Tuesday
For as long as people continue to believe that the value of Gold is measured in dollars, then they will fail to grasp the fundamentals of not only money, but what is happening in the world.
Central Bank approved Graph – Price of Gold in Au$s
Reality Graph – Price of Au$s in milligrams money
Yes, the ‘price of Gold’ is going up in terms of Au$s, and most other fiat currencies. But if you believe that currencies can measure the value of Gold, then you should get hold of some Venezuelan bolivars. You will quickly become very rich. But truly, can you not see that it is the value of fiat debt notes going down, not the value of Gold moving up?
You must understand this and, just as importantly, be able to think with it, otherwise you will not be able to make sense of what is going on all around you.
In a situation of severe fiat debasement, say when a cup of coffee goes from $4 to $8 in a week, people understand easily that it is the value of the currency falling. When the coffee goes from $4 to $4.50 in a year, they do not. The movement is so incremental and slow that it fails to register properly.
Currencies, all of them, are collapsing under the weight of the debt that created them. Only the re-circulation of money* (and the nullification of the debt via Gold Bonds) can stop a catastrophe. Watch this YouTube of a speech by Keith Weiner. At the very end, Gold Bonds enter the talk, but I strongly suggest/recommend watching it from the beginning. It remains the most comprehensive and illuminating talk on Gold and the present crisis of irredeemable ‘money’ that you will come across anywhere.
* A known weight and fineness of gold