Douglas V. Gnazzo writes:
Since 1913, the U.S. dollar bill has lost 95% of its purchasing power due to excessive money and credit creation by the Federal Reserve. This loss of purchasing power is a loss of wealth; it is the reason why the U.S. has gone from being the largest creditor nation on earth to the largest debtor nation on earth.
This is the reason why it now takes two working incomes to support most families – one is no longer enough. This is why the U.S. savings rate is at historical lows. This is why health care, insurance, and college tuition bills have gone through the roof. This is why the price of oil is so high. And on and on the list continues – like a recurring nightmare.
An economy, financial system, or monetary policy is only as strong as the underlying monetary unit that is the basis of all markets. If the foundation is rotten, the edifice built upon it is rotten. It is merely physics on an economical level.
Paper money is debt; and one cannot pay off debt with debt. Debt can only discharge debt – not pay it off. Discharging debt is much the same as a bookie laying off risk – to another, any other, as long as it is no longer his risk.
Gold is no one’s debt; it is no one’s obligation, it carries no risk. Gold has been accepted by man as payment of debt since time immemorial, as gold cannot be controlled and printed or spoken into existence, as can paper money.
Paper money is a whore – an abomination that transfers wealth from the many to the few. This is why they who control the money power do not like gold, as gold does not bend to their ways – gold stands strong against the control of man, against excessive money creation and debasement that destroys purchasing power – that comes like a thief in the night.