Throughout history, we have had climate disasters on par, or nearly on par, with the ones suffered throughout the world today – drought, floods, etc. Never in our history have we had the type of mass participation in currency devaluation to the magnitude we have today by the Bank of England, the Bank of Japan, the US Federal Reserve, the European Central Bank,etc. Never before have poor crop yields or drought or floods caused the same percentages of people in our world to go hungry every day (1 billion out of an estimated 6.5 to 6.9 billion people). This an obscene statistic.

In Russia, in the early 90s, it may be true that incomes rose in line with rising prices, but in the US, the UK, etc. for the past several decades, the COLA (cost of living adjustment) never has equaled the true inflation rate for the past several decades. In other words, when I was still employed by corporate America, I might have received a 5% or 10% raise in my salary each year but true inflation was still much higher every year, so an increase in my salary actually lessened my standard of living (if I did not employ a currency hedge) because it was not equivalent to the annual percentage of money debasement.

In Zimbabwe today, because the government has destroyed the value of their domestic currency through massive currency debasement, people are starving to death, incomes have not risen to keep up with the currency debasement, and there are stories of 80 year old man panning rivers for gold so they can have money to eat. In the UK last year, I even recall a gov’t official publicly asking his fellow citizens NOT to ask for raises in their salary, a ludicrous plea, given that the Bank of England is destroying the value of the British Pound today.

So the above points are the basis for my statement that the unsound monetary system is indeed the primary reason why 1 billion people in this world are going to bed hungry every night today.