Gold is honest money. Gold has been valued throughout the millennia at roughly the same real amount. The old example is that the cost of a nice tunic and a good pair of sandals in Jesus’ time was roughly an ounce of gold. In 1900 the cost of a nice suit and a good pair of shoes was roughly an ounce of gold. Now, today, at $1300/ounce this example still holds. The real value of gold has of course varied a little over time. A little bit up, and a little bit down, but generally gold is a steady Eddie when valued in real goods (not dollars).
It is an idea that is popular in at least 4 states.
Rickards is a guy I listen to. This is an interesting talk.
It won’t happen tomorrow but slowly but surely the world is moving from dollars. The petrodollar system which has been key to the world economy over the last 40 years is eroding. More and more country to country deals are being done in currencies other than the dollar. The economic world as we have known it, after Bretton Woods in the Cold War Era, the post Cold War era, and the post 9-11 era is fundamentally shifting. The dollar is not what it once was. It is no longer “almighty” and one should be prepared.
We have followed Bitcoin from its birth. It is a challenge to the world’s central banks. It is a challenge to the world’s governments. It is a challenge to the super crony capitalists on Wall Street.
This is street fighting money.
Many people are mystified by the kids at the Ron Paul rallies screaming “End the Fed!”
They ask themselves, “Why should we end the Federal Reserve? The Fed helps maintain economic stability right? Every country has to have a central bank. These “End the Fed” kids are nothing but “Paulbots.” The people on CNBC and Bloomberg tell me that the Fed acts in my best interest. I think the people on Bloomberg and CNBC ought to know what’s right for me and my money. Harry Reid is right. Those hard money people and kids at the Ron Paul speeches are nothing but a bunch of anarchists!”
But the main reason many people feel this way is because they fundamentally don’t understand what the “End the Fed” people are really saying and why they are saying it.
What can I say? The guy is right. He’s right almost all of the time, and on this point he is especially right.
To the degree that they can, a few US states are seeking to shore up their finances. Specifically they are moving to make gold and silver legal tender (again). Texas is actually trying to “repatriate” its gold from the New York Federal Reserve. (We’ll see how that goes.)