An advertisement appeared in the Wall Street Journal last week that you need to know about. I realize that not everyone who reads L-W shares my avid interest in economics, so if you just yawned when I said "economics," you have my permission to check out after you read the next sentence. The implications of what is alleged in this ad could destroy your ability to feed your family.
To appreciate the gravity of what is at stake, let's talk about how society functions with and without a "medium of exchange." In our country, we use pieces of paper called "Federal Reserve Notes" as money. Beads, coins, even packs of American cigarettes (post-war Germany), have been used as a medium of exchange. Without such a convenient device, we are reduced to the use of barter and the velocity of the marketplace slows dramatically.
Imagine a society without "money." Let's say you are a farmer who grows corn. And you would like to purchase a shiny new HDTV. Since there is no medium of exchange, you must find an HDTV retailer who is willing to accept corn in exchange for his product. And if you cannot, then you must ask the HDTV guy what he wants, and he says, "I want milk for my children." So you must now find a dairy farmer who needs corn so you can get the milk to exchange for your HDTV. If you cannot find a dairy farmer who wants corn, then you must ask the dairy farmer what he wants, and he says, "I want some diesel fuel for my tractor." Sigh - This is getting time consuming!
Now consider the marvel of money. It eliminates the time and trouble of having to do product match-ups. The corn farmer can concentrate his energies on growing corn. He can sell corn for this medium and KNOW that someone else will receive this medium in exchange for his HDTV. What a tremendous time saver, this thing called money! There is one catch. The thing used as "money" must have perceived value. This is not the same as real value. (Although real or intrinsic value handily solves the challenge of creating "perceived" value.) Those Federal Reserve Notes we use have no intrinsic value. They are just paper. Because they are "notes," they are IOU's from the government. But if you present one to the government for payment, they will pay off this note by giving you - drum roll please - another IOU. If you say, "I would like an equivalent amount of something else, like gold or silver," they will shrug and say, "No dice! I am only authorized to give you another Federal Reserve Note."
Now it is true that by designating the Federal Reserve Note as legal tender, the US government has put itself on record as saying it will accept these IOU's as payment for taxes. If you owe the IRS, you can give the government back an equivalent amount of what it owes you (Federal Reserve Notes) and it will call things square. Isn't that nice of them!
But these Federal Reserve Notes do have "perceived" value. I can present them to all manner of retailers and they are willing to exchange their stuff for these pieces of paper. They do so because they believe that others will give THEM stuff for these pieces of paper, too. Everyone is happy to receive this paper because they know they can get rid of it for what they want because everyone is happy to receive this paper. (A is true because B is true because A is true? Anything seem a little circular, here?) What would happen if the perception of value for this medium of exchange was eroded? What would happen if your HDTV retailer said, "What do I want with that worthless piece of paper?" Would you still be willing to part with your valuable corn for a piece of paper that no one wants? Duh!
The problem that GATA is attempting to get on the public radar has profound implications for the dollar's perception of value. You cannot turn in your Federal Reserve Notes to the government for gold, but there is a public perception that our government ("we the people," by the way) can make good on all its loans because it has a big pile of gold at Fort Knox. What if it became public knowledge that that big pile of gold is not there? What would this do to the PERCEPTION that Federal Reserve Notes have value?
Here is an example: Let's say that "Sam" owes you a thousand dollars and has given you a slip of paper that says "I owe you $1,000." (This is the same as holding that amount in Federal Reserve Notes.) Because Sam also has a pile of gold in his "secret room," you're not too worried about his ability to pay you back. But what if you discover that the secret room is EMPTY. And what if you also discover that Sam has given a bazillion "notes" to everybody else in town. Now you are worried! Why? Because you have considerable doubt that Sam will ever pay you back. That slip of paper probably doesn't mean a thing. (This example is actually putting a better face on the situation than reality. The real Uncle Sam has no intention of giving you any of the stash from his secret room to pay off his notes. Ever!)
So if it becomes public knowledge that the secret room is empty, this revelation won't improve people's perception of the dollar's value. And since these Federal Reserve Notes have no intrinsic value, perceived value is all they have going for them. When even this is unmasked as fiction, how will our society function?
Some might protest, "The risk is too high. Let's just keep the door to the secret room locked and assume it's all there." GATA is saying, "If it's all there, make it known and allay our fears. If it's not there, then come clean with the citizens of the country to whom you owe an explanation." It is perfectly appropriate for we, the people, to know where we stand, and I am grateful for GATA saying so! If Fort Knox is empty, a lot of people will have reason to wonder about the worth of their IOU's, and when that happens, you might have trouble finding the guy with milk or corn who wants your Federal Reserve Notes.
So why am I going into all this at Light-work? Two reasons: We assign too much value to money and stuff. Money is a marvelous tool - no argument. But it is not capable of providing true security and this ad reminds us of its tenuousness. Second, the GATA ad invites us to prepare for the possibility of a life without the monetary instruments on which we depend. The Book of Revelation makes the same invitation. It describes a future that includes the global destruction of infra-structure and a monetary meltdown. Think post Hurricane Katrina conditions on a world wide basis coupled with the global disappearance of our current economic system. Revelation says this will happen. If GATA's inquiry shows that the secret room is empty, it might happen soon. Stop living as if the good times will just keep rolling.
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