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Sierra Madre (original post: usagold.com 24February2008; 16:40)
Where we are at - a thumbnail
sketch of History
Evil has a thread that
goes all through recorded History. But for practical purposes,
we can start with the English Civil War. Charles I of England
was beheaded in 1649 and this was perhaps the first attempt in
History to destroy the Divine Right of Kings to rule. A consequence
of this murder was the establishment of the Bank of England in
1694, the first example of the rule of Bankers instead of Kings.
The second example of the takeover by Bankers of the role formerly
filled by Kings, was the French Revolution, and the guillotine
for Louis XVI of France.
Since the French Revolution, the world is ruled by Bankers. That
is not an advertised fact; the advertising is that we have Democracy,
but the fact is that Bankers rule.
Bankers are businessmen with power to rule, and that means that
these rulers have SHORT TERM objetives. They must be short-term
objetives, because profits are elusive and vanish; they must be
captured rapidly. This fact determines the behavior of Bankers.
A good ruler cannot think short-term. Kings did not think short-term;
they thought in terms of generations, of dynasties which they
wished to preserve, of their nations which they considered as
their children.
Bankers think short-term, and that determines the way our world
is going: in pursuit of the short-term, to its destruction.
If we look at the record of the last hundred years, we see a progressive
deterioration in every sphere of human life, notably in the fundamental
fact of the quality of money, which is the cement upon which Society
is built.
The deterioration came about as a result of the short-term objetives
of Bankers, who wished to gather profits as rapidly as possible,
in as great amounts as possible, with no regard for the long-term.
Thus it was, that the Federal Reserve was founded, to guarantee
that the Bankers of the US could reap greater profits by indulging
in CREDIT EXPANSION, a deadly imprudence in the long-run, but
very profitable in the short-run. The Fed was created to protect
any bank that "ran into trouble" - which it would naturally
do, following the mindset of Bankers, to maximize profits.
Once the protection was in place, ALL banks had to be as imprudent
as the next bank, or risk being left behind in the race for profits.
Thus, the Fed established imprudence as the norm for Bankers.
As the former head of Citibank said, "While the music is
playing, we're dancing." And when the music stops? When the
music stops, the head resigns and things go on from there, with
more short-term measures.
The last hundred years is the record of the elimination of all
sorts of obstacles to CREDIT EXPANSION. The last obstacle to a
really vast expansion of credit, was Nixon's decision to "close
the gold window" on August 15, 1971.
Nixon followed the Bankers' advice, and with the short-term advantage
in view, eliminated the last obstacle to credit expansion, eliminating
GOLD as a limiting factor. This is THE MOST REVOLUTIONARY EVENT
OF HISTORY.
Since then, no real money exists in the world. The currencies
of the world are exclusively DIGITS. A Banker's wet-dream! No
limits!
DIGITALIZATION of money has been highly efficient - "money"
can be moved around the globe in micro-seconds. No more cumbersome
obstacles to worry about like "gold flows" out of the
country.
DIGITALIZATION made "globalization" as we know it, a
possibility. This is not true trade, for true trade implies an
exchange of goods for other goods, and DIGITALIZATION makes that
fundamental fact irrelevant. Payment - so-called payment, for
it is not true payment - consists today not in giving goods in
return for goods, but dollars or euros or yen or pounds or rubles,
DIGITS all of them, as payment for goods for which nothing or
little was given in return.
But, listen to the praises of "globalization"! It is
so efficient!
As James Howard Kunstler says in The Long Emergency, "Efficiency
is the straightest path to Hell". Absolutely right!
Cutting corners and taking shortcuts makes for efficiency, but
it means abandoning Principle which governs the Long Term. Who
cares for the Long Term? Not the Bankers!
They follow the philosophy of William James, "Pragmatism".
If it works, it must be true. A variant of the same is "If
it's pleasant, do it". No regard for Principles which are
eternal. Only the short-term is of importance, because that is
all the Rulers are thinking about, the Short-Term.
And so, we are living in a world where the International Monetary
System is based on no principle at all, but only on the result
of ad-hoc measures taken because they were practical in the short-term,
like Nixon's decision, which has overthrown our world, nothing
less.
International Finance - in DIGITS which are simple numbers lacking
any substance - is also a mess which no one has a clue how to
fix, how to keep working. And this is not hard to understand:
if no principle has guided its construction and structure, how
can a human being tackle its reconstruction? It cannot be done.
It is not possible to rebuild something which is a hodge-podge
of ad-hoc arrangements, lacking any ordering principle.
So there we are: living the result of being governed by Bankers,
people with short-term objetives. But, still we believe in Democracy,
which is the bread and cricuses invented by the Bankers to keep
us distracted and hiding the little man behind the curtain, who
is moving the levers.
Thanks for reading my thumbnail sketch of History. (If you read
this far!)
SIERRA
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