Those of us who are deep cover gold bugs have been predicting the ultimate collapse of the current paper money regime for quite some time. Why? It’s really shockingly simple: humans are humans, and are imperfect and subject to temptation. The temptations of solving income and debt problems by printing money are just too great to resist, when one is part of the power elite that own the banks (and the rest of the country with them). So, we knew this day was coming; unbacked paper currencies always fail, with an average life expectancy of about 80 years which, interestingly, is about the same as a human lifetime. Paper currencies always work until they don’t. In other words, they make it possible for insiders to get away with ever more-egregious transgressions, until the system just blows up.
These impending monetary system explosions are always visible from a distance if one knows what to look for. One of the symptoms that is almost universally recognized is this: the users and owners of the money in question begin to look for alternatives, as they try to get their accumulated assets out of the money before it blows up and destroys their wealth. These alternatives begin to outwardly function as stores of value, which the paper currency is no longer capable of doing. This new store of value begins to circulate and act as an extinguisher of debt and a settler of accounts (props to Antal Fekete); in other words, it begins to function as money.
I followed those with this one, which shows 5 year gold price charts in all the major global currencies. I shamelessly stole the title from a quote, but it is important to remember: “Suspicion Towards a Currency, Once Awakened, Develops Insomnia.” The world knows how money works, even if Congress doesn’t.
Now please follow this link and read the article. JPMorgan Bank has just announced it is now beginning to accept gold bullion as collateral. In an article provided to Yahoo finance by those radical goldbugs at Wall Street Journal, the author writes:
- By making the announcement, J.P. Morgan is effectively saying gold is as rock solid an investment as triple-A rated Treasurys, adding to a movement that places gold at the top tier of asset classes.
- “It’s solidifying a trend that gold is re-establishing its role as a monetary and financial asset,” said Carlos Sanchez, associate director of research with New York commodities consultancy CPM Group.
Well, what do you know. Gold is a “monetary asset.” We’re almost there.