31 Oct Men of Gold and Silver
|During the year 1324, the 44 year old West African Sultan, Mansa Musa decided to make his long awaited trek to Mecca; the Hajj. This he accomplished like none other before or since. With an entourage of 60,000 men (and some women?) and 80 camels; off they went. The great Sultan had heard about the poverty in Cairo, Medina and Mecca; he had a plan to alleviate this. Upon arrival at theses cities, he had his subordinates give to the underprivileged gold and silver. After he and his entourage made their Hajj, Musa and entourage made stops at Medina and Cairo to learn that their good will had resulted in the opposite of what they had intended. The worth of gold and silver plummeted while the price at the market place inflated. Everyone was adversely affected by the over abundance of the gold and silver that the Sultan had distributed. – It took the cities of Cairo, Medina and Mecca more than a decade to recover.
Two hundred and thirty-six years later, King Philip 11 of Spain was the recipient of tons of plundered gold and silver from New Spain (which is now Mexico) Latin and northern South America. Despite this Spain was insolvent during the years 1557, 1560, 1575 and 1596. – Moral of this and the above story is: it is not how much gold and silver a country has, it is how it manages what it has. – There is no panacea to solve this universal financial crisis that only a very few countries have not been affected.
As for the United States, it does not have a tax revenue problem, it has a spending problem that needs to be reviewed and acted upon; in other words, checked.