Unless you use it as a good, for example in jewellery, or decorations, or in electrical components, Gold is not a good. In most cases it is a service or 'instrument'.
An instrument of speculation, that is, gambling on the future price being in the future than it is today. This is called 'investment', but it is only speculation, as the gold itself rarely becomes more or less intrinsically valuable. The supply of gold, if it were only used as a 'good', in jewellery, and decoration (silverware and gold plate are decorative more than functional), and electrical components, would so far outweight the 'need' or 'demand' for it that it would become quite cheap, in terms of the amount of labor, or stored labor, in the form of goods and services, that people would be willing to 'pay' for it.
Aboriginal natives such as American Indians in South American and Central America were quite happy to exchange pure gold 'pebbles' for things of REAL value to them, like food, metal farming utensils, knives etc. Gold and silver are pretty to look at, for a time, but that is the limit of their value in most cases, apart from some electronics.
So who is right? The Peruvian savage or the Jewish Gold broker? What is the REAL value of gold and silver?
Gold and Silver offer a very durable and for a trained person, impossible to fake, form of money. Currency. But the claims that a reversion to a 'gold or silver standard' would solve the problems of government debts, and inflation, totally overlook the actual history of gold and silver as currencies. In all cases where a gold or silver currency, or gold or silver 'backed' currency were used as money, the currency itself became debased over time, and ultimately no superior to any fiat / paper currency.
I explain what money is, and how it works, in my books and posts. It is a service.
A service that can be performed equally by a paper money, or electronic currency, that is propertly supervised, to ensure that it cannot be counterfeit / faked, and that it's supply never grows by more than the actual growth in goods and services within the territories that the currency is used.
Increase the suppy of gold or silver, or fiat paper money, or electronic currency, without increasing the value of goods and services produced in the society that uses that currency for exchange of goods and services, of time, effort, sacrifice, and risk, and you get inflation. The real value of that currency will fall. You will have to pay more of it to get the same good or service.
If the main use of gold or silver is as a money, or an instrument of speculation (assuming it will retain its value, and thus a good 'store of value' is a speculation in and of itself, perhaps the most basic speculation ), then the actual cost of the currency is exhorbitant relative to the alternatives of paper money and 'coined' metals. A hard to counterfeit, and durable 10,000 Euro note would cost much less than the current equivalent in gold, to produce. No miner need die in the mining of it.
Or if you like block-chain bit-coins, no person has ever died 'mining' a bit-coin.
What is a block-chain? What is bit-coin? Basically a prime number. Prime numbers are limited in supply. Like a rich gold mine, at first they can be 'mined' cheaply. But as you use up the easier to find / calculate prime numbers, it starts taking longer, it starts taking up more computing power, to calculate the next. On and on until the time / effort / computing power required to find the next prime number can be said to limit the suppy of bit-coins in a particular block-chain. in a particular krypto-currency. Unlike the current electronic currencies used by fractional banking, which can be increased in supply without end, and at any rate the central bank dictates, a particular krypto-currency built on a block-chain is much more limited by real factors outside of the control of, and dictates of, any politiican, central Bankster, or other person who might want to manipulate the money supply, with whatever intention.
Ideally a money supply will grow at just a bit more than the growth in value of actual goods and services people in a society willingly produce and exchange. I am not talking of goods and services they are FORCED to consume / pay for, but those which they freely, and willingly, seek out for themselves. FEw people would exchange their time, effort, risk, and sacrifice to finance the war crimes of their despotic leaders, for example.
Now we are talking about inflation. When the supply of 'money' increases, even though the supply of goods and services willingly exchanged does not.
What is the ideal rate of inflation? Would it be good if the money supply kept falling, making everything 'cheaper'? This might be a short term benefit to consumers. But let us consider the consequences for a moment. The other 'externalities'. If you thought that in one year, the same amount of money you had in your hand would buy 5% more goods and services, you might 'put off' those purchases. You would, by waiting, be able to buy 5% more goods and services, next year, than today. So the deflation might lead to a drop in consumption. Which would lead to a drop in production, and an increase in unemployment.
The body that issued the currency would have to destroy 5% of the currency in circulation each year. The government could simply reduce its expenditures by 5% while maintaining taxation at the current levels, and take 5% of the taxes and just destroy them. Burn them. Remove them from the bank ledgers. Or the issuer, say the government, could sell off any assets it owned, such as mineral reserves, mineral rights, federal lands it 'owned', licenses for different bandwidths of the airwaves, television licenses, radio licenses, and the like. The population would exchange their 'currency' for these goods and rights. The government could then destroy 5% of that currency, either as paper money, or on the ledgers of the banks.
So it is possible to creat deflation. In fact this is what the Banksters routinely do, every few years, to bring about recessions, and depressions, massive financial crises, crashes, which they use to buy up real assets cheaply.
You create inflation the other way around. Simply print more money. The government would buy real assets from its citizens, in return for paper money. Thus increasing the supply of paper money in circulation. The same amount of money will ultimately buy fewer goods and services.
But here is the catch. Here is the trick that 'trickle down' and 'voodoo economics' fail to explain to the average person. Inflation does not occur immediately as soon as 'new' money enters the money supply, inflating it. You see not everyone is informed about, nor understands, or is able to change their behavior in relation to, the increase in the money supply. The Banksters who own the private Central banks like the 'Federal Reserve' (sic) of course DO know, understand, and are in the perfect situation to take advantage of it, and to change their behavior in line with it, to profit from it, as everyone else is soon going to suffer from it.
You see at the 'money trough', as Kurt Vonnegut would call it, at the 'money tap', where the money supply is 'turned on', and initially enters the system, the 'New' still has the same purchasing power as the 'old' money already in circulation. So the Banksters and other 'insiders' who can get their grubby hands on it just as it enters the money trough, can use it to buy real assets at their current prices. So they buy up big. Knowing with certainty that very soon the assets they bought for 100 units of currency, will have a new, inflated, nominal value of much more. In other words, in money terms, they are guaranteed a profit, simply by being the first to get their filthy hands on the new money.
The new money will ultimately lead to an inflation of EVERY price of EVERY thing in the society. Every good and service.
What Central Banksters have been doing for the last century or more is deliberately inflating the money supply, to make such profits, and then suddenly decreasing the money supply, in ways described previously, to create artificial boom and bust cycles that their 'mates' in the mass media and academia re-branded as 'economic' cycles. As if they were 'natural' and 'normal' outcomes of some 'business cycle', rather than the deliberate creations of the Banksters. Creations designed to repeatedly 'fleece' the sheep of all their hard earned wealth. Designed to allow a very few Bankster elites and the politicians and businesspeople they work with, to ultimately take possession of almost every real asset of value, in that society.
They repeat the process every 7 or so years, as being found to be the optimal time to repeat the cycles. To represent them as 'natural'. As 'business cycles' and 'economic' cycles, rather than artificial cycles. The number 7 has many meanings to the Banksters beyond this, as well, in terms of 'Sabbaths' and 'Jubilee years'. This gives you a clue to the origins of the Banksters. As does the Torah's injunction to the 'Jews' that 'You shall lend to the nations, and never borrow from them. And in this way you will come to rule them'.
This is what has happened, and is happening.
Gold standards and silver standards are just as easy for the Banksters to manipulate as 'fiat' paper currencies.
Only bitcoin cannot, so far, be manipulated. Its supply of prime numbers is limited. The 'growth' in the supply of prime numbers is limited.
But back to what would be the 'ideal' level of inflation. For people to be keen to buy today, rather than wait, the expectation that things will cost more in the future is a motivation to buy today. So consumption is encouraged by some inflation. of course most people are relatively poor, living from day to day, and cannot change their consumption behavior. They spend all the money they earn simply surviving.
Now the conventional wisdom is that if producers expect to earn more for their production in the future, than the present, they will be motivated to invest in new plant, equipment, research and development, knowing that the 1 dollar invested today will be worth more in the future, so that they are guaranteed a positive return. If they expected prices to fall in future, they would have little incentive to invest today, as the one dollar they have in their hands, right now, will buy MORE in the future. This includes plant, employees, machines, patented technologies etc. If they wait a year, put off the new factory until then, they will be able to get it 'cheaper'. Now there is something to this.
Until you consider that as long as ALL prices fall along with the reduction in money supply, there is no REAL change in ANYTHING. The investors would have no reason to care about inflation or deflation, as long as it was transparent, and everyone knew the facts and figures, and could calculate REAL prices, and as long as wages were allowed to fall by no more or less than the level of inflation or deflation.
Then the mass consumers, who spend money as they get it, to survive, would not be ABLE to hold onto it. The business people would have no incentive to put off investment, as the REAL costs would be relatively constant and predicatable, and calculable.
Only those with prior warning, and with excess money beyond their needs, would be able to 'hold onto' their cash, so as to benefit from tomorrows lower nominal prices.
But this advantage could be eliminated by having negative interest rates. And making it impossible to 'hold' actual cash, by replacing it with a krypto or conventional electronic currency which by statute would have to be held with a bank. And so there would be no benefit to 'holding onto' money. The impact of inflation and deflation would be neutralised.
Now if we were not occupied by the Jew world order, I would be in the running for a nobel prize for this little essay.
As it is, I risk imprisonment, and much worse, for trying to decode the mystifying, obfuscated, 'straw men' 'explanations' we are given in conventional economics, and by the peddlars of gold and silver.
Please email me for copies of my banned books [email protected], support me by contributing to my paypal account [email protected], and by sharing, translating, torrenting, and talking about my TROONATNOOR books. Especially the banned 'Welcome to the New World Order' series.