Value for Value
My friend Hugo Salinas Price wrote a short post that I agree with.
Please consider A World that Operates by Cheating Is Doomed
In ages past, gold and silver provided humanity with a system of economic co-operation among productive humans, which was fair to all participants.
With gold and silver, humans were trading value-for-value: what changed hands were amounts of physical gold or silver, or at least, Bills which were unquestioned claims upon gold or silver.
When the exchange had taken place, everyone was happy! The seller because he had gold or silver, in exchange for the goods or services he offered; and the buyer was pleased because he had the goods or services he wanted, and he got them by tendering gold or silver in exchange.
So, everyone was pleased: the buyer because he got the goods or services he wanted, in exchange for his gold or silver; and the seller was pleased because he traded the goods or services he had to offer, tor gold or silver.
Under the present monetary system, there can be no justice or "fair trading", because all the World's MONEY IS FAKE MONEY. No money in today's world is gold or silver, nor does it represent an unquestioned claim upon a stated amount of gold or silver.
And a gigantic shooting war will mark the end of our times, as a result of the cheating involved - all because fake money was forced upon humanity.
No Consequences, Yet
Except in isolated hyperinflation cases, governments have learned there are no consequences to the ruling class (at least yet) for unsound money.
Never ending wars are one result. Look at Afghanistan. If people had to pay for wars with real money, their own, they would revolt.
On an ongoing basis, Democrats want unlimited social spending and Republicans want endless military spending. The compromise is both sides mostly get their way and the value of the dollar sinks.
It's all phony money so there are few practical constraints.
Meanwhile, the rich get richer and the middle class shrinks but the reason isn't obvious. The media blames Google, Microsoft, and Amazon instead of unsound money, the Fed, and Congress.
The dollar would collapse except for the simple fact the EU, Japan, and China are all doing similar things to varying degrees.
So we plod along, war after war, with some of them never ending as debt piles up so high that no one can even comprehend the numbers involved.
This will end in a currency crisis of some sort perhaps in conjunction with the shooting war Hugo envisions.
I am not suggesting the end is near. How long the shrinking middle class will put up with this is a mystery.
But when the currency crisis does arrive, expect this global cry: No one could possibly have seen it coming.