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Manufacturing prowess based on sound money
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
goldmoney.com / By Alasdair Macleod / April 14, 2013
The ability of a business to maintain accurate and meaningful accounts is undermined by the debasement of the accounting medium, fiat currency. Understand this and you understand the corrosive effects of weak money.
This important subject receives almost no attention. Instead it is argued that a weak currency can stimulate exports and therefore business. Cynical neo-classical economists see monetary debasement as a means of robbing savers and wage-earners without them noticing, to achieve a statist objective without apparent pain. The self-interested justification for this theft of individuals’ property has been elevated to an art-form involving obfuscating statistics, as well as clouding economic issues with concepts of fairness, morality and politics.
The result is to render accounts meaningless. The currency unit of today is not the same as that of a year ago. We look at the accounts of an American corporation, tracking the company’s progress over the last five years, but we cannot adjust reported dollars for the fact that over this time-scale there is now more than twice the quantity of dollars in circulation. And how can we be sure that depreciation is sufficient to allow for the purchase of new manufacturing equipment, taking into account the depreciation of the dollar itself?
Thanks to BrotherJohnF
2013-04-14 15:46:25
Source: http://silveristhenew.com/2013/04/14/manufacturing-prowess-based-on-sound-money/
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