Quote — Norm Franz on Gold, Silver and Debt

Norm Franz takes some quality time out to pose for a photo

Norm Franz — Author and great quo­ta­tion com­pos­er

Gold is the mon­ey of kings, sil­ver is the mon­ey of gen­tle­men, barter is the mon­ey of peas­ants — but debt is the mon­ey of slaves ”

  • Norm Franz (Author, 2001)

Norm Franz is an author and con­cerned about mon­ey. He is also con­cerned about reli­gion and scrip­tures which are not so applic­a­ble to me. But what I can say is that this quote is bang on! It is a mas­ter­ful quote. It is lift­ed from his book Mon­ey and Wealth in the New Mil­len­ni­um (2001).

A much sim­pler ver­sion of the phrase exist­ed for hun­dreds (if not thou­sands) of years before in the form of “Gold is the mon­ey of Kings”.

By buy­ing Gold you can start to get out of our debt based mon­e­tary system…Before it collapses…Which it only a mat­ter of time now…

I think that says it all.

More Gold­en Mon­ey Quotes

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Monetizing the Debt

In many coun­tries the gov­ern­ment has assigned exclu­sive pow­er to issue or print its nation­al cur­ren­cy to a cen­tral bank. For exam­ple, in the USA, The Fed­er­al Reserve Bank does this.

The gov­ern­ment trea­sury must pay off gov­ern­ment debt either with mon­ey it already holds or by financ­ing it by issu­ing new bonds which are sold to either the pub­lic direct­ly or the cen­tral bank, in order to raise the funds required to sat­is­fy the debt. In this lat­ter case where bonds are placed with the cen­tral bank, the cen­tral bank will cre­ate the need­ed mon­ey by con­duct­ing an open mar­ket pur­chase, i.e. by increas­ing the mon­e­tary base through the mon­ey cre­ation process. This process of financ­ing gov­ern­ment spend­ing is called mon­e­tiz­ing the debt.

Mon­e­tiz­ing debt is thus a two-step process where the gov­ern­ment issues debt to finance its spend­ing and the cen­tral bank pur­chas­es the debt, leav­ing the sys­tem with an increased sup­ply of base mon­ey.

© Copy­right MMXII RagingGoldenBull.com