Tuesday, September 03, 2019
Superfiat
I've pointed out before that ... the Populists of the 1890s were good diagnosers but terrible prescribers. They analyzed the problems of financialism and globalism beautifully, but their proposed solution was always a weakening of the gold standard. Exactly backwards. What happened when Nixon finally killed the gold standard? Final victory for the bankers and globalists. For some reason the usual Populist Pill was Bimetallism, which mixed 15 parts silver and 1 part gold into a magic token that would destroy all bankers.
It's not clear from available documents whether influencers like Jennings Bryan were Agents Provocateurs or just poor economists. In fairness, they didn't have a lot of experimental data on the effects of breaking gold. Bubbles were common during pure gold periods. Gold doesn't prevent bubbles. Only regulation prevents bubbles. Gold DOES discourage infinite creation of fake value. Those populists couldn't have imagined monstrosities like QE and MMT, but they should have remembered Madman Lincoln's inflation, and the inflation in the first decades after 1776.
Modern bad prescribers don't have that excuse. They are living inside an era of infinite QE and MMT. We can see clearly that true nationalists like Russia and Persia are moving back to gold and savings as fast as they can, while globalists are spinning out of orbit toward infinite debt and total abstraction.
Nevertheless, the "independents" continue to prescribe Bitcoin, the modern magic token that will destroy all bankers by giving total control to Deepstate.
Via ZH, a perfect parallel. The author claims that nationalism and Bitcoin go together, just as nationalism and bimetallism supposedly went together. The author sets up two alternatives: Central bank fiat vs Bitcoin. He doesn't even mention the other end of the scale. Bitcoin is super-fiat, not anti-fiat. Gold is anti-fiat.
Labels: MMT, Pluponents
¶ 1:01 AM
