--John Maynard Keynes, Monetary Reform
Just another effort to keep wealth in the hands of the elite by impugning gold, TheDailyBell.com responded:
Hays is merely the most recent in a long and long-standing roster of financial and political elites to denigrate precious metals investing as dangerous. The U.S. government took up the refrain during the throes of the Great Depression, when in order to salvage the U.S. dollar, private ownership of gold was not only banned, but positioned as being selfish and anti-patriotic. Despite the government and establishment media’s spin job, many people refused to hand in their gold; those who did got the raw end of the deal, and those who didn’t were never punished.
There are many more recent examples. The government’s 1980 collusion with the exchanges to raise margins and cap silver trades in order to stymie the Hunt Brothers’ run-up of silver prices clearly was engineered to protect the embattled dollar against robust gold. (See the WealthCycles.com article, How The Hunt Brothers Capped Gold…Yes, GOLD! for more of this tale.)
The Gold Anti-Trust Action Committee (GATA.org) has compiled reams of evidence of government and financial sector manipulation of the gold market. And yes, every week or so, some high-level financial guru or establishment economist opines on the recklessness, volatility and foolishness of investing in gold.
The government has serious skin in the game of gold versus fiat currency—serious enough that it will bring all the forces of political persuasion, coercion, legal threats and regulatory pressures to bear. The bottom line is, pure and simple, that gold is a threat. When the tide turns, and the public rushes to gold, it will sound the death knell for our debt-based fiat currency system.
The more successful they are at making us feel reckless or stupid or naïve for putting our faith in real money, the longer they can keep the economic Ponzi scheme afloat. But just remember—the more worried they become, the louder they will holler.
A fiat currency is created by a government decree. The Latin word fiat means “let it be done.” And with the stroke of a pen, or the crank of a printing press, “money” is created. Fiat currency has no inherent value—the paper that a $100 dollar bill is printed on is surely not worth $100. It might have been worth a few cents before the government ruined its utility as scrap paper by printing green words and numbers all over it! Compare this with gold, which is a precious, rare metal that is, in many cases, the only substance on earth that can be used for certain human purposes, including science, medicine, and of course—adornment.
A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.