Thursday, April 29, 2010

Revisiting Two Prominent Gold Bug Lies

Christopher Jon Bjerknes

Jews like to promote two lies in order to dupe us into demanding a gold standard, or some combination of metals as currency. One, the Jews falsely claim that gold is immune to inflation. Two, the Jews falsely claim that gold prevents fractional reserve banking.

It is easy to inflate gold currency. The coinage can be debased, such that one dollar represents a lesser amount of gold than it did the day before. Another method of inflating gold currency is fractional reserve banking, whereby the Jews pretend that they have gold in reserve which they do not have, thereby increasing the money supply and lessening the value of the currency as compared to what it would otherwise have been. Yet another method is to effectively naked short currencies, especially on the international market, effectively increasing the money supply so as to drive down the value of money as opposed to the value of goods and services. These are but a few of the many ways to inflate a gold currency. The Jews can also deflate its value by holding gold and/or cutting back on credit, among seemingly countless other methods.

All of which leads us to debunk the second Jewish myth, that the gold standard prevents fractional reserve banking. Fractional reserve banking flourishes under a gold standard for the very reason that gold is a hard commodity which it is cumbersome and risky to transport. To ease transactions and increase security, people tend to store gold in secure environments offering the Jews the opportunity to pretend they hold gold which they do not. Nothing better serves the purposes of fractional reserve banking, than a gold standard.

As an important aside, credit is far more expensive to an economy where neither interest free, or low interest credit is available through government or other mechanisms to provide it, or where fractional reserve banking is banned. Cut off government, or other intervention in the credit markets, while banning fractional reserve banking, and old Shylock will suck all the wealth out of your nation within a matter of months. As my challenge to my Jewish detractors, let's see if some crypto-Jewish Libertarian can explain why.