Gold, in case you haven’t noticed, is trading at its highest level in 7 years. That is significant because when gold shines brighter than the hottest sector, there is something significant afoot. But you don’t need me to tell you that the United States is struggling to preserve the delusion that what it calls “the national debt” is in fact the largest fraud every perpetrated on humanity; there is a president in the white house determined to accomplish that in a much more credible fashion than this.
A percentage of readers will immediately dismiss this as the ranting of a goldbug. Another percentage will experience a glazing of the eyes. Yet another will default to the “what the hell this got to do with me?” Still more will decide that I “don’t understand history or money”. Ho hum. Just another inflection point in the gold versus paper currencies panorama that plays out in decadenal timelines instead of quarterly ones, rendering their movements invisible to most.
To compress the actual history of money and value into an article of sufficient brevity to be consumed by the 144-character twitter set (yeah I know its more now…) is an impossible task.
Yet here I go, trying.
Earth is a finite ball of matter and energy that supports a diverse array of plant and animal species, among whom there exists a web of interdependency for mutual survival.
Humans have emerged in the current timeline as the top of the food chain, with profoundly superior faculties of reason that give them the lead in determining the exact ration and quality of life of associated matter and energy to be divided among “lesser” species.
Among our ingenuous inventions has been this idea of “representative value”, whereby labour and goods can be represented by a given commodity, of which gold has been chosen and served as the best mode for at least 5,000 years. When governments realized that they could create more representative value by abandoning gold as the standard, and instead, rely on printed paper, the natural limitations on commerce expansion was eliminated, and we now have the current system of maximum resource exploitation regardless of demand for the products they result in.
This has facilitated a population explosion, and massive erosion of ecological integrity. There is an imminent downward revision to the most populous species approaching as a result.
The artificially supercharged economy has morphed humanity into a metastasizing cancer on the good ship earth, and the prognosis is not good. The precursors to the series of events that will mark the onset of these depopulating events is the disintegration of the synthetic representative value system presently dominated by the US dollar.
The inevitable collapse of this mathematical house of cards will be preceded by a runaway gold price, followed by other commodities as faith in currencies uniformly evaporate in populations around the world. The utter lunacy of cryptocurrencies will simultaneously be revealed, and an entire generation of bitcoin enthusiasts will realize almost overnight that gold is, in fact, the only real monetary commodity; one that has outlived every iteration of paper currency every conceived.
While the seeds for this collapse were sewn by the termination of the gold standard by Nixon et al in the 70’s, the rampant explosion in paper currency inventory, and worse, the exponentially greater deluge of its foul excrement – national debt -have all converged to render this imminent disintegration a fait accompli.
Buying physical gold, and holding it for that day when the bank machines stop being filled every day because you can’t buy anything with what it spits out, is once again, the only real defence. For gold’s value is not, after all, representative value. History has shown again and again that gold’s value is really intrinsic.
DISCLOSURE: The author owns physical gold bullion and gold company shares, and is therefore not to be trusted.