Originally published at: NEWS AND VIEWS FROM THE NEFARIUM JAN 11 2024 (OUR FIRST NEWS AND VIEWS OF 2024!)
Podcast: Play in new window | Download (Duration: 20:59 — 28.8MB)Kansas joins the long list of states passing constitution money laws… but with Kansas there’s a new twist that harkens back to President Andrew Jackson and the Jacksonian assault on the Second Bank of the United States: Kansas Bill Would Treat Gold and Silver as…
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Dr. Farrell, while I agree with all your points regarding convertibility, etc., here’s one that needs to be considered. The price of gold currently, ~$2000oz, is subject to market price. At what timing in the process will Kansas, or, any other State, set a price of convertibility? In other words, if you explore the price of gold through the decades and if we undergo a period of disinflation, or, outright deflation, the price of gold and silver could fall dramatically. Should someone purchase gold/silver today, it might only be worth a fraction of the price paid once States declare a fixed price. Translated, this means that gold/silver could be $100/$10 per ounce and not the price we see today. You might have covered this but I didn’t catch it. As seen in the past, deflation hits all monetary asset prices, while most debt prices remain the same. What does a person do? Sell gold/silver at the higher prices in exchange for fiat, or, hold onto the PM’s and watch them tank in price along with all other monetary assets?
I think we’re all over a barrel here, either way it goes.
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During depression or deflation, there is flight to safety and gold and silver almost always goes up, exponentially.
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It goes up during the panic stage & once prices somewhat stabilize, down it goes…
The price does not remain high.
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I have not addressed it specifically, no. But I DO include such ideas under what I call “convertibility”.
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Despite challenges, the suggested solution is to invest in assets and focus on precious metals. Governments may release asset-backed currencies, and states like New Jersey have removed taxes on gold and silver exchanges. I believe we will also see reductions in state and federal sales tax, as a counter-balance to the deflationary scenario.
At a global level, the BIS aims to establish multi-lateral development banks with products like promissory notes, to facilitate international exchange and adapt to deglobalization while bypassing national regulations So if a state actor wishes to do business in Peru, it can invest in a kind of “unit of account” as a feature of the international platform, allowing for the further bypass of national regulation.
Of course, these policies do absolutely nothing for the average person, but give the hegemons of the west enormous advantages in moving assets around using gold as the back-stop. Apparently this is the oligarchs answer to encourage entities away from BRICS.
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