Tuesday, May 31, 2016

Ender's Comments

As we draw nearer to the events that will likely transpire this Fall, it is appropriate to pay tribute to Ender, and his deep understanding of FIAT and GOLD:
Gold is an asset based currency, thus it represents payment in full where as fiat currency is a debt based currency that represents a claim in the system. In this light, the ‘preservation of wealth’ simply means - he who holds gold has already been paid.
Simple yet powerful, Ender explains the basic difference between equity and debt in monetary terms. This is not a new idea. These thoughts have been held by generational wealth for many centuries.
As Another pointed out, currencies are always competing for usage. They do this so as to expand the base from which they can gather taxes through inflation. Inflation is KEY.
Understanding inflation as the key to a modern functioning currency is not just a post, it's a series of posts, but most people can understand that a fiat monetary system is based in essence upon infinitely expanding debt (where bubbles are born) and infinitely expanding debt can only be managed through inflation. More needs to be explained, perhaps in a Summer post.
Remember that the larger the currency base, the larger the inflation can be without being detected. The politicians love this because now their policies can stretch as far at the dollar can reach – anywhere in the world. Military bases can be built and maintained off that inflationary tax. Influence can be bought. Deals can be made off ‘tax payer’s money.’

Competition with other states becomes easier because you can outspend them. All the while, because the dollar has found function in THEIR country, you have reduced their political will to a size smaller then what their economy should support. Thus, in the effort to compete with the dollar – politically, other currencies look pathetically weak and price inflation runs rampant in these smaller economies.

Over the years top politicians and bankers have stated that the US has abused it’s rights with regards to how it’s used the ‘privilege’ of being the world reserve currency. The dollar has crippled the political will in other countries because of the way it gets it’s strength. This is… imperialistic. It undermines the sovereignty of nations. It simply will not be tolerated any longer but no one can fight against it openly. It must be made to look like it died of it’s own causes.

Another came along to let us know that, in time, the world would not grant ANYONE – any political entity – the right to abuse others the same way. Never again would there be a strong currency policy held over the globe. Another was around to see the ‘checkmate’ that gold provided. We are around to see the transition and gold reintroduction into the monetary system.
A somewhat colloquial explanation of Triffin's dilemma, as seen by Jacques Rouffe, under the backdrop of "depth of usage" as the true conundrum. I have always enjoyed Ender's perspective. His tag line could be "it's all about the currencies". Indeed, which currency functions best to insure the flow of oil and gold, and the other essentials that nations wish to trade for, a.k.a. "the flow of value". This was written in September of 2008. Much has changed since then. The world is a mighty Titanic and it turns slowly even when the most formidable iceberg lies dead ahead.

These teasers are your invitation to explore Ender's actual comments in their entirety from that particularly interesting time in the Fall of 2008. Another interesting time approaches. Some do see the current situation as "all is hopeless, nothing can be done". But as more and more see the timeless function of gold as the answer to what can be done, their understanding and the actions they take, will force the function of gold.

Ender's Comments


  1. Thank you for pointing out and giving the link to Ender's comments, I really enjoyed the read. It was also fun to read FOFOA in his early posts and seeing how his own thoughts have developed. Today I read something that Alan Greenspan wrote in 1966 for Ayn Rand's magazine... It was quite interesting and quite the opposite of what he actually did as Fed Chairman. He said this one thing in his essay that really caught my attention and I was wondering what you might think of it, he said... "A fully free banking system and fully consistent gold standard have not as yet been achieved.". You might be familiar with this article... Perhaps back then he had something like Freegold in mind?

    1. I believe that those comments by Greenspan are in essence what FREEGOLD is. I have many times called it "the true gold standard never before realized in modern times". Greenspan understands gold, his problem is that he feels "entitlements" will be our demise. The word "entitlements" is another of those linguistic tricks that deceive.

      We pay (a LOT of) taxes for services that the government (and banks) should provide, not the least of which is the inflation tax. These are not entitlements - they are the services we elect officials to provide. If the bank bailouts were channeled to these services, we'd have no "entitlement" problem. Today we have a TBTF problem, and the little people are beginning to suspect just how royally they are being screwed after all.

  2. It's amazing that the dollar is still functioning almost 18 years after Another and 8 years after the aforementioned exchange between Ender and FOFOA.
    I'm beginning to think this Ponzi can go on a lot longer than expected. The politicians we are stuck with now have no idea how to run this Ponzi properly. The republicans kept talking about balancing the budget in a Ponzi economy, which makes as much sense as growing ones' saving in Bernie Madoff Investment Securities. The democrats kept talking about expanding the welfare system with no concerns of maintaining the appearance of balanced budget.
    Both parties failed to bring confidence, the key ingredient to the Ponzi, which is in dire need of at this juncture.
    This is why I think if Trump were the elected POTUS. This Ponzi can go on even longer than Another and most of us expected. Trump is the perfect politician to run this Ponzi. Hillary is too corrupted and greedy to run the Ponzi. Cruz is too honest - Tea Party's morality will bring us to the Greatest Depression. Trump is sleazy and unprincipled, with the exception of "Make America Great Again", which makes him the most capable man to prolong this Ponzi.

    1. Judie, I believe the problem is much larger than the USA (even though it emanates from "our" dollar). I do not think the US Political class can be counted upon to preside over any type of solution. Freegold is really not a solution, as Ender notes, but rather a foregone conclusion - a logical outcome - of the current system's self destruct sequence - a sequence which creates many symptoms toward the long and winding end of it's timeline.

      The talk of recessionary cycles is silly, we've been in a managed depression for quite some while. The world has outgrown itself and must deleverage, but the system requires continual growth. Nothing "works" in the current realm of "artificial growth for our healthy global economy fantasy".

      People's thoughts will change. And when they do, storms of change will come with them.

  3. Nobody can solve this monetary problem. I am hoping that Trump may be able to prolong its existence for 8-10 more years with more carrot and less stick.
    The banksters want to prolong this Ponzi with war.