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The Gold Standard and Debt Jubilee - Jeff Nielson

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August 23, 2016

We need a gold standard. For those (newer) readers who don’t understand why this is so, the explanation couldn’t be simpler. Among other virtues, a gold standard performs two, essential functions. It prevents (corrupt) governments from drowning us in debt. It prevents (criminal) central banks from stealing all of our wealth, via the “inflation” they create with their excessive money-printing.

It is these noble properties which earned the gold standard its scornful nickname, from history’s most-infamous gold-hater, John Maynard Keynes. The great Charlatan Economist called the gold standard “the Golden Handcuffs”. A gold standard handcuffs corrupt governments, forcing them to operate somewhere near a balanced budget, at all times. A gold standard handcuffs criminal central banks, restraining the speed with which they steal-by-inflation to a near-zero rate.

For those readers who don’t accept the assertion of this writer, and who don’t trust the words of Charlatan Keynes, we have a more contemporary and even more-infamous authority here.

In the absence of a gold standard, there is no way to protect savings from confiscation [i.e. theft] through inflation.

- Alan Greenspan , 1966

No way to protect ourselves. The language is unequivocal. This warning was uttered well before Greenspan himself became a servant of the banking Crime Syndicate , and the world’s foremost Inflation Thief. We either have a gold standard, or we are permanently vulnerable to the systemic, monetary crimes by the fraud-factories which call themselves “central banks”. Pretty simple.

Another of the great truths in our societies is what that when we have a crying need for some change in public policy, there will be no shortage of politicians who pledge such changes – and then break their word. Generally, we have no way of easily separating the Posers who promise reforms (like the cynical liar, Barack “Change” Obama) from the tiny minority of politicians with the integrity to carry out such reforms.

However, in the case of a gold standard, there is a very straightforward “test” to separate the Posers from the serious advocates. This brings us to the subject of Debt Jubilee .

For those (newer) readers who are not familiar with either the definition or the concept behind this term, a brief historical synopsis is required. Going back to literally Biblical times, one of the constants of human government is that sooner or later (usually sooner) ruling regimes end up drowning their populations in debt. Once this occurs, that society/economy is faced with one of two alternatives.

The economy can continue to wallow in their unpayable debts, i.e. Debt Slavery . All of the productive efforts of the Workers of that society are consumed paying “interest” to the banker oligarchs who hold all of the IOU’s. Obviously this is unjust, corrupt, and simply economically insane. There could never be a rational justification for choosing Debt Slavery.

There is, literally, only one alternative to Debt Slavery: Debt Jubilee. A “jubilee” is the complete renunciation of all debts. Any/all debt instruments become null-and-void. Debt Slavery is abolished. The Workers are allowed to retain the fruits of their labours, and use their productive efforts to build and improve their societies – rather than simply fattening financial Criminals.

The policy of Debt Jubilee is completely straightforward. The economic justifications for such a policy are absolutely indisputable. There is only one element of uncertainty in this economic equation: when has an economy reached a level of indebtedness where Debt Jubilee becomes a mandatory policy decision?

There is no precise formula here, but there is certainly general agreement. Throughout the modern history of our economies, it has been universally acknowledged ( until the present) that when any nation’s debt-load exceeds 100% of GDP that no other alternatives remain. Once an economy is saturated with this magnitude of debt, it is never possible to reduce (let alone retire) such debts.

A debt-spiral has begun. From that point onward, the only mathematical/economic possibility is ever-worsening indebtedness, and ever-larger interest payments on these unpayable debts, the precise definition of Debt Slavery . Throughout virtually the entire Western world, we are now well past this point-of-no-return.

These economies are not “slightly insolvent”, they are bankrupt. During last year’s “Greek crisis” , Greece’s government spent six months begging to be allowed to declare bankruptcy. The banking Crime Syndicate which holds these debts refused to allow this, via their lackeys at the ECB. Ultimately, Greece’s bankrupt economy was force-fed large amounts of additional debt – piling more debt onto a bankrupt debtor. Increasing Greece’s Debt Slavery. Pure criminality.

This brings us back to the gold standard. As previously explained, a gold standard can prevent irresponsible regimes from drowning their nation in debt. What a gold standard cannot do is to erase the (fraudulent) debts which have been incurred by previous, corrupt regimes.

By definition, a gold standard involves “backing” the monetary system of a particular economy with gold, via backing that nation’s currency with gold. Obviously, such backing must also include all of the debts which are denominated in that nation’s currency . It is here where we encounter a simple, yet fundamental premise of arithmetic.

No insolvent economy can “back” their economy with gold.

This should be completely self-evident, yet it is apparently beyond the comprehension of the charlatan economists. When these frauds consider the gold standard, what we hear continuous from these vacuous mouthpieces is that “there is not enough gold” for a gold standard.

What the charlatans actually meant, if they were capable of expressing themselves coherently, is that our debts are too large for any of these insolvent economies to actually “back” their currencies (and economies) with gold. And this brings us to the connection between a gold standard and Debt Jubilee – in an era of Western insolvency.

It is absolutely mathematically and economically impossible for any of these corrupt regimes to implement a gold standard until after they have declared Debt Jubilee . Even the Charlatans have acknowledged this, they are just incapable of doing so in an intelligible manner. In turn, this brings us back to the Poser politicians, and the intellectually bankrupt “economic advisors” who shill on their behalf, via this headline:

Trump Advisor calls for Gold Standard: “Money that transcends borders and time”

Isn’t that special? Donald Trump and the charlatan economist who speaks on his behalf supposedly want a gold standard. Read through the happy-talk which follows this headline, and two words will be notably absent: Debt Jubilee.

Donald Trump and this “economist” (supposedly) want the United States to go back to having Honest Money. The problem? There is absolutely not one word from these Posers about transforming the U.S. into an Honest Economy, i.e. one that either pays its bills, or openly renounces those bills as being unpayable (Debt Jubilee).

It is obviously mathematically impossible for any Western economy to return to a gold standard without first declaring Debt Jubilee. To have Honest Money, one must begin with an Honest Economy.

Posers like Trump (and others) want to “have their cake, and eat it too.” They want to talk about bringing Honest Money (and the Golden Handcuffs) back to our nations, while notably omitting any mention of the necessary precondition before this could ever happen – Debt Jubilee.

This test to separate the Posers from serious advocates of a gold standard is absolute. If someone touts a gold standard without first acknowledging the necessity that Debt Jubilee precede this change, there are only two possibilities. The individual in question is lying about their intent to implement a gold standard, or they simply lack the economic sophistication to even understand the dynamics which are involved. Either way, such individuals are unequivocal posers.

How many writers, politicians, and charlatan economists are talking about a gold standard? Lots. How many are informing people that we must have Debt Jubilee before we could ever move to an Honest Money monetary system? Just this writer.

We absolutely require a gold standard. We absolutely require Debt Jubilee. As a matter of the simplest arithmetic, it is totally impossible for us to ever have the former until after we have the latter. Ignore the Posers. They are not serious individuals.

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Chris Adams
August 24, 2016 at 7:47 AM
I trust you have reached out to the Trump campaign with this logical advice? He is this nation's only hope, so before too many more harsh give are expressed it a shot if you haven't already done so. We're all pretty sure he means well, and in most matters he is not a "poser."
Chris Adams
August 24, 2016 at 2:41 PM
I think you knew what I was saying, but it came out garbled before coffee this morning - "before too many more harsh words are expressed give it a shot" should have been the proper word order. And to your reply, Jeff, about Bannon being an "insider", I think he is largely reviled by the Washington establishment: Either way, I agree with BCS about the $15K/oz price for gold and then possibly being able to avoid a debt jubilee (not that I'm against that, but I think the greedy powers that be would rather witness 90% annihilation of the human population instead of absolving us of debt). And I also see what kac wrote in his comment. I was going to share your story on LinkedIn but decided otherwise when you started to bash our only hope. We're so screwed Jeff, in so many ways if Hillary wins. So much of the establishment is dead-set against trump, almost the whole world. Every day for the past week nearly, there has been a NYTimes front cover anti-Trump story. So glad the mainstream media's approval rating is 6%. Hope you can see past Trump's weaknesses as we spiral further towards hell.
August 24, 2016 at 11:06 AM
Trump is our only hope- Oh, do you want Hillary to win? Is that the purpose of your trashing Trump? At least he hints at wanting gold and silver to trade freely, and wants our states to maintain their borders, and us to keep our civil rights. Why weave Trump into your story and not the powers that have been, are and (I prey will not be after this November). It is a turn off to hear Trump trashing (heck- he is only a pres. candidate- he has no powers to do a thing right now, yet you expect him to submit his gold standard plan to the yor your satisfaction, and yet Hillary is not held to a higher standard by you (and she is in power and has been). If you have nothing good to say about Trump (our only hope), say nothing for when you trash our Trump, you trample on those of us fighting for change and poss. of gold standard one day. You crush our hopes and dreams based on a snarky comment about our hopes for a Trump presidency. Therefore, it makes your point suspect and dashes all our hopes. What is a dream without hope? Hopecrusher!!!/or socialist?
August 24, 2016 at 2:00 PM
Although I know what a debt jubilee is, I admit to ignorance about how a country would implement a debt jubilee. Does it mean that all of those (people and institutions) who have behaved frugally and responsibly and have no debt, but do have money owed to them, do not get what is owed? If so, then I suppose that all those who have lived wildly beyond their means (people as well as institutions) get to say, "too bad'll never get paid back...I get your money/goods for nothing"? What a punishment for the moral, ethical, and responsible people and companies, and what a windfall for the immoral, unethical, and irresponsible people and institutions. If my interpretation is correct, then "NO THANKS" to the debt jubilee! Instead... Let's just establish that an ounce of gold is worth somewhere between $15,000 and $35,000 an ounce (i.e., that the US dollar is either partially or fully backed by gold), and demand that debts be paid with that gold-backed currency. As for Mr. Trump, he is the least "establishment" of the two candidates. In this country, the establishment "machine" is so powerful/corrupt that there is NO WAY that a candidate can win currently without working within the establishment to a certain extent. Our hope is that someone who hasn't completely bought into the establishment can start us on our way out of it.
Chris Adams
August 24, 2016 at 3:33 PM
Hi Leslie, I'm looking forward to hearing what Jeff has to say about your fury over the concept of debt jubilee insofar as how frugal people/institutions who live within their means get the short end of the stick. THAT SAID...if the whole system collapses because of enormous levels of systemic debt then it doesn't matter how frugal folks are or have been. We will all get the shaft. The system collapses around us, and brings everyone down - to the peril of everyone. So you can see why the concept of debt jubilee goes back thousands of years, we humans keep on repeating the same mistakes over and over. Frugality and sensibilities be damned.
August 24, 2016 at 4:40 PM
I believe Jeffs debt jubliee is forgiveness of interest only not the principal.
Scott Brumwell
August 30, 2016 at 8:13 PM
Jeff - I think both a gold standard as well as a debt jubilee is the only way out of the problem and the insurance that the criminal bankers and politicians can't continue their thievery so long as the new changed stay in place. However a debt jubilee although I agree with it gives individuals and businesses that have been irresponsible a get out of gaol free card. Whilst people that have been responsible and saved for everything including retirement receive no benefit for a life of being responsible. What are your thoughts on a token one off payment to these individuals as compensation at the same time as a jubilee is put in place and what are your thoughts on how and if it should be implicated.
June 20, 2019 at 8:51 AM
I think Trump is renegotiating trade deals to correct the trade imbalance because he has a plan for both a debt Jubilee and putting the US on a precious metal standard. He is already confiscating the wealth from the elite pedos. How do you see this playing out?