The Real Reason They Hate Gold

Last night I came across a site on the web named COSTOFWAR.COM which shows the accumulating costs of the wars in Iraq and Afghanistan.

Since 2003 the cost of the war in Iraq is approximately $723 billion or $90 billion per year. For Afghanistan the cost since 2001 has been $271 billion or roughly $27 billion per year. The total cost of the wars to date is therefore approximately $994 billion dollars.

These expenditures have been met through borrowings which now form part of the nation's (set in concrete) debt. Moreover, these figures do not include the cost of compounding interest.

Out of curiosity I then went across to the CIA Fact Book and guess what I found?

The Iraqi GDP for 2009 was $70.93 and the GDP for Afghanistan in 2009 was $13.47 billion which come to a total of $84.4 billion. The calculations are rough and on the back of an envelope, but nevertheless make the point.

So why does a nation borrow money it can never pay back, to fight wars it cannot win, when it could spend less to secure the allegiance of every person in these nations by simply "buying their GDP" which is less than the cost of the wars?

The answer is that war is a massive transfer of wealth from the general populace to those much further up the food chain of economics and politics. It should also be kept in mind that the apart from benefiting the industrial-military complex, the conduct of war benefits bankers through the imposition of compounding interest on debt that will forever grow and multiply.

So why do those further up hate gold? The truth is that they love gold, but hate the thought of it being in the hands of the common man who could then ensure that his money is indeed a store of value. On the other hand they hate the thought of gold becoming a medium of exchange once again and eventually replacing paper. Paper money is simply the means by which people are relieved of their gold and freedom slowly but surely whilst also becoming pawns on the chessboard of war. Imagine instead a world where decent people's services could no longer be bought with funny money.

Marc Faber has often said, "This economic crisis will be very lengthy and I think the way to come out of it will eventually be war, and this war will be very unpleasant."

Consider just one additional piece of information.

The purported gold holdings of the United States are 8,133 tonnes. At $1,240 per oz, this comes to $324 billion or just under a third of the cost of the two wars to date. If these wars (and all other wars for that matter) were paid with gold, then clearly they could not continue for as long as they have and would not result in the extraordinary levels of death and property destruction we now have grown accustomed to.

Don't get me wrong. Wars are quite profitable, but not for the common man. They are profitable only for the arms manufacturers and arms dealers, the bankers and the Haliburtons of this world. The little man is left to foot the bill and when he dies, the bill is passed onto his children and grandchildren in the form of debt that requires more and more of their waking hours to service. Repayment of course is out of the question.

I am sure that anyone with a calculator and access to the budgets of the United States since the Vietnam War would be able to calculate the exact ugly truth of largely senseless war-related expenditure compounding away. Expenditures made not just for wars, but also for supporting dictators, puppets, enemies against enemies, and other such nefarious activities.

What I am saying is nothing new. This is why that well known words attributed to President Jefferson are so apt:

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.."

With over 18 million vacant homes, countless more on the verge of being repossessed, as well as over 38 million on food stamps, the words of Jefferson have been more than fulfilled.

The nation which should have been the greatest democracy on the planet is instead the perpetrator of the greatest counterfeiting exercise designed and implemented for a select few. No doubt in the days ahead we will witness an ongoing litany of extraordinary financial measures designed to keep the financial world alive so that the parasitical parade of leeches slowly drains the productive efforts and resources of unsuspecting workers, middle class entrepreneurs and the birthright of those that have not yet cast their first vote.

The purchase of gold and silver is therefore not just personal insurance against economic, financial and political lunacy. More importantly their purchase is the most effective shot across the bow of those that believe that monetary alchemy can hoodwink all of the people all of the time whilst depriving them of life, liberty and the pursuit of happiness.

Harry Laborde once said that, "the purpose of life is a life of purpose." Might I therefore add that the purpose of gold and silver should be to serve that purpose. More importantly, paper money and compounding debt never have and never will, serve that purpose.

Sydney Australia