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The Problem with Gold

by on November 10, 2009

As the credit crunch has renewed interest in the nature of money and especially in the nefarious nature of interest bearing fractional reserve banking, the clamor for a new Gold Standard has been gaining momentum.

Many people seem to believe that real money should be based on gold. You have the so called ‘Austrian School’, the Mieses people and also many Libertarians seem to have fallen for what is essentially a hoax.

The Gold people suggest that Gold is the best (and basically) only form of real money, because nature has limited its supply, so that the amount of money in circulation cannot be inflated.

They often correctly analyze the current monetary systems, run by central banks, to be simply a plunder operation run by maniacs robbing the populace with continuing inflation/deflation cycles.

They are, however completely blind to the role of interest in what they correctly consider to be an abusive system. They even often believe that interest is necessary to have a ‘free market’ decision on the price of money.

This is complete rubbish: since banks in the current system create money by pressing computer buttons the cost of money is so ridiculously small, it is criminal to have its users pay hefty premiums. And hefty they are: if you buy 200.000 euro home, you will pay 400.000 euro in interest in the following thirty years. And of course the principal. So your house actually costs 600k euro.

When you pay 400k in interest for simply pressing a button, I gather you know you’ve been had.

What the Gold people really want is a stable supply of currency. To stop inflation and deflation by the banking industry’s criminals. They are right in that, but they are wrong with their solution.

The problem is, if you control Gold, you can still inflate/deflate its supply. And since we have been on a gold standard for centuries, a little historic awareness will allow you to realize that depressions and bubbles were quite common in earlier times.

There is no free market for gold. The people at gata.org have been documenting the manipulation of the Gold market for years. Gold has been controlled by the same people that control central banking for centuries.

“Economic crises have been produced by us through the goyim by no other means than the withdrawal of money from circulation”, it has been said elsewhere. This was in the heyday of Gold.

Another famous quote, “Give me control of a nations money supply, and I care not who makes it’s laws.” was also a product of the same era.

Clear proof Gold will not fix our current predicament.

To be totally honest with you: the bankers themselves plan to use Gold in their next system, designed to take over from their current one. The Gold  people are their witting or unwitting accomplices.

Gold does of course has its functions. As a hedge against a meltdown it is useful, although silver is probably better. Precious metals will always be there to expose paper manipulation. As is going on now, with Gold at historically high prices, albeit still low if corrected for inflation. Gold once was at 1800 dollars per ounce in real terms, so it still has a long way to go.

But although gold is useful as a store of wealth, it is not as a means of exchange. It is too expensive. Its owners will not lend it out without interest. Its supply is not stable and transparent, because gold has been manipulated for centuries.

The problem with paper money, or in these days, electronic money, is not that it is debt based. It is not that it can be easily inflated and deflated.

The problem is, it is run by our Satanist Overlords who use it as a highly effective tool to redistribute wealth from us to them.

The problem is, that the money is used by a public that is totally oblivious to the nature of money and its producers.

What we need is cheap, solid money, paper or electronically based (for reasons of cost and efficiency), interest free, provided by organizations that operate transparently and are answerable to the people who use the money.

But as long as people can be fooled by silly ideas such as that Gold is the only real currency, this is not going to happen.

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From → Gold, Monetary Theory

11 Comments
  1. Dear Anthony,
    As to the paying of interest I think there is a difference between paying interest because of inflation (sometimes deflation) in a system that has gone mad and the paying of a (quite small) interest as a compensation for the risk someone takes to grant you a loan. If, for instance, a bank (I am thinking now of an ethical bank, like Triodos, that does not buy or sell loans, etc.) is lending ‘real’ money to a number of clients, some of them may not be able to pay back. In order to compensate for that, you need to ask a fair interest. The goal here is not to make money out of money, no matter at who’s costs. I think this difference is important to make. In a system with real currencies you probably still have to pay interest when someone lends you money to set up a business, i.e. However, it will only be a fair and realistic interest. Quite different from what we see nowadays.
    With kind regards,
    Sanne

  2. Chris permalink

    If there is no interest to pay for a loan, what would keep ANYONE from borrowing literally 1000s of billions of todays $ worth, and buying-up the whole world ?????

    Don’t you realize that interest-free essentially means UNLIMITED AMOUNT OF LOANS and thus vast money expansion and huge inflation (sooner or later).

    NEVER FORGET:
    For a few to be rich (or at least whealthy), MANY MUST BE KEPT POOR.
    At least in relative misery, by violence/force/coercion.
    If everyone can be rich, one doesn’t need to be rich anymore, as it is WORTHLESS then.

    Wealth is, if you HAVE what most others CANNOT AFFORD.
    If money would be interest-free, everybody could afford everything.

    Following your logic, why even should people be obliged to pay loans back ??
    (as you say, the bank easily creates the money by pressing a button)

    • It’s quite simple: the amount of credit that can be given with a stable money supply will be equitably shared with all.
      Already existing money will be collected at JAK banks, where people can save for future interest free credit for themselves. No interest required.

      The credit must of course be repaid, because it’s just bookkeeping: keeping scores of what people buy now and pay later. Everything must be settled, just no interest on the means of exchange.

  3. Coral Snake permalink

    I do NOT think there should be a purely electronic “cloud” money because such a system is vulnerable to the same thing all other computer / internet bases systems are vulnerable to. these being:

    1. Viruses and worms.

    2. Non virus malware such as spyware, addware, trojans, registry or other server OS errors (yes, even Linux is vulnerable to these now.)

    3. Counterfeiting through computer hacking and manipulating accounts is much simpler than even Computer scanning and printing to produce fake notes
    for some computer crooks.

    4. The danger of centralization in banker hands is actually a stronger possibility with electronic “digital cash” than with competitive paper or even state monopoly paper because the main internet hubs tend to be controlled by media and communications companies tied to the banksters.

    Of course we should probably have a digital cash system replace paper currency for Internet Shopping because no one has figured out a way to teleport a currency note to an on line business like Amazon yet. (Though it may be possible to do this with private tangible cash through the printing and scanning systems tied to computers allowing dightal cash to be eliminated even from Internet shopping. This can’t be done with state monopoly cash though, counterfeiting laws.) However for our “brick and morter” shopping I think it’s best to stay away from the cancer causing cell phone and stay with the real thing, tangible cash.

  4. Nope, nothing about bankers adding debits to the borrowers account calling it “interest”, and simultaneously adding credits to their own personal account in this one either. If it’s there and I don’t see it, I need some serious help.

  5. Edward permalink

    HELLO; I found your article very enlightening and i would like to know what can be done to educate people in a third world nation as ours (Bahamas), on the predatory practices of the banker here. I would like to learn more about how to protect myself from these cartels. I would also like to understand the creation and management of another form of exchange like coupons.

    • The matter of education eludes us all, I’m afraid to say Edward.
      I believe the only real way of educating people about this is simply starting your own currency and show them how it can be done.

      Once, however, you are aware of the problem, you will quickly find that there are a number of authors who come up with solutions.

      Check out Margrit Kennedy, Thomas Greco, Mike Montagne and Bernard Lietaer. They won’t tell you everthing, because not everything is yet known. But it’ll get you started!

  6. I only wanted to say thank you! for all the great info found on your site, even helped me with my job recently :) keep it up!

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