"The Financial System Has Reached The End"
by Egon von Greyerz
Excerpt: "The world is now witnessing the end of a currency and financial system which the Chinese already forecast in 1971 after Nixon closed the gold window. Again, remember von Mises words: “There is no means of avoiding the final collapse of a boom brought about by credit expansion.” History tells us that we have now reached the point of no return. So denying history at this point will not just be very costly but will lead to a total destruction of investors’ wealth.
Politicians Lie Without Fail: History never lies but politicians do without fail. In a fake system based on false values, lying is considered to be an essential part of political survival. Let’s just look at Nixons ignorant and irresponsible statements of August 15, 1971 when he took away the gold backing of the dollar and thus all currencies. Later on we will show how clearsighted the Chinese leaders were about the destiny of the US and its economy.
So there we have tricky Dick’s lies. The suspension of the convertibility of the dollar in 1971 is still in effect 52 years later. As the dollar has declined by almost 99% since 1971, the “strength of the economy” is also declining fast although using fiat money as the measure hides the truth. And now to the last lie: “Your dollar will be worth as much tomorrow”. Yes, you are almost right Dick! It is still worth today a whole 1% of the value when you closed the gold window.
The political system is clearly a farce. You have to lie to be elected and you have to lie to stay in power. That is what the gullible voters expect. The sad result is that they will always be cheated.
China Forecast The Consequences Already In 1971: So in 1971 after Nixon closed the gold window, China in its official news media the People’s Daily made the statements below:
Clearly the Chinese understood the consequences of the disastrous US decision which would destroy the Western currency system as they said: "Seriousness of the US economic crisis and decay and decline of the capitalist system. Mark the collapse of the monetary system with the US dollar as its prop. Nixon’s policy cannot extricate the US from financial and economic crisis."
I am quite certain that the US administration at the time ridiculed China’s official statement. As most Western governments, they showed their arrogance and complete ignorance of history. How right the Chinese were. But the road to perdition is not immediate and we have seen over 50 years the clear “decline of the capitalist system”. The end of the current system is unlikely to be far away. Interestingly it seems that a Communist non-democratic system is much more clairvoyant than a so called Western democracy. There is clearly an advantage not always having to buy votes."
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