It’s 1790 All Over Again

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Why is it 1790 all over again? Because today, just as in France in 1790, we have a set of conceited men running the world’s economic policy on the basis of a flawed intellectual construct. In 1790, the flawed construct was the Assignat. Today, the flawed intellectual construct is the irredeemable US dollar and its derivative currencies.

In 1790, gold was the enemy of those conceited men, because the depreciation of the Assignat against gold revealed the falsity of the Assignat, so the National Assembly tried to suppress the use of gold by violence against its owners. Today, gold is once again the enemy: gold, whose value threatens to expose the falsity of the irredeemable US dollar.

Our conceited masters are struggling to keep their intellectual construct, the irredeemable currency that is the dollar, from plunging in value to thousandths and ten-thousandths of a gram.

The dollar faces the same fate as the Assignat, which in 1797 fell to a value of zero grams of gold. And since the rest of the world’s currencies are derivatives of the dollar, they too will become worthless.

The fundamental flaw in the thinking of the members of the National Assembly of France in 1790 was the mistaken idea that they could invent a money more suitable than gold to achieve the prosperity of France.

Today, the fundamental flaw in the thinking of politicians and economists is the same as that which blinded the members of France’s National Assembly: they are convinced the US dollar is far more suitable than gold for use as money.

The conceit of the National Assembly in France in 1790 led to the total failure of the French economy in the course of 7 years. The conceited central bankers of today will without a doubt achieve a world sunk in economic failure. But don’t expect any of them to say, “we were mistaken.”

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