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Hell Boy II – The Golden Constant
2011 Mike Church
Hi folks its Mike Church with todays Church Doctrine.
On Saturday I had the enormous privilege of being in a small group of folks who listened to former Reagan Budget Director David Stockman speak at the Ludwig von Mises Institute in Auburn AL. What Stockman said however should not be limited to the audience he delivered it to. Every citizen of the United States needs to hear the real story of our post gold-standard economy.
To sum up his speech titled Why Deficits Do Matter is to run the risk that you wont seek it out in its entirety-I am willing to accept that risk. Stockman delivered his laser guided Austrian Economics missiles at 3 areas: Our debt and deficits, the value or non-value of our currency and the state of the American peoples balance sheets. None of these are works of art you would hang in your home or even in your garage but the most repulsive of the three is the latter.
Stockman explained that since the the 1870s Americans held our debt, public and private to around 1.6 times that of GDP, this he termed The Golden Constant and it was remarkably stable until 1971, the year Richard Nixon elected to take us off the gold standard entirely. This move was supposed to liberate us from the shackles gold placed on currency and usher in the greatest prosperity EVER. Instead we have increased the Golden Constant TWICE to 3.6 times GDP.
To find out what this means to you join us for tomorrows Church Doctrine.
