Well-Written, Well-Timed: The Dollar Meltdown
Recently by Charles Goyette: The
Gnomes of Washington
Goyette is a veteran radio guy, a libertarian who supported
Ron Paul before it was fashionable. Now hes written his
first book, The
Dollar Meltdown, and from beginning to end its a pleasant
surprise. Goyette writes as smoothly as he speaks and his perspective
is unapologetically libertarian. So he gets it right on both content
expect with a talk show host, hes comfortable with polemics:
national government has moved way beyond a political spoils system.
A spoils system leaves the host alive so that a politicians
occasional neer-do-well brother-in-law can be put on the
payroll. America has become a piñata: everybody gets a
crack at it. Presidents and other elected officials pass the big
stick around as a reward to those who help keep them in charge
of the piñata party. The American media plays the role
of the partys mariachi band, keeping festive spirits high.
And the people in their demographic and interest groups all line
up to take a whack at the goodies. America has become a piñata.
But he also
does a good job of laying out the substantive argument for a currency
crisis. Readers, for instance, find out that with the explosion
of government borrowing and unfunded liabilities, U.S. debt now
totals $1.3 million per family of four. And that the Fed is in reality
a cabal of global banks that tricked the U.S. into giving it control
of the money supply back in 1913. The chapters covering the history
and function of money introduce concepts like fractional reserve
banking and recount some of the past episodes of hyperinflation.
And the quotes Goyette uses to illustrate his points are well-chosen,
ranging from Austrian economists to Fed governors. This one from
Ludwig von Mises introduces the crack-up boom:
suddenly aware of the fact that inflation is a deliberate policy
and will go on endlessly. A breakdown occurs. The crack-up boom
appears. Everybody is anxious to swap his money against real
goods, no matter whether he needs them or not, no matter how much
money he has to pay for them. Within a very short time, within
a few weeks or even days, the things which were used as money
are no longer used as media of exchange. They become scrap paper.
Nobody wants to give away anything against them.
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© 2009 DollarCollapse