An economic collage: Ayn Rand on Gold + Charles Smith’s graphs + Rothchild’s admission

“Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked: Account Overdrawn.” ~ Ayn Rand, from “Hymn to Money”

Charles Smith has a great blog here.  Some graphs from his post today Why the World Is Financially Doomed in Four Charts:

“Note how the speculative economy created the illusion of rising wealth for the bottom 90%, an illusion stripped away by the Default Economy.

In essence, the Financial Power Elites profited immensely from creating this illusory wealth which gave the bottom 90% the false sensation that their declining earnings and purchasing power were being offset by the “magic” of asset bubbles.

Then, when the bubble popped, the Financial Power Elites transferred the impaired assets to the taxpayers, a process which is still underway. The politicos of both parties are complicit; behind the simulacra of toothless “reforms,” this process proceeds in myriad ways (Bank of America transferring toxic debt to Fannie/Freddie, etc.) Behind the smokescreen of conjuring a “wealth effect” to foster more consumption, the Fed’s purchase of Treasuries (QE2) serves this transfer-of-debt-to-the-public process.

This same process is playing out throughout the global economy: Greece, Ireland, the U.S., and eventually, in China when its monumental property bubble pops.” ~ Charles Hugh Smith

“Permit me to issue and control the money of a nation, and I care not who makes its laws.” ~ Mayer Amschel Rothschild

People a largely ignorant of the engine that elites use to stay wealth – it’s the use of fiat money itself.

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2 responses to this post.

  1. Posted by Sista on January 6, 2011 at 5:39 pm

    I’m not a Rand fan…Her philosophies have elements of truth; however, whenever I dig deeper–her rationale often implodes on itself. I object to a philosophy that values self-interest over community and family. In the case of money, she may be right–I just see her name and have to force myself to try and appreciate what she has written.

    The BIG question for me is at what point will US consumerism give way to the realities of our current economics? As long as Joe American has his big screen and SUV I’m afraid he will allow “enslavement” by the wealth-elite. How bad will things get before the masses are angry enough to do something? Unfortunately–even if we do pull it together–our political influence has been watered down significantly (thanks to Citizens United v. FEC and other corporate advantages like having ALL the money). Pretty hard to be optimistic!

    Reply

    • Posted by the rookie cynic on January 7, 2011 at 10:02 am

      I’m not a Rand devotee either, but I thought this was an interesting quote. We could use some irascible figures of her ilk in our political and economic discourse these days.

      The elites love to distract the hoi polloi with “bread and circuses”, the modern equivalent being food stamps, Nascar, the NFL, and Dances with the Stars.

      In regards to your BIG question I would say the following: America sleeps until a crisis. We have a terminal disinterest in pro-active solutions and those hardy souls that do raise the alarm are outgunned by the finger-pointing chicanery of partisan politics. Even the vaunted Tea Party has been co-opted by the elites (Koch family), so while I do expect some entertaining political theater this year (Ron Paul vs. Ben Bernanke and Tea-Party vs. debt-ceiling) I don’t expect much change from the current trends: easing, stimulus, deficit spending, etc.

      As always, hope for the best, but prepare for the worst.

      Thanks for commenting. Please continue.

      Reply

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