fiat currency

Gresham’s Law and Bitcoin

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bitcoinCharles Hugh Smith – Rather suddenly, the state issued fiat currency bolivar lost 99% of its purchasing power.

Gresham’s law holds that “bad money drives out good money,” meaning that given a choice of currencies (broadly speaking, “money” that serves as a store of value and a means of exchange), people use depreciating “bad” to buy goods and services and hoard “good” money that is appreciating or holding its value.

As this dynamic plays out, eventually there is little “good money” in circulation and the economy suffers accordingly.

Correspondent AK recently submitted an insightful discussion of Gresham’s law and bitcoin:

1: Discussions surrounding Bitcoin and Gresham’s law immediately devolve into a debate about historical formulation or wording of Gresham’s law. Gresham’s law includes the notion that one or several currencies must be accepted at a defined value under legal tender law. However, the wider economic phenomenon that “powers” Gresham’s law is a universal phenomenon that is independent of any particular legal or cultural context. Continue reading →

Ignoring Economic Reality: Ayn Rand Would Laugh

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“We can ignore reality, but we cannot ignore the consequences of ignoring reality.”  – Ayn Rand.

goldGary Christenson – The western world has ignored economic realities for decades. It’s not a Republican or Democratic problem. Banking, power, fiat currencies, dishonest money and transfers of wealth are the issues.

The consequences of ignoring reality are uncomfortable and dangerous. However, most people prefer palatable, easy to digest and believable stories.

In the United States, the U.K., Europe, and Japan it is comforting to believe:

• Debt has increased exponentially for decades and for over 100 years in the US. We want to believe debt will grow for another century. (It won’t.)

• Governments want to borrow, spend their way into prosperity, and pretend and extend indefinitely. (Not likely.)

• It is comforting to believe our politicians and central bankers manage our countries and currencies for the benefit of the populace. (Don’t plan on it.) Continue reading →

Gold & Silver Quarterly And Monthly Charts

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Michael Noonan – This will be our final weekly commentary on the markets.  What we know for certain is that the globalists have a stranglehold on the markets, and more importantly, a stranglehold on all Western nations to the point where life has become a theater of the absurd, negative, and without an end in sight.

We have been leaning in this direction for some time.  Time off at the end of August, when access to a computer and news was limited to an hour a day, and we chose to use only a small portion of the allotted time, drove home the point, or more appropriately the pointlessness of what is going on all around the world.

Two anecdotal stories put our sense of senseless activities into a context.  1. The boiling frog, and 2. Rip Van Winkle.  The frog analogy compares how when put into a pot of boiling water the frog will immediately jump out to escape from the danger of being boiled alive.  When a frog is placed into a pot of tepid water, there is no sense of any danger.  The temperature of the water is then gradually increased and the frog adjusts to the change until the point where the frog eventually becomes boiled alive.  With Rip Van Winkle, when he awakens after a 20 year sleep, all of the changes that have taken place after his two decade absence are so glaringly obvious to him.

Continue reading →

USA & Clinton Beyond the Law [w/ Video]

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FittsGreg Hunter – Financial expert and former Assistant Secretary of Housing, Catherine Austin Fitts, says the U.S. government’s actions with Hillary Clinton means it is more lawless than ever. Fitts explains, “The entire country now looks like Arkansas . . . we’ve all turned into Mena, Arkansas, now. It’s pretty tragic.

“I have watched for two decades while 80% of the federal budget and federal credit has been run outside the Constitution and the laws related to financial management. I have never seen anything as blatant and outrageous as Loretta Lynch, prior to Hillary Clinton’s interview with the FBI, meeting with her disbarred husband, who is either the husband of or the target of a criminal investigation, and basically briefing him on what I am assuming and what I believe on what Hillary needs to know, so she can skate the (FBI) interview.

“What the President, Lynch and Comey don’t want is the investigative team recommending to indict. . . . If you know anything about civil or criminal procedures, this is so beyond the law. This is so over the top that I have never seen anything more outrageous. It’s beginning to look like Mena, Arkansas, during the Mena drug running.”

Fitts says the corrupt way they handled Ms. Clinton is how they are handling the business of the federal government.

Continue reading →