Sunday, May 24, 2009

Gold = Money. The US$ = Toast

Gold = Money. The US$ = Toast

From: Kontent Konsult

Gold is the flip side of debt based fractional reserve fiat based systems because it is a financial asset in its own right, the physical embodiment of the work required to extract it that becomes the economic embodiment of the same because of its properties and the fact that its value is intrinsic; not a claim subject to default by economic collapse, the revolt of the serfs or rent strikes or sovereign default.

It is a put option on the credibility of dollar hegemony and had not officials put coins in the fusebox, it would have signaled we were in trouble years ago.

Since the invention of agriculture and the city state the real game has been keeping elites mindfull of their duties; addressing the issues of those who do the work and containing the manipulation and misuse of the magical power of abstraction enabled by numbers and writing.

The computer network and the spreadsheet and their descendants have enabled vast new abstractions and hubris in the official money sector but those same technologies are also dis-intermediating all of the old relationships between institutions and flows.

We move to a new order.

Gold and silver are real money and the price locus of the realities of energy and geology as well as money, power and politics.

The study of gold is the study of civilisations.

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