Currencies are borrowed into existence by selling bonds, but the value of the currencies is derived from, and determined by, Gold.
Today, the value of 1300 US dollar is about one ounce (480 grains). Tomorrow it may cost 500 grains to buy the same 1300 US dollars, or maybe the value will have dropped to 420 grains. Gold establishes the value of each and every currency by what it will bid for them. When what is bid for that 1300 US dollars (or any number of dollars) has dropped to zero grains of Gold, then the currency has zero value.
It has been said to me on more than one occasion that measuring the value of dollars with Gold is the same as measuring the value of Gold with dollars. That is like saying that measuring the depth of the water in the river with a metre rule is the same as measuring the length of a metre rule by use of the depth of water in a river. Seriously?
For obvious reasons, central banks invert reality and peddle the line that their currencies are real money. Lacking the definition of money, most accept this fiction. The Gold bugs give it support by putting out graphs showing the price of Gold as measured by various currencies. The Gold bugs need debugging.
All that is well and good though, as it does not affect reality. But what it does do is exacerbate and perpetuate the confusion and cause a lot of people to make decisions based on erroneous data.
It needs to be understood clearly by all people thinking about acquiring Gold, that almost all the Internet writers are clueless on the subject; most do not even understand that Gold is money, let alone why that is so.
Apart from acting as the principal cheerleaders for central banks, these numerous Gold writers are an orgy of irrelevance; solely interested in selling subscriptions and making more paper profits – for themselves.
Know these points well:
1 Gold is the one and only money
2 Gold measures value; it is not measured by anything
3 Gold will always and everywhere hold a stable value
4 Nothing else, nada, can hold a stable value
5 Gold will preserve your wealth; it will not make you wealthy
6 Currencies are mathematically certain to collapse
Think long and hard on the ramifications of currency collapse with regard to jobs, supply chains, international trade, energy availability etc. Who can make a single thing beginning from scratch? Not one person on planet Earth. Wooden bowls would require someone who has rediscovered the skill of making flint blades; even a pointy stick requires a blade to sharpen it.
Humanity has journeyed from a precarious day-to-day battle for survival against disease, wild animals and the elements, to technologically advanced societies. That evolution was only made possible by the formation of Gold’s stability of value, followed by its emergence into the marketplace. The precise point of that emergence was the starting gun for human advancement.
Gold’s withdrawal from circulation was commenced just over one hundred years ago in Europe. From that point was begun the journey back to a pre-Gold, primitive tribalism. Sometime within the life of the majority of people reading this, Gold will withdraw its bid on currencies – all of them.
There is a solution, and there is still time, but only if enough people come to realise the gravity of the situation – and the irreversibility of letting it go beyond a certain point.