Eric King:  “You’ve seen the chart from Egon von Greyerz.  This particular chart covers silver (content of the coinage) from back in the Roman days, but it is fascinating.  Your comments on where we are and how we relate to that chart?”

Norcini:  “I found that chart fascinating, Eric.  As a student of history it just speaks to me.  But I look at that and I see very similar parallels to what’s going one here in the US.  You could take this chart and change the title out and in a sense substitute any great nation, any great empire or kingdom from the past.

You are going to see the same thing repeat itself over and over again.  When you look at the decline in the value of the currency there in Rome.  A common denominator in all of these civilizations is you first see it in morality.  The moral structure or virtue of that empire declines.

Its ethics begin to decline and decadence comes into society.  That reveals itself in all aspects of society.  It also reveals itself in the monetary system of those societies.  During the days of Rome, what the authorities did, in order to counteract some of the decay in the civilization, was they began to resort to ‘coin clipping.’

The reason they did that was they found a way to multiply the amount of money that was in circulation by shaving off tiny bits and pieces of the silver coins that were there.  They could then (take those clippings) and mint more coins....

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“The idea was they could put more money in circulation.  People would feel wealthier and hopefully they could avoid the inevitable decline in the economy.  We know that doesn’t work.  History showed us all they end up doing is debasing the value of the currency and they usher in a wave of inflation.

To counteract that they resort to more money printing.  So it gets into a never-ending circle.  Public officials in charge of handling the money in Rome, once they learned that some were scheming to do such a thing, a virtuous society would have said, ‘There is no way you can do this.  That’s dishonest.  That’s immoral.’  The society itself would have checked such a practice.

But when you don’t have the check or the restraint any more because the ethics or the morals have declined, then that sort of thing (currency collapse) can take place.  That’s exactly what happened in Rome and you see it happening here in the United States now. 

The idea that the Federal Reserve can literally conjure into existence dollars out of thin air, which is all quantitative easing is, it’s basically money creation on a grand scale, we’ve already gotten $2.5 trillion of that with QE1 and QE2.  We’ve got $40 billion of that every month with QE3 and (an additional) $45 billion with QE4.”

Eric King:  “When you go back and you look at Rome, as you are seeing the amount of silver content in the coins really tumble there Dan (see Egon’s chart), at one point they were basically just using copper.  It would be a mixture with silver and they would just acid bathe it and shine it, acid bathe it and shine it, and pretty soon when they were done it would look like a silver coin.

But of course as those were in circulation it would wear off, the silver would, and the people realized, ‘My God, this is just copper,’ and it was very collapsing to the currency and to the empire.  That’s what you are describing with QE.”

Norcini:  “Exactly, Eric, it’s the exact same thing.  There really isn’t any difference.  You have people who are in positions of power and authority in this country that you would think would at least have some familiarity, even if it’s vague, with history.

This is not something that’s a secret.  We’ve got record after record of this occurring.  This is not something new.  The Federal Reserve may wrap it up with a different name, but it’s basically the same thing.  It’s a way of attempting to multiply the amount of money in circulation, and hoping to avoid the inevitable (collapse) that comes with too much excess.

Why we think we are going to fare any differently than perhaps Rome, or China did with its experiment with paper money or any civilization in the past escapes my ability to comprehend.  You are going to go ahead and have the same thing happen.

At some point, confidence gets lost in the money, the currency itself, and that’s when the wave of inflation begins to surface.  The only thing that’s kept this in check so far, Eric, is the velocity of money indicator.  Money is just not turning over very quickly.

But once that picks up, once we get that to change from a decline to an increase and we start to see that begin to accelerate, that’s when we are going to have the effects of all of this madness and money creation really hit us all.  Just as it affected Rome, we’re looking at the affect on the monetary system, but it affected every aspect of Roman society. 

Eventually, what happened to Rome?  It was so weakened from within, its economy was in tatters, its morality system was in tatters, its military was in tatters, its system of law and justice was in tatters, and between all of the incursions from abroad, the empire justice collapsed on itself. 

Eventually it ushered in the period we call, ‘The Dark Ages.’  Here is the problem, you see America and you see these same sort of factors at work in our nation here.  We have the decay in the moral system in the nation, the corruption in the financial system, the adulteration of the currency, and all of the aspects that are involved with our extended empire.

We have our military bases extended all around the world and the great costs we have in keeping those up.  You could look at this and say we look like Rome, we’re just Rome (roughly) 2000 years later.  But at some point, what’s going to happen to the dollar is the same thing to the Roman denarius, eventually it’s going to implode and fall down on itself based on the sheer amount of money that’s being created by the Federal Reserve.  At some point it is going to happen, there is no way to avoid it.”

The information above was just a small portion of the KWN Weekly Metals Wrap audio interview.  If you would like to know what is happening with retail buying of gold and silver as well as what to expect for the metals going forward, the interview is available now and you can listen to it by CLICKING HERE.

© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The interviews with Rick Rule, MEP Nigel Farage, Chris Powell, Bill Fleckenstein, Egon von Greyerz, John Hathaway and Ben Davies are available now.  Also, be sure to listen to the other recent KWN interviews which included Stephen Leeb, Eric Sprott, Gerald Celente, James Turk, and Wilbur Ross by CLICKING HERE.

Eric King

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