Friday, September 26, 2014

Drowning in Gold

Drowning in Gold

Andre Willers
26 Sep 2014

The imbalance between Wealth and Money caused by a huge pulse of either wealth or money travels down the timeline in a self-propagating fashion . If it does not dampen out , catastrophe or unending misery ensues .
Discussion :
1.The easiest way to see it is to look at historical examples:
1.1Spanish Gold in the 16th century .
The pulse of money from the American gold and silver destroyed Spain’s industry , embroiled it in endless wars and caused major famines as peasants stopped farming .
The pulse of money destroyed wealth as everybody become too hoity-toity to work . This in turn stimulated money creation through war , looting ,theft , currency devaluation , debt . This ended badly in this case in the catastrophic Thirty Years war . The sack of Magdeburg was typical.

1.2 Industrial Revolution in England circa mid 19th century . A pulse of wealth creation by machine productivity outstripped gold-based currency . This caused deflation and a marked reduction in money , as risk-free returns could be made simply by hiding your cash and waiting while it appreciates due to deflation . Continual means were employed to simulate the appearance of currency .  Favourites still used are velocity of money and war . This ended catastrophically in WW I .

2.Then they discovered the joys of Keynes . Just print more money .

3. But this went too far and created a pulse of money with Quantitive Easing . This is the situation today . Everybody in developed countries is in a service industry , and real production outsourced. The “Gold” here was the wealth produced by computers .
The same as what happened to the Spanish . Drowned in gold .
And the equivalent of the Thirty Years war storming down on us , complete with religious intolerant cruelties and mercenary forces . Once the payment for “contractors” breaks down , a Magdeburg becomes inevitable .
Nearly the same territory too , note .
They will turn it into a wasteland of drones and smart bullets loitering , while calling it economic progress .

4.Is there an out ?
Yes .
A large portion of humans can become smarter .
This will result in either moderation or extinction .
Golden distinction cloaks extinction


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