U.S.A. Becomes Somalia Without Gold Backed Currency by Phil Hunter
How BRICS cause America to become another Somalia
On Memorial Day Jack and I did a podcast which brought a lot of comments from all over the globe. One of the comments, from Banger a long-time participant in our continued discourse, was about the USA becoming Somalia in the next couple of years. As I have thought about this and thought about what I have experienced in the arm pits of the third world, I see specifically what he implied by his statement. I had quite aa lot of thinking considering the state of the planet. To delve into this I am only going to consider one part of the over all global picture which I think most applies to his statement regarding Somalia and the change of the USA into a third world country.
When we look at the third world simply, we can look at the fighting internally, the killing of people based on tribe or community standing or caste. We can look at the military standing in the world or lack thereof. Everywhere politics and bureaucracies are rife with criminals, murderers, liars, narcissists, and graft. Science and new discoveries and developments are almost non-existent along with educational opportunities. Industry is low on the scale of exports. And medicine and healthcare go through all the above before it gets to those who need it.
Everything in the previous paragraph relies on one thing, money. The currency of the realm, greenbacks, rubles, Euro, etc. Supposedly, in world economics this is all digital and backed by the pledge of the seller that they will produce something of value to the buyer in exchange for what the seller has produced and offered in exchange for digital numbers. Therefore, what we have is a digital, or tangible, medium of exchange we call money.
Most of you are familiar with the United States currency once being gold and silver coin. This was not unusual as it has been the case for many millennia across the planet. Enter the United States dollar, backed by nothing in the 21st century. The dollar, a fiat currency, paper, of no value other than having the backing of the United States government and supposedly the production of the people of the United States. This medium of exchange is manipulated in markets of exchange across the globe. They call it the “petro-dollar” due to large exchanges of currency for oil being made in US dollars. The manipulation of the value of this dollar allows the people of the United States to have high standard of living as the they that are the market traders artificially keep the value high.
The rest of the world is very aware that the dollar has no intrinsic value other than faith in the issuer. Do you have faith in the United States government these days? Do you even have faith in your neighbor? Now I’m not an economist, sociologist, or any other kind of “ist” you might name. I’m just a guy who has watched closely what has gone on around me for the last 60 some odd years. Thanks to Banger I have given this enough thought to put some recent obseervations to paper (internet digits).
Once was the time when you could trade in a dollar for a dollar’s worth of gold or silver. That ended when the monsters from Jekyll Island decided to come up with the Federal Reserve Fractional Banking system. This is another of those things I’m sure most of you know about. This has been going on because of central banks forever, crtinly since Andrew Jackson’s time as President in the US. Suffice it to say that the US no longer backs the currency with any tangible. Today a single dollar will get you 1/2000 of an ounce of gold. Of course, the gold and silver currency was prior to the Lincoln greenbacks, then the FED, Hoover, and FDR came into the picture to make the dollar superfluous. We used to have $5 gold pieces up to $20 gold pieces. The $20 piece being an ounce. Silver coins were similarly traded in exchange.
The economists, politicians, generals, bankers, corporate leaders, and you, all know the dollar is worthless without the backing of some sort. The backing for the last 160 or so years has been only the word from Washington DC that the dollar is the medium of trade, or else here comes the red, white and blue waving above the artillery pieces. This is about to change and change drastically. Money drives all the forces of society I named in paragraph two.
Enter the BRICS nations and gold. For several years there have been economic trade discussions and agreements going on between the world’s largest producers to the exclusion of the United States. This group of nations are in the news quite often; Brazil, Russia, India, China, and South Africa lead the way. Have you seen the news recently about central banks around the world buying gold? Or headlines about states or municipalities in the US buying gold to provide liquidity? There is a reason for this, gold is the preferred tangible vehicle for trade world-wide.