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  • Gold Loses Its Shine [View article]
    "What the gold bugs fail to answer is why does gold represent true wealth? Their answer tends to be that it always has. My counter would be that placing faith in gold as true wealth is no different than placing faith in fiat currency as a store of wealth."

    Patently false. The cost of producing fiat money is zero and so it lends itself to massive debasement with the click of a mouse. The Bank of England is about to receive from Parliament the authority to expand the supply of Sterling WITHOUT THE NEED TO REPORT THE NUMBERS. Only a fool would not ask "Why?" This is presented in the press as a "Reform Plan":
    www.telegraph.co.uk/fi...

    If money is to serve as a store of value, its most basic function, trust is essential. How can anyone trust a fiat currency when the issuer's 150 year-long reporting requirement is suddenly suspended? Such an action is more representative of Zimbabwe than of a developed nation with a 'respectable' fiat currency.

    Gold cannot be debased in such a manner, and as such it represents an external monetary discipline which corrupt government officials repeatedly demonstrate they need. Currency debasement such as BoE is about to undertake, and such as the Fed is currently undertaking via QE, is outright theft under color of authority and must be resisted. Locke is instructive.
    Jan 12 09:50 am |Rating: +7 -3
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