The bankers have created a whole new language in recent years…
Troubled Asset Relief Program (TARP). Term Asset-Backed Securities Loan Facility. Commercial Paper Funding Facility.
Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility.
Money Market Investor Funding Facility.
Quantitative Easing (QE). Operation Twist. Debt Ceiling.
PIIGS (Portugal, Italy, Ireland, Greece, and Spain).
European Financial Stability Fund (EFSF). European Financial Stabilisation Mechanism (EFSM). European Stability Mechanism (ESM). Outright Monetary Transactions (OMT).
And now you’ve got a new one: Fiscal Cliff.
This latest one caused the US market to fall 2.4% on Wednesday, and 1.2% on Thursday. That’s bad news for investors.
But that’s only the half of it. The most important thing to understand is that each of these programs and problems have one common cause…
Have you ever heard the phrase, ‘a pig in lipstick’?
It’s simply a way to describe a shallow attempt to disguise something. In other words, despite the application of lipstick, it’s still pretty obvious that it’s a pig.
All the programs and supposed problems we’ve listed above are the lipstick. They’re designed to disguise the single biggest problem facing the world economy – central banking.
That brings us to another phrase you’ve probably heard, ‘all roads lead to Rome’.
You can take any of those programs and problems we’ve listed above and draw a direct line back to central banking.
(By the way, you can find a full list of the acronyms and abbreviations for the European Sovereign Debt Crisis – ESDC? – here.)
Every single problem facing national economies today is due to central banking and the destruction of money.
That’s where it all begins.
Why Central Banks are the Real Cause of the Money Crisis
We won’t go into a history lesson, but you just need to think about it simply. When a nation has a central bank, that bank retains control over the supply of money. It sets the standards which the retail banks follow.
And most importantly, the central bank acts as the ‘lender of last resort’ to the retail banks.
This enables the retail banks to create new money and lend as much as they think they can get away with. This creates boom and bust conditions that result in the economic mess and alphabet soup we’ve listed above.
If central banks and legal tender laws didn’t exist, you would have a competing money system. Most – but not all – of that system would be backed by gold and/or silver.
In addition, consumers and businesses would transact with real gold and silver bars and coins. The presence of gold and silver would force discipline among the competing money systems.
If a consumer accepted a non-gold or non-silver method of payment they would need to be convinced that the money was the equivalent value to precious metals.
But when you have a single, central bank-created and approved currency, you don’t have a choice. One five dollar note is the same as any other five dollar note.
And so, you don’t have a choice. The central bank forces you to use the central bank’s money. Knowing you don’t have a choice, the central and retail banks can abuse their power, and there’s nothing you can do to stop them.
All you can do is use their system for your benefit and then get yourself and your wealth out of their system as quickly as you can. The best way to do that is to put as much of your wealth as you can into real money. By that we mean gold and silver.
You need to realise that the banking system is broken. Look at the list at the top of this letter. Look at the acronym and abbreviation list that we linked to.
If that doesn’t tell you there’s a problem with the current banking system, then nothing will.
Trouble-Free Gold
Now compare those lists to the list of problems caused by gold…or the list of programs needed to bail out the gold market [crickets].
That’s right, there isn’t a list. Sure, mainstream economists claim that the Gold Standard caused the Great Depression. Yet anyone with even a basic understanding of the Great Depression will understand that it was the manipulation of the Gold Standard by central banks that caused the disruption.
Cheers,
Kris
From the Port Phillip Publishing Library
Special Report:
Retire Rich, Happy and Free From Money Worries
Daily Reckoning:
The Superannuation Gravy Train
Money Morning:
Tell the RBA to Shove It…Invest Without Taking Big Risks
Pursuit of Happiness:
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Australian Small-Cap Investigator:
How to Make Money From Small-Cap Stocks
Why Central Banks Are the Single Biggest Cause of Financial Stress
