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FDR Wasn’t the Only One Who Declared War on Gold to Save Paper Money | Mises Wire

Posted by M. C. on February 24, 2022

Long before FDR and Erdoğan, in 1720 France, John Law, maestro of the the Mississippi Bubble, made it illegal to own gold or silver as his bubble in Mississippi Company shares and Bank Royale notes deflated. In a review of Janet Glesson’s excellent book on the episode, I summarized Law’s desperate methods:

https://mises.org/wire/fdr-wasnt-only-one-who-declared-war-gold-save-paper-money

Doug French

Desperate times call for desperate measures. Or tyrannical men do tyrannical things when it comes to propping up paper money whose value is circling the drain. The Financial Times headline screams, “Turkey to Target ‘Under the Mattress’ Gold in Effort to Bolster the Lira.” 

This in the same week that “[n]ewly appointed Turkish finance minister Nureddin Nebati delivered a sales pitch to investors in London on Tuesday, offering an upbeat assessment of the country’s economic outlook despite acute currency weakness and raging inflation,” according to Almost Daily Grant’s

BlueBay Asset Management emerging market strategist Timothy Ash was impressed, telling the Financial Times that “this guy had a pitch. He’d prepared. The message was clear: foreign capital is welcome. Forget about capital controls, we’re not going to do that. That’s encouraging.” 

But just in case, Mr. Nebati figures there is three hundred million dollars’ worth of gold under the beds of the Turkish populous, and the government would like to trade more than 10 percent of the hoarded yellow metal for their flimsy paper lira. 

The latest of many finance ministers serving under President Recep Tayyip Erdoğan said, according to the FT, that the country’s thirty thousand gold shops would play a central role in the scheme, “which will build on a broader package of emergency measures unveiled in December in order to halt a freefall in the lira, which lost 44 per cent of its value against the dollar in 2021.”

Refineries have even been commissioned to melt down jewelry into bullion. Laura Pitel writes, “A traditional gift given for weddings and births, gold has long been a preferred way for Turks suspicious of the banking system—and their country’s history of inflation—to guard their wealth.” 

After visiting the Grand Bazaar in Istanbul in 2012, I wrote on mises.org, “Just one visit to Istanbul’s Grand Bazaar tells a visitor how Turks store value. The Turkish monetary authorities have a history of debauching their currency so Turks store their wealth in gold and rugs. There are 373 jewelers and 125 rug stores in the bazaar.”

To illustrate, I continued, “In 1966, one US dollar bought 9 lira. By 2001, a dollar bought 1.65 million lira. Four years later, six zeros were lopped off the lira and a dollar equaled 1.29 new Turkish lira. Today (2012), a dollar can be traded for around 1.80 lire.” Ten years later a US dollar will buy more than thirteen lire, having rallied from seveteen to the buck in December.

Nebati said his plan aims to gather $25 billion of the yellow metal for the local banking system.

Of course, this scheme is nothing new. In 1933, Franklin Delano Roosevelt, with “authority from the Emergency Banking Act and its amendment to the Trading with the Enemy Act, ordered all individuals and corporations in America to hand over their gold holdings to the federal government in exchange for an equivalent amount of paper currency,” Tom Woods wrote on mises.org.

FDR’s next step made it illegal to “require payment in gold or a particular kind of coin or currency, or in an amount in money of the United States measured thereby.”

Long before FDR and Erdoğan, in 1720 France, John Law, maestro of the the Mississippi Bubble, made it illegal to own gold or silver as his bubble in Mississippi Company shares and Bank Royale notes deflated. In a review of Janet Glesson’s excellent book on the episode, I summarized Law’s desperate methods:

Law then resorted to despotic power, banning the export of coins and bullion. Next he prohibited the purchase or wearing of diamonds and other jewels. When this didn’t stop the exit from paper, Law outlawed the production and sale of all gold and silver artifacts with the exception of religious paraphernalia, resulting in soaring prices in crosses and chalices. 

Within a month, Law banned the possession of more than five hundred livres’ worth of silver or gold and required that all payments of more than 100 livres be made in banknotes. People were promised generous rewards if they informed on their neighbors. “The slightest suspicion that gold was being concealed illegally would be enough for any house, whether palace or hovel, to be searched,” Gleeson writes.

In monetary affairs, there is nothing new under the sun.

Author:

Doug French

Douglas French is President Emeritus of the Mises Institute, author of Early Speculative Bubbles & Increases in the Money Supply, and author of Walk Away: The Rise and Fall of the Home-Ownership Myth. He received his master’s degree in economics from UNLV, studying under both Professor Murray Rothbard and Professor Hans-Hermann Hoppe.

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Putin’s Donbas Move Threatens U.S. Global Dominance

Posted by M. C. on February 24, 2022

However, coming from a group of nations that have spent the better part of the last century shaping the world as they saw fit—ranging from national partitions and redrawn borders to invasions and regime-change operations—the vocal condemnations of Russia ring slightly hypocritical.

Israel stands as a prime example of the double-standards at work. Since its creation by a United Nations partition scheme in what was formally Palestine, the U.S. has given Israel over $100 billion in aid—all as the regime in Tel Aviv grabs Arab land and terrorizes the civilians who live on it.

by Kyle Anzalone and Will Porter

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Russian President Vladimir Putin has agreed to recognize two break-off republics in eastern Ukraine as independent states, stoking cries of horror and condemnation from the Western keepers of the ‘rules-based international order.’

The Russian legislature passed a bill last week calling on Putin to recognize the ‘People’s Republics’ of Donetsk and Luhansk, which each declared secession from Ukraine following a U.S.-sponsored coup there in 2014. While the Kremlin initially dismissed the idea, saying the move would run afoul of ceasefire agreements struck in Minsk, the president reversed course on Monday following appeals from leaders of the break-away states. He later deployed soldiers for a peacekeeping mission in the war-torn region, where fighting between Kiev and separatist forces has sharply escalated in recent days.

Moscow’s decision to recognize the republics—which have now operated outside Kiev’s control for some seven years—was met with predictable outrage from Western officials. The U.S. State Department dubbed the move a “clear attack on Ukraine’s sovereignty,” comments echoed by the United Nations, the European Union and the NATO military alliance. The EU’s foreign policy chief Josep Borell, meanwhile, has accused Russia of a “determined effort to redefine the multilateral order” established in the wake of the Second World War.

Proponents of that post-war system have long maintained that it has kept the peace over the last 80 years. A key tenet of the global order states that borders drawn after WWII must remain set in stone, and Russia’s seizure of the Crimean peninsula from Ukraine in 2014 and its earlier recognition of South Ossetia have been cited as major destabilizing actions. Its move in the Donbas will almost certainly be added to the list.

See the rest here

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Russia Withdraws From Ukraine’s Border But Leaves Behind A Beautiful Wooden Horse As A Gift | The Babylon Bee

Posted by M. C. on February 24, 2022

https://babylonbee.com/news/russia-withdraws-from-ukraines-border-but-leaves-behind-a-beautiful-wooden-horse-as-a-gift

KHARKIV, UKRAINE—Ukrainian troops woke up this morning to find the entire Russian military had abandoned their positions and retreated back home. However, it appears the Russians have left behind a beautiful wooden horse as a gift for all their troubles. Cool! 

This information was confirmed by the Defence Ministry of the Russian Federation announcing that Russia was indeed undergoing a full scale retreat, except for their generous gift. 

“Wow–I really thought we were about to be embroiled in a bloody conflict for years to come. Glad that’s over!” said Dominic Paltrov, a Ukranian soldier. “Hey guys, a little help pulling this massive horse into our most vulnerable city center!” 

Sources claim once the horse arrived in Kyiv, everyone began to celebrate and drink heavily. “We avoided World War III! We avoided World War III!” the people shouted late into the night until everyone had either passed out or headed home.

At publishing time, 130,000 Russians had popped out of the large wooden horse like Russian nesting dolls and sacked the city. 

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Watch “Masters of the wheelie | 2022 #WheelieWednesday” on YouTube

Posted by M. C. on February 24, 2022

https://youtube.com/shorts/q2QAVGCcCHc?feature=share

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Trudeau Explains He Just Needs Two Weeks To Slow The Spread Of Freedom | The Babylon Bee

Posted by M. C. on February 24, 2022

https://babylonbee.com/news/trudeau-explains-he-just-needs-two-weeks-to-slow-the-spread-of-freedom

OTTAWA—Justin Trudeau has faced heavy criticism this week after allowing a strain of Freedom to spread through the Great White North. The Canadian Prime Minister addressed the nation on Tuesday to calm the fears of his adoring constituents, informing them he needed just two weeks to slow the spread of “world-annihilating freedom.”

“We have survived COVID-19 thanks to my leadership,” said Trudeau in a prepared statement. “Now, I’m calling on all Canadians to hang in there a little longer as we face this new threat of Canadians thinking they should be allowed to have liberty. I just need two weeks to slow the spread of the virulent freedom surging through our populace.”

Trudeau then signed an executive order to forcibly lock everyone in their homes for two weeks. Everyone will be required to wear enough masks to completely muffle the sounds of their voices so that freedom can’t spread from person to person.

Chants of “two weeks to slow the spread” rang out through the House of Commons and Trudeau was hoisted upon the shoulders of two elderly government officials as applause filled the chamber.

A survey conducted this morning reveals 78% of Canadians disapprove of Trudeau’s messaging but figure he knows what he’s doing. Unfortunately, sources on the ground say freedom is still spreading through unfettered “honks.” 

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“When there is no such thing as truth, you can’t define reality & when you can’t define reality, the only thing that matters is power.” – Maajid Nawaz

Posted by M. C. on February 24, 2022

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Will Rock Music Ever Come Back?

Posted by M. C. on February 23, 2022

I never heard many of the bands he mentions. I HAVE heard of Otis Spann though.

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The West’s Desperate Effort to Switch the Enemy from COVID to Putin

Posted by M. C. on February 23, 2022

Meanwhile, the West has been on its hands and knees begging for Putin to invade Ukraine. They know that rarely will the people throw out of power a government during a war. This is what they are counting on and it is why Biden refused any concession to Putin. That was a slap in the face and Europe is so weak it could not muster the strength to defend itself from Russia. But the covert benefit is that the EU will use this to create an EU army and this solidifies power over all European states.

by Martin Armstrong

From the outset, my position was that Ukraine should have been split according to language. Borders have been drawn by politicians, and this policy has given us so many problems over the years. It is language and culture that should define a national border. Ukraine is exerting old-world imperialistic philosophy. While Putin ordered Russian troops Monday to “maintain peace” in two separatist territories in eastern Ukraine shortly after recognizing the Russian-backed areas as independent, naturally the West and Ukraine are claiming this is illegal. Putin has often referred to Ukraine as “little Russia.”

However, what is being ignored here is that those two regions are predominantly ethnically Russian which happened to be allocated to Ukraine because of the Soviet Union as was the case with Crimea. From the outset, I argued that Ukraine should have been split according to the dominant language. There are many Russians living in the West who simply speak Ukrainian to blend in. On April 25, 2019, Ukraine passed what became a discrimination act against Eastern Ukraine where the dominant language spoken is Russian. According to the Language Law, the use of Ukrainian is mandatory throughout the entire territory of Ukraine “in the exercise of powers by public authorities and local self-government bodies, as well as in other spheres of public life, as defined by this Law.” This is what has instigated the separatist movement that Putin has recognized and the West intentionally seeks to suppress the people in those areas all for political posturing.

Putin lamented the Soviet Union’s collapse which I have stated before was a sore issue with Putin. He recognized the Donetsk People’s Republic and Luhansk People’s Republic and made very clear that he views Ukraine historically as part of Russia. As I have stated before, the Russ capital was Kyiv. The Mongols invaded in 1240AD and destroyed their capital leaving only the Golden Gate still standing. Kyiv was originally the first capital of Russia. It took nearly 100 years later for Moscow to rise as a city. All that remains of the ancient capital of Kyiv are the ruins known as the Golden Gate constructed during the 11th Century. Putin’s statement some press call “false” and that only illustrates either their stupidity or their deliberate false narrative.

I warned back in 2013 that our model highlighted Ukraine as the tipping point in the rise of the War Cycle. Putin did say: This was a speech to the Russian people to justify a war. In fact, he once again explicitly threatened one. Russia entered Crimea in Feb/March 2014 which was on time with our War Cycle that turned up in 2014. This is the chart from the 2011 WEC in Philadelphia. We are now approaching 8.6 years into this cycle and this is the first critical turning point.

Ivan Mazepa was a Ukrainian who supported the Swedish against the Russians. The Battle of Poltava on June 27th, 1709 was a turning point in Russian history. This was a battle, where Peter the Great and the Russians defeated the Swedish army at a turning point in a war with Sweden. Poltava is actually in Ukraine, and Ivan Mazepa remains a Ukrainian hero and a traitor to Russia to this very day. This was the decisive battle that placed Russia as a major power on the European stage of politics. So here we are facing the 309.6-year cycle and we see Ukraine matched against Russia once again.

Meanwhile, the West has been on its hands and knees begging for Putin to invade Ukraine. They know that rarely will the people throw out of power a government during a war. This is what they are counting on and it is why Biden refused any concession to Putin. That was a slap in the face and Europe is so weak it could not muster the strength to defend itself from Russia. But the covert benefit is that the EU will use this to create an EU army and this solidifies power over all European states. The White House bluntly said that Biden’s potential summit with Putin to talk through the crisis was probably off. This is the time when you should be talking and the fact that Biden withdraws illustrates their desire to keep Russia and a threat to Europe for all the elections in 2022.

The Kremlin decree signed by Putin did NOT specify whether or when Russian troops would enter Ukrainian territory. It came as President Joe Biden signed an executive order to sanction any Americans who invest in the eastern Ukraine regions of Donetsk and Luhansk, which are the two separatist regions that have sought independence from Ukraine. All Biden will ever do is make matter worse because this appears to be the true agenda that they need Putin and the new enemy as COVID uprisings appear and they now need to change the emergency.

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The Steep Cost of Sanctions for Europe and Russia | Mises Wire

Posted by M. C. on February 23, 2022

https://mises.org/wire/steep-cost-sanctions-europe-and-russia

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When Boring People Turn Dangerous: Canada’s Insane Power Grab

Posted by M. C. on February 23, 2022

The Canadian government’s decision to freeze bank accounts in the trucker protests is a mad leap toward bureaucratic dystopia

Matt Taibbi

On Christmas Eve, 2018, New York Times writer Andrew Ross Sorkin published, “How Banks Unwittingly Finance Mass Shootings.” Chronicling the credit card history of the man who killed 49 people at the Pulse nightclub in Orlando, Florida Sorkin noted Omar Mateen had not merely spent $26,532 on weapons and ammo in the eight months before the 2016 attack, but had wondered if his doing so had raised red flags:

Two days before Omar Mateen killed 49 people and wounded 53 more at the Pulse nightclub in Orlando, he went on Google and typed “Credit card unusual spending…” His web browsing history chronicled his anxiety: “Credit card reports all three bureaus,” “FBI,” and “Why banks stop your purchases.”

He needn’t have worried. None of the banks, credit-card network operators or payment processors alerted law enforcement officials about the purchases he thought were so suspicious.

Sorkin’s piece ended up being an argument in favor of credit-card companies, payment processors, banks, and others working together to bring about a Minority Report-style panacea in which society’s dangerous folk could be cyber-identified and stopped before they commit horrific acts. At one point he quoted George Brauchler, the District Attorney who prosecuted the Century 16 movie shooter in Aurora Colorado, James Holmes:

“Do I wish someone from law enforcement had been able to go to his door and knock on his door and figure out a way to talk their way into it or to freak him out?” he said of Mr. Holmes. “Yeah, absolutely.”

I’ve never owned a gun and have been sympathetic to gun control ideas for as long as I can remember. Sorkin, however, was not talking about gun control. He was theorizing a quasi-privatized vision of social control that would bypass laws by merging surveillance capitalism and law enforcement.

In a rhetorical trick that’s since become common, he described how the failure of companies like Visa to block Mateen’s purchases made them “enablers of carnage.” Clearly, someone made the mistake of letting Sorkin see Sam Raimi’s Spider-Man, and Cliff Robertson now whispers from the beyond to him too. If those with power to act don’t stop wrongdoing, aren’t they just shirking their great responsibility?

By the way, this same Sorkin once suggested he wouldn’t stop at arresting Edward Snowden, but go after the reporter who broke his story, too. “I would arrest him and now I’d almost arrest Glenn Greenwald, the journalist… he wants to help him get to Ecuador,” he said, on CNBC’s Squawk Box. It’s amazing how selective one can be in one’s authoritarian leanings. After Goldman, Sachs CEO Lloyd Blankfein appeared to commit perjury in 2011 when he told the Senate, “We didn’t bet against our clients,” Sorkin rushed an apologia into print saying “Mr. Blankfein wasn’t lying,” failing to remind audiences that his Dealbook blog at the Times was sponsored by… Goldman, Sachs.

Sorkin’s Visa piece is suddenly relevant again, after fellow former finance reporter Chrystia Freeland — someone I’ve known since we were both expat journalists in Russia in the nineties — announced last week that her native Canada would be making Sorkin’s vision a reality. Freeland arouses strong feelings among old Russia hands. Before the Yeltsin era collapsed, she had consistent, remarkable access to gangster-oligarchs like Boris Berezovsky, who appeared in her Financial Times articles described as aw-shucks humans just doing their best to make sure “big capital” maintained its “necessary role” in Russia’s political life. “Berezovsky was one of several financiers who came together in a last-ditch attempt to keep the Communists out of the Kremlin” was typical Freeland fare in, say, 1998.

Then the Yeltsin era collapsed in corrupt ignominy and Freeland immediately wrote a book called Sale of the Century that identified Yeltsin’s embrace of her former top sources as the “original sin” of Russian capitalism, a “Faustian bargain” that crippled Russia’s chance at true progress. This is Freeland on Yeltsin’s successor in 2000. Note the “Yes, Putin has a reputation for beating the press, but his economic rep is solid!” passage at the end:

It looks as if we’re about to fall in love with Russia all over again…

Compared to the ailing, drink-addled figure Boris Yeltsin cut in his later 
years, his successor, Vladimir Putin, in the eyes of many western observers, 
seems refreshingly direct, decisive and energetic… Tony Blair, who has already paid 
Putin the compliment of a visit to Russia and received the newly installed 
president in Downing Street in return, has praised him as a strong leader 
with a reformist vision. Bill Clinton, who recently hot-footed it to Russia, 
offered the equally sunny appraisal that “when we look at Russia today . . . 
we see an economy that is growing . . . we see a Russia that has just 
completed a democratic transfer of power for the first time in a thousand 
years.”

To be sure, some critics have lamented Putin’s support for the bloody second 
war in Chechnya, accused him of eroding freedom of the press… and 
worried aloud that his KGB background and unrepenting loyalty to the honor 
of that institution could jeopardize Russia’s fragile democratic 
institutions. But many of even Putin’s fiercest prosecutors seem inclined to 
give him the benefit of the doubt when it comes to the economy…

Years later, she is somehow Canada’s Finance Minister, and what another friend from our Russia days laughingly describes as “the Nurse Ratched of the New World Order.” At the end of last week, Minister Freeland explained that in expanding its Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) program, her government was “directing Canadian financial institutions to review their relationships with anyone involved in the illegal blockades.”

The Emergencies Act contains language beyond the inventive powers of the best sci-fi writers. It defines a “designated person” — a person eligible for cutoff of financial services — as someone “directly or indirectly” participating in a “public assembly that may reasonably be expected to lead to a breach of the peace.” Directly or indirectly?

She went on to describe the invocation of Canada’s Emergencies Act in the dripping-fake tones of someone trying to put a smile on an insurance claim rejection, with even phrases packed with bad news steered upward in the form of cheery hypotheticals. As in, The names of both individuals and entities as well as crypto wallets? Have been shared? By the RCMP with financial institutions? And accounts have been frozen? As she confirmed this monstrous news about freezing bank accounts, Freeland burst into nervous laughter, looking like Tony Perkins sharing a cheery memory with “mother”:

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