Why the BEAD Standard is NOT Antiquated

My blog buddy Jared proposed that we debate the gold standard in the below post.

Why the Gold Standard is Antiquated « Opportunity Knocks My Head.

Jared, you ignorant slut… haha.

So, let’s get away from gold for a moment and talk about money. What is it? Well, it is an agreed upon measure of value. Ultimately, the wealth we create or hold is actually in terms of value, which is a subjective measure. There is no way for me to understand the value you might place on an object, as your measure could be both emotional and physical. So, if we are to trade values, what means should we use for trade? What is the vehicle which allows us to both abstract our personal values and come up with an objective metric for the “worldly worth” of said object? MONEY !!!

Now, whether we base our money on shells, beads, dung beatles, or gold, the actual money is unimportant. It is only a matter of providing a standard for trade. The only importance is that the money is accepted as legitimate currency by the people with whom you want to trade. This allows you to purchase beer from folks who have beer, but don’t need any of your, umm… let’s say monk fish liver. You sell the monk fish liver to folks who want that, they give you beads, you purchase beer with beads. This makes sense, right?

If all that is so simple, what is the big deal with the GOLD standard. What does it mean? Well, it means more than… well, more than gold. See, what happened is that gold got heavy. (Duh!!! It’s like LEAD, man). And, not everyone wanted to have their own vault and security force, so some entrepreneurs came up with this brilliant idea. “I’ll store your gold, and issue you paper certificates (i.e. certified to be real) in the form of the gold so you don’t have to carry that stuff around. In turn, I will keep a small portion of the gold for my services. Also, if you choose, I can attempt to invest a portion of your gold and we can make some more gold together.” Again, simple enough. So, where did this change and why?

POWERFUL BANKERS. See, in about 1913, a bunch of really haughty mf..ers. led by Senator Aldrich got on a train in the middle of the night and headed to an island off Georgia (Jekyll Island). While there, they wrote a bill creating the biggest fraud in history. They, being concerned that their banking interests were being destroyed by all the freedom and wealth being generated by the industrial revolution, colluded to create a banking cartel known as the Federal Reserve. The purpose of the FED, is to use the power of the US federal government to enforce and ensure the longevity of these banks’ revenue stream. OK… a little side-track..sorry…back to the gold.

FIAT MONEY was created sometime shortly after this. What is the difference between gold backed money and FIAT money? “…in god we trust…” There is nothing backing the FIAT money, except debt. On purpose, they created and fed this bullshit to the American people. The basic premise is that some dork in the government has the ability to understand all the parameters within the market, and thereby predict the future. With this capability, the money supply can be controlled, through the sale of debt instruments, in order to “SMOOTH” out economic cycles. Well, I’m calling fault. Do any of you believe that?

So, to get back to it again: Should we have a GOLD standard? Well, I don’t know it should be gold, but we should certainly not have a debt standard. Returning to a banking system based on wealth is the goal. We absolutely should not base our monetary system on debt, nor should we trust in a god. We should define an objective standard for the basis of trade and return to a demand vs. risk deposit banking system.

I just realized I could rant on this all day. There is so much to say. I think Jared and I need to set up some rules of content before we get too much further, but…this is a really good start.

If you want to read more about this, I would suggest “The Creature From Jekyll Island” by G. Edward Griffin.

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