded.

Or after that other storm in Innisfail. The banks money is pyramided money. No cash after the storm so people are helpless.

Look at what we did to Africa after Bretton Woods or in fact in the entire twentieth century.

Paper money. Imagine an attack by China on the Australian mainland in ten years time if they occupied Perth, Australia and Melbourne.

On the one hand the cash would dissapear since the banks have next to no real cash. So we’d be paralysed.

On the other hand since its worthless paper in the first place, and since we are a debtor nation it would be just at this time, when we needed a strong money most, that the value of the AUD would crash.

Now contrast this with 100% backed gold. Each of us would know that the others might fight since they would be fighting over their own gold in tough times when its hard to make ends meet.

Some of the gold would immediately go out of circulation as mining was disrupted, and as people dug a hole for it out on the farm.

But in fact the international price of Gold and silver would likely increase.

And at least it would stay strong enough for people to get a gun and some bullets and high-tail it to the countryside.

It would at least enable us to operate like people operated in the old days in troubled times.

But the modern banking system under attack would turn the place into a place that just didn’t function at all. No cash locally, but despite that the value of the cash worth almost nothing internationally. The system would break down just like it did wherever they’ve tried to impose socialism. I don’t think one person in a million has come to grips with the death trap we’ve created for ourselves.

I started thinking about it when talking to people in Louisiana University and the combination of anti-price-gouging sentiment and a whole string of laws of this sort that weren’t usually in effect in the normal range of prices…..

….combined with the dissapearance of cash when the power was down…

Well it turned the area into a sort of peoples republic of Soviet-style dyfunction. No fucker could do a damn thing.

And then that got me thinking about how things happen in Africa. Surely with enough strife their currencies just collapse and now the mob rampages and steals what it needs while the people being attacked don’t even have the gold and silver coins to get themselves a gun.

So there they are being hacked to death with machetes with the mob saving on bullets.

So hence with Ron Paul pulling back the bases we really want all this gold and silver coins getting about the place and if we are not ready to get rid of our fiat print some more of it and at least get rid of the fractional reserve component of it.

Because we don’t want anything to dissapear when the bombs hit the local power stations. And we want our banks to piece up for robbers and so forth.

And generally speaking we want people to be empowered to fight or flee under their own steam with their own silver coins and not get hacked to death by Machetes BY MACHETES because of the complete inability to make vital preparations.

Gold keeps its value because of the world economy and is not compromised by local strife.

This whole paper money fiasco is a hidden cause of the slaughter of the twentieth century and I’d want that gold and silver to be out there as the bases are being wound up and there is just no economic reason or need for this stupid fractional reserve that costs us so much and is a standing hazard for people everywhere.

We are used to thinking of Australia as a tough stoic place under fire. But any place with paper money is a paper tiger once its trade is cut off.

We are a sitting duck in a multitude of ways and the terrible secret is, under current arrangements, we wouldn’t even put up a viable insurgency.

There’s been many dozens of reasons given for the fall of Rome.

But we ought to look into the possibility of this fractional reserve being the hidden reason.

This is something that might have gone unnoticed as to an explanation.

When the Hun sacked Rome they weren’t trying to destroy the Empire so much as take it over.

But fractional reserve is such a hidden liability that we would have to do new research to see how much of a part it played.

Many hundreds of years prior Hannibal rampaged around the land area stomping everyone. Sometimes coming close to the walls of the city.

But if you don’t have fractional reserve this sort of thing doesn’t necessarily lead to a breakdown where for an extended period almost nothing can get done.

And the same would go here. If we had 100% backed gold and silver, or even 100% backed fiat with SOME gold and silver………. a foreign power could capture the Northern territory and the mining towns and the rest of the country run like a well-oiled machine such that they would have to fight tooth and nail, town by town, to make any more progress, and the economy down South expanding under the pressure of the crisis.

But if the deal goes down under fractional reserve fiat and we are paralysed and demoralised then thats the end of it right there.

And few people will realise what really happened and why we gave it all up without much of a fight.

We will blame ourselves for our sudden inability to do anything, go anywhere, buy anything, arm ourselves and volunteer to fight or to pay extra funds for those willing to fight.

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Responses

  1. Old-fashioned I may be but unless a currency has the backing of a hefty amount physical goodies such as gold AND similar compact movable material [tin? silver? palladium? rhodium? cobalt? titanium? tantalum? mercury? Sidney Nolan paintings?] in excess of that needed for industrial, medical and scientific [but not ornamental] purposes — then I regard it as play money. Naturally, the more play-money I have the happier I will be [just try me. When currencies everywhere lost the words ” …. [issuing organization or polity] promises to pay the bearer on demand, [whatever the amount in hard coin of the realm or whatever] ….” then they made themselves vulnerable to every breeze blowing through the world of finance.

    Going back to the bad old days of the “gold standard” would do us no good now – but neither has our excursion into the perilous, destructive dead-end of virtual shin-plasters and instant kite-flying. Time for a fresh approach to the whole concept of money – only this time let’s have a currency backed up with more than fresh air and sunshine.

  2. Just on that last sentence of yours. Unless you are damned lucky or a modern-day messiah or unless the enemy are just about to murder your granny, rape your pet dog and burn your mansion down, you are going to need a hell of a lot of money to defend yourself and make the enemy wish they had never been born.

    More money, more soldiers — and conversely “No pay. No Swiss” (That is, no Swiss mercenary soldiers fighting on your side.) The English soldiers who slaughtered the French in the Battle of Agincourt were being paid Six Pence each day. Back in the early 15th century, with that sort of pay on offer, half the able-bodied men in England would want to swim the English Channel just so to get into the fighting.


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