Neither “world” makes any sense whatsoever. The essential difference between the Wonderland Matrix and the New Normal is that the analysis which accompanies my work on the Wonderland Matrix provides us with the only explanation of why we live in a world which makes no sense. Conversely, the New Normal simply/inanely postulates the totally discredited cliché that “this time it’s different”.
In both the Wonderland Matrix and New Normal we have total perversity; black is “white”, down is “up”, and bad is “good”. In the New Normal; the fiction-writers of the mainstream media tell us that the U.S. economy is once again the envy of the world, thanks to what they call a 5+ year “economic recovery”, which is already much longer than any normal economic recovery (back when the world was sane).
The fiction-writers tell us that lots and lots of “new jobs” have been created during this (supposed) economic recovery, more than 5 million, to be precise. Yet the percentage of Americans who actually have jobs has fallen from 66% to 63.5%, and there haven’t been so few Americans working in that economy (on a percentage basis) in more than thirty years. It makes no sense.
The U.S. cars-and-highways economy is notorious for being the most rapacious gasoline-guzzler the world has ever seen. Yet official U.S. “gasoline consumption” numbers from the U.S. government report the U.S. economy is now only consuming 1/3rd as much gasoline as when this “recovery” began. It makes no sense. One could go on and on and on (as has been done in previous commentaries), but the (real) picture is clear: a world of insanity.
In general terms, the mission of writers such as myself is then also clear: to attempt to restore some degree of sanity to the world in which readers live. On a practical basis, my own strategy has been consistent since first beginning to publish economics-based commentaries: expose/debunk the Wonderland Matrix, and provide readers with analytical glimpses of what a “sane” world should look like – in many cases by simply reminding people of what our own “world” did look like, when it used to be sane.
In this respect, my “mission” has recently been aided by a question from an inquisitive reader: what if we had never left the gold standard? Exploring hypothetical scenarios is often a trivial (if not tedious) exercise, but not when we hypothesize sanity in the world. In that case; clearly the exercise is elevated to providing a realistic (if not superior) alternative to the current insanity.
The fiction-writers (and the “expert” economists who prostitute themselves on their behalf) tell us that a return to a true gold standard is absolutely impossible. Why? Because it would require our governments to manage our economies in a responsible and sustainable manner.
In the New Normal, this is not possible. It’s only “possible” for our (corrupt) governments to manage our economies in a (totally) reckless and (hopelessly) unsustainable manner, which has now brought every major Western economy to the literal brink of inevitable bankruptcy.
Clearly leaving the gold standard has not brought us the economic “nirvana” promised by the bankers (and their expert economists). Ceasing to manage our economies in a responsible/sustainable manner, and choosing to manage our economies in a reckless/unsustainable manner for the last forty years has rendered all of these economies insolvent. Who could have predicted that? Certainly not the economists.
But since this is a hypothetical exercise, we can simply imagine if sanity was restored to the world. What if we had never left the gold standard? The problem with beginning such an analysis circa 1971 is that when the bankers (and their puppet-politicians) completed their assassination of the gold standard at that time, we had only a bastardized remnant of a true gold standard (the “Bretton-Woods Agreement”).
Dealing with a quasi-gold standard is a lousy template upon which to base even a hypothetical analysis. To do this right, let’s go ‘all the way’, back to when our economies and societies didn’t merely have a gold standard, but also had/used “good money” (i.e. gold and/or silver as their currency). This sets the stage for a clean analysis, necessary for the construction of a paradigm of sanity.
The first (and most-important) distinction we can make between the sane world of our hypothetical example versus the insane world of the New Normal is to simply look at ordinary commerce. In our sane hypothetical; all commerce involves trading hard assets for other hard assets (or valuable services).
Valuable gold and silver money is exchanged for valuable consumer goods, homes and automobiles, and the materials and labour necessary to drive industry. Conversely, in our insane New Normal, we exchange scraps of paper (our “fiat currencies”) for valuable assets (and services).
Originally, these scraps of paper were partially backed by gold (and thus quasi-valuable). But after the bankers completed their assassination of the gold standard in 1971; our currencies were only “backed” by debt (they were literally borrowed into existence), and thus became quasi-IOU’s.
Today (in the New Normal), the bankers have perpetrated a second bait-and-switch with these fiat currencies – taking us into the era of ultra-fraudulent/ultra-insane “quantitative easing”. Now our currencies our neither backed by gold or even backed by obligation.
They are backed by nothing, worthless scraps of paper with no possible basis of value. These fiat currencies are no different than the “Monopoly Money” with which our children play, with one (and only one) exception: our governments (and the bankers, and the media fiction-writers, and the expert-economists) all tell us that these worthless scraps of paper are still “valuable”.
In the New Normal; it’s “normal” to exchange (totally) worthless scraps of paper for valuable goods and services. Thus the difficulty of my hypothetical example (and my “mission of sanity”) is now fully exposed.
For 99.9% of all the people living in the (insane) Western world; it’s normal to work all day and then be paid for one’s labours with worthless scraps of paper. It’s normal to then take those worthless scraps of paper and then exchange them, yourselves, for assorted (valuable) goods and services. Our entire populations have totally forgotten what a sane world even looks like: where people exchange valuable money for valuable goods and services. The result is a world of phony (paper) “prices” which constitutes the most-insane element of the New Normal fantasy-world.
In societies which have totally forgotten sanity (thanks to this brainwashing); trying to explain what a sane world looks like, and how it functions is not much different than trying to describe “colour” to the blind, or “music” to the deaf. It requires not only effort on the part of the writer to attempt to convey such extremely difficult-to-absorb concepts, it requires effort on the part of readers to broaden their thinking.
You need to stretch your minds, and try to “imagine” sanity: where people exchange valuable currency (money) for valuable goods/services. With many of us never having experienced (and/or remembered) a single day of such sanity in our entire lives; this is not an easy exercise. Indeed, it provides a perfect stopping-point for the first half of this analysis.
In the conclusion of this piece (after everyone has had a few days to engage in more “mental stretching”); readers will see a detailed description of a sane world, and how we (as “actors”) would likely behave in such a sane world. The choice will then be yours: would you rather live in a sane world, or continue to live in an insane one?
This article is brought to you courtesy of Jeff Nielson From Bullion Bulls Canada.