by Gary Christenson
Deviant Investor
Guest Post from Graham Reinders, an intelligent man with vast experience. (slightly edited)
What Do We Want From Gold?
- Roosevelt proved that gold was a political/financial tool, and its value is politically governed.
- Nixon proved two things: that the “Gold Standard” was nothing more than an arbitrary political tool, and indeed he made gold “legally” not money anymore. To make it illegal is an easy step if necessary. Gold is now such a small fraction of the economy I do not think it matters except as an underground currency.
Our generation grew up with Bretton Woods and after 1971, were indoctrinated with the myth that gold had monetary value, we still believe gold’s monetary value is real and place it in the realm of a God, so nobody dares disprove or denigrate it.