Dumb Money

So forget all that you see
It's not reality
It's just a fantasy
--Aldo Nova

Jacob Hornberger discusses one of the many laughable comments made by Ben Bernanke during the Fed chair's recent GWU classroom lecture. BB declared that a gold standard would be unworkable in part because of the changing ratio between gold and paper dollars.

As Mr Hornberger notes, the gold standard as specified in the Constitution did not include paper money. Money was to be precious metal. And indeed gold and silver coins were essentially our monetary system for the first 100+ years.

It has been the gradual distancing of the USD away from gold that has destroyed money's store of value and compromised freedom.

Statists throughout history have learned that inflation is the most favorable way to transfer wealth in their direction. Unlike taxes or borrowing, both of which get to be politically distasteful, inflation tends to be 'invisible' to people on a daily basis. And, as the saying goes: out of sight, out of mind.

Layer on top of that the propaganda spewed by government and their central bank cronies, and you have a world largely incapable of seeing robbery in broad daylight.