- there is always a chance that gold might lose value...
- that it might not hold its place in line very well
- It is not a great concern, though.
- Prices go up and down. But
- according to "The Golden Constant" by Roy William Jastram,
- the value of gold today is about the same as it was... 500 years ago
- And I don’t have to worry about a 3-rd party opinions
- because there’s no 3-rd party, or counter-party, in the deal
- Gold is a “trustless” money
- We don’t have to trust the guy we got it from
- And it wasn’t issued or created by some government agency
- so we don’t have to trust the feds to maintain its value.
When the U.S. money system was changed in 2 moves:
1. when Lyndon Johnson asked Congress in 1968 to repeal the requirement for a gold reserve to back U.S. currency
2. when Richard Nixon ended dollar convertibility to gold in 1971—the U.S. government reintroduced a more primitive form of paper/credit money
With this new money, the economy (of the U.S. and, by extension, much of the world economy)
- has been shaped by credit above and beyond available savings
- Trillions of dollars’ worth of new hotels, houses, companies, malls, factories, dinners, drugs (and everything else)
- have been financed with this empty credit
Sooner or later, this debt must be reckoned with
- either in deflation... or in inflation
- But someone will pay
- With deflation, the creditor pays, when his credit goes bad
- With inflation, everyone pays, as prices rise.
So far, since 1971, the typical American’s trust in the dollar has been rewarded with a huge loss
- about 95% of the dollar’s 1971 value has disappeared
- As you would expect
- This new paper/credit money is no longer trustless
- Every transaction involves a 3-rd party
- the custodian of the currency</i>