Fine Gold versus F.I.N.E. Central Banks
Fine Gold versus F.I.N.E. Central Banks by Gary Christenson – Deviant Investor
On the other hand central banks create trillions of fiat currency units – dollars, euros, yen, quataloos, whatever – from nothing and use those currency units for purchases … Apple stock, salaries for a thousand Ph.D. economists, office buildings, lobbyists, politicians, gold bullion etc.
It is unfair that the Fed creates trillions of dollars from nothing and values those dollars equally with other dollars created from the efforts of millions of businesses and individuals.
UNFAIR? Of course it’s unfair. That’s the point! With their “unfair” ability to create fiat currency that spends the same as existing currency, central bankers increase their power and wealth at the expense of citizens. They own or control governments, congressmen, CEO’s, commercial bankers and more.
Don’t expect this to change. Those in power like things as they are.
Gold or fiat currency? Honest money or “funny” money?
From (the brilliant) Alasdair Macleod: “Understanding Money and Prices”
“Gold matters, because, excepting silver, it is the only form of money that has survived since individuals discovered the convenience of money over barter. It is beyond the control of governments, as they cannot issue it without acquiring it first. It is subject to the constraints of its quality, so that as a medium of credit it cannot be debauched, only defaulted upon. Its relative inflexibility and its soundness are the primary reason governments do not like monetary gold, and force their preferred alternative on their citizenry. The vested interest of government is therefore to discourage, or even ban the use of gold as competing money.”
Fine Gold or F.I.N.E. Central Banks?
A F.I.N.E. central bank can be defined as a Freaked out, Incompetent, Neurotic, Excessive central bank.
Freaked out: Central banks have devalued currencies, “stimulated” economies by massive “printing” of currency units, forced near zero and “negative interest” rates upon economies, and a hundred other deceptive, destructive and devaluing practices. They are freaked out because ordinary people realize central banker economic models and policies only benefit the wealthy.