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If you are clearly watching, listening and paying attention to what is going on around you, and not what the press ‘conjures up’ and the political apparatus ‘spins’, then the following lessons, in the following sequence, should resonate with you. [Unfortunately, however,] the captains of world monetary policy have not and, as such, they have put the world on a course that history has warned us against [and we will eventually pay the price of their ignorance and ineptitude. Take a look. These words of wisdom (lessons) are as timely today as when first spoken/written.] Words: 865
So writes Gordon T. Long (www.GordonTLong.com) in an edited excerpt from his original article* entitled 2012 Calm Before Stock Market Storm 2013.
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Long goes on to say in further edited excerpts:
“Red Sky at Night, Sailors Delight, Red Sky in the Morning, Sailors take Warning!”
We have a new era dawning in global monetary policy. It is a new day with the monetary skies already red. Within [the last] 90 days the untested and newly commissioned captains of monetary policy, with PhD’s from the finest economic schools, have steered the world into uncharted waters….They clearly have not studied nor grasped the key lessons of history and, as such, have put the world on a course that history warns us against.
Old Lesson Being Relearned
1.The Importance of Living Within Our Means
2. The Understanding of the Critical Importance of Sound Money
“It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically, it belongs in the same class with political constitutions and bills of rights.” The Theory of Money and Credit (1912), Austrian economist Ludwig von Mises
3. The Maintenance of Money as aStore of Value
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered….The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” Thomas Jefferson
4. Being Aware of the Moral Decay that Begins to Happen…
“When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it.” Frederic Bastiat
5. Knowing the Unavoidable Conclusions it Leads To
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” Ludwig von Mises
6. Remembering the Central Lessons of History
a) The Problem isWithin Our Own Society
“A great civilization is not conquered from without, until it has destroyed itself from within. The essential causes of Rome’s decline lay in her people, her morals, her class struggle, her failing trade, her bureaucratic despotism, her stifling taxes, her consuming wars.” Will Durant, The Story Of Civilization III, Epilogue, 1944
b) The Problem is a System of Ineptness
“A system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing numbers of producers”. Unknown
Conclusion: An Inevitable Monetary Malpractice Roadmap
Not having learned the above lessons, our monetary captains have set us on a course of monetary malpractice that leads to:
Increasing authoritarian control and central planning,
Crony capitalism, which increasingly feeds off an ever- expanding state, while stifling open competitive innovation,
Financial repression, moral hazard, unintended consequences and dysfunctional markets, and
Statism bred through the forces of collectivism and complexity.
Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
To any sane person who has a grasp of what is presently occurring, it is obvious that the current state of affairs is unsustainable. The question is how long can the monetary captains’ misguided policies keep us off the shoals of our economic destruction. How long can policies of “extend and pretend”, “kick the can down the road” or “fake it until you make it” continue? The answer is unknowable but…when something is UNSUSTAINABLE it is INEVITABLE that it will END. TIME is the only unknown. The certainty of it ending BADLY is not. Words: 1265; Charts: 6
Those dependent on the welfare state are unaware that their benefits are not sustainable. Most believe tomorrow will be like today and the checks will keep coming from Mother Government. Political power was gained based on promising these benefits. No politician will risk his position by trying to reduce them. No democratic society has ever rolled them back via peaceful political means. [At worst,] the economy and society could end up in ashes [and, at best,] the world is in for a long period of stagnation, retrogression and conflict. [Let me explain more fully.] Words: 1115
The level of debt has surpassed the possibilities of being serviced. Mathematically, the debt problem cannot be solved, regardless of economic policies. That, unfortunately, is written. For it to be serviceable would be to violate the laws of mathematics and that cannot happen. [As such, America is quickly approaching a catastrophic economic collapse. As repelling as that sounds, it’s in your own best interest to learn just how bad the situation is. This article is an attempt to do just that.] Words: 310
I keep wondering to myself, do our money-printing central banks and their cheerleaders understand the full consequences of the monetary debasement they continue to engineer? [Below is what I think awaits us.] Words: 1013
Timing the U.S. debt implosion in advance is virtually impossible. Thus far, we’ve managed to [avoid such an event], however, this will not always be the case. If the U.S. does not deal with its debt problems now, we’re guaranteed to go the way of the PIIGS, along with an episode of hyperinflation. That is THE issue for the U.S., as this situation would affect every man woman and child living in this country. [Let me explain further.] Words: 495
For over two years now, I’ve been warning that the 2008 Crash was just a warm up and that the REAL Crisis would occur when the stock market realized that the Central Banks, lead by the US Federal Reserve could NOT actually hold the financial system together. Well, the Crisis I’ve been warning about is here. [Let me explain.] Words: 306
Many articles are being written these days that more or less scope the dire financial circumstances the U.S. is in. That being said, I had not been able to find one “analyst” – even one – who had the guts to outline the probable outcome and general hopelessness of the situation and to offer any meaningful prescription for investors to survive this coming catastrophe – until now. Words: 710
As Ayn Rand said “We can ignore reality, but we cannot ignore the consequences of ignoring reality” so, with apologies to Ayn Rand, let’s explore some examples of ignoring reality. (Words: 1132; Charts: 1)
We are on the precipice of enormous financial and economic change. It is not change for the good, especially for the United States. Excesses and mis-allocated resources of several generations are about to be exposed as modern industrial nations sink deeper into the economic hole they have dug for themselves. The purging of these economic mistakes will be painful, could create new wars as politicians attempt to deflect blame and may end up changing the political form of government in some countries. (Words: 364; Charts: 1)
Although our supposed leaders are presumably highly intelligent, educated, and knowledgeable, they act largely “brain-dead” as they lead the United States down an unsustainable path that guarantees eventual catastrophic financial destruction. Do you own enough gold and silver that you would feel safe in a such a financial melt-down? If not, why not? Words: 817