GLOBAL GOLD: “You made some interesting suggestions in an article a few years back on European currencies. Europe is sinking in a massive debt crisis involving Greece but also several other more important countries. In your opinion, is there a way out from the quagmire?”
AF: “I am a firm believer that there is. All the banks in Europe have to be recapitalized on a gold basis. Bank capital in the form of irredeemable bonds is quicksand on which it is impossible to build a sound financial system.”
GLOBAL GOLD: “On the other end of the world, Russia, China, and India are amassing great amounts of physical gold. Do you think that they are heading towards a gold standard?”
AF: “No, I don’t think so. The gold standard to them is the same as holy water is to the devil. The governments of these counties are out and out socialist. Socialists do not believe in the gold standard because a true gold standard imposes the obligation on banks and governments to meet their liabilities by paying out gold. The gold standard is a thoroughly decentralized system, the very antithesis of central planning.”My view:
“It delegates power to ordinary people who can successfully veto wasteful government welfare/warfare spending, as well as any unjustified relaxation of bank credit across the board by withdrawing gold coins against bank notes and bank deposits. Russia, China and India use gold for propaganda purposes that have nothing to do with sound money. The hints they drop about gold are disingenuous, and therefore we should question their motivation to accumulate more gold. It’s as Virgil said: “Timeo Danaos et dona ferentes” or ‘beware of the Greeks bearing gifts’”
All governments in western society, have to varying degrees, deceived the populace into believing they will provide for their every need.
This propaganda promotes the myth of perpetual infancy where individuals do not need to provide for themselves.
Government pensions, "free" healthcare and other services are included.
In the end, the debt run up to fund this fantasy will overwhelm our ability to pay.
Once the collapse comes, then the reset can begin built on a solid foundation.
Big government is not our friend. It uses us to serve its own purposes and perpetuates itself through new laws and surveillance of our every move. We can only welcome and work towards its end.