Something for Nothing

In the context of the US having added $3.6 trillion of cash into the system with QE, the ECB having just agreed to add €1 trillion this year, and Japan, with already the world’s highest debt to GDP ratio, announcing they’ll add $750 billion this year, the following excellent reminder of what gold represents is timely.  Remember you can’t just create gold out of debt accruing thin air.  You need to mine about 1 tonne to get 1 to 2 grams and that costs more than the current price… 

“I do know that gold remains at the heart of the financial system. Try as they might, governments and bureaucrats just can’t get rid of gold.

Gold fascinates me because throughout history it’s acted as the ultimate ‘BS detector’. It’s the enemy of kings, despots, powermongers, socialists, world improvers, central bankers, fraudsters, and manipulators.

But gold is just a useless piece of metal. It’s not gold that fascinates me; it’s what gold represents. And I believe gold represents the will of the people in favour of freedom over repression…it rewards hard work and innovation over laziness and short cuts.

It reminds us that, ultimately, you don’t get something for nothing.

And while there are currently more people in the world getting something for nothing (and many, many more getting nothing for something), I remain confident that gold will again break its shackles and assert its force on the global financial system.

After all, that’s the way it’s been (on and off) for thousands of years. Why should it be any different now?”

(By Greg Canavan)

Gold (and silver) is your insurance for the inevitable day of reckoning when this system inflated by government stimulus (created by debt) crashes.  That debt is the “nothing” that Jo Public doesn’t see or understand.  We really like our “somethings” and our pollies keep giving it to us to get re-elected or not have the system crash ‘on their watch’.  One of them won’t have the choice because Mother Nature doesn’t work on “something for nothing”.