[Posted April 22, 2008]

Fiat currencies fail

A.C. Bhaktivedanta Swami

Too much freedom of the press!

My Props April 16, 2008 - PETER SCHIFF

Wall Street Unspun with Peter Schiff (internet radio show) - April 16, 2008 recording: "You could theoretically run the entire world's economy on one ounce of gold if there was only one ounce"

John from Canada: "There is an argument going around about going back to the Gold standard: We have 4.5 billion ounces of gold in the world, and 6.7 billion population and counting. That's only 0.7 ounces per person and dropping. So if we go back to the gold standard, there's not enough money to go around, and the economy would be anemic. The result would be that we would go back to the fiat currency, anyway. What's your take on that?"

Peter Schiff: "Well, it doesn't matter how many ounces of gold circulate. Prices will merely adjust to the ounces of gold. The price of gold will simply rise dramatically and prices will adjust accordingly. You could theoretically run the entire world's economy on one ounce of gold if there was only one ounce. So, I don't think it matters how many ounces there are in existence relative to the global population. That's something that people who support fiat currencies try to bring up as a flaw in gold, saying there's not enough of it. Well, the fact that it is scarce is what gives it value. You need your money to be scarce; it can't be abundant, because if it's abundant it's not going to work as money. So I think that's nonsense. And if you actually look at prices in terms of gold, if you look for example at the price of oil, it's been pretty constant relative to gold for a hundred years — you can see that the price relationships still work and that gold is very effective as a means of exchange and a store of value." go to story

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Devalued dollar

Paper Currency is Cheating A.C. Bhaktivedanta Swami

To stop this inflation, the government must stop this paper currency. Then the inflation... There will be no more inflation. But that they will not do. They want to cheat people. "In God I trust. Take this paper and you be satisfied that you have got thousand dollars." That's all. This cheating is going on. Why should you pay me paper? Give me real dollar, in gold. That they have none. They haven't got. That's all. They will employ laborers and cheat them by paying these papers, and this rascal will think that "I am getting more money." That's all. Since this world has taken this paper currency, the situation has degraded. more

Your government is cheating you

excerpt from conversation, New Vrindaban, June 22, 1976

If you write something which you do not believe in, are you not cheating? That means cheating. You take word, you are giving a piece of paper, and it is written there, "one thousand dollars." That means you are cheating, in the name of God, he will accept you, that's all. If you say, "No, I don't want paper. Give me gold dollar," then you are finished. Your currency will be finished. Immediately there will be revolution, that "The government is cheating us." Actually it is cheating. What is the proof, value, of this paper, little paper? Simply "I promise to pay, governor and this..." But it is on trust only: "Yes, government will pay me." They'll never pay, but so long the government goes on, it will go on, that's all, cheating will go on. And as soon government fails, you throw in the street, no one will care for it. It has been practically proved in the last war, in Germany. There was scarcity of food, and those who had bunch of currency notes, they went for one piece of bread, so many thousand marks, "Give me." Nobody supplied. So the paper has no value, but if we believe, it has value, that's all. Otherwise what is the meaning of this paper, one thousand dollars? So it is a kind of cheating, "We trust in God; we are very good men. You trust in me."

Sri Guru and Gauranga

It is on trust only: "Yes, government will pay me." They'll never pay, but so long the government goes on, it will go on, that's all, cheating will go on. And as soon government fails, you throw in the street, no one will care for it.

Fiat currencies fail

Wall Street Unspun with Peter Schiff (internet radio show) - April 16, 2008 recording: "You could theoretically run the entire world's economy on one ounce of gold if there was only one ounce"

Your government is cheating you