Wage Slaves vs Gold Owners
The comments below are an edited and abridged synopsis of an article by Richard Mills
“Inflation occurs when the creation of currency outruns the creation of real wealth it can bid for. It isn’t caused by price increases; rather, it causes price increases…Inflation is not caused by the butcher, the baker, or the auto maker, although they usually get blamed. Inflation is the work of government alone since government alone controls the creation of currency.”—Casey Research founder Doug Casey.
Indeed, governments in fiat economies can print money out of thin air, something impossible to do with a gold-backed currency. When the US and most of the world was on the gold standard, US dollars could be converted to gold. The US government was only allowed to create as much money as could be backed by the gold in its vaults.
When gold goes up or down it is not inherently losing value; what has changed is the value of paper money. When you buy gold to protect against rising prices that eat away your savings by reducing your purchasing power, it is called a hedge against inflation.
Up for discussion: Loss of purchasing power; it’s never official until it’s officially denied; and conclusion.
Since 1970, the value of the US dollar has been more than halved. How long can this go on for? It will certainly keep happening under free-spending US President Biden. Inflation is creeping up and will go higher, and the dollar will continue losing value. The only way to stop this madness, to protect yourself against dollar devaluation, is to own gold, the traditional and only true store of value.
