The pound is now worth around $2.10 US, which has some advantages: I know someone who's just had two nice holidays in America this year - to Disneyland and Las Vegas. Anyone who's inclined to sniff should remember that these places, unlike so many in Europe, try really hard to make it fun for you to spend your money.
But why doesn't the pound buy even more dollars? After all, look how gold has soared against the buck. The answer is that most currencies are competing in a devaluation race, as Chris Puplava shows here. The UK is ramping up its money supply at a similar rate to the USA's, but we don't hear so much about it on this side of the water - I think middle-income Americans are generally more clued-up on finance and... is it fair to suggest that they're more patriotic?
For a long time, we've been buying from poor people around the world. They've been storing up the money - you do, when you know how hard you've worked for it and don't want your children to go back to the fields - and now they're not quite so poor. Unemployment is on the rise here, but our trading partners aren't going to pay the Social Security bill for us.
So it's more taxes, or printing more money. The difference between taxation and inflation is the difference between robbery and theft. Theft is less confrontational.
Ron Paul was talking about digital gold currencies five years ago - now watch for the progress of the gold dinar.
4 comments:
Love that 'gold dinar' link !!
quite an eye-opener
Usury was illegal in Christendom once, and in France up to the 1789 Revolution
And ethical/religious standpoints aside, I can't find a rebuttal to the technical argument that charging interest means the money supply MUST inflate by at least the amount of interest charged.
But if one party charges interest, the other party pays it.
... so either banks will end up with all the money in the world, or must create more money ex nihilo to pay their charges...
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