Monday, January 30, 2012

More Money Myth Peddlers

Mr. Migchels is a laughable fellow. He seems to have found a niche of getting noticed by including the words “Ron Paul” in his posts, the way many MSM bloggers have done.

But I digress….

DB has pointed out quite well that the solution – the ONLY solution to free man from the money power Mr. Migchels claims to fear – is to allow the market to decide what the participants intend to use for money, currency, banking, and credit (hereinafter “money” for short).

Instead, please note the cognitive dissonance – even in this one article by Mr. Migchels (I have taken quotes from the original article):

“It [a gold standard] is a wealth transfer to those holding Gold, which is not the 99%...”

“The 99% having no Gold will as usually be holding the bag.”

“Our answer must be to have the Government reclaim the monopoly it has surrendered to a private Central Banking Cartel…Government must print debt free money, preferably Social Credit.”

The 99% don’t control 99% of ANYTHING – and least of all the government (in which Mr. Migchels rests his hope) This is lame-brain nonsense at its best. To believe that the government can be controlled by the people when it comes to the issue of money cannot be a more laughable belief.

Recall October of 2008, with calls to Congress 99 to 1 AGAINST TARP, and Congress passed it anyway. Oh by the way, less than one month later, most of the politicians that ignored the people were re-elected.

“…the volume [of gold] can be manipulated, because most of it is in the hand of the Money Power, who can inflate and deflate at will.”

No better to give Congress the power to inflate and deflate at will. Yes, there is a disciplined bunch for you. Good idea, Mr. Migchels.

In any case, if I am free to use any form of money I like, let the Money Power (or Congress) manipulate away, I will use sea shells.

“It will lead to an excruciating deflation.”

It depends on the price that currency can be converted back to gold.

“Deflation destroys the economy, because people have an incentive to hoard cash, instead of using it for production and consumption.”

This is nonsense. From 1787 until 1913, the United States experienced a general, mild deflation. And it experienced a growth rate previously unknown to most of the world.

To quote Churchill shows Mr. Migchels economic ignorance, as it was Churchill who – for pride – reinstated England’s gold standard at the pre-war rate, after significant inflation in the money supply.

“Since this [government created debt-free money] is not going to happen any time soon, we should build free market currencies, which can actively compete with national currencies.”

Would Mr. Migchels object if a large portion of the “free-market” happened to desire the use of gold (and silver) to back the currency?

As this would be the likely outcome….

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