Guest Post: When Money Dies - A "Live From The Summit" Report | ZeroHedge: "To ensure that everyone would be on the same page, Doug began with a “definition” of government as the monopoly of force within a certain geographic location. And that government will use this force in a coercive manner to get what it needs. As the Greater Depression grinds on, tax revenues fall and interest costs on the national debt rise, the government will find itself in desperate need of more money – your money, of course.
He pointed out that during depressions the rich usually do okay, and the poor, having little to lose and being on the government gravy train, will get by – they will demand and get more help from government.
It is the middle class that will get killed because they save in dollars. When the dollar is ultimately destroyed, the middle class will be as well.
Doug’s talk was peppered with some typical Casey-esque one-liners that drew roars of laughter. My favorite: When observing that the government shouldn’t be in the letter delivery business and comparing the bankrupt USPS to profitable FedEx, he rhetorically asked: “Why is it you never hear about an employee going FedEx?”
A classic Casey moment.
A hard act to follow, indeed. Yet Bud Conrad gave the audience all the data and analysis to support Doug’s Greater Depression forecast.
In line with the summit’s theme – dying currencies – Bud started with a few slides of ancient Roman coins showing an evolution through several iterations: first minted from gold; then copper was added; then copper was the major alloy; and finally there was no gold content. The money was systematically debased until it became worthless.
This is an early example of inflation.
It is no coincidence, he pointed out, that as money is debased, it undermines the cohesion of a society. The decline of honest money goes hand in hand with the decline of a country. This is what the US is experiencing today – the decline and fall of the American Empire."
Posts
