Why The Gold Bugs Aren't Thinking
In the end, it is the SYSTEM that is key. We depend on it for Food, Water, and Security.
Gold only functions in a SYSTEM of TRADE. In order for the system to function, people must be able to trade. Relatively few people hold gold today. So if gold is money, relatively few will be able to buy anything and relatively few will be able to produce.
What good is gold in Detroit where there is little valuble production to spend it on?
The key to any SYSTEM of trade is the capability to trade...the more that can trade, the more that can be produced......and just like in a system of currency where the top 1% hoard all the currency, if the same is true for gold, there will really be no system and gold and currency will be worthless.
Buffett understands the principal well as it applies to both currency and gold and why he advocates high tax rates to give the money back to the masses. He knows that without the masses spending, there is no system.
If the TRADE system doesn't function for the masses...their only choice for FOOD and FUEL is the FORCE system....and this is the SYSTEM currently replacing the TRADE system all over the world as currency is being cut off from the masses and losing its value simultaneously....otherwise known as Zombulation.
In an envrironment of FORCE...neither gold or currency serve much value to the man with a gun....he prefers the production itself and not the derivative of production.
Right now the bankers are cutting off the private sector from currency and we are beginning to cut off the public sector as well....fewer and fewer Americans will be able to trade in this environment as Food and Fuel keep rising........expect FORCE to become the more common form of Money as this trend continues.
You NEVER want to concentrate money in the hands of ONLY a few in a specialized Industrial system....unless you are prepared to use FORCE yourself.
So for those of you watching the ticker or thinking about gold....you may want to focus on FORCE soon as fewer and fewer can trade.
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