Freegold Forum

Adam Fergusson, author of "When Money Dies" talks with James Turk

Rasta wrote:Reuters: Greeks seek to escape debt crisis abroad

It certainly looks like the migration in the US between states. Migration to escape to cheaper tax-friendly states.

That's not my reading of it:
- Young well trained Greeks are leaving a country where there are no more jobs for them: they don't flee taxation: They flee because taxation has suffocated the economy.
- These young Greeks migrate to countries with a different culture and language. The threshold to overcome is a lot higher.

And after the Swiss it's Japanese turn again. Devaluing their own currency. Why is this still necessary? As it is almost 2012 can't we just come up with a system that deals on it's own with these problems

http://www.telegraph.co.uk/finance/fina ... ation.html

Didn't you know that "Countries with revalued currencies are much worse off...". With all this too expensive currency one can not export, one gets much poorer and thus one has to devalue the currency as much as possible.

As a punishment for your misunderstanding, you must write 1000 times:

- DEVALUED CURRENCY IS GOOD!
- DEVALUED CURRENCY IS GOOD!
- DEVALUED CURRENCY IS GOOD!
- DEVALUED CURRENCY IS GOOD!
- DEVALUED CURRENCY IS GOOD!

If a local currency is overvalued compared to a local economy there must be something wrong. Especially when the local economy in fact is really weak.
All this is activated by imbalances in our current monetary system, a lacking design and governments manipulating this fregile system, desperately trying to cover up the real under laying problems.

Foa described how the dollar harmed local currencies causing inflation and Armstrong described how politicians are ‘mismanaging’ central banks, especially where inflation and debt creation is involved. The 1944 Bretton Woods had a blueprint, some kind of a design. Far from a perfect design but at least something. That design was harmed in 1971 without altering the original and in my opinion it is really a miracle that this crap is still functioning.

As always in history the markets, accompanied by money flows, reveal the real under laying problems. Money flows are like rivers nobody can stop.
Money flow rivers meander, gracefully passing around artificial blockades.

Governments don't understand international moneyflows and they built dams in the wrong places. Because nobody can stop the river, it will find onther passage and another and another ......floading everything in it's way.

Like FOA quoted, even a freegold system can't survive without currencies because the markets are in need for currencies to function. Maybe it is possible to built a freegold system but if you don’t understand money flows in that system, they will eventually flood you.

So there we have a freegold concept, without a blueprint (as far as I know) and without politicians understanding money flows.

This Jimi Hendrix lyric is fitting all money and gold systems:
And so castles made of sand
Milt into the sea eventually

really nice indy
good work

http://www.zerohedge.com/news/new-york- ... ry-dealers

over 21 is bank/dealer bust with black jack anyway ...

The present Dutch Central Bank CEO Klaas Knot heard the Euro founding father screaming from his grave but didn't know what he meant. International Money Flows helped Klaas by laser beaming the huge GAP in the Euro blueprint.
Still this is only a small part of the Euro solution and there is more work to be done, just like Armstrong is telling us.

http://www.send2web.com/files/Rise%20an ... 1-2011.pdf

It must have been Duisenberg/s true will to free the Euro from the nation state, but politics (as always) blocked him in doing so. He couldn't let go and maybe that's why he mentioned his true whish in his Aachen speech.

Like Armstrong advocates there is no other way out of the current Euro crisis. Does that make Armstrong brilliant? Maybe ....... I don't know. The man detected the laser beams that international money flows are shining upon the Euro GAP while the rest of the Euro world seemed to be blind.

================

Eurozone needs an independent budget authority to discipline members who breach fiscal rules, European Central Bank Governing Council Member Klass Knot said Monday.

Knot, who heads the Dutch central bank, said countries that fail to meet the budget rules of the European Union over a long term must eventually lose their sovereignty. A compulsory recovery must be made by an independent budget authority, not the ECB, he said in an interview published in the Dutch central bank's magazine.

Knot also called for automatic sanctions for countries with huge debt and large deficit. He said the power to take such decisions must be taken away from politicians.

The ECB has gone 'too far' in intervening in financial markets by measures such as buying bad loans, the policymaker said. He said he 'understands' why this happened. "We are in an extreme crisis, that requires exceptional measures," he said.

The issue of joint eurobonds is 'inevitable', Knot said.
However, these should be treated as a 'last resort'. First countries must put their finances in order, reduce debt and bring it back within the prescribed limit of 60 percent, the policymaker said.

"You see that the interest rates for Southern European countries are so strong that these countries face acute problems," Knot said. "That cannot happen with Eurobonds."

Effective taxation measures, less spending and market reform are among the possible solutions to the debt crisis, Knot said. These are the only structural solutions available, but will take time, he said.

According to Knot, it is important that the ECB returns to normal monetary policy soon. But, the policymaker pointed out that the central bank cannot afford to go on pumping unlimited funds into the financial system as it will lead to high inflation. The central bank must stop the unlimited allocation, but it is not easy, he added. "The difficulty is to determine when is the right time," Knot said.

http://www.fxopen.com/livenews.aspx?id= ... 14c8a8dfb5

From Armstrong perspective the man is making perfect sense.
From FOA perspective, this is just ECB side show and not to be taken very seriously.

I prefer a worldview where people are trying to make sense over one where everything is alice in wonderland ...

Not always agree on Turks' conclusions and recommendations, but his outlook for the price of gold has proven to be most accurate. So when he speaks on this, he has an interested listener her ( for what's worth).


http://kingworldnews.com/kingworldnews/ ... Level.html

in this an interesting line :

The value of gold comes from the market and not from central banks. Central banks can debase currencies, but they cannot debase gold.”

Oof where will we start?