Gold is the canary in the financial coal mine

By Jim Willie:

Alan Greenspan had full knowledge of his betrayal to the principles of sound money. He wrote early in his career about the only legitimate basis for a monetary system, namely Gold. His published works from four decades ago read like an indictment against his career for monetary crimes against the nation. His accommodation, giving the financial sector what they wanted, betrayed his mindset. He knew the nation courted disaster with a long delayed fuse. His quote is being circulated frequently and broadly lately, "Gold is the canary in the financial coal mine." Exactly, and his own words. Greenspan proved to be a great handler of the politicians, offering them obfuscation of the most erudite variety. They were so confused by his drivel to be immensely impressed. The Jackass was not impressed, not after the 2000 events unfolded to reveal the US as a patented asset bubble blower. Not after the same events revealed Greenspan to be an inflation engineer specializing in serial asset bubbles blown that put the nation at great peril. My attitude years ago was to listen to his topics of debate, to ignore the words, and to anticipate a crisis event in the sector he mentioned. It worked consistently. What Greenspan brought to the nation was a nearly complete interruption to the process of capital formation by virtue of the asset bubbles he engineered. His policies undermined capital and led to its destruction. He puffed up the finance sector at the expense of the tangible economy. Industry was forfeited in the pathogenesis of managed inflation.

The war machine has matured over the course of recent decades, saturating the nation with debt, broadening its base of theaters. The combination of domestic asset bubble development and war machine development conspired to cause erosion of US industry. Wages grew significantly after the 1973 OPEC oil price shock, which occurred simultaneously with outsized USGovt deficits largely attributed to the Vietnam War. Consequently, the US labor became overpriced, vulnerable to the globalization movement. The advent of China sealed the US fate vis-a-vis industry. The US as a nation was led to depend upon a sequence of asset bubbles. They all busted. Half the national debt of $12 trillion is attributed to war spending, a fact avoided by many analysts. Expansion of war to secure supplies for the nation might be better explained as the global stretch of the military complex in order to secure supplies for its own machine. Its objectives have come to conform more seamlessly to the Syndicate. In time, the USMilitary complex, including the defense contractors, the military service contractors, a key security interests will splinter off into a private corporation with several business segments. At the same time, the United States will slide into the Third World.....read on