Money is the root of prosperity.

Ever since Britain and America came off the “Gold Standard” during the earlier part of the 20th Century and started printing money at will, we have had galloping inflation.

My own bank, Citibank, has lost $55,000,000,000 (yes, that’s fifty-five billion dollars) in the last twelve months. I used to use them for my cheque account and savings, but now I have moved the savings part to a European bank over on this side of the pond.

I have also reduced all my shares to cash and am now in the process of investigating the best way to buy Gold. My savings aren’t that high which makes such action even more important. On searching around, I must admit I am leaning towards GoldMoney. If you click on this link you will be taken to a Wikipedia article on the company.

I have been reading an article in the Lew Rockwell column. This column is fascinating and I read their articles every day. One passage that struck me as interesting it:

The man who saw this most clearly and wrote about it constantly for seven years was Dr. Kurt Richebächer. He wrote from 2001 to 2007 that Greenspan’s easy money policies would produce the worst recession since the Great Depression. He was convinced that fiat money was leading the best and the brightest of American financial experts into making loans that would inevitably blow up in their faces. Of course, that means that the loans will blow up in our faces. Every month, his newsletter warned that this mania for debt could not be sustained for much longer. The problem is, he kept saying this, but nothing happened. People dismissed him as someone who was old-fashioned. He died in August of 2007, the month that his predictions began to come true. That was the month that the credit markets of the West froze up.

If you followed the Wikipedia link on Dr Richebächer you will have seen he was a believer in the “Austrian School of Economics” one body of economists who are increasingly being proved right.

The basic lesson that nobody will adhere to, is that you cannot just print money at will. One day it will come back and stuff itself all up your arse! (I thought that sounded better than the old “bite your arse” maxim).

Bearing in mind that all concerned in this fiasco are brilliant people, one must ask oneself the question: “How could they not spot their folly?” Then of course comes the next logical question: “Have they destroyed our savings intentionally and, if so, why?”


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