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Gold Standard Documents
Gold Standard Institute Introduction
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The Significance of the Gold Standard
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Gootterdammerung
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Gold Standard Manifesto
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Stay Ahead of the Crash!

Leading authority on Gold, Austrian School of Economics, real bills, financial matters Professor Antal E. Fekete is a renowned mathematician and monetary scientist. This site will illuminate some of his important ideas in the areas of:
  • Fiscal and Monetary Reform
  • Gold Standard University
  • Real Bills Doctrine
  • Basis
  • Discount versus Interest
  • Gold and Interest
In 1974 Professor Fekete delivered a talk on gold in Paul Volker’s seminar at Princeton University. Later, Professor Fekete was Visiting Fellow at the American Institute for Economic Research and Senior Editor for The American Economic Foundation. In 1996 his essay, Whither Gold?, was awarded first prize in the international currency essay contest sponsored by Bank Lips, the Swiss bank.

For many years an expert on central bank bullion sales and hedging, and their effects on the gold price and the gold mining industry itself, he now devotes his time to writing and lecturing on fiscal and monetary reform with special regard to the role of gold and silver in the monetary system.

At this moment, when the world’s monetary system appears increasingly shaky, Prof Fekete details why the current paradigm is flawed and how the problems must be dealt with. This is almost taboo in the main stream financial media. Prof Fekete explains it as a gold crisis, not a dollar crisis. Those who doubt it would do well to recall that every fiat* money system ever tried – and history is littered with examples – failed.

* Money that is not backed by, or convertible to, any specific commodity and whose only value is that determined by government.

M E M O R A N D U M

TO WHOM IT MAY CONCERN

FROM: ANTAL FEKETE, NASOE

SUBJECT: GOLD BILLS PAYABLE IN GOLD SOVEREIGNS

DATE: SINGAPORE, THE IDES OF MARCH, MMXIV


For a number of years I have been working on a plan to reestablish gold coin and gold bill circulation that, in promoting peace and prosperity would equally benefit all nations. I came to the conclusion that the British sovereign was the most eligible coin for the purpose. It is the oldest coin that has been struck continuously at the Royal Mint without changing its in weight or fineness through many a year of peace, wars and revolutions. The sovereign financed world trade successfully between 1815 and 1914 and is fully capable to repeat this feat during the next one hundred years. It has the highest name-recognition of all coins ever struck anywhere. It is known and hoarded in all countries of the world. The sovereign is hall-marked with the name of Isaac Newton, ‘humanis generis decus’, Master of the Royal Mint and the father of the gold standard in modern times. On its reverse the sovereign depicts St. George in the act of slaying the dragon. Surely the symbolism will not be lost on people long suffering from the ravages of the global experiment with irredeemable paper currency, nor on producers of gold long unfairly prevented from bringing the benefits of their product to the world.

A firm in London yet to be named, herein called MondOr will upon delivering the metal draw gold bills on the Royal Mint payable in sovereigns. Thus the number one endorser of the gold bill is the Royal Mint. The drawer, MondOr, will offer gold bills to producers of gold or anyone else in exchange for gold brought to it or to its agents with no limitation on quantity. Gold bills are to mature in 91 days to reflect the time it takes for the Royal Mint to strike the coins from refining the metal through delivering the sovereigns. MondOr will auction off its surplus gold bills to the great trading houses financing world trade, among which the bills will subsequently circulate till expiry. At maturity the full face value of the gold bill is paid to bearer in sovereigns at the Royal Mint or at its agencies. Transfer is subject to endorsing and discount in the same way as it was a century ago. Endorsement represents the transfer of title; discount reflects the time remaining to maturity as well as supply and demand in the bill market. Both sovereigns and gold bills payable in sovereigns will be available to the general public with no charge for seigniorage and no charge for the cost of minting.

It would be hard to exaggerate the great historical significance of the rehabilitation of gold bill circulation after a hiatus of one hundred years, and that of gold coin circulation after a hiatus of four scores of years. Not only will world trade once again be financed with a currency that keeps its value from day to day, from year to year and from decade to decade as it did for a century prior to 1914 but, for the first time since 1933 it will be possible to exchange gold for a gold income and vice versa. Individuals will once more be able to save in confidence and earn a decent return in gold on their savings, no longer subject to crude central bank interference in contemptuous disregard of the virtue of saving. This is a giant step towards the realization of the ideal of Carl Menger (1840-1921): the peaceful and voluntary cooperation of individuals under the system of division of labor. The threat of war will be virtually eliminated - including the currency war between the United States and China. It is a giant step towards the prevention of the vanishing of world trade in consequence of gold rushing into hiding that is happening right now. It is a giant step towards eliminating unemployment, especially the blight of youth unemployment. All efforts that aim at abolishing poverty in the world without putting gold coins and gold bills back into circulation are doomed.

Signed: Antal E. Fekete
New Austrian School of Economics


Read from Professor Fekete on Max Photon Lighten up! www.maxphoton.com

IN LOVING MEMORY

Dr. Judith Szepesvari passed away on March 10 in Budapest. Many of our followers knew and loved her from her efforts on behalf of NASOE business in the early years. she was in her 72nd year and spent the last 15 months of her life in hospitals, mostly unconscious during the last two months. We mourn her passing and honor her service.


ANNOUNCEMENT

(1) EFFECTIVE DECEMBER 31, 2012, I HAVE RETIRED AS PRESIDENT OF NASOE, FOLLOWING MY 80TH BIRTHDAY

(2) PROF. JUAN RAMON RALLO OF KING KARLOS UNIVERSITY, MADRID, SPAIN, HAS BEEN APPOINTED AS NEW PRESIDENT EFFECTIVE JANUARY 1, 2013

(3) AN ANONYMOUS DONOR HAS DONATED $1 MILLION TO ESTABLISH A FUND FOR THE PURPOSE OF SUPPORTING THE WORK OF NASOE. BY THE TERMS OF THE DONATION THE FUND IS TO BE KEPT IN PHYSICAL GOLD AND SILVER

(4) THE FIRST MEETING OF NASOE WILL BE IN MADRID, MARCH 29-31, 2013. MORE INFORMATION WILL BE AVAILABLE SOON


To read more about Professor Fekete on Wikipedia

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STATEMENT OF PROFESSOR FEKETE CONCERNING
THE GOLD STANDARD INSTITUTE

I have been involved in the consultations preceding the establishment of the Gold Standard Institute (GSI). I did see the benefits in providing liaison with governments, central banks, universities and other research institutions, political parties, etc., in trying to rectify the deplorably low level of understanding the historical and potential future role of a gold standard; to act as the clearing house of ideas and a forum for debates. I can testify that at no point was GSI envisaged as a ‘thought police’. If it had, I would have strenuously opposed it. As a monetary scientist I firmly believe that truth can be approximated only through debate, and more debate if needed; never by the threat or exercise of the power of excommunication.

I have never been an officer of the GSI, nor have I been an advisor to it after it was established. I have kept GSI at arm’s length. I was not privy to its decision to engage in a malicious rivalry of personalities which, if it has occurred, I regret and consider it harmful to the cause.

Budapest, August 30, 2012

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The Wisdom of Adam Smith for Our Own Times

- A Rejoinder -

Let us celebrate the 291st birthday of the great Scottish economist together and let us rehabilitate his Real Bills Doctrine!

Richard Ebeling in the June 3rd issue of the Daily Bell under the same title contributed a much needed reminder of the relevance of Adam Smith's wisdom to our contemporary world. I am not going to speculate whether the omission of not mentioning Adam Smith's Real Bills Doctrine was accidental or deliberate. However, it is well known that post-Mises Austrian economists have taken a disdainful view of the Real Bills Doctrine and it would have been nice to have Ebeling's coherent articulation of their position. I can do no better than revisiting Adam Smith's great contribution to the theory of money and credit (which, significantly, received the nihil obstat of Carl Menger a hundred years later) for the benefit of the Daily Bell's readership. 


What Constitutes a Money Crank?

by Philip Pilkington

(Excerpted from: blogger@nakedcapitalism.com, April 8, 2014. The author is a research assistant at Kingston University in London.)

What constitutes a money crank? A money crank is a person who views the money system from a position in which [he] has a substantial emotional investment. Was Keynes a money crank? I think not…Were Milton Friedman and Anna Schwartz money cranks? I would answer in the negative…Murray Rothbard is, I believe, a money crank. But he is of a more softcore variety. On the left is Sylvio Gesell, albeit he is [also of] a more softcore variety.

Antal Fekete is what I would consider a hardcore money crank. In his poorly written work The Gold Standard Manifesto: “Dismal Monetary Science” he writes:  




His thinking has extended and complemented the work of Mises, Roepke, Bohm-Bawerk et all. Of course, many true believers in the Austrian school continue to call his work 'heresy' and refuse to accept the true, positive impact of the Professor's ideas. Too bad! It seems Professor Fekete is a heretic visionary! - Rudy Fritsch, Canada


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