The history is 95% always written by the the winners, their lackeys and by idiots. No particular alphabet order, they are all interchangeable.
Dear reader (Including Alice and Bob, but that is next in line), if you have read the previous post about how water is wet then here is the conclusion;
There was never a Gold Standard in History.
The same moment when a Goldsmith or a Banker, some 800 years ago, wrote a letter of Credit, or wrote any type of IOY on Paper, the notion of Gold Standard backed coin or money was finished. We entered a money out of thin air era in that instant.
But you may think that before the paper letter of credit the Gold Standard was in operation.
Wrong.
The presumed Gold standard era was a period where the loan was operating, but the credit part of the money as projection of a future and the speculations on the future gains and all collateral involved were non existent. That is why the coins were mostly stable, but the whole system was a liquidity trap.The shortage, or famine, or unequal distribution of money, the lack of even spread circulation was surrogated by barter. The classic Greek and Roman Empire times and the early dark middle ages..
If we assume that gold standard was a fixed operating exchange rate we are wrong. The reason is simple. The Gold or Silver was mined, they were digging holes to get it, they were conquering continents to loot, rob, and dig gold..And they were ammassing it in their pockets.The looting of gold and silver was how Empires stretched and shrunk on supply of it. Remember Potosi mines… So there were huge fluctuations in coin supply. And the consequent famines and population and slaves export to the new conquered land.The forcefully imposed looting idea of the so called Gold Standard Pirate Economy lasted for centuries with the exception of Greenbucks..opposed to the Gold Standard bankers straight jacket narrative by the English Empire..Hi there, people Overseas!
The Wobbling Gold and Silver killed millions
To become a power, the One and Only. So the Powers were looting, killing robbing, mining everywhere for gold and silver. There was never a fixed amount of gold in circulation, that is why a king or any jerk had to have gold and silver supply.They went around for it far and discovered the Earth, massacred continents, robbed, just for gold and silver. By having all this influxes of gold and silver there was in fact no gold standard, it was just looting.The money supply in form of gold was concentrating. The others, a majority, were left in barter situation , bartering goods as a parallel way of life and exchange..You just had to possess a gold hole, dig and exchange that gold for anything.All arbitrary, but the possessors of the looted gold or of the gold mines were the winners: it was just how to dig a hole and get gold and so by nothing else get rich and powerful.
If you call this Gold Standard then Witchdoctors calls it the Era of the Gold Pirates, this is not economy, it is just Pirate bollocks looting on behalf of monopoly stamped on the coin…
Bitcoin possesses similar attributes, digging and being anonymous, a mix of gold and anonymous money as in previous post and is also a liquidity trap..
By necessity paper IOY becomes a “Virtue”
The whole early middle-dark ages (In Europe) were a huge liquidity trap period lasting centuries where the looted gold and silver was just stashed as a treasure or acting as a monopoly.. It was the Longest period of Austerity in history. Obscurantist idiots ruled all over the land.
So, the first IOY, the first letter of credit, sold, exchanged, kept as a collateral,new asset, future gain,has spread all over Europe as the historic necessity out of the Pirate straight jacket and it was the only way out of the centuries lasting liquidity trap and consequent austerity, made by the arbitrary rules imposed by the various troikas of that period, and It also especially helped the ruling buggers, the blue blood lizards, to keep their kingdoms afloat . They were also trapped in a liquidity trap, regardless of the Gold Standard narrative they peddled to the peasants.And so the Genovese republic of trade and seas amongst the first invented the Letter of Credit and here we are in the money out of thin air debt driven economy.The door was opened for the productive forces…. But the Troikas are still lurking behind even now..And also the Pyramid of IOY speculations piling on top.It is still a trap of the debt driven economy..
copyright 2017 Witchdoctor