Gold Is The Solution for Financial Crises, Not Their Cause

The comments below are an edited and abridged synopsis of an article by James Anthony

Anthony discusses the Great Depression, Great Inflation I, the Financial Crisis, and the unfolding Great Inflation II. They have all been caused and perpetuated by hyperactive progressive government. In the past crises, holding gold would have conserved savings and provided added returns, and it will do the same for this one, too.

Gold Is The Solution for Financial Crises, Not Their Cause - BullionBuzz - Nick's Top Six
A gold bar on a stand above the melting stove. Illustration of a gold bullion.

The superficial differences among these crises mask their deeper commonality. Each is caused by a boom during which the amount of government money is greatly increased, followed by a bust during which the government disrupts workers, customers, and investors from healing themselves. Throughout the boom and bust, the government treats taxpayers as a resource—like land owned in common that gets overgrazed and depleted. Various groups in government each grab as many resources as they can until taxpayers are depleted in resources and need time to rebuild. Although the Fed enables these depletions and has a fiduciary duty not to be the enabler, the root cause is always politicians’ choices to borrow on the backs of taxpayers and to spend and regulate to favour business cronies and activist cronies.

Anthony provides a table that summarizes these crises’ booms in the quantity of money, the resulting busts in the prices of consumer products and stocks, and the resulting changes in the gold price.

“From now until the Fed makes a lasting slowdown of its enabling of government spending, or puts an end to its enabling, gold looks like an obvious buy, and worth holding as Great Inflation II unfolds.”

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