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1001 Ways to Skin a Sycophant

Previously I have offered the Monopoly Game Analogy:

One player places a card in the Community Chest, half way down the stack (or whichever place in the stack is statistically in favor of the cheater), in the card it says:

1 Dollar Bills are now worth 100 Dollars
100 Dollar Bills are now worth 1 Dollar

Since the player playing the part of Central Banking Treasonous Fraud knows that the fix is in at the start of the game, this player insists upon being paid 1 dollar bills each go around. This analogy is simplistic, but the principles of deception and “Legal Tender Laws” (which are statutes, not laws) are enforced in order to transfer purchasing power by deception in either case of analogy or reality.

Moving on to yet another treasure in a book by Murray Rothbard, in this case A History of Money and Banking in the United States:

Page 48

Footnote:
“In the late seventeenth and early eighteenth centuries, the British maintained fixed mint ratios of from 15.1-to-1 of silver grains in relation to gold grains, to about 15.5-to-1. Yet the world market ratio of weight, set by forces of supply and demand, was about 14.9-to-1. Thus, silver was consistently undervalued and gold overvalued. In the eighteenth century the problem got even worse, for increasing gold production in Bazil and declining silver production in Peru brought the market ratio down to 14.1-to-1 while the mint ratios fixed by the British government continued to be the same.”

Being as old and as slow as I am, it takes me awhile to figure this shit out with analogy, metaphor, or narrative, or whatever mind sharpening tools work, but the above quote pushed me into the following comment.

Gold miners aware of the fix (gold overvalued) will want to go to Britain and buy up silver (undervalued).

That is one aspect, there are many other aspects, such as which places sell which things at which prices, to keep the Gold miners in business, and therefore Gold miners might ask: “Which should we use in which places: silver or gold.

Using 1000 units for simplicity:

Gold miner mines 1000 units, has 1000 units, and a simple transaction in Britain is:

1000 (gold) x 15.5 = 15,500 (silver)

Why do that?

Places other than Britain:

1000 (gold) x 14.1 = 14,100 (silver)

Net profit:

15,500 – 14,100 = 1,400

The deals being made would obviously be made between the Statute Enforcers in Britain and the Gold Miners using this trick to sheer the sheep in Britain.

Josf-Kelley 8 Sep 16
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