May Day, May Day…What Happened?

May Day.

We have a sentimental attachment to this day — the international worker’s holiday inspired by the ‘Haymarket Affair’ in 1886, when police mowed down a crowd protesting in favour of the eight-hour workday.

This year, however, socialists must think they have us all licked.

On May 1, 2012, tens of thousands marched in the streets of New York,’ says one source cited on Wikipedia, ‘and around the U.S. to commemorate the worker’s holiday and to protest the dismal state of the economy, the growing divide between the rich and the poor and the status quo of economic inequality.

Occupy Wall Street and labour unions were out in force, too. Protests were organized all across the United States and Canada.

May 1, 2013? Bubkis.

It’s a quiet May Day,’ wrote our Dave Gonigam in the 5 Min. Forecast. ‘The few people in Greece who still have jobs are out on strike. But in the United States, there’s nary a sign of the Occupy movement.

Sigh. What happened?

We ask because we share a passion with at least one facet of the old Occupy movement.

The problem we are in now started with FDR taking us off the gold standard,’ read a blog post on the blog site back in 2011. ‘Now all the money in this country is created by banks as ‘DEBT.’ There is no gold standard – your money is worthless. We need to restore the classical gold standard. Less speculation, and people making money off money.

Yesterday we were discussing the ‘exorbitant privilege’ the US political class enjoys by way of printing the world’s reserve currency. That privilege also inflamed the passions of the Occupy movement as the crisis in 2008 unfolded.

‘Good monetary policies,’ Lewis Lehrman told us during our interview, ‘lead to a stable purchasing power of the currency over a long period of time. The middle-class working people — who have only time to take care of their families and go to work and have no time to pay attention to the financial gymnastics on Wall Street or in Washington — can be assured that 30 years from now, when they retire, the purchasing power of their savings is approximately the same as when they earned it…that nobody has stolen the value of their wages in pursuit of some national employment objective or Federal Reserve policy designed to bail out the commercial banks.

‘The purchasing power for the dollar I put in the bank in 1971 is worth about 12–15 cents. That equation shows the enormous issuance of dollars to finance our deficits. It may look like the system is continuing, but the price has been paid by the U.S. consumer.’

‘Let’s face it,’ our friend Ralph Benko cites the Republican strategist Dick Morris in a piece for ‘Politicians have abused the right to print money. We cannot trust them to limit their power and to face fiscal facts. The abuses of Obama and Bernanke illustrate this grim fact for all to see: Gold is coming!

‘Monetary policy can be a force for stagnation, as now,’ Mr. Benko sums up. ‘Or it can be a force for fostering a climate of equitable prosperity and robust job growth. Time for elected officials, public intellectuals, journalists and us regular citizens to examine the evidence.’


Until then, we’re stuck with a dollarised world…


Addison Wiggin
for Markets and Money

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From the Archives…

Gold Demand: The Great Disconnect Between Paper and Bullion
26-04-13 – Greg Canavan

Lest We Forget
25-04-13 – Greg Canavan

Praying for Government Incompetence
24-04-13 ­– Bill Bonner

The Cracks in Solidarity at the Recent G20 Gabfest
23-04-13 – Greg Canavan

How Central Planners are Committed to Ruining the Economy
22-04-13 – Joel Bowman

Editorial director of Markets and Money, Addison Wiggin is also the author, with Bill Bonner, of the international bestseller Financial Reckoning Day and a frequent guest on national US radio and television programs. Look for the sequel to Financial Reckoning Day, Empire of Debt (John Wiley & Sons) in October, 2005.

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