The gold market may well be the last bastion against the new socialism. Posted by James Randolph on October 14, 2011
The Gold Market vs. Economic Socialism.
October 14, 2011 – The gold market may well be the last bastion against the new socialism. I’m not talking about trivial entitlements but our entire monetary system.
In Whiskey & Gunpowder, Detlev Schlichter offers this profound distinction between capitalism and our economic system: “Either the market chooses what is money, or the state does.”
“The money of the free market, of capitalism, has always been commodity money that is outside of political control,” Schlichter says. “Almost all societies, throughout all cultures and civilizations, have come to use precious metals as money.” The reason is simple. The gold market is immune from politics. Gold cannot be created at will, and thus it has value that transcends political boundaries. It is money of and for the people.
Fiat money, on the other hand, is money strictly of and for the state. It puts the finances of individuals, Schlichter says, “not in the hands of the unfettered market, but in the hands of the state, of politicians and central bankers. This system is properly called a socialist one, not a capitalist one. And this system has failed.”
The system has failed for the same reasons that the Soviet experiment failed: When national wealth is placed in the hands of the state it is out of the reach of the general population. The people get poorer while the elite get richer, and productivity falls while unrest grows. And the forces of the free market strengthen until even the might of once great nations can no longer resist.
It was once unthinkable that the Soviet Union could crumble from within. Then in what seems like the blink of an eye it was no more. Ultimately that will be the fate of any socialist state. The days of economic socialism are numbered.
The fortress of dollars holding back the free market will soon be breached, and the gold market will be leading the charge.
Senior Staff Writer – Certified Gold Exchange