Keynote Speech At Sydney Gold Symposium 14-15 November 2011 By Alf Field

http://www.jsmineset.com/2011/11/14/keynote-speech-at-sydney-gold-symposium-14-15-november-2011-by-alf-field/

The Moses Principle recognizes the fact that over any 40 year period, a generational change takes place.

What has this got to do with gold? Recently we passed the 40th anniversary of 15 August 1971, the date when the last link between currencies and gold was ended by President Nixon. This launched an era of floating “I owe you nothing” currencies. Money was what any government deemed it to be, generally something that the government could create in unlimited quantities. That system, plus the fractional reserve banking system, launched an era of ever increasing debt and credit. It was an era where debt was desirable and money lost its purchasing power.

Everyone in this room has spent their adult lives living under this system. Most have had no exposure to monetary history or what money really is. The new “Moses” generation will have to re-learn the lessons of monetary history before the world can enter a new era of sound money and stable economic growth.

THE BRUTAL TRUTHS

1. The slate needs to be wiped clean and a new sound monetary system introduced.
2. That will require the elimination of all debt, deficits, unfunded social entitlements, the US Dollar as Reserve currency, and the big one, the $600 trillion of derivatives.
3. To eliminate these problems by default and deflation will cause a banking collapse and untold economic pain, leading to riots and political change.
4. Politicians are appointed for relatively short terms and opt for the easy solutions.
5. While politicians continue to have the ability to create new money at will, they will do so in order to prevent a melt down on their watch.
6. Consequently the odds point to governments wiping the slate clean by generating enough new money to eventually destroy their currencies.
7. The new international monetary system is likely to involve precious metals. It will have to be money that people trust and that governments cannot create at will.