Gold: Back to the Future?

Too-big-to-fail, the facile justification intoned by cowardly European and US politicians to justify enslaving your grandchildren with unrepayable debts, is clearly a valuable get-out-of-jail-free card for bonus-addicted casino banksters.

Lords of Finance but Destroyers of Economy

(Read more online French News here)

As is made clear in the video clip below, letting banks go bankrupt is a good thing, it is the very threat of such collapse (moral hazard) that forces banks to observe sound banking practice.

As the EU’s leaders, committed to saving the symbolically important euro, thrash around offering more and bigger bailouts to essentially bankrupt member-states, what they are really doing is bailing out bondholders in France, Germany, Britain and elsewhere, from the consequences of their own ill-considered actions. Who are these bondholders? Well surprise, surprise — the big-name and too-big-to-fail banks.

Return to a Gold Standard and market-determined Money?
The choice, as growing numbers of observers point out, is beginning to become clearer: sound money and an end to fractional reserve banking or too big-to-fail banksters, their captured political cronies, blind-sided supervisory authorities and generational debt.

As the vast financial bubble soared towards the 2007 disaster there was, it should not be forgotten, one European socialist who repeatedly insisted he had abolished the business cycle (that is the ineluctable boom-and-bust inherent in fractional reserve banking, [a concept explained in the video]). This chancer was Gordon Brown, now widely regarded as one of the most disastrous Prime Ministers in British history, yet mooted, in some circles, as replenishment for the IMF’s now-disgraced French head, Dominique Strauss-Kahn, another, albeit much brighter, Socialist.

The video clip below, prepared by the Mises Institute, outlines the back story to today’s misery and suggests a solution – gold.

The Austrian School and Ludwig von Mises (1881-1973): “(…) Mises was born on Sept 29, 1881, in the city of Lemberg (now Lvov) in Galicia, where his father, a Viennese construction engineer working for the Austrian railroads, was then stationed. Both Mises’s father and mother came from prominent Viennese families; his mother’s uncle, Dr Joachim Landau, served as deputy from the Liberal Party in the Austrian Parliament.

“Entering the University of Vienna at the turn of the century as a leftist interventionist, the young Mises discovered Principles of Economics by Carl Menger, the founding work of the Austrian School of economics, and was quickly converted to the Austrian emphasis on individual action rather than unrealistic mechanistic equations as the unit of economics analysis, and to the importance of a free-market economy.

“Mises became a prominent post-doctoral student in the famous University of Vienna seminar of the great Austrian economist Eugen von Bohm-Bawerk (among whose many accomplishments was the devastating refutation of the Marxian labor theory of value).”

Facts about Ludwig von Mises and the Austrian School of Economics

Related French News Online coverage of the worst banking disaster of our times:
Don’t Let Go of the Anger – NYT

Reckless Global Bankers Back in the Spotlight

Sovereign Default and the Death of the Euro

Total and Utter Madness

Wall Street 2007/8 – Inside Job?

Should We Join String-up-a-Banker Day?

Crisis 2011: TIME’s Historic Black List

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8 Responses to Gold: Back to the Future?

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  3. russ in nc March 18, 2013 at 2:18 pm

    So, where does one buy gold? Jewelry store? Macy’s? Tiffany’s? Pawn shop? Payday Lending storefront? I’d like to know.

    • admin March 18, 2013 at 2:53 pm

      Hello Russ. Its an issue for sure. There are lots of websites offering financial advice and plenty of gold and silver bugs out there. You might start by taking a look at Max Kaiser’s website, he appears to be a gold guru. Please note this response is in no way an offer of financial advice and this paper is not licensed to provide such specialised expertise

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