Why do governments hate gold . . . and why should wise investors own it?
*Texas Straight Talk, by Congressman Ron Paul, June 7, 2010:
''Time and again it has been proven that the Keynesian system of big
government and fiat paper money are abject failures in the long
run. However, the nature of government is to ignore reality when
there is an avenue that allows growth in power and control. Thus,
most politicians and economists will ignore the long-term damage of
Keynesianism in the early stage of a bubble when there is the illusion
of prosperity, suggesting that the basic laws of economics had been
repealed. In fact, one way to tell if a bubble is about to burst
is if economists start talking about how the government and the Central
Bank have repealed the business cycle.
The truth is the laws of economics are constant and real, no matter how
inconvenient they might be to politicians and bankers. This
reality is setting in and the bills are coming due. In the mean
time, countries that have no money have bailed out other countries that
have no money, except for the phony money created by politicians,
bureaucrats, and their partners-in-crime at the central banks.
This may be preventing big well-connected banks from having to take on
massive losses, but it is all at the expense of the taxpaying citizen.
As governments and central banks continue the cycle of spending and
inflating, the purchasing power of their currencies is constantly being
degraded. These currencies are what the people are working for
and saving. This inflation guts the savings and earnings of the
people, who have very limited options for protecting themselves against
these ravages. One option is to convert their fiat currency into
something out of reach of central banks and government spending, such
as gold or silver.
It is fairly typical in the midst of economic crises like these for
gold to come under attack from Keynesians economists and their amen
corner in the media. The arguments against gold are usually straw
men, based on a fundamental misunderstanding of the purpose of buying
gold. Gold is not a typical investment. It is a defense
against the predictable behavior of governments to debase a fiat
currency under its absolute control. The people who run the
printing presses have trouble shutting them off. In order to
limit one's exposure to this reckless behavior, it is wise to exchange
unsound assets for sound ones.''
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
Call Now
Let us help you:
Personal Advisors
available now at
1-800-444-8317