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Gold Standard: An Essay

GOLD STANDARD: AN ESSAY

 

 

By

Edward E. Rochon

 

 

 

Shakespir EDITION

 

 

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PUBLISHED BY:

Edward E. Rochon on Shakespir

 

 

Gold Standard: An Essay

Copyright © 2016 by Edward E. Rochon

 

 

 

Thank you for downloading this eBook. This book may not be reproduced, copied and distributed for non-commercial purposes, unless prior permission is given by the author.

 

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Some Other Works by the Author

 

[Compound Interest: An Essay
Dollar Inflation: An Essay
Dollar Inflation II: An Essay
Green Gold: An Essay
Inflation Court: An Essay
Jobmasters: An Essay
Minimum Wage & Economics: Essays
Monetary Stability: An Essay
Voodoo Economics]

[Axioms & Theorems: An Essay
Global Warming: An Essay
Pest Control: An Essay
Pollution Solution: An Essay
Pollution Soup Cook: An Essay
Unified Field Theory: An Essay
__]

 

Reading Material

 

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Table of Contents

Title Page

Preface

Chapter 1: Gold Past

Chapter 2: And the Point

Chapter 3: Musical Gold Shares

About the Author

Preface

I recently published an essay called: The Big Bust: An Essay. I touched on the matter of gold, the gold standard and some notions on the nature of printed money in contrast with gold. This brief essay discusses a bit of the history and problems and errors that princes made in manipulating gold in the past.

There is a great surge of conspiracy theories about the gold standard that have a great potential to destabilize public trust in the economies of states. Some of this is old hat and of suspicious intent. We all know that the love of money leads to evil, that money attracts evil. Less well known is the problem of the discrepancy between wealth in society and its valuation in the form of money. I have discussed this dichotomy between absolute wealth (goods & services) and relative wealth (money) in other essays. To the individual, money and wealth are virtually the same thing in most instances. In macroeconomic terms, they never are.

I will proceed to explain how gold fits in with these concepts.

 

 

Chapter 1: Gold Past

The conspiracy buffs complain of the printing press, how it will lead to hyperinflation, corruption and the impoverishment of the people. It will be the tool of their oppression by a corrupt oligarchy or satanic powers. We will be harangued by the dire warnings of Thomas Jefferson and exegesis on St. John’s Revelation.

The use of gold has never prevented misuse of the money supply in the past. The primary method of manipulating the money supply was through debasement of the currency. The state would mix gold and silver with less expensive metals to extend the money supply. If the debasement was not too obvious, the simple man might think the coin was not debased. The truth would always get out. The prince would force debtors in his own kingdom to accept the coins at face value. In turn, he found ways to get income into his treasury that was not in the form of his own debased coinage, or simply force creditors to accept face value of the coins, while forcing taxpayers to pay more debased coins until they added up to the previous tax load with the original coins. So the debts were paid by two coins worth only one, and taxpayers paid two coins for and old tax valued at one coin. Needless to say, this did not make the public happy. Moreover, it shook confidence in the currency, tended to return transactions to barter, depriving the prince of any sales taxes or fees accrued from commerce. Foreigners would not accept the debased coins, impeding international trade and any taxes earned by the prince through tariffs. He was robbing Peter to rob Peter, and he, the prince, was Peter.

Well, this was the wrong way to go about it. This was largely due to the fact that princes and treasurers tended to see gold as a commodity rather than a promissory note written in gold. What do I mean by this, and why is debasing coinage the wrong way to pay the prince’s bills?

The prince can do the same thing a much simpler and more stable way. When the prince stamps out two coins by splitting the gold of one coin into two coins, he effectively revalues the value of gold in his kingdom, but in a way disconcerting to vendors and consumers, both at home and abroad. The smart way to go is to peg the value of gold to a higher value by fiat and leave the currency alone. Can the prince do this? It is done with paper money. As long as the market is satisfied that they can transact purchases and then sell at the same value within a reasonable period of time, it works. Moreover, if commerce demands more money, easily supplied by printing money, and this is seen as promoting prosperity, it works.

Quite often in the past the state would see a drain of currency leaving its borders due to changes in trade or income flow. An empire would run out of countries to conquer and enslave due to a failure of military prowess, for example. A change in trade routes, economic decline at home due to bad weather, plague, depopulation from any source, might make money scarce. Merchants and consumers would be hard put to find coins to engage in commerce. The sales tax, tariffs, turnstile revenues accrued to the state would also suffer. The prince, at a loss, would debase the currency to solve the problem. But would not the value of the money supply increase to meet the shortage, effectively increasing the money supply? Well, yes, in theory. But ignorance of pricing, the tendency of the international market in gold to set the national price of gold regardless of demand at home, the desire of hoarders to force down prices to their advantage inhibits this. As to the last item, if a merchant is losing customers due to the absence of coinage, he is hard pressed to earn a living. If some rich speculators have hoarded scarce coinage in the realm, they are in a position to drive down the price of commodities. Those who have no money, finding it hard to liquidify what material assets they have into a money market short of coinage, simply cannot buy without suffering much diminution of assets. They effectively drop out of the market, reducing demand, lowering prices for the rich and hoarders who still have coins available. Their gold buys more for less, but the market does not see this, only seeing prices dropping while coins remain at the same value, a value that many people cannot obtain to due to the shortage of money. Hoarders make a killing without apparently changing the price of anything for others, cloaking their profits.

When the prince simply pegs the price of gold in his realm to a higher value sufficient to cover his expenses on reduced tax revenues due to crimped commerce, and/or to cover his extravagances, he leaves the confidence in his coinage intact. Confidence in the money remains, both locally and in the international market. Let us see how this works.

The prince goes to a rich merchant to buy what he needs. His expenses come to 1,000 gold coins of the standard weight before pegging the gold. The prince informs the merchant that gold has been pegged to a higher value in his state since he deems it undervalued. He pays the merchant 500 coins as the revaluation was 100%. The merchant is upset and the prince realizes this. He tells the merchant that his taxes that are due to him he will collect right now for convenience. The taxes would be 10 gold coins of the realm before valuation. The prince tells the merchant to pay him 5 gold coins and they are good. The merchant likes this. The prince indifferently notes that the merchant is a rich man and undoubtedly possesses reserves of cash to handle cash flow. He mentions that the store of those coins are now revalued in his realm. The merchant likes this so much that he actually smiles. The prince informs the merchant that he is well within his rights to inform vendors that any purchases he makes in the future will be at the new pegged rate. The 500 gold coins just paid to him are good for debts in his kingdom at the prince’s rate. If anyone quarrels with you on this point, tell them that the prince will take note of anyone who has the temerity to question his princely fiat on this matter. He will be deemed a thief by demanding twice his price for coins that are worth twice their prior exchange in gold. You may inform him that the coins in his own purse have the same value as yours and that the charge of theft is on anyone who disputes his purchase. And he also may pay his taxes at the new rate for what cash he has on hand.

The prince mentions offhandedly that he is aware of the merchant’s international trade. He suggests that he inform his foreign opposites that the absolute gold value of their coins is now worth twice what it was in his realm. You may also inform them that any coins you would pay them in our currency will be honored at the new pegged rate in this realm. As for other realms, that is outside of my provenance. I suppose you should resolve this by purchasing and investing your liquid assets in our realm, as ounce for ounce, your gold is worth more here in our country. He continues. I am sure you are aware of the shortage of coinage in the country. Since my treasury has twice the value before pegging the gold at the new rate, I am going to convert many old gold coins into our current half ounce species. This will increase the absolute supply of coinage out in the country, helping to increase commerce and our tax revenues from said commerce via sales taxes, tariffs and fees. To be sure, we will accept taxes at the new pegged rate of gold in every case.

Well, much of this is quite pleasing to the the rich man. Being rich with liquid assets, he is making out on the deal. Foreign merchants will not complain that their liquid assets will buy more in the prince’s realm. Let us say that a merchant from Country A can trade with country C, by going through Country B or through the prince’s country. In the past, he generally went via Country B. But now his gold buys more when he stops at inns along the way, buys fodder for his pack animals, and can still do some trading in transit in the prince’s realm as well as in Country B. He shifts his commerce route to the prince’s realm. This brings in more gold to the realm, resolving the money shortage supply, increasing the prince’s tax base revenue. If the Country A merchant can buy a commodity in both Country B and the prince’s realm, and he pays in cash, he will certainly buy in the prince’s realm as the value of gold is pegged higher than the international market.

Now, if this is the case, will not foreign princes compensate to protect their money supply? OK, we have the same thing today in foreign exchange rates. A country that needs to sell more abroad to bring in more business and foreign exchange will devalue its money. In turn, this makes it harder for its own citizens to buy foreign goods, further improving the balance of trade. If this gets out of hand, other countries can devalue coinage to stem an excessive flow of foreign goods into their market, while impeding sales from their factories.

But let us look what happens when other princes peg their gold in retaliation. But first look at historical problems with money supply. Gold and silver are used for money but also for jewelry, plate ware, art and medicine. These bleed off species and have done so. Money is often hidden and buried. Should the man die or forget where the funds are, they are lost to the market. In general, the population of the world has steadily increased, demanding an increase in circulating money. The discovery of new mines is somewhat problematic, coming in spurts and stops, making that replacement option problematic. The Empire of China had a chronic problem with a shortage of currency. One way it tried to deal with it was to make coinage of more common material. But this did not please merchants engaged in international trade. Many things have been used for species: beads, rare seashells, salt. Merchants prefer to have money in forms of things that are rare, since this gives them a natural value. Rare things take more time, labor and overall expense to come by. And a promise to pay in one place is not necessarily deemed valid in another place. Silver and gold are the most universally accepted large denomination species with copper or alloys for the lesser denominations.

But let us go back to revaluing gold by pegging its price. Suppose the other princes retaliated throughout the area or the whole world. We can see that this would solve the shortage of the money supply for all time for all practical purposes. Each coin would be worth more, and smaller coins would be needed to a greater degree, increasing the quantity of coinage. Eventually, retaliation would slacken off, being an exercise of futility, producing instability in arbitrage and commerce. But the idea that pegging gold is better than debasing coinage would stick. A sort of common agreement between princes and states would tend to exist. Just as gold and silver are universally accepted as money, so all princes and states are well aware of the problem that shortages in species can do to commerce and tax revenues. There would be a tendency to allow revaluing in each realm to the extent required to resolve the problem of money shortage. If a surfeit of money resulted elsewhere, creating some problem, what is to prevent the treasury from pulling gold and silver out of the market to correct that, and save the species for a later day when a shortage needs to be corrected? Nothing. In that last case, instead of revaluing through pegging, they simply release gold and silver previously removed from the market in that country. Back to Table of Content

 

 

Chapter 2: And the Point

The point is to show that gold is effectively no different in its true valuation than paper money and can be treated in the same way. Debasing coinage is not necessary. The sole difference between paper money and gold is that gold is an international coinage due to its metallic content, whereas paper currency is local money. Realizing this, convention in the modern era has accepted certain currencies as international currency for all practical purposes. First it was the British pound, later the US dollar.

However, when using pegging of gold value, the pegging is local and operates as a local currency until and unless other local economies compensate in turn to some new pegging standard. Paper currency has an advantage in allowing a national government to fine tune its economy. Moreover, paper currency impresses upon a citizenry the importance of maintaining national stability in every area, lest their savings, jobs and even personal safety be placed in jeopardy. Paper money makes it a bit harder for speculators to manipulate the money supply. The hoarding of species to force a shortage, forcing the treasury mints to buy gold at a higher price to increase money supply, thereby increasing the value of the hoarders’ hoard, and allowing them to convert a portion into real assets in the local economy at advantageous prices becomes more difficult. It does not prevent gold bugs from issuing dire warnings about paper currency leading to economic collapse. And the gold bugs are selling plans to ameliorate this to potential customers, or actually make money on the collapse, and to buy gold from gold hoards at high prices. Make no mistake, speculators can make plenty of money by shifting assets from paper to gold and back again, and convincing others to do so with a service charge to them in one form or another. The Federal Reserve has made it easier for banks to speculate and manipulate money in paper form in contrast to the old gold standard. With paper bills, hoarding becomes a problem, since the state simply prints more to keep the money supply in equilibrium with demand. Of course, old folks did not understand pegging gold priice to do this in the old days.

All speculators need rises and falls in prices, often spurred by jittery market trust in the economy and money supply, to realize big gains on speculations. They scare the market, reap in big bucks, wait a bit then scare again and reap some more. The redistribution of wealth that they complain about through printing press money is OK as long as the speculators are receiving the gain with or without a gold standard. For speculators can make money in both a printed currency and gold standard currency.

Given the problem of human distrust, the need for local control of economic behavior and the needs of international trade, most countries should go on what might be called a mixed currency policy. You do not go back onto the gold standard, but do issue notes that can be redeemable (sic) to gold to soothe fears of panic. In my opinion, paper currency laced with threaded gold would be the best way to do this. The value of gold should be kept high enough to keep the content of gold in the bills to a minimum. Redeeming means extracting the gold from the bill but superfluous except for a state that is desparate for gold for commodity uses (making things with gold.)

If the reader does not know this, gold can be drawn out to incredibly thin threads. Gold has been used for thread for thousands of years. Modern technology could make it hard to forge paper bills with gold thread in them. Modern equipment should be easily available to detect fraud. The money would have a characteristic feel. A one dollar bill would have twenty times less thread than the twenty dollar bill. The value of gold should never be allowed to fall below the face value. Even if it did, it might still be accepted at face value, as printed money is accepted at face value. Keeping the value above commodity value (manufactures of gold products) would be OK by fiat. Each currency should give its own citizens first chance at buying its green gold money. This would be stashed away in the home safe for emergencies, Armageddon, etc. to soothe the troubled minds. Banks should offer to distinguish between assets in gold currency and regular paper currency, so as to allow it kept in accounts, rather than stashed away in safe deposit boxes. Generally, gold would be kept in savings accounts.

To be sure, there would be trading gold bills in these currencies. The debtor would try to sell at a premium to ward off the loan shark, since paper gold would not be the normal currency but emergency backup, and so in short supply. How much US green gold would leave the country? Humph! At least these green gold backs would not increase distrust in the currency of the United States.

If the world does go back to a gold standard, I certainly hope that idiot treasury departments will resort to pegging gold currency rather than debasing the money supply. Back to Table of Content

 

 

Chapter 3: Musical Gold Shares

Whenever a change in the value of currency or commodities occurs, there are winners and losers. One way or another, the rich usually end up richer, though there can be some losers, mostly because the rich also prey on the rich, just as devil fish eat the hooked devil fish hauled up by the fishermen. It is dog eat dog in the stock exchange.

My advice to the poor is to pay no mind to how rich the rich are getting just so long as they have jobs, bread and foods in general, safe streets and shelter. The purpose of adjusting the money supply should be to maintain a healthy economy. The rich, being money smart, will always strive to take advantage of any money flow brought in consequence of these changes. A change in potential of water, air or electrons creates water flow, wind and electric current. Change in currency creates changes in how much share of the GNP is in particular people’s hands.

It is bitterly funny to listen to people extolling the sage advice of Thomas Jefferson on the dangers of paper money. This man warning against the profligacy of government, this deadbeat who was bailed out by the US Treasury to pay off his debts on the prestige of his reputation! Thomas Jefferson went into debt because he was a spendthrift and sybarite, not because of any tragic reversals in life or loss of income due to government service. His social status was enhanced by government service, his connections as well. The hypocrite lover of freedom and slave owner! Oh, spare me about the laws of Virginia. He could have moved to Pennsylvania and freed his slaves. This man who was willing to turn the world into a bloodbath, up to half the world population dead, in the name of revolution, is not fit to speak about waste of any sort. When he served in a military capacity as commander and chief of Virginia, he bugged out expeditiously to avoid the shedding of his own blood, mockingly pointed out by the combative Andrew Jackson. He complained about the current generation leaving debts to its progeny. Does not the progeny benefit from the work of generations that built up its family assets? And if a spendthrift runs through his inheritance, do they not also suffer as well as with a spendthrift government?

With respect to the Federal Reserve and the seemingly ever leaching away of prosperity from the people at large by plutocrats and usurers, or from the leaching of wealth from weaker and marginal countries’ wealth into the richer countries, this has been going on throughout history. The rich get richer and the poor get poorer. That the rich get richer is not the problem but that the poor get poorer. What quite often happens is that the poor cry out for debt release/relief and the man on the white horse obtains this. The oligarchic rich accuse him of tyranny and he may be tyrannical. The poor extol his virtues, whether these virtues exist or not. More often than not, the end result is merely the transfer of wealth from one set of oligarchic hands to another. But some debt relief is generally effected to placate the problem. And the fact is that the rich cannot just get richer off the poor as the poor run out of money. They can be enslaved, but slavery becomes quite dangerous with too many slaves. This is why foreigners are generally preferred as slaves. And slavery breaks up family life, has attendant expenses. It is certainly not unheard of for landowners to give up slaves in exchange for tenants paying rent. They need only concern themselves with the rent, and the tenants are motivated to work as they keep a cut of what they make. This improves productivity without paying overseers to whip them. Whipping is not good for the health of slaves. The tenants tend to their own families along with the fields and somewhat less likely to revolt, unless driven from their land, whether rented or owned.

Now a well run state lives off of tax revenues, not off of loans. When the poor cannot be taxed, the rich must make up the difference. People must pay their debts, and the prince must ensure social stability and the prosperity of the people. So the prince must always demand that the rich use their wealth to promote the prosperity of not only themselves but the people at large. To keep taxes down for the rich, the masses must have revenue to pay taxes in one fashion or another. At all times, ways to increase productivity, open up new sources of wealth, must be found and exploited. As for whether or not the government has enough revenue, the astute prince advises all to look out their windows and ask the questions. Are the streets paved with gold? Has the earth been subdued according to the word of God? Are their pests and mosquitoes about? Is the city gate made of a great pearl? Then the answer is that the state revenues are insufficient. But that is the work of God to provide? God’s work is man’s work and the state is ordained by God to do the works of God. We do not wait for God to promote the work of God on earth. Such people who think otherwise are not fit for heaven in life or in the afterlife.

If the public at large has no wealth, the rich must pay more, proportionately. If the tax burden is too heavy, prosperity can ameliorate it in two ways. More wealth means every fraction of that wealth is proportionately larger. If taxes remain high, the taxpayer is better off. If more wealth is available, lowering the tax rate is more expedient. Ultimately, wealth generation is the key to social harmony and justice. The poor become indebted to the rich, the prince taxes interest on debt to compensate. In what sense? If the modern credit card burden is too great such that the average man cannot pay his taxes, we tell the debtor to assign part of his debt to the state. Every payment that he makes, he deducts a tax for the state. If he owes $100 and pays $25 in taxes, he remits $75 to the creditor to pay the $100. But then the bank is paying the tax! If the creditors have all the money, that is where the taxes should come from. Should the dishonest debtor try to lie to state and bank, the bank may be paying taxes and should not pay a double tax. They keep receipts from their debtors The IRS must verify expenses. They must be empowered to check receipts against the debtors who claimed to pay taxes. The debtor is dissuaded from cheating. If he cheats, the bank gets screwed. They are not in the business to get screwed but to keep taxes down and profits up. Double paying taxes is nobody’s duty or desire.

If the Federal Reserve expands the money supply as authorized by Congress, Congress demands a tax on money expansion of such percentage to the treasury. Now if the government is trying to expand the economy by stimulation, keeping taxes down is an important aspect. By taking a cut of any money expansion off the top, the state does not have to tax the individual and leaves more money in his pocket. Congress does not borrow money from the Federal Reserve, it taxes money created by the Federal reserve, in whatever form that money is generated. The Lord giveth and the Lord taketh away, And the state is ordained by God, the sword of God. Since it is printed money anyway to prime the economy, this is hardly that much of a burden on the banks.

If the people spend too much money on liquor, gambling, sports and such, the taxes go up on those industries. Should they complain, Las Vegas can spend more on health spas that clearly demonstrate they improve the health of the people and pay less tax on any revenue earned from that. If the jock industry whines about taxes, start spending money promoting active involvement in physical fitness by our youth with proof that the kids and folks are actually more fit. You can pay less taxes on revenue earned or write off expenses incurred against your public beneficence. If the distillers complain about taxes on their products, much of which is paid by the consumer at any rate, get to work on creating cures for hangovers and drinks that ameliorate the ravages of alcohol abuse. It is a fact that good nutrition helps alcoholics, but diabolical forces in society have suppressed these for diabolical reasons. Make deals with vendors that actively oversee excess consumption at their establishments and get a tax break on profits earned. Make deals with restaurants that push dietary choices that ameliorate alcoholism and get a tax break for being good citizens. Keep advertising “drink in moderation” messages. You can always raise prices to pay for them and get a tax break when providing proof. If people drink less, they can afford the top shelf and higher prices in any case. Think up mixed drinks that are at least somewhat healthier, and push them.

The glory of a prince is not served by drunks in the street, gambling addiction, hooligan generated trashing and rioting at sporting events, nor by diabetic, couch potato fans. These are not productive taxpayers.

Oh, the rise and fall of the Roman Empire. Cato the Elder railing against moral decay. We have the drunkard motivated by lust for the blood of the grape. We have the lech motivated for the flesh of prostitutes and the promiscuous lover. These are indeed signs of moral and social decay. And what of Cato? Rome, a state consumed with blood lust and the lust for the bodies of slaves. Blood lust and greed are lusts as well, and in the end worse than drunkenness and lechery. You do not have to be a genius to see that blood lust and greed are more conducive to building an empire. Decline and fall? Rome was born in decadence, lived its history in decadence, and to the extent it is still with us, continues in decadence. You talk of the glory of Rome, and fail to see the horrendous waste of deserts, pain and misery it left in its wake, this protection racket hiding behind justice. But the empires and governments they replaced were of a like sort, you counter. How does the moral corruption of the man robbed and murdered, absolve the murderer and thief of his guilt? Only in the minds of frauds is this so. Cato the Elder was a corrupt and vile man. Rome was vile, and you are vile to suppose otherwise. And all of these problems of wars, social conflict are still with us. There are no answers in Roman history, other than to detest the very name of Rome.

Getting back to money and debts, nobody is extolling the virtue of waste here. There is a dichotomy between money and wealth. All government manipulation of currency should be with the aim of promoting the true wealth of the nation, not in ripping off taxpayers or the poor for the benefit of scoundrels. This is certain. If in order to ensure the future for future generations, and the fathers pass some debts down to the children before those can be paid, this is fair as the future is for the children more than for the fathers.

When money supply is not spent on wealth generation, it matters not whether the money is gold or paper. We have all noticed that economic and scientific progress have paralleled the expansion of paper currency, whether backed by gold or not. Scientific advancement is moving at leaps and bounds since going off the gold standard for all practical purposes, or legally going off the gold standard. Much of the wealth or all of it is from increase in productivity in absolute terms rather than in more trade. Most of the problems in the US economy is from misallocation of money pumping, rather than money pumping itself. The gold bugs are more pests than harbingers of danger. We see troubles afoot and should be warned about them. They bear some relationship to current money policy that is paper money policy. The gold bugs are misrepresenting the crisis. However, people are people, and neither government nor individuals should be trusted as to character. The gold bugs talk of government corruption but not personal corruption. Well, that might make people suspect their motives. Of this writer’s motive, it is invariably the personal glory, grandeur and honor of Ed Rochon. Is fraud and treachery in anyone’s honor, glory or grandeur? Of course not! So if you think me a fraud, condemn me for shame, pettiness and dishonorable behavior. Oh, am I stupid! What could that possibly have to do with the personal glory, grandeur and honor of Ed Rochon? I suppose many grifters delude themselves that their cons make them superior to their marks, their suckers. Do you think them right, these supermen of slime? Shame on you. You have no decency, no honor and no integrity. And that is the real problem with life. Too many people in high places and low without honor, decency and integrity.

As a general rule, it is not the rich but the bitch, the witch that ruins us. The rich man is the scare crow and diversion hiding the occult powers at work. If a rich man is evil, he is evil because of his character, not his money. If he is evil, he is occult. For evil always hides itself until it has complete mastery over its prey. Even then, it blames the victim for being stupid and weak, justifying its evil as somehow good. Such is the sociopath. The rich have their problems, the poor theirs. Food, clothing and shelter at hand and in the future is what the poor need. The rich need to protect themselves from gold diggers, black widows, pimps, drug pushers, flatterers and conmen of every sort. They need to protect themselves from their own vanity, trust in perishable wealth and the devils about them tempting them into every vice conceivable to man. I would pity them but am too busy pitying myself due to my own ignorance, impotence and propensity to character flaws such as escapism, vain anger out of control at torts committed against me in person and in the public domain as a citizen.

In summation, let us not bow down to the price of the marketplace. It is not a natural law but the determination of men in concert and in conflict. Money serves the interest of the state or is a curse rather than a blessing. Wealth generation is the engine, money is merely the lubricant somewhat better than barter in many cases as a lubricant.

Wisdom is the true wealth of nations, desire for a golden age the true guarantor of prosperity. Let us get on with it. Evil plutocrats or evil commissars! Who is the man whose personal glory, grandeur and honor is coincident with the glory, grandeur and honor of his country. That is the man, the man of God and not of Sin as the oligarchs claim, who is fit to serve as chief of state by character. If he has the minimum qualifications to do the job, the ship of state need fear only the wrath of God for the most part. Of course all men are ignorant, and evil lurks in the shoals and fog of life. Back to Table of Content

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Other Works by the Author

[(*]Available online[)*]

Collected Poems I
Collected Poems II
Elements of Physics: Matter
Elements of Physics: Space
Elements of Physics: Time
Unified Field Theory: An Essay
Space as Infinity II
Golden Age Essays
Golden Age Essays II
Golden Age Essays III
Golden Age Essays IV
Golden Age Essays V

 

About the Author

My current biography and contact links are posted at Shakespir.com/profile/view/EdRochon. My writings include essays, poetry and dramatic work. Though I write poetry, my main interest is essays about the panoply of human experience and knowledge. This includes philosophy, science and the liberal arts. Comments, reviews and critiques of my work are welcome. Thank you for reading my book.

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Gold Standard: An Essay

A brief preface notes this is a follow-up to my previous essay. It speaks of conspiracy theories and money at the present time. Chapter 1 makes the point that prior ages that debased money to cover shortages in coinage and income flow were in error in method. They should have pegged the price of gold above international market prices, left their coinage as it was, other than to break down old coins into smaller coins at the pegged price, thus increasing money supply and increasing the value of any assets in the treasury. We comment on how the prince makes this work and of the consequences in local and international trade. Chapter 2 notes that the purpose of the first chapter was to show how gold is really a promissory note in metal. That this was not understood in the past, led princes and treasurers to debase money rather than to peg the price of gold in the local market above the international rate. It talks about debt and credit, the rich and poor and the problems of social conflict. Chapter 3 expands on the points made in the first two chapters, using some history for amplification. It explains how modern states can tax debt and reduce budget deficits. Tax credit card payments; tax money expansion in lieu of borrowing from the Federal Reserve.

  • ISBN: 9781370883097
  • Author: Edward E. Rochon
  • Published: 2016-10-22 21:50:09
  • Words: 6055
Gold Standard: An Essay Gold Standard: An Essay