Posted Mar 28, 2013 by Martin Armstrong
The idea that we can use electronic money is certainly the way of the future. But unless we reform government, nothing will ever be safe. The Cyprus Confiscation shows how easy it is for government to act arbitrarily. They unplugged Iran and did the same to the Vatican until they agreed to comply.
The younger generation sees all of this for what it is. The older generation is stuck in the past both either believing that government will always be there or that money must be tangible. They confuse that PRIVATE investment as money. Silver coins and gold are a store of value that rises and falls in terms of “money” as does everything else. But money can neither be fixed in value nor will it EVER be a store of value. It fluctuates and always has. So let’s just focus on assets – forget the money stuff. They will no more return to a gold standard than hand over their 1.6 billion worth of bullets.
Right now, any electronic money that is the bulk of the money supply is still being defined. The entire monetary system is Ad Hoc. Nobody designed this thing. It has grown like mold on old bread. They only know they want to eliminate actual paper money and go electronic so they can get their pound of flesh in taxes. As it stands, we have no rights. They do whatever they want. Until the younger generation rises and throws the bumbs out, there is no safe haven. Our concern should be can that happen before it is too late. The only thing that has survived is tangible assets as long as there is no Dark Age. Even land was used to back the currency after the German Hyperinflation.
After the fall of Rome in the West in 476AD, the barbarians tried to maintain the pretense of the Roman empire. The gold coinage declined in weight that really appears about 500AD and lasts sparingly imitating the coinage of Byzantium. From about 630AD debasement begins with the gold dropping to about 42% within 8.6 years. By 682, documents show only references to silver.
By about 755AD, there is no gold left and it was the Carolingians in France who reintroduce the silver denier which was the old Roman denarius. But keep in mind, private property vanished and these coins tended to be used by the landloards. This was the age of serfdom. So gold did not survive the Dark Age and money was used not by the average worker, but by the landlords.
So if we expect money to survive, we must avoid a Dark Age. That we can accomplish with political change and monetary reform.