MARE INCOGNITO: uncharted waters

Mare incognito: uncharted waters – dangerous enough at sea, but exponentially worse when global economic and financial stability is at risk.

With so-called experts trying to outwit, outfox, and revise the proven basic laws of economics with their know-best, intellectual opinions and half-baked ideas, the roiling global situation is far worse than we know.

Witnessed by the precipitous deterioration of market values of investments, personal properties and the insecurity borne of lost jobs, the erstwhile “leaders” – starting with Greenspan – don’t seem to have a clue of how to stem the systemic risk of collapse of the global financial system.

Just because someone decides that the law of gravity doesn’t apply, does not change the inevitable consequence of violating that law.  And it’s often far more painful than imagined.

True economic laws do exist – the Austrian Economic model for example – that trump the feeble attempts of individuals to disregard them with high-sounding verbiage from lofty ivory-tower positions.  Try as they might, when laws are ignored or considered invalid – pretending that they are old, and don’t apply anymore – consequences will appear; the piper must be paid, and we’ll all suffer the unpleasant results.

Truth is truth. It knows no boundaries and answers to no authority. It can be altered, which of course, would make it an untruth. But it is truth alone that shines like Mars at Perihelion – undeniable and unstoppable.

Not to get off on a philosophical rant, but only to assert these simple, common sense facts:

Basic truths exist – when violated, result in painful consequences.

From an economic viewpoint this fact is evident:

Monetary inflation inevitably leads to price inflation leads to depressing situations if not a full-blown depression.

One final observation:

This is exactly where we find ourselves right now as a country and a planet.

In these times and in the future, the worst assets to hang onto are paper assets and the best assets to hold are the “real things” of the world; hard assets, gold, silver, your home, tools and the like become far more valuable than fiat or paper money.

Some months ago I wrote what soon became a popular article entitled: “FIAT MONEY: a primer.“ In this article, I explained that fiat money is a currency, arbitrarily declared to be legal by a government. It has no intrinsic value and is backed by nothing but the force of the government to make you accept it, or else.

Money is basically an idea backed only the by faith or confidence that it will actually be worth something when you want to spend it. When that is gone, so is the value of paper (fiat) money and so is the country.  It’s a delicate game to play, as fiat money is convenient and flexible but open to the twin towers of abuses: greed and fear.

As an extension of my writing mentioned above I came upon a speech to Congress in November 2008, given by Congressman Ron Paul, who laid out precisely what is going.  He is spot on the money (pun intended). The speech  is accurate, truthful and in my opinion, only dangerous to the ones seeking to keep such information hidden or discredited.

I encourage you to read the article in its entirety (see:

Then you decide if it’s true for you.  If it is, then pass it along, as the only real defense against tyranny and deception is the spotlight of truth, freely disseminated and used the interested people of a country, or a world.

In the uncharted waters (mare incognito) which lie ahead, we’ll need all the help we can get to avoid ending up as just another failed attempt to establish and maintain a country based upon the principles of freedom.  In spite of every invitation to do otherwise, I still hold out hope for the future.

daniel w. jacobs
(c) 2009 – 2020, all rights reserved

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