Why Silver & Barter Could Become the Alternative to Cryptocurrency | Armstrong Economics

QUESTION: RE: ….& Coming Barter System. So, are you suggesting that we may see a shift to Silver by private individuals as the only way to sidestep Government stupidity, or will it be even worse, like trading whiskey for toilet paper?? TWE ANSWER: Assuming government attempts to follow the IMF’s advice and create cryptocurrencies to replace paper money, then the only alternative will be the barter system. To make this clear, the likelihood of the USA following this route is a last resort. It will NOT be the first, but the last. We will see this in Europe before we will ever see it in the USA. This cannot be a question that is answered based upon OPINION, for we all have one. The only rational way to approach that question is to look at history and see how people responded to similar but not identical positions. What comes to mind in Japan. Each new emperor devalued the money issued his own coins worth 10x that of the coins of the previous emperor. People resorted to bags of rice and they used the coins of China. Everyone refused to use Japanese coins. The result was that Japan LOST the right to issue coins at all for 600 years. Moving to a cryptocurrency to stop the underground economy from using paper money will simply switch it to foreign currency (dollars in Europe) or something commodity based. In federal prisons, when they banned smoking back in 2004, packs of mackerel industry became the prison currency. Everyone operated an internal economy. They used cigarettes as their currency of choice to purchase anything from food and home-brewed prison hooch. They also used books of stamps. Prisoners could ship books of stamps out and they could resell them at a discount. Mackerel became the small change at about $1 a pack. There are fully developed economies within prisons. Someone skilled at drawing would make cards for holidays, while others were good at a trades tailoring to fix your clothing. Others would take a scarf and turn it into a warm knitted hat. Once you eliminate the freedom that paper money provides, the government may believe it will get 100% of every tax it ever dreamed of but the underground economy will flip to barter. As far as silver is concerned, I would prefer silver coins that are recognizable to the average person. Offering bars of silver would be at a discount, for it will require knowledge and testing.
— Read on www.armstrongeconomics.com/markets-by-sector/precious-metals/silver/why-silver-barter-becomes-the-alternative-to-cryptocurrency/

Central Banks v Clearing | Armstrong Economics

Delos, First Central Bank QUESTION: Dear Martin Wonder if you have any insights as to the history of the bank clearing process. Was the clearing process created mainly so banks could play games and earn interest with peoples’ money with the reasoning that it was to prevent money laundering? With technological advances today, one can accept an hour or two for automatic name and account number checks to happen but 3-7 days seems ridiculous. Any insights to the creation of the clearing process would be enlightening. Thank you again KW ANSWER: The function of bank clearing began with giro-banking, which originated in the Temple of Delos in Greece. The term refers to the circulation of money. It originated where you could write a check to one person and transfer the payment to their account at the same bank. Effectively, in ancient Greece, you would have an account at the Temple in Delos and instruct a transfer to their account in the Temple. The Romans adopted this concept and thus Roman banking was born. A central bank emerged after the Dark Ages in the early modern history as a government or state-owned banks. The Dutch were pioneers and financial innovators who not only created this state banking concept, but they also invented insurance. The Wisselbank was the first such bank in Amsterdam which was founded in the Dutch Republic during 1609. The Wisselbank became the model of the central banking system and it spread throughout Europe; first in 1668 in Sweden known as the Sveriges Riksbank and then the Bank of England in 1694. When smaller private banks began to pop up, the state-owned banks emerged as clearing banks where transfers between the accounts at the central bank took place the same as they did between accounts in ancient Delos. The Wisselbank actually collapsed in 1790 after it was revealed that the deposits have been used secretly to fund the Dutch East India Company. The manipulation was that they represented themselves as just holding money for safe-keeping. They did not lend money out. So when the bank failed and they had been using the money to fund the Dutch East India Company, the city had to bail out the bank and stand behind the losses. To eliminate cash, the ECB has a secret project to provide instantaneous transfers for each transaction. Therefore, the central bank was simply a state-owned bank whereas a clearing bank was one where all banks must clear transactions.
— Read on www.armstrongeconomics.com/history/central-banks-v-clearing/

Paul Krugman’s Conversion to a 70-Percent Income Tax | Mises Wire

Paul Krugman was the featured speaker at a special session of the 2004 Southern Economic Association meetings, held the weekend before Thanksgiving, and a number of economists listened intently as the most famous man at the conference spoke religiously about the glories of Keynesian economics.
— Read on mises.org/wire/paul-krugmans-conversion-70-percent-income-tax-0

Drinking the Cortez Commie Cocktail 🍹