Great Marxist article on owning PMs and how the CRISIS will play out

Earthjade · Sep 13, 2011

Owners of PMs and their advocates seem to mainly be of the Austrian School of economics.
However, if you want to understand crisis in capitalism, you need to go to Marxism.
Here is an excellent article that explains how fiat can't beat gold and how the US crisis is going to play out:

http://tinyurl.com/3sdlnh2

Here's a sample from the link:

But the cause of the rapid growth of token money was not that the U.S. government was printing money to finance its deficits, but because it was facing a major crisis of overproduction, which it thought it could cure if only it kept the general price level in terms of dollars rising by continually devaluing the dollar against real moneygold.

No pre-capitalist government had to confront a crisis of the generalized overproduction of commodities. However, the inflationary crisis did manage to provoke a crisis in government financing as a secondary effect. In the fall of 1979, the U.S. government did actually face a plunging market for government bonds. But the crisis in the government bond market was the result of a general flight of money capitalists into "hard assets," especially gold. Today, we are again seeing the dollar price of gold rise persistently, though not yet to the same degree that it did between August 1979 and January 1980, when it rose from below $300 to $875 per ounce.

What the money capitalists feared in late 1979 was that the Federal Reserve Board would attempt to prevent the federal funds rate from rising by increasing at an accelerating rate the rate of growth of the quantity of token money. But Volcker refused to do this and instead caused interest rates to soar. The dollar began to recover against gold and U.S. bonds began their long-term bull market.

However, the Volcker shock was too little and too late to prevent interest rates, both nominal and real, from rising to record levels and triggering "financialization"the explosion of private debt
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Great Marxist article on owning PMs and how the CRISIS will play out

Earthjade Member

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Great Marxist article on owning PMs and how the CRISIS will play out

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