Real Growth Requires Real Money

Government Money Must Go Were you forwarded this email? [Sign-up to The Daily Reckoning here.]( [Unsubscribe]( [Daily Reckoning] Real Growth Requires Real Money - “It might be hard to believe, but the government monopoly on money can be overthrown tomorrow”… - “What people call money is actually mere credit and debt with no reliable unit of account”… - “As the prices of gold and digital currencies converge, these real monies could ultimately redeem the dollar and the global economy”… Recommended Link [***WARNING***]( [Read more here...]( The following investing secret was filmed on private property. It’s for this reason… We ask you NOT to distribute or forward the materials contained within. Let me be perfectly clear... This is for your eyes only. [Go Here Now]( Annapolis, Maryland December 30, 2021 [Brian Maher]Dear Reader, The Federal Reserve has inflated bubble after bubble without producing much bounce for the general economy. Our monetary system is broken, argues America’s no.1 futurist, George Gilder. He claims it has given us low growth, a shrinking job force, inequality beyond what a healthy economy would produce, inefficiency and the unhealthy explosion of the financial industry. It has transformed Wall Street from an engine of innovation into a servant of government power. Fed policy does little or nothing for savers or small businesses, which live on financial leftovers. The system actually depletes wealth, George says. Today, George shows you why sound money is the way out — and why it will have to come from private enterprise. Regards, [Brian Maher] Brian Maher Managing Editor, The Daily Reckoning Recommended Link [[URGENT] If You Missed Bitcoin’s 103,533% Explosion, Claim This New Book Right Away]( [Read more here...]( If you’ve missed Bitcoin’s historic run-up to over $60,000… [Then you need to check out page 54 of crypto millionaire James Altucher’s new book.]( In it, he details a cryptocurrency he believes could one day surpass Bitcoin. Now, James famously said Bitcoin was the future all the way back in 2013 – when it traded at just $61… Anyone who followed him had the chance at gains as high as 103,533%. But he says this new opportunity could be even bigger. [Click Here To Learn More]( Real Money Is the Key to Growth By George Gilder [George Gilder]It might be hard to believe, but the government monopoly on money can be overthrown tomorrow. We, the people, can master it and make it our servant. How? Mainly because we live in an information economy, which is an economy of mind. Meaning it can be changed as fast as minds can change. Money is not a mystery. And a reversal of policy can affect massive improvements in very little time. In the same way that existing policies suppress growth, a change in policy can bring about an instant and sharp enhancement of all economic activity. How do we make that change? To answer that question, let’s review prior economic transformations and how we can learn from them… After World War II, when 10 million demobilized servicemen returned from the front to an economy that had to be converted from a garrison state to meet civilian needs, economists steeled themselves for a renewed Great Depression. But a big congressional Republican victory in the elections of 1946 propelled a drastic turn away from the government-planning regime of the war. Government spending plummeted by no less than 61% between 1945 and 1947. The economist Arnold Kling of the Cato Institute observes that “as a percentage of GDP the decrease in government purchases was larger than would result from the total elimination of government today.” Some 150,000 government regulators were laid off, along with perhaps a million other civilian employees of government. Disbanded were such managerial agencies as the War Production Board, the War Labor Board and the Office of Price Administration, beloved of John Kenneth Galbraith. Every Keynesian and socialist economist confidently predicted doom. In 1945, Paul Samuelson prophesied “the greatest period of unemployment and dislocation which any economy has ever faced.” There was no new depression, though. In fact, the historic ascent of America saved the world economy from socialism. Economic growth surged by 10% over two years... The civilian labor force expanded by 7 million workers... Released from wartime controls, the private sector launched a 10-year boom despite tax rates on investors as high as 91%. Compensating for the high top rates was an effective 50% tax cut through the enactment of the joint return for households. Freed from regulations and tax burdens and relieved of wartime stresses, large manufacturing corporations emerged as spearheads of global capitalism. Crucially complementing these deregulatory policies was an era of relatively sound and reliable money. Of course, this worldwide ascent from depression and war was built around a simple framework that we no longer have: the gold exchange standard... Negotiated in 1944 among all the Allied powers at Bretton Woods, it made currencies convertible into dollars, which in turn were convertible into gold at $35 an ounce. The fixed exchange rates of Bretton Woods provided the stability that lengthened the horizons of global investment and enterprise. Remaining in place throughout the postwar boom, they provided the monetary backing for global growth that averaged 2.8% per year for 25 years, a level unequaled before or since and almost double the growth rate since 1971. There were few defaults, no banking crises and an efflorescence of innovation and progress in what even current prophets of “secular stagnation” regard as a golden age. Then it all changed. After the end of Bretton Woods, in 1971, the monetary regime became mostly dependent on the politics of central banking, chiefly the U.S. Federal Reserve and the European Central Bank. Yes, the dollar provided an adequate haven for extended periods. But reliable money became increasingly scarce. Recommended Link [Breaking: Ex-Pentagon Insider’s Disturbing Message for America]( [Read more here...]( He warned about the 2008 financial crisis a full two years in advance. He’s predicted everything from the coronavirus crash, the election of Donald Trump, Brexit, and more. And he just went live with a disturbing new warning for America. One that could have devastating consequences for anyone that’s still holding stocks, cryptocurrencies, or cash on [1/12/2022](. If you have money in the markets, or you are worried about America’s financial future… You need to [heed his message]( ow….because once this crisis hits it will already be too late. [Click Here To Watch Now]( With the central banks’ ability to easily manipulate money, anyone with a long-term investment or asset, a fixed goal or visionary cause, deep pockets or commitments, a family or a career or even an enduring job becomes a gull for the government. What people call money is actually mere credit and debt with no reliable unit of account. The thing is money is not a mere manifestation of economic power; it is a crucial source of information. Only to the extent that its signals of value are reliable and true can it guide the learning curves of wealth creation. In the past, the critique of monopoly money has taken the form of proposals for conferences, balanced budget amendments to the Constitution, audits of the Federal Reserve and calls for a new Bretton Woods agreement. Yet at a time of crisis, these ideas, however appealing, seem either trivial or implausible. A return to the gold standard, however, could put us on the path to actually restoring real money. A new gold standard will emerge when governments end their monopoly and remove obstructive taxes on alternative currencies. Allowed to move experimentally toward the time constraints of real money, digital payment systems will evolve with gold into a new information system for the global economy. Critics of a gold standard fear it would restrict the money supply. But a gold standard does not fix the amount of money; it defines its value. Thus gold does not reduce the supply of real money. It increases the demand for it. Under the gold standard in the United States between 1775 and 1900, the money supply rose faster than at any time before or since — by a factor of 160 — while the population rose by a factor of 25 and the nation forged its Industrial Revolution. This 160-fold rise in the real money supply, moreover, produced almost no inflation. A gold standard complemented by Bitcoin-related technologies on the internet would provide a supply of real money for the first time since 1971. Gold enables real money by fixing its value to the passage of time. The supply is then determined by us, by private economic activity and by learning based on the informative webs of authentic price signals. Gold already serves as a monetary metric for millions of people around the globe: - From China and India to the Middle Eastern oil kingdoms, many nations are increasing their stores of gold - Scores of entrepreneurs and venture capitalists are tapping gold’s potential in international commerce - The Gold Standard Clearing House has experimentally reduced transaction times to under a hundred milliseconds. From Anthem Vault to bit gold, entrepreneurs have been developing ingenious combinations of the Bitcoin blockchain with gold backing. As the prices of gold and digital currencies converge, these real monies could ultimately redeem the dollar and the global economy. New systems based on gold and blockchain innovations can evolve into a new world monetary infrastructure. The new global money could extend the American dream of stability and futurity. Restoring real money, we can recapture the future from both Silicon Valley and Wall Street. Opening up the horizons of opportunity again, we can save Main Street from the menace of monopoly money, transcending the dismal science of stagnation and decline and regaining the American mission and dream. Granted, with a buildup of mountains of debt and contingent liabilities across the globe under the management of central banks, there seems to be no direct legislative path to a gold standard today. But even if the nation cannot forcibly impose a new gold standard on the world, real money should not be seen as an arbitrary legal structure or policy. It is an expression of the natural order of the economy — the system of the world. And restoring sound money could work miracles of growth almost overnight. Regards, George Gilder for The Daily Reckoning Editor’s note: George recently shared a [stunning prediction about the crypto markets.]( Whether you’re a crypto investor or not, you should probably hear it right away. That’s because George is someone with the kind of credentials most forecasters would pay millions of dollars for: - ➝ Over the course of his fifty-year career, he’s worked closely with two United States’ Presidents… - ➝ He’s a founding partner in Peter Thiel’s prestigious 1517 Fund – which helped to create the second biggest crypto in the world, Ethereum, via its Fellowship program… - ➝ He was dubbed “America’s Foremost Tech Prophet” by The Economist – while his work has been praised by Microsoft Founder Bill Gates and former Google CEO Eric Schmidt (he even had his Amazon account set up for him in 1996… by Jeff Bezos himself). Now he claims [something big is happening in the crypto world.]( He claims it could be bigger than bitcoin. And much more lucrative, long term. What is it? And what does he suggest you do to capitalize? --------------------------------------------------------------- Thank you for reading The Daily Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:dr@dailyreckoning.com) [George Gilder][George Gilder]( is a world-renowned investor, writer, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance. During America's last big tech boom of the late-1990s, Gilder was widely considered the best stock picker in the world. George also pioneered the formulation of supply-side economics when he served as Chairman of the Lehrman Institute's Economic Roundtable, as Program Director for the Manhattan Institute, and as a frequent contributor to A.B. Laffer's economic reports and the editorial page of the Wall Street Journal. Throughout his career, he’s been profiled in People, Wired, Forbes, Fox News, the Wall Street Journal, The Economist, Harvard Business Review, the American Spectator, and more. 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