Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stock Market Correction Review - 26th Jan 20
The Wuhan Wipeout – Could It Happen? - 26th Jan 20
JOHNSON & JOHNSON (JNJ) Big Pharama AI Mega-trend Investing 2020 - 25th Jan 20
Experts See Opportunity in Ratios of Gold to Silver and Platinum - 25th Jan 20
Gold/Silver Ratio, SPX, Yield Curve and a Story to Tell - 25th Jan 20
Germany Starts War on Gold  - 25th Jan 20
Gold Mining Stocks Valuations - 25th Jan 20
Three Upside and One Downside Risk for Gold - 25th Jan 20
A Lesson About Gold – How Bullish Can It Be? - 24th Jan 20
Stock Market January 2018 Repeats in 2020 – Yikes! - 24th Jan 20
Gold Report from the Two Besieged Cities - 24th Jan 20
Stock Market Elliott Waves Trend Forecast 2020 - Video - 24th Jan 20
AMD Multi-cores vs INTEL Turbo Cores - Best Gaming CPUs 2020 - 3900x, 3950x, 9900K, or 9900KS - 24th Jan 20
Choosing the Best Garage Floor Containment Mats - 23rd Jan 20
Understanding the Benefits of Cannabis Tea - 23rd Jan 20
The Next Catalyst for Gold - 23rd Jan 20
5 Cyber-security considerations for 2020 - 23rd Jan 20
Car insurance: what the latest modifications could mean for your premiums - 23rd Jan 20
Junior Gold Mining Stocks Setting Up For Another Rally - 22nd Jan 20
Debt the Only 'Bubble' That Counts, Buy Gold and Silver! - 22nd Jan 20
AMAZON (AMZN) - Primary AI Tech Stock Investing 2020 and Beyond - Video - 21st Jan 20
What Do Fresh U.S. Economic Reports Imply for Gold? - 21st Jan 20
Corporate Earnings Setup Rally To Stock Market Peak - 21st Jan 20
Gold Price Trend Forecast 2020 - Part1 - 21st Jan 20
How to Write a Good Finance College Essay  - 21st Jan 20
Risks to Global Economy is Balanced: Stock Market upside limited short term - 20th Jan 20
How Digital Technology is Changing the Sports Betting Industry - 20th Jan 20
Is CEOs Reputation Management Essential? All You Must Know - 20th Jan 20
APPLE (AAPL) AI Tech Stocks Investing 2020 - 20th Jan 20
FOMO or FOPA or Au? - 20th Jan 20
Stock Market SP500 Kitchin Cycle Review - 20th Jan 20
Why Intel i7-4790k Devils Canyon CPU is STILL GOOD in 2020! - 20th Jan 20
Stock Market Final Thrust Review - 19th Jan 20
Gold Trade Usage & Price Effect - 19th Jan 20
Stock Market Trend Forecast 2020 - Trend Analysis - Video - 19th Jan 20
Stock Trade-of-the-Week: Dorchester Minerals (DMLP) - 19th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Silver and Gold Truth Versus Fiat Lies

Commodities / Gold and Silver 2015 Feb 10, 2015 - 04:11 PM GMT

By: DeviantInvestor


The Jefferson Airplane sang about truth and lies nearly 50 years ago.

“When the truth is found to be lies

And all the joy within you dies…”

Restating their insight to make it relevant to our global delusions about real money – gold and silver – and the much less real money we call dollars, euros, pounds, yen and so forth:

When the truths we want to believe are clearly lies,

Then CONFIDENCE in our currency dies…


What do loss of confidence, loss of faith in financial systems, and pervasive lies have to do with gold and silver?  The answer begins with: Gold is far more truthful money – central banks can’t print it or create it from “thin air.”  Dollars, euros, yen and others are fiat currency units based on confidence and debt (not assets) and are supported by government mandates that these pieces of colored paper and computerized digits shall be accepted as money.

But confidence in debt based currencies promoted by insolvent governments is clearly waning.  The Russians and Chinese understand – they are converting dollars, yuan, and rubles into gold.  Europe, Japan and the U.S. are “printing” more euros, yen, and dollars hoping that “extend and pretend” will give the politicians more years in office, another war or two, and more profits for the military contractors and bankers.  When propaganda and “statistics” fail, there are always diversions like bombs and invasions.  (What happened to the gold from Iraq, Libya, and the Ukraine?  If gold has little value, why did it disappear so quickly?)

What happens when another financial calamity occurs?  Something major can and will occur in the next few years.  Possibilities:  derivative crisis in Europe (Greek bonds anyone?); tactical nukes in Ukraine; cyberattack on US,  Japanese or European banking systems; fall of the Petrodollar; credit collapse in China; US T-bond crash; an audit of the gold in Fort Knox (just kidding); or many other possibilities.

Assume a major financial crisis occurs within five years:

  • Confidence in the purchasing power of some currencies will rapidly die.
  • Some currencies, stock markets, and bond markets will implode.
  • Confidence in political and financial leaders will decline.
  • Gold and silver will retain their value while currencies sink into the sunset of devaluation and QE to infinity.
  • Nominal prices for gold and silver will go far higher – based on the loss of confidence in paper currencies and the loss of purchasing power of those currencies. (Repression will not hold their prices down much longer.)
  • Gold and silver will retain their value because many people know, trust, and have confidence in gold and silver.
  • Confidence in dollars, euros, and yen can disappear in weeks or months. Think Argentina, Venezuela, Germany, Hungary, Bosnia, USSR, and many other countries in the past 100 years.  (How much will Confederate money purchase today?)
  • When our supposed truths are found to be lies, confidence in our currency dies.

The truths we have been told that are lies:

  1. Those dollars, yen and euros are money. Well no, the stuff passes for money as long as the next person BELIEVES IT WILL CONTINUE to pass for money.  (What happens when people fear the next person will no longer accept those paper dollars in exchange for needed goods?  It has happened many times before and will most certainly happen again in the next few years, perhaps in a country where you live.) 
  2. Gold and the gold standard are a “barbarous relic,” useless, and unnecessary in the modern financial world. This lie is ruthlessly promoted, along with other nonsense from financial authorities who have a vested interest in selling their products (created dollars, euros, yen etc.) in exchange for real assets, such as steel mills, automobiles, land, and yes, gold and silver.  (Does it amaze you that a central bank can print a billion euros and then use that newly created “money” to buy gold?)
  3. Deficits don’t matter. This is particularly relevant as the U.S. debt is more than $18 Trillion and rapidly rising due to massive deficit spending every year.  Worse, global debt is approximately $200 Trillion.  Ask Greece, Zimbabwe and the Ukraine if they believe that deficits don’t matter.  I submit that “deficits don’t matter” is the intellectual equivalent of “we can borrow our way out of debt” or “we can spend our way into prosperity.”
  4. Central banks are necessary. I can’t prove they aren’t necessary, but it seems unlikely that parasitic institutions that extract money from their respective economies and do little but inflate their currencies are necessary or valuable to the general economy.  The Federal Reserve has not prevented depressions or recessions, has not increased employment, nor maintained the value of the dollar.  However, it has increased the wealth of the financial and political elite at the expense of most others.
  5. There are many more lies that are promoted as truth. Ignorance is unfortunate but believing the lies is far more dangerous.  In no particular order here are a few more lies (only my opinions) that many of us currently believe or have previously believed.
  • Real estate prices will always go up.
  • The dollar is good as gold. (I last heard this in the late 1950s.)
  • Buy and hold stocks forever.
  • This war will make the world safe for democracy.
  • “I believe in a balanced budget.”
  • You can keep your doctor and current health plan.
  • No more foreign wars….
  • There isn’t enough gold in the world such that we can go back onto a gold standard.
  • This is a temporary government program.
  • The deficits are declining. (Why is there a deficit in the first place and how will the US repay $18 Trillion?)
  • “No boots on the ground.”
  • It was necessary to bail out the banks for the good of the country (actually the bankers, elite, politicians, payoffs etc.)
  • We can spend our way into prosperity.
  • Printing money makes us all wealthier.
  • A lone gunman…
  • We owe the national debt to ourselves.
  • And finally…. If we vote out Useless Incumbent # 97 and vote in Slimy Candidate # 104, all will be well.

Don’t believe the lies or trust that unbacked debt based paper currencies will survive (they never do).  Learn from the lessons of history – gold and silver have been money for thousands of years.  The western world currently has amnesia about the true nature of money.  Asia has not forgotten the value of gold and silver.

Convert increasingly risky dollars, euros, yen, bonds, and other delusions into gold and silver while you can.  The window of opportunity will not remain open much longer.

GE Christenson aka Deviant Investor If you would like to be updated on new blog posts, please subscribe to my RSS Feed or e-mail

© 2015 Copyright Deviant Investor - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules