• FREE Shipping & Insurance on Orders Over $500
    FREE Shipping & Insurance on Orders Over $500
back to top

Gold Standard & Inflation

Logo - Sprott Money News from the Archives

July 31, 2017

Every time the Federal Reserve comes to the podium and says something to the effect of “we are not reaching our inflation goals…” in essence, what they are saying is we haven’t been able to transfer enough of your wealth to us and our friends in corporate America and the scumbag do-nothing CONgress that will force you to borrow more and generate the necessary debt flows to keep the Ponzi scheme going. Without the issuance of more debt the Federal Reserve Note begins moving backwards, which is exactly what is happening right now, as the Federal Reserve Note is completely dependent upon the debt continually moving higher. The Federal Reserve Note is moving to the down side “against the other currencies”.

“You can still have high inflation with a metallic standard” because history shows governments regularly go off such regimes. ~Martin Armstrong

So, a gold standard works and keeps inflation in check until government spending gets out of control. As long as the government says it’s okay to live beyond your means, and then force inflation on the citizens, that’s acceptable. However, if the citizens live beyond their means and spend more than their income will support they go bankrupt and lose everything.

Throughout history the most prosperous times have been during the times of some form of a gold standard. Highest standard of living, lowest inflation and innovation shooting forth like weeds in the spring time. BUT, since government “regimes” refuse to adhere to the laws of a gold standard, well, then it simply doesn’t work. Unless a small group of corrupt thugs can steal at their leisure, well, that’s just unacceptable.

CPI Since US Founding

Chart courtesy of MishTalk

With the Federal Reserve continually stealing from the citizens, beginning in 1913, it was only a matter of time before the “money” ran out and the government would be forced to make very serious changes to how the currency was issued and remove gold from the equation as gold exposes the lie the currency is telling.

In the charts below (click any to enlarge) you can clearly see the lie, the theft, the transference of wealth, from all the citizens to a small group of banksters, corporate owners and their lackeys. If the general public were to see and, more importantly, understand this is their wealth flowing out of their hands and into the hands of someone else, I would hope we would see a massive uprising, or at the very least enough of an uprising to make a difference.

Policy Error by the Fed

The article cited a “policy error” by the Fed as the cause of the stagflation period.

Actually, the policy error was Nixon closing the gold window on August 15, 1971, ending convertibility of gold for dollars. Our balance of trade soon went haywire, as did the explosion of credit and debt.

Until the citizens know what is happening with inflation and the can of soup is now 2 ounce less than last week but sells for the same price, this transference of wealth will continue unabated.

One of the best things we can do for ourselves and for our families is to continually remove Federal Reserve Notes from the system by transferring our wealth into physical gold and physical silver. Gold has been protecting wealth for the past 4,000+ years. If a person thinks the uber wealthy don’t have a serious stack of gold, they should rethink that position. They do. The 0.001% absolutely understand gold’s role and they have plenty in their vault to prove it. Measuring gold against the Federal Reserve Note is the same as measuring water against oil. One is wealth, the other is debt. Debt is the enemy of wealth, the same as water does not mix with oil.

Don’t miss a golden opportunity.

Now that you’ve gained a deeper understanding about gold, it’s time to browse our selection of gold bars, coins, or exclusive Sprott Gold wafers.

About Sprott Money

Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.

Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.

Learn More

Looks like there are no comments yet.