QUESTION: Hello Martin,
You will have talked about time and again that J.P. Morgan needed to bail out the US Authorities within the late 1890’s with gold, which was US cash at the moment. Are you able to clarify to us how the US financial system could possibly be robust at the moment when the US Authorities went broke accumulating tariffs on imports?
Chaz
ANSWER: The financial system was robust, it was the silver democrats who overvalued silver taking bribes from the silver miners. That led to the arbitrage silver was pouring into the USA and swapped for gold. The insolvency was not from home debt however from the overvaluation of silver, and gold was the worldwide settlement – not silver.
Immediately, we’re in a debt disaster. That is economically totally different. The Panic of 1896 was about international change and the Democrats attempting to inflate the financial system with silver as they’re nonetheless attempting right now with countless spending and no accountability. This led to their assault on the gold commonplace and the 1893 march on Washington that grew to become the Wizard of Oz. See:
