MORE BULLION “BACKED” “CURRENCY” NONSENSE

By now we should all be alive to the game being played with the state bullion depository-and-specie-backed "sound money" scams.  But if you're not, consider the following article shared by W.G., which outlines the scam in a way that leaves me, for one, fairly gobsmacked for the audacity of the word salad (the "pretzel-talk" as Catherine Austin Fitts likes to call it) that it serves up. Indeed, this pretzel talk is a word salad of glittering nonsense worthy of Kamala Harris:

Now, note carefully the selling points being advanced to "market" this idea of "bullion backed real 'sound' money":

Under House Bill 1049 (HB1056) sponsored by Rep. Mark Dorazio and more than 80 additional joint and coauthors, the Texas Comptroller would issue gold and silver specie (coins) through the Texas Bullion Depository and also establish gold and silver transactional currency defined as “the representation of gold and silver specie and bullion held in the pooled depository account.”

On April 16, the House State Affairs Committee passed HB1056 by a 10-5 vote.

The Depository would be required to hold enough gold and silver to back 100 percent of the issued currency.

Sounds good, so far, right? Then we get this by way of further salesmanship:

The passage of this bill would create a sound money alternative to U.S. dollars in both physical and electronic form.

Hmmm.... if you're like me, you might be having suspicions about that "sound money alternative to U.S. dollars in... electronic form."  I'm all for gold and silver coins and physical bearer certificates circulating in lieu of them, that protect anonymity and privacy of transactions. it's that electronic part that gives me pause. And it should you too, for we also get this pretzel-talk, this Kamala-Harris-worthy word salad, as an "explanation":

Using gold and silver-backed transactional currency, any person or entity would be able to do business using a debit card that seamlessly converts gold and silver to fiat currency in the background.

Firstly, a gold and/or silver-backed transactional currency is not under any traditional understanding of the term a "fiat" currency, much less one "in the background" (whatever that means). A fiat currency is typically a legal tender mandated by law, and not typically backed by anything other than that law.  What we are being told - history buffs take note, because you're going to encounter this game again, in my forthcoming book The Rialto In Richmond, Reconstructed - that somehow a "fiat" currency exists that is convertible into specie. But, notice the sleight of hand here: having issued gold and silver coins, what is being used in transaction are not the gold and silver coins, nor even a paper bearer-certificate that one could take to a bank and exchange for the actual gold and silver coins(like the silver and gold certificates of decades ago), but a debit card. And a debit card is not private, nor anonymous. And notice the middle man in all of this is now the state bullion depository, upon which we must rely and trust for accurate representations of the amount of gold and silver it actually has on deposit, and accurate representation of the amounts to be credited to any particular account. "Be good boys and girls, otherwise, a 'clerical error' might strip you of gold and silver assets for a considerable period of time, while accounting, or the state courts, or both, adjudicate it."

And that is my first difficulty with the proposed scheme (not to mention the idea that physical media of exchange are not the focus of the transfer system, Electronic systems are. What happens to the value of your debit card if, suddenly, the Chinese should activate their electric transformer back doors, and such down the system. If physical gold or silver, or physical bearer certificates, are not in circulation and in customary usage, transaction - and the economy itself - comes to a complete standstill. So, no, I'm sorry, I do not want a debit card, I want either the actual specie, or a bearer certificate, and to be able to spend and use either in transaction. In short, I want cash not your silly debit card. 

Then we have the issue of the state's involvement as middleman in all of this. Who trusts any state with accurate representations of gold and silver!?!?  Heck, we cannot even get a real and decent audit of the reserves allegedly in Fort Knox, the Germans have been trying for over a decade to repatriate their gold, and the Bundesbank is being less than forthcoming about the assay quality of what it managed to repatriate, and so on. And we're supposed to relay  on accurate representation of those reserves, locked in a vault and hiding behind a manipulable debit card!?!?

No thank you.

And here is the final, the biggest and most disastrous problem: one I dealt with in yesterday's concluding part of the "Money and the Con Con Con" blog: the whole system looks to be to be deliberately designed in such a fashion that it could be disastrously deflationary.

I'm all for "sound money" and an end to central banks robbing people blind through endless manufacture of monetized debt disguised as fiat currency. But this system that so many states are now proposing and rushing into is not it.

See you on the flip side....

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