Friday , 20 October 2017


The Captains of Monetary Policy Have Not Grasped These Priceless Lessons of History & At Our Expense!

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If you are clearly watching, listening and paying attention to what is going on around you, and not what the press ‘conjures up’ and the political apparatus ‘spins’, then the following lessons, in the following sequence, should resonate with you. [Unfortunately, however,] the captains of world monetary policy have not and, as such, they have put the world on a course that history has warned us against [and we will eventually pay the price of their ignorance and ineptitude. Take a look. These words of wisdom (lessons) are as timely today as when first spoken/written.] Words: 865

So writes Gordon T. Long (www.GordonTLong.com) in an edited excerpt from his original article* entitled 2012 Calm Before Stock Market Storm 2013.

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Long goes on to say in further edited excerpts:

“Red Sky at Night, Sailors Delight, Red Sky in the Morning, Sailors take Warning!”

We have a new era dawning in global monetary policy. It is a new day with the   monetary skies already red. Within [the last] 90 days the untested and newly commissioned captains of monetary policy, with PhD’s from the finest economic schools, have steered the world into uncharted waters….They clearly have not studied nor grasped the key lessons of history and, as such, have put the world on a course that history warns us against.

Old Lesson Being Relearned

1. The Importance of Living Within Our Means

2. The Understanding of the Critical Importance of Sound Money

“It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically, it belongs in the same class with political constitutions and bills of rights.”  The Theory of Money and Credit (1912), Austrian economist Ludwig von Mises

3. The Maintenance of Money as a Store of Value

“If the American people ever allow private banks to control the issue of  their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered….The issuing power should be taken from the banks and restored to the   people, to whom it properly belongs.”  Thomas Jefferson

4. Being Aware of the Moral Decay that Begins to Happen…

“When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it.”  Frederic Bastiat

5. Knowing the Unavoidable Conclusions it Leads To

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”  Ludwig von Mises

6. Remembering the Central Lessons of History

a) The Problem is Within Our Own Society

“A great civilization is not conquered from without, until it has   destroyed itself from within. The essential causes of Rome’s decline lay in her people, her morals, her class struggle, her failing trade, her bureaucratic despotism, her stifling taxes, her consuming wars.”  Will Durant, The Story Of Civilization III, Epilogue, 1944

b) The Problem is a System of Ineptness

“A system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing numbers of producers”.  Unknown

Conclusion: An Inevitable Monetary Malpractice Roadmap

Not having learned the above lessons, our monetary captains have set us on a course of monetary malpractice that leads to:

  • Increasing authoritarian control and central planning,
  • Crony capitalism, which increasingly feeds off an ever-   expanding state, while stifling open competitive innovation,
  • Financial repression, moral hazard, unintended consequences and dysfunctional markets, and
  • Statism bred through the forces of collectivism and complexity.

*http://www.marketoracle.co.uk/Article38204.

Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.

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dollar_slide

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One comment

  1. Reading this article, I wonder if anyone has researched what was being discussed in financial circles before WWI and WWII and compared those discussions to what is being said now?

    It would be scary to “see” history repeat itself, in that another type of World War is the only event that can hope to return global markets and the countries that operate them to some semblance of fiscal normalcy!