{"198934":{"id":"198934","parent":"0","time":"1638827736","url":"https:\/\/www.strategic-culture.org\/news\/2021\/12\/06\/david-stockman-on-consequences-of-abolishing-gold-standard\/","category":"Banqueroute","title":"David Stockman on the Consequences of Abolishing the Gold Standard","image":"http:\/\/www.newsnet.fr\/img\/newsnet_198934_894b40.png","hub":"newsnet","url-explicit":"david-stockman-on-the-consequences-of-abolishing-the-gold-standard","admin":"newsnet","views":"91","priority":"3","length":"3761","lang":"en","content":"\u003Cp\u003E\u003Ci\u003EBy David STOCKMAN\u003C\/i\u003E\u003C\/p\u003E\u003Cp\u003EBefore Alan Greenspan fell off the wagon in pursuit of government power, position, praise, and riches, in his 1966 speech, \"Gold and Economic Freedom,\" he said the following:\u003C\/p\u003E\u003Cblockquote\u003EIn the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value... The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.\u003Cp\u003EThis is the shabby secret of the welfare statists' tirades against gold. \u003Cb\u003EDeficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process.\u003C\/b\u003E It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard. (Emphasis mine.)\u003C\/blockquote\u003E\u003C\/p\u003E\u003Cp\u003EWhen Greenspan spoke in 1966, the public debt was just $325 billion and amounted to 40% of GDP. And that figure had been steadily falling from the WWII peak of 125%.\u003C\/p\u003E\u003Cp\u003ENo more. The public debt now standards at $28.1 trillion and 127% of GDP and is rising at breakneck speed.\u003C\/p\u003E\u003Cp\u003EWhat happened was that once the Fed-fueled tech boom of the 1990s ran out of gas with the dotcom bust in the spring of 2000, industrial production in the US got pinned to the flat-line.\u003C\/p\u003E\u003Cp\u003EDuring the first period between 1972 and 2000 the Fed's balance sheet grew by about $500 billion, or $18 billion per year.\u003C\/p\u003E\u003Cp\u003EBut during the last 21 years since then, the Fed's balance sheet has soared by $7.6 trillion, or $362 billion per year.\u003C\/p\u003E\u003Cp\u003EWhen the central bank injects 20 times more fiat credit into the economy each year, it has to go somewhere.\u003C\/p\u003E\u003Cp\u003EAs dramatically depicted by the chart below, the stock market became the great monetary sump that absorbed the inflationary tide.\u003C\/p\u003E\u003Cp\u003E\u003Cb\u003EInflation-adjusted NASDAQ 100 Versus Real GDP, 1995-2021\u003C\/b\u003E\u003C\/p\u003E\u003Cp\u003E\u003Cimg src=\"http:\/\/www.newsnet.fr\/img\/newsnet_198934_894b40.png\" \/\u003E\u003C\/p\u003E\u003Cp\u003EThe stock market recorded a staggering $38.3 trillion gain in value during the last 25 years that was well more than double the $14.5 trillion rise of nominal GDP, meaning that the stock market is now capitalized at 200% of national income.\u003C\/p\u003E\u003Cp\u003EThe value of the stock market rose by \u003Cb\u003E\u003Ci\u003E6.3X\u003C\/i\u003E\u003C\/b\u003E during the last quarter-century of money-printing madness, while national income increased by only \u003Cb\u003E\u003Ci\u003E2.7X.\u003C\/i\u003E\u003C\/b\u003E\u003C\/p\u003E\u003Cp\u003EWhat has driven the market to current nose-bleed heights is a purely central bank-fueled speculative mania and profits-to-earnings ratio (P\/E) multiple expansion that is without any plausible foundation.\u003C\/p\u003E\u003Cp\u003EBut this cannot lead to anything but a $90 trillion global stock market bubble collapse when the central banks are finally forced to throw in the towel on their \u003Ca href=\"https:\/\/internationalman.com\/the-most-dangerous-event-of-the-21st-century\"\u003E\"transitory inflation\" baloney\u003C\/a\u003E.\u003C\/p\u003E\u003Cp\u003EIt also leads to decades of consumer inflation.\u003C\/p\u003E\u003Cp\u003E\u003Cb\u003EYoY Change in CPI for Durable Goods, 2012-2021\u003C\/b\u003E\u003C\/p\u003E\u003Cp\u003E\u003Cimg src=\"http:\/\/www.newsnet.fr\/img\/newsnet_198934_9c2402.png\" \/\u003E\u003C\/p\u003E\u003Cp\u003E\u003Ci\u003EEditor's Note: Did you know that that United States government has unleashed the most dangerous experiment in its entire history?\u003C\/i\u003E\u003C\/p\u003E\u003Cp\u003EIn fact, what's been unleashed is trillions of dollars of stimulus with no end in sight.\u003C\/p\u003E\u003Cp\u003EWhen any government goes on an uncontrollable money printing spree it impacts everyone.\u003C\/p\u003E\u003Cp\u003EThat's precisely why, \u003Ci\u003ENY Times\u003C\/i\u003E best selling author Doug Casey just released \u003Ca href=\"https:\/\/internationalman.com\/the-most-dangerous-event-of-the-21st-century\"\u003Ethis urgent new video\u003C\/a\u003E on the biggest imminent threat and what you can do about it.\u003C\/p\u003E\u003Cp\u003E\u003Ca href=\"https:\/\/internationalman.com\/articles\/david-stockman-on-the-consequences-of-abolishing-the-gold-standard\"\u003Einternationalman.com\u003C\/a\u003E\u003C\/p\u003E\u003Cp\u003E\u003Ca href=\"https:\/\/www.strategic-culture.org\/news\/2021\/12\/06\/david-stockman-on-consequences-of-abolishing-gold-standard\/\"\u003Estrategic-culture.org\u003C\/a\u003E\u003C\/p\u003E"}}