FOFOA: The Return to Honest Money

Here’s the latest monster posting from FOFOA. His writing and his ability to explain Freegold have always been excellent, but it seems he is found another gear recently. His last major articles was a barn burner that swayed at least one hard core deflationist in Rick Ackerman. I suspect his latest will sway others.

I have given up hope the Mish will ever publicly acknowledge the Freegold concept. Mish’s ego is number one with Mish, and that is unfortunate. He is right on the spot with so many things and his readership is massive. I wish he could understand that he is right about deflation and has been right for a long time. Nobody is really disputing that deflation is a natural result of our fraudulent monetary system. But Mish cannot acknowledge that hyperinflation is result of deflation. He is fond of saying that hyperinflation is a political creation, which I agree. But then his argument against it is that the banks that run this country would never allow it. What he misses is that it cannot be stopped, it is built into the system. It isn’t a matter of allowing it or not. The banks and the giant s of the world know this and are preparing for the dollar revaluation by acquiring gold.

I believe Mish secretly understands Freegold and agrees with FOFOA. But, if he acknowledged such a thing it will make him appear like a flip flopper and somehow diminish his existing body of superior analysis. Mish has an out and I think he will use it when the time comes, he believes gold will go higher in a deflation.

A quick note: I post FOFOA on this blog because the intent of this site is to put a lot of material in one place for those who are just getting started in the notion that we are headed for difficult times. I wanted a place where I could direct someone to go instead of generating a list of sites every time I engaged with someone who showed interest in gold as money. This blog is a starting place. To really grasp the deepest understanding of Freegold, I highly recommend the source itself, FOFOA’s blog. He is totally non-profit and does not charge or advertise. But, he does take donations. If you believe his writing holds value to you, please consider donating to his blog.


Without further ado, here’s FOFOA:

A Return To Honest Money

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6 Responses to FOFOA: The Return to Honest Money

  1. I disagree about Mish secretly believing in freegold. I don’t think he has ever said anything that indicates this.

    • MatrixSentry says:

      That would be the whole point of keeping it secret ;>)

      Mish is so right about deflation, but he is confused how hyperinflation will come to pass. On one hand he acknowledges that hyperinflation is a political consequence, then suggests we cannot have inflation when we are having deflation. The political decisions are in response to the deflation and are the genesis of hyperinflation. Deflation will rule the day until confidence is lost in the currency, then a sudden burst of hyperinflation will occur.

      Mish says the monied elite and the bankers would never allow hyperinflation because it would destroy their system. This is really quite strange in that they have been watching this system come undone for 40 years. It also assumes they can control the process, they can’t. The system is designed to do exactly what it is doing, to build a monumental debt bubble while rendering the currency worthless. They cannot stop it. Mish never asks this simple question: if you are the holder of debt and the debtor is incapable of returning the principle plus interest, what would you rather, a default where you get nothing or to have your money returned in full only with reduced purchasing power? The monied elite will always choose to be paid rather than default. Defaulting on debt is a chain reaction that leads to more defaults. The elite will always do anything rather than let that happen.

      The elite will always choose the dollars and then convert them to tangible assets, especially gold. I think Mish knows this but is trapped by his own ego and dogma. He really resorts to desperate measures when he suggests hyperinflation results from too much inflation. He is smarter than that and is being disingenuous.

  2. Personally, i think Mish never actually reads Fofoa in its entirety. Numerous occassions he has told me how little time he has when I’ve linked him articles of ten pages or more.

    And I think he assumes the banks will settle for the collateral rather than the worthless dollar later on. I hear his argument all the time from members of my family when I talk hyperinflation. Some folks just don’t want to hear it because they think it is silly.

    • MatrixSentry says:

      The problem with banks settling for collateral is one of liquidity. Collateral is not liquid, especially in a deflation that he prescribes. Who will be the buyers of collateral and where are you going to find them? No, they will settle for full payment in impaired dollars, then promptly unload them for things with intrinsic value.

      You are probably right about not reading FOFOA and Freegold all the way through. Again, I believe his ego is too big to allow the possibility that FOFOA is on to something.

  3. What are they going to buy? Land has intrinsic value.

    Gold is cornered, right?

  4. Maybe they’ll buy all the base metals in the world or something like that.

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