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Libertarian Alliance: Bring Back the Gold Standard!

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  • Dr Sean Gabb
    Dear All, Here is our statement on the financial crisis. Regards, Sean NEWS RELEASE FROM THE LIBERTARIAN ALLIANCE In Association with the Libertarian
    Message 1 of 1 , Apr 3, 2008
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      Dear All,

      Here is our statement on the financial crisis.

      Regards,

      Sean



      NEWS RELEASE FROM THE LIBERTARIAN ALLIANCE
      In Association with the Libertarian International
      Release Date: Friday 4th April 2008
      Release Time: Immediate

      Contact Details:
      Dr Sean Gabb on 07956 472 199 or via sean@...
      For other contact and link details, see the foot of this message
      Release url: http://www.libertarian.co.uk/news/nr065.htm

      Statement by the Libertarian Alliance on the Financial Crisis: Time to
      Return to Gold

      The Libertarian Alliance, the radical free market and civil liberties
      policy institute, today issues the following statement on the present run
      of crises in the financial markets. This statement is prompted by the
      various calls made for closer regulation of the financial sector.
      Libertarian Alliance Director, Dr Sean Gabb, says:

      "The world may or may not be on the edge of financial collapse. But the
      present run of banking crises is only the latest consequence of the
      ending of the gold standard. Since 1914, and more particularly since
      1971, the ability of governments to create unlimited amounts of fiat
      money has led to bubble after bubble, each one larger than before.
      Financial markets have become little more than casinos. Immense resources
      have been diverted into the promotion and management of speculation. All
      other economic activity has been subordinated to and therefore distorted
      by such speculation.

      "The latest set of problems, brought on by fooling lending on property in
      America, is not a failure of the free market system. It is ultimately the
      effect of government monetary policies. The answer does not lie in some
      new set of regulations, which may prevent the next speculative frenzy.
      The true answer lies in the return to a more sensible and more honest set
      of monetary arrangements.

      "We mean by this the return to a fully convertible gold standard.

      "The Libertarian Alliance calls on the British Government to do the
      following:

      * To order the conversion of all foreign currency reserves held by in the
      Bank of England into gold;

      * To sell every reasonably marketable asset of the British State, to
      convert the proceeds into gold, and to lodge these at the Bank of England;

      * To revalue the Pound, so that all claims on the Bank of England were
      equal to the gold reserve of the Bank of England:

      * To impose on the Bank of England a legal obligation to pay all claims
      on it in gold, on demand and without limit:

      * To impose on the Bank of England an obligation to do all within its
      ability, and nothing other than this, to maintain the new parity between
      the Pound and gold:

      * To impose on all deposit receivers operating in the United Kingdom
      (unless explicitly exempted by contract) to pay all claims on them in
      gold, on demand and without limit;

      * To make the directors or, if they are without the jurisdiction, the
      most senior management of all deposit receivers in the United Kingdom
      personally responsible for any failure to make such payments:

      * To impress on any foreign government or central bank that might choose
      to fix a parity against the Pound that no assistance whatever would be
      given to maintain such a parity.

      "We note that these measures would bring about first a severe devaluation
      of the Pound, and then a credit squeeze that deflated the value of real
      and financial assets. But this is what we seem already to be facing. A
      return to the gold standard would provide us with a stable financial
      system, and would tend to protect us against future bubbles, and would
      abolish the need for intrusive financial regulation.

      "We also note that a fully convertible gold standard would make all money
      laundering laws unenforceable, and would severely limit the ability of
      the British State to finance its activities by the unlimited sale of
      bonds to the banking system. We would unreservedly welcome both these
      effects.

      "We look forward to a Britain, and preferably a world, in which fiat
      money has become as unusual as state ownership of telephone networks, and
      in which paper and electronic money is a rare substitute for gold and
      silver and copper coins."
      END OF COPY
      Note(s) to Editors

      Dr Sean Gabb is the Director of the Libertarian Alliance. His latest
      book, Cultural Revolution, Culture War: How Conservatives Lost England,
      and How to Get It Back, may be downloaded for free from
      http://tinyurl.com/34e2o3. It may also be bought. His other books are
      available from Hampden Press at http://www.hampdenpress.co.uk.
      He can be contacted for further comment on 07956 472 199 or by email at
      sean@...

      Extended Contact Details:

      The Libertarian Alliance is Britain's most radical free market and civil
      liberties policy institute. It has published over 700 articles, pamphlets
      and books in support of freedom and against statism in all its forms.
      These are freely available at http://www.libertarian.co.uk

      Our postal address is

      The Libertarian Alliance
      Suite 35
      2 Landsdowne Row
      Mayfair
      London
      W1J 6HL
      Tel: 07956 472 199

      Associated Organisations

      The Libertarian International - http://www.libertarian.to - is a sister
      organisation to the Libertarian Alliance. Its mission is to coordinate
      various initiatives in the defence of individual liberty throughout the
      world.

      Sean Gabb's personal website - http://www.seangabb.co.uk - contains about
      a million words of writings on themes interesting to libertarians and
      conservatives.
      Hampden Press - http://www.hampdenpress.co.uk.- the publishing house of
      the Libertarian Alliance.

      Liberalia - http://www.liberalia.com - maintained by by LA Executive
      member Christian Michel, Liberalia publishes in-depth papers in French
      and English on libertarianism and free enterprise. It is a prime source
      of documentation on these issues for students and scholars.
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