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Return of the Gold Standard Imminent

January 27, 2012


The gold standard will precipitate a massive deflation. The ensuing chaos will help usher in their coveted New World Order and World Currency.

by Anthony Migchels

What has been in the cards for decades is now fully on the agenda: the return of the Gold Standard. Gold as currency is a weapon. It is a wealth transfer to those holding Gold, which is not the 99%, and will precipitate a massive deflation. The ensuing chaos will help usher in their coveted New World Order and World Currency.

Numerous stories pertaining to Gold as currency have appeared recently. Last week alone, it was reported that India will pay Iran in gold for their oil imports. In another development, China, Japan, Russia, France and a number of Arab states will pay each other with a basket of currencies, including Gold.

Yet another story was about World Bank President Robert Zoellick, who has been promoting a Gold Standard for years, 'admitting' the demise of the dollar reflects 'a changing balance of power' in the world. Even Newt Gingrich has jumped aboard the gold train.

These stories are framed as resistance against the dollar hegemony and of course that is only a part of the story. Another dialectic, US against the Rest of the World.

But were these Nations really acting independently, they would barter amongst each other, based on current account bookkeeping and basically crossing off all mutually outstanding debt. That would save them massive sums of currency and associated capital costs. They would need 'hard currency' only to settle negative balances.

Of course, when these developments run their course it could have a devastating effect on the dollar, as it would mean trillions of dollars would be repatriated from overseas as they are no longer used to finance international trade.

It helps the Money Power in its plan to bring the US down a few notches, which is indispensable to World Government.

But the decline of the dollar is only part of the story. The dollar is only the current vehicle the Money Power uses to rule international finance. It doesn't care for the vehicle itself, as long as it has a suitable successor and that will be Gold.

And in the US itself there also is a strong drive towards Gold as currency.

The onslaught by Austrian Economics in the Alternative Media comes to mind. And Ron Paul of course. He openly calls for Gold as currency. In this respect, he clearly is the ultimate internationalist candidate. This contrasts sharply with his patriotic 'constitutionalism'.

 But when he must chose between constitution and the monetary, it is clear what his priorities are. Ron Paul lies about 'constitutional money', saying the constitution says we should have Gold as currency. But it doesn't, it says we may have Gold as currency. But other units are also allowed.

This 'little detail' is really very telling. It is typical of a Money Power change agent. They hide behind a sympathetic and credible theme, meanwhile sabotaging or actually actively supporting the implementation of a worse and more important agenda.

And control of the money supply is all important. To the Money Power, anyway.

It also reminds us of how internationally the Money Power operates. We must not allow our national priorities to obscure the international context.

Austerity and Deflation

A Gold Standard would be an unmitigated disaster. It will lead to an excruciating deflation. Deflation is a horror for debtors, who see their debts and the interest they pay over them grow worse in real terms. And since everybody is complaining of debt, we might reconsider making it worse with deflation.

Winston Churchill, who was involved in the reinstatement of the Gold Standard in Britain in the twenties told the House of Commons in 1935, when the deflation of the Great Depression had made Gold untenable:

"Look at the enormously increased volume of commodities which have to be created in order to pay off the same mortgage debt or loan. Minor fluctuation might well be ignored, but I say quite seriously that this monetary convulsion has now reached a pitch where I am persuaded that the producers of new wealth will not tolerate indefinitely so hideous an oppression. . . . I therefore point to this evil, and to the search for the method's of remedying it as the first, second and third of all the problems which should command and rivet our thoughts."

Deflation destroys the economy, because people have an incentive to hoard cash, instead of using it for production and consumption.

The Banking Fraternity is well aware of the disastrous deflation that Gold promotes. For instance, the Protocols say in their financial program (Protocol 20): 'You are aware that the gold standard has been the ruin of the States which adopted it, for it has not been able to satisfy the demands for money, the more so that we have removed gold from circulation as far as possible.'

This quote also confirms that they are able, willing and known to withhold vast amounts of Gold from the market. So the idea that Gold is a safe bet because 'it cannot be printed' does not stand: the volume can be manipulated, because most of it is in the hand of the Money Power, who can inflate and deflate at will.

The social and economic havoc it created through the Great Depression led to the rise of fascism. It is quite likely that weaponized Gold is being used for similar purposes this time.

And of course we should also consider the one off wealth transfer that reinstating Gold as currency brings: it's price would have to go up maybe 10 or 20 fold to replace all the fiat currency in the world. The 99% having no Gold will as usually be holding the bag.


Far from a 'solution', the coming Gold Standard is the logical next step in the Money Power plan of destabilization and order out of chaos. We will have a long and painful depression.

Although it is not certain that Gold will completely replace paper, it is obvious that we will know scarce money and contraction for years to come.

The austerity and deflation that the Money Power's agents in the IMF, Bank of International Settlements and (Central) Banks are promoting will set the stage for major upheaval and the usual problem-reaction-solution, dialectically driven march to World Government.

Our answer must be to have the Government reclaim the monopoly it has surrendered to a private Central Banking Cartel. But the goal is not to 'end the Fed'. The goal is better money.

Government must print debt free money, preferably Social Credit. Since this is not going to happen any time soon, we should build free market currencies, which can actively compete with national currencies. Ellen Brown's Public Banking is another approach in the Populist spirit.

And we should take our money out the banks of course. Why would we patronize a business that is enslaving us with credit by bookkeeping, slapping interest on it, creating booms and busts and taking trillions of bail outs?


Anthony Migchels is an Interest-Free Currency activist and founder of the Gelre, the first Regional Currency in the Netherlands. You can read all of his articles on his blog Real Currencies


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Comments for "Return of the Gold Standard Imminent"

Tony Blizzard said (January 31, 2012):

Anthony has it figured out, unlike most of his generation. Each generation is less able to think properly than the last. "Mady" de Shishmareff used to call it "planned ignorance." It comes from government schooling, entertainment media, etc.

Paul said (January 30, 2012):

Fiat currency is built merely on a perception of value. Once the perception starts to give way to cold hard reality, the house of cards comes down. As Anthony Migchels says, the elite now have most of the world's gold.

In my view he condemns himself with his own words. They have spent generations looting the gold of the nations of the world because THEY know it has real value, unlike the Monopoly funny money they force us to play with.

But a commodity standard doesn't mean it only has to be gold. It could be a combination of precious metals or a market basket of goods, etc. Even if it's not a panacea, in my opinion it would be far superior to the status quo. You say that you fear that it will lead us into a depression. We already are in a depression.

Seriously, you can't tell me you believe the economic numbers the government puts out. Real unemployment is closer to 18% than 8%. We already see how they work to deceive us by the way they changed the CPI to not include food and fuel!

I repeat, if the elites wanted us on a gold standard, they never would have orchestrated our removal from it.

Robert said (January 29, 2012):

Tony's experience of Libertarians accords with my own: they are totalitarians in spirit, with an ideological sieve based on arrogance and superiority through which they pass information
to produce an automatic and facile answer to any issue. In this respect they tend to function in the same way as doctrinaire Marxists.

This explains Herbreck's repugnant demand [below] that you suppress this article. To the brainwashed ideological purist any alternative point of view is unworthy of consideration and ought to be
erased from discussion and memory.

It's impressive to see the enthusiasm of youth involved with Ron Paul's campaign. Too bad
they are being led down the garden path to support policies that would simply collapse the American

Tony said (January 29, 2012):

Henry, it's laughable how every time you post a truthful article about money, such as Anthony Migchels latest, some "long time satisfied reader BUT" pops up with an Austrian Idiot "refutation." The gold bugs just refuse to learn about money, spouting their false conclusions to their even more false beliefs (theories). That damned gold is a drug, there is no doubt about it. And none know that better than the criminal bankers of issue for whom the gold bugs are their best possible backup, sure to sabotage every honest attempt at monetary reform by turning it into a debating circus sans reason. That's the basic reason for the existence of the Libertarian Party.

I don't agree with Anthony on every last detail (Ellen Brown's push for state, now county, banks for instance does NOTHING to correct the real problem of money creation as debt at interest) but he is a young man who studies the real problems and acts on knowledge gained, unlike the unthinking parrots of Mises, etc. who call themselves Libertarians.

It's also very telling that those obstructors are not satisfied just to offer their counter reply, as most others are, but they want the "offending" article removed from your site. A sure sign that they do not have confidence in the persuasion of truth in their own agenda. Because they don't really know if it is true or not since they never think through what the "Austrians" are actually advocating, they just leap to that agenda, Pavlovian like. Here's a broad hint for them - The "Austrian" theories are definitely not able to pass a truth test. Which gives few outs for Ron Paul, none of which is complimentary. He is either not very smart or not very honest. Or both.

Anthony Migchels said (January 28, 2012):

In reply to Herbreck below

Just for your info: I've written extensively on Austrian Economics's 'free market for currencies', which is a total hoax:
Just google:

What Gary North is not saying about Interest
Discussing Gold and Interest with the Daily Bell
Top Ten Lies and Mistakes of Austrian Economics (see point 7)

Paul may have called for broader Gold ownership, the fact remains that a pathetically small percentage of Gold reserves is in the hands of the common man. So it's quite clear who will be winning with a new Gold Standard.

My statements are well considered and I stand by them fully, but is of course impossible to cover everything in a thousand words.
However, the 'free market' thing is quite often used by Austrians: they are suggesting the free market would see Gold rule.

This is complete and utter rubbish, as I've proved without a doubt in the above articles. However, because many libertarians believe Gold would win out in a free market anyway, they'll settle for a Gold Standard by decree as second best.

Herbreck said (January 28, 2012):

I'm a longtime reader and generally enjoy your articles and agree with most of the viewpoints. Unfortunately, the new article by Anthony Migchels "Return of the Gold Standard Imminent" contains many factual errors, obvious contradictions and serious omissions that amount to a cheap smear against Ron Paul.

On the one hand Migchels indicts Paul as for his support of Austrian school economics ( without mentioning to readers that Austrian economics have proven very accurate in the last 10 years ) and a gold standard ( without telling readers that Dr. Paul advocates "broader base of gold ownership" ). Migchels calls for "competing currencies" as one solution yet fails to mention Dr. Paul's bill "Free Competition in Currencies Act of 2011".

Migchels also seems to be willing to give the FED a "pass" on their numerous crimes against the American people, while Dr. Paul sponsored bills to fully audit the FED. Migchels calls for "government monopoly" on money creation, while Paul calls for "free competition" in currency.

It's clearly Anthony Migchels who is shilling for the elite while Dr. Ron Paul represents the common man as he always has.

"In this one detail — the critical importance of the gold coinage — I believe lies the key to establishing a new gold standard.

We should make no mistake about it: the more progress we make toward reestablishing the gold standard, the more aggressive our opposition will become. Some vested interests, as you know, have a lot to lose if we succeed in getting the monetary system reconstructed on a gold basis. The first political step is, therefore, to get the coinage into circulation.
One objective might be to aim for every American to become a gold owner. We must encourage a broader base of political support for gold ownership and the availability of gold for personal economic objectives. Certainly a broader base of gold ownership in the country would help to reduce the threats of discriminatory taxation or regulation of gold ownership and gold coin transactions, which are seriously favored in Congress today."

- Ron Paul

I ask you to remove this obvious smear and simply give Dr. Ron Paul fair and accurate coverage on your site.


HR1098 Free Competition in Currencies Act
HR459 Federal Reserve Transparency Act
HR1095 Freedom to Bank Act

Henry Makow received his Ph.D. in English Literature from the University of Toronto in 1982. He welcomes your comments at