The Banks and their posse continued to stand on gold and silver today against the market correlations. Fairly typical post option expiration action if you can call anything typical in these times of national madness. The madness of course is to hand over the management of your life savings and your living standards to such corrupt, self-centered nincompoops.
I think we will see a contrived slither out of this budget impasse, early next week, maybe pre-announced Sunday evening, so the can kicked over to a 'blue ribbon council' that can address the nation's business without directly involving the public or their elected representatives. And the Banks and their delegates may make you an offer you cannot refuse, again. It smells like TARP in here.
"With only 2% of the money in circulation being in gold and silver, John Law reasoned that financial stability could only be restored if the amount of paper, shares and money, was reduced and the value of [precious metal] coins was increased.
Accordingly, over a period of weeks thousands of livre notes and share certificates were publicly burnt. But confidence in paper had been lost. Every smoldering bonfire sapped the credibility of paper, and the press for coins grew more insistent.”
Janet Gleeson
I especially like the above quote by the way, because it shows that John Law's common sense reasoning held that a dramatic decrease in money supply, a 'monetary deflation' if you will, would increase the value of the currency, even when its underlying value, all the things that make it worthwhile in the eyes of the market, continued to deteriorate at a much greater rate than he could burn them.
It's Midnight. Do You Know Where Your Reserve Currency Is?
National Madness
Gilbert Keith Chesterton
"This slow and awful self-hypnotism of error is a process that can occur not only with individuals, but also with whole societies. It is hard to pick out and prove; that is why it is hard to cure. But this mental degeneration may be brought to one test, which I truly believe to be a real test.
A nation is not going mad when it does extravagant things, so long as it does them in an extravagant spirit. But whenever we see things done wildly, but taken tamely, then the State is growing insane...
I should, in other words, think the world a little mad if the [wild] incident, were received in silence. Now things every bit as wild as this are being received in silence every day.... For madness is a passive as well as an active state: it is a paralysis, a refusal of the nerves to respond to the normal stimuli, as well as an unnatural stimulation. There are commonwealths, plainly to be distinguished here and there in history, which pass from prosperity to squalor or from glory to insignificance, or from freedom to slavery, not only in silence, but with serenity.
The face still smiles while the limbs, literally and loathsomely are dropping from the body. These are peoples that have lost the power of astonishment at their own actions. When they give birth to a fantastic fashion or a foolish law, they do not start or stare at the monster they have brought forth. They have grown used to their own unreason; chaos is their cosmos; and the whirlwind is the breath of their nostrils.
These nations are really in danger of going off their heads en masse; of becoming one vast vision of imbecility, with toppling cities and crazy country-sides, all dotted with industrious lunatics.... "
See you Sunday evening.
