Friday
Interviewers want to chat about interest rates, bond yields, stock markets and bitcoin and other ephemeral trivia. The only time that I become interested in details is when I realize that an existing understanding is wrong. That is why I wrote Dawn of Gold. The understanding of money was wrong – in its entirety. From where it came from and what it is, to what it does. If the definition is wrong, then it follows that the understanding of the concept will be also muddled.
Many economists still describe money as being ‘the most marketable good’. That is wrong, as is the variant: ‘the most marketable commodity’. The market didn’t select Gold as money, the Stock-to-Flow ratio did. If either ‘the most marketable good’ or ‘the most marketable commodity’ were money, then fiat would be perfect for it satisfies both. Ask your neighbour whether they would like a little lump of Gold or its dollar equivalent. I am confident that an easy majority would take the latter. The end of the book was the end of my interest in the details. Mission accomplished.
The West is in a long, slow-motion process of collapse. When it goes, it will take the economies of the rest of the world with it. In the grand scheme of things, bond yields, interest rates, stock markets and bitcoin are of little consequence. It is akin to focusing on a description of the matching bag and shoes of a woman who is being slowly run over by a steamroller.
That the heads of state of much of the West, including the US, are unprincipled oafs is merely another symptom of the collapse. It is irrelevant. Don’t get bogged down in the details, no matter how astutely and eloquently they are presented, look to the Big Picture. From that it is possible to work down to the details – if you want to. It is far harder to reach the Big Picture by working up from the little details.
We live in an age of mysticism, conspiracies, misunderstandings, lies and utter balderdash. Don’t be distracted. An honest search produces honest answers – to all questions. Those answers are known as truths. Seek those truths with even greater endeavour and enthusiasm than you would seek Gold. The acceptance of any answer that is less than the truth degrades your existence.
The cause of the collapse of all great societies is the withdrawal of Gold from circulation – by whatever means. It was thus for Egypt, Mali, Rome (East and then West), Spain, Great Britain and now the U.S. of A. There is no other reason. There is no need to gape elsewhere. Look to Gold.
The only question remaining now is the timing. The only way to determine this that I am aware of is backwardation. When Gold goes into backwardation, then you have days, weeks at best, to get out of Dodge. But where does one go when the whole world has either gone, or is going, mad and the full force of the law makes travel for any but the ultra-rich nigh on impossible?