Dr. Lawrence Parks with James Turk – Collapse of our Monetary System
from Gold Money News Lawrence Parks, of FAME (http://www.fame.org/), and James Turk, Director of the GoldMoney Foundation, talk about FAME’s mission to educate the public about the benefits of an honest monetary system and the perils of irredeemable paper money, through a strategy of full disclosure and no coercion: meaning not using force or legal tender laws to impose sound money, but rather informing people and allowing them to choose. Lawrence talks about the constitutional, systemic, moral and empirical arguments for sound money. They talk about the coming collapse of our monetary system and the lack of political will to resist the temptation to over issue paper money. They talk about fiat money inflation in France during the Revolution and mention “Fiat Money Inflation in France” by Andrew Dickson White, which Lawrence gave to Trichet, Paulson and others. They explain how that historic episode ended in disaster and what is ahead for the American economy. They explain how every fiat currency has ended being worth less than the paper it was printed on and how the temptation for politicians is just too strong to resist when they are handed a printing press. They also comment on the impossibility of centrally planning the money supply and how the illusion that central bankers are in control is mere propaganda, the reality is that they improvise and react to events or to political pressures, as they themselves publicly admit (after they’ve left their posts). They comment the possible political consequences of the coming monetary crisis and the abuse of emergency powers by politicians in the US in history, as well as the disturbing recent trends. They comment on Roosevelt’s gold confiscation, Nixon’s wage and price controls and GW Bush’s Homeland Security orders, including emergency powers in the case of economic crises. They also discuss the euro and its chances of survival and how the Chinese government is promoting gold ownership. They discuss Larry’s efforts to educate the labour unions about their own historic defence of sound money and how it is workers who are hurt the most by the current monetary system. He talks particularly about pensions and how retirees are being cheated of their savings by ZIRP, QE and other easy money policies. He also talks about the entrenched interests who see the need for reform but would rather that it happened after they have cashed out their stock options. He also talk of the tiny level of gold investment in pension funds and the lack of incentive for Wall Street fund managers to promote gold, given the low fees involved. They also mention the upcoming new translations the GoldMoney Foundation will soon be publishing of Ferdinand Lips’ book “Gold Wars” in which he advocated that the Swiss keep their gold backing for the Swiss Franc. They reminisce about “Ferdie” Lips (RIP), whom they both knew, and his fight to defend sound money against a coalition of central bankers, the IMF and Swiss exporters, how he warned of the dangers to Swiss banks which would result and have since come to pass. Lawrence also talks about FAME’s future projects.