Arm Yourself Against All Wars With Gold

There are currently serious "wars" being conducted within the boundaries of the USA. They are between lenders and borrowers, taxpayers and social security recipients, governments and private enterprise, politicians and politicians, well connected lobbyists and disconnected voters, the under-fed and the over-fed, the haves and the have-nots, the crooked and the vulnerable, and finally between over-consumption and saving.

The biggest war however is between the American nation and its people. I may be mistaken or may be misinterpreting what I see, read and hear but I have the distinct impression that the nation somehow puts its continued international supremacy above the well being of its people. The people on the other hand, reciprocate with a constant cry of entitlement. In short, the nation is at war with itself.

To some extent it must be recognized that this "schizophrenic agenda" is also mutually parasitic in that on the one hand the benefits of empire also trickle down to the plebeian masses and on the other hand, incumbent Presidents rely on the people's support to continue their empire building and maintenance agenda.

There is no defining moment or event that serves as a catalyst for this "schizophrenic" split but there are three well known and previously much discussed manoeuvres that would indicate that it is the leadership that is more at fault than the people.

The first is the "unified budget" approach of 1968 which was designed to cover up the budget deficits resulting from the simultaneous conduct of the Vietnam War and the Great Society programs of LBJ. The second was the closing of the so called "gold window" by Nixon in 1971 and the final piece in the trilogy has been the role of Middle East oil, its marriage to US dollars and the role of ballooning oil prices in accommodating the increasing flood of US dollars worldwide. There are no doubt other factors but these three do stand out in my mind.

All these factors allowed successive administrations to seemingly accommodate the demands of home and empire by sheer alchemy rather than the proven recipe of living well within one's means so as to allow for prudent investment. A type of self-feeding euphoria then proceeded to make the USA the envy of the world and a combination of creativity, endless consumption, hedonistic freedom, technological advances etc fortified the infallibility of the formula. In practical terms the people had attained a nirvana filled with cheap goods, cheap loans and endless capital gains. Everyone either wanted to live or invest in the United States.

As we know, what is too good to be true usually turns out to be bad and the events of the last 10 years have unfolded wickedly for the US. The growing disconnection between nation and people is once again at the forefront. Will the nation reduce the borders of its Empire or will it curb the expectations of a people that are being taxed less and less whilst still demanding budget breaking medical coverage?

Will America breathe in so as to allow itself to breathe out in the future or will it suck out every last breath of its people like Leonidas did with his 300 Spartans at Thermopylae whilst defending Greece?

The lessons are there. The Communist hierarchy allowed democracy into Russia rather than over run the people with tanks. As a result, the people of the KGB (now known by another name) are still in control. China has done much the same knowing that if it stuck to its communist script its people would have revolted by now just out of sheer starvation and deprivation.

There is of course one very important rider in all that I have laid out above. By nation I mean the government of the day that is "of the people, by the people and for the people" as stated by Lincoln in the Gettysburg Address. The internet is replete with web sites and articles claiming that the government is increasingly the pawn and agent of certain vested financial interests and the industrial-military complex, which together enjoy the fruits of a de facto relationship based on the Empire continuing and thriving. But as James Bovard once said, "democracy must be something more than two wolves and a sheep voting on what to have for dinner."

Whether such suppositions are fact or not is not the issue. The issue is whether the trimming of the Empire will lead to a retreat of the dollar and hence the requirement of the USA to earn its way in the world rather than to print its way as it has done to date.

You see dear readers, the gold standard is not so much about a shiny metal or two as it is about a standard of financial behaviour which engenders not only the progress of its people but which also maximises the benefits of international trade without transacting on the basis of counterfeit paper promises. A strong people, after all, makes for a strong nation.

Because human beings were, are and will be the same throughout history, gold and silver will by default continue to have important roles beyond jewellery and industry.

Should the current leadership in nations across the world not find solutions to their differences, imbalances and competing expectations, you can all be sure that protectionism and restrictions on capital flows will follow. Trust will suffer and only gold and silver will give people protection against gyrating values and the devaluation of their nations' currencies.

The USA already sees this confrontation coming and has under the guise of terrorism set up legislative apparatus to control its own people should the need arise. If you think this is novel or far-fetched, then all I can offer are the words of General Robert E Lee who foresaw much more clearly than all of us:

"The consolidation of the States into one vast empire, sure to be aggressive abroad and despotic at home, will be the certain precursor of ruin which has overwhelmed all that preceded it."

Gold has been the ultimate store and protector of value throughout history and does not require human assistance or intervention to retain its position. In the years ahead the value of many things will be decimated, whilst other things will perish altogether through bad management, war, famine, climate change, land degradation and changing fads. Gold has never been a fad, it's just as basic to financial security in times of uncertainty as breathing is to living.

Take a look around you readers and tell me how much confidence you have in shares, bonds, government bonds, real estate and other investments. If you have any real fears then at least take some precautions by having you know what, whatever your particular war happens to be.