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Squashing the Gold Bug


The gold-bug is the deluded hoarder who lives in a fantasy world scripted and controlled by the socialist globalist bankers. His claim to fame is that gold, silver, oil or some other commodity (such as bitcoins) is money which is “real” and has “intrinsic value.” They  “believe” in gold, silver, oil or bitcoins. This belief is at best a  self deception and at worst an outright self serving globalist lie.

And they can point to legitimate philosophers that had the same, wrong view. Adam Smith, for instance, developed a very correct economic theory based on supply and demand, but walked right into the goldsmiths trap by believing in “money that has intrinsic value.” Von Mises made the same mistake. So did Ayn Rand.

But because the philosophy was greater than the philosopher, we could use their own reasoning to discover their error by claiming “honest money has intrinsic value.” In their philosophy they exalted human effort in the creation of value, but when talking about money they “believed” without proving what the “experts.” They were in awe of rich bankers. Because they believed in the plutocrats, they did not notice that they were interjecting a mechanism of interchange into the value of the trade. It was a third, non contributing party. They inserted a  yardstick into the building instead of a column. Money is not part of the value, it measures value.

As long as private owned central banks control the margins, interest rates, reserve rates; as long as they control the banks, brokerage, commodity and foreign currency exchanges they control the “value” of gold, silver, oil and yes, even bitcoins (because these too are now traded in foreign exchange markets) in any private or public exchange of values.

These mechanisms and institutions are debt based, so globalist bankers control the currency price of the bullion that controls the value of the money that controls the value of the currency. As a medium of exchange, currency, money and bullion are circularly defined. The snake eats its own tail. Money, currency, bullion or its content is immaterial. The value of the medium is its ability to exchange value had for value wanted.

Gold-bugs contend that gold and silver is “real” money with “real” value. They point out that the bureau of standards “Pursuant to American weights and measures, a DOLLAR of silver was measured as 373.25 grains, and a DOLLAR of gold at 1/15th this amount. Thus, a DOLLAR is set as a measurement as a basis for economic stability, and not as a fluctuating value.”

The fact, however is that gold and silver prices fluctuate all the time, sometimes drastically. The market prices depend on the margins for spot and future commodity purchases, and people pay the price, in debt based currency, that the exchanges post. Currency is what is used for more than 99.9% of all our financial transactions. The value of gold and silver depends on the market price and that is determined by the auction market and the auction market prices depend on the amount of margin that is permitted.

Unless you are John Wick, (reference to the fictional hit man in the popular movie) you have probably never used gold to buy or sell anything, and if you have gold you probably bought and sold it for currency. So, you are still dependent on the debt based private banking system.

Neither money nor currency have intrinsic value. In the total exchange of values made by human effort and talent there is almost no interest in the medium of exchange. NO ONE CARES about the “intrinsic value of the money” as long as they can exchange it for the value they want and receive it for the value they make. That is the value of money, not as a good, but as a mechanism. It is the ruler to measure the building, not the brick that makes part of the house. This is WHY one speaks of money or currency interchangeably in daily, bank or financial transactions.

Value exchange is the only useful concept when discussing money. All other concepts are peripheral. It is valid as a medium of exchange if it can be reliably used to exchange values that are already made. It must be legal, and a public utility whose value is agreed upon by all who use it. That is the challenge for a sovereign nation, not coins, not currency, not digital equivalents — exchange of value.

Gold-bugs also dis-inform about inflation and deflation. It is not caused by excess or reduced printing of money. Both inflation and deflation are caused by debt.

Inflation is caused when an increase in national money supply is used to pay interest to private bankers instead of being placed into circulation for the prosperity of people.

Inflation is not an increase of circulation — it is the same circulation which has less value because the added money emitted is used to pay interest on debt so less is available for goods and services instead of circulating to increase the prosperity of the country and population. In regular inflation, the quantity in circulation is closely controlled, so the total in circulation is very close to the same, but it buys less because the excess is used to pay interest on national loans.

Hyperinflation is a different story, it is when a government tries to bypass the mechanisms that price currency by counterfeiting their local money and trying to exchange it for foreign currency. Obviously the foreign governments will not accept their money because it is not backed by equivalent value, so in the institutions and mechanisms, it is made worthless, and since the population looks to the global institutions and mechanisms to fix the price, the local money becomes worthless locally as well.

Deflation, on the other hand is a drastic decrease in the circulation of money, and that too is caused because the bankers call loans (by increasing capital requirements and reserve rates on banks and margins on financial instruments. Prices are less because there is less money to pay, and people have to sell for less to pay their loans or risk losing it all.

Bullion or minted coins are much less than .0001 of the enormous values that the combined total of human effort creates today. Gold-bugs try to make us believe that money is backed by something of intrinsic value.

Minting is no more than pouring molten metal into a mold — making. Metal is made to coin, tally sticks are crafted, oil is poured into barrels, or metal in liquid form is placed into molds, for value exchange, these are all examples of “minted” to provide a value agreed upon, in currency, for the exchange of values.

But to buy bullion or minted bullion (silver and gold coins, which gold bugs like to call money) you must use currency. The amount of currency that circulates exchanging goods and services that people create by effort is what makes poverty or prosperity. The quantity in circulation can be reduced and expanded at will, by global central bankers, when they  increase or reduce the margins in financial instruments, the capital rate requirements of all banks and the reserve rates of all banks. They have the mechanisms and power to cause prosperity or poverty for any and all nations in the world. The greatest tool for this fraud is the reserve rate, because with it, they literally create money from nothing. There are many more details in Secret of the Banker, a fictional account of how a little local goldsmith vault holder became a global power. See my webpage or . Go to Secrets.

The NWO and global government are just recent manifestations of the effect of this fraud. The global housing bubble was just a start. For many hundreds of years, the PlutocRats In Charge PRICs) control the money, and thus the governments and the people around the world — by debt.

The only way any nation can be sovereign is to emit and control its own money. The global financial system must be removed and replaced with viable national financial systems created by sovereign nations that ally with other sovereign nations that do the same. Allies must be willing and able to implement local currency and establish the value of the currency by law and have it accepted by spending the money into existence to promote usage and acceptance.

Some gold bugs are well intentioned, but dis-informed survivalists. They believe, quite wrongly, that the physical possession of gold or silver will protect them in a financial Armageddon. It will not. Precious metals will be of no use in a SHTF situation because what will be needed are things to use, wear and eat. Gold and silver only attracts marauders. Steel, lead and gunpowder deters marauders. Guns, ammunition, snares, chickens, fish, fishing lines and hooks are more needed than gold or silver.

To the survivalist misinformed goldbugs, the problem at hand is to  teach nations that they must become sovereign to avoid financial Armageddon. That each nation should learn to build and better their own non globalist money, monetary policy and ally with other sovereign nations with the same view. And they must do it soon, because if they don’t, globalist bankers are able and willing to cause a financial Armageddon that will leave less than 10% of the population, probably only 5% in overcrowded cities.

For private, commodity based money, a “closely guarded public trust” is only possible if currency is protected by law and accepted in usage.

In essence, the gold-bugs are saying “trust the authorities and the gold (or silver) smiths — they are the experts.” I cannot trust what I cannot prove for myself. Vested interests and possibilities of fraud abound. How can I reliably test each coin I use in an exchange of values for the true content of gold and silver? Is each coin “honest”? Can I trust the 100% accuracy of the bureau of standards? What about other goldsmiths and counterfeit coins?

Who establishes the “honesty” of the weights and measures? Who checks the rule makers and what is the value of the “honestly weighted and measured” dollar in terms of other commodities that people wish to buy, like food? Fact is that paper money is what people use. If they agree that it is a receipt for a given value, it is used to exchange that value for another.

Gold-bugs again skirt the issue. Money, or currency, must have an acceptable and established value, and commodities values are measured in currency. The value of money depends on law and usage. Free and sovereign governments can help free and sovereign people in a free and sovereign nation to, once again, achieve legal, accepted money that provides prosperity. But such legal currency must be based on law and acceptance, not commodities.

Value is only found by exchanging value for value in a free and voluntary exchange of goods and services without the interference of a third party. Money or currency is a medium to exchange — a public utility to measure and interchange real values. Bullion, money or currency have no fixed “intrinsic” values in an exchange.


The opinions expressed in this commentary are solely those of the author and are not not necessarily either shared or endorsed by

Herman Gazort

You, the reader, must prove everything. Do not rely on an "expert." You can find truth, I will give you what I found and will try to convince you with proof, information, example and a solid argument. But trust no one -- you must prove your truth for yourself.

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