Sometimes you hear something that makes you just wonder. I mean, someone actually states that cats are smarter than dogs, liver tastier than porterhouse or even that the world is flat. What do you say? It just leaves you kinda speechless. I experienced one of those moments recently when I watched this.
[EDIT: This video was taken off YouTube shortly after posting due to copyright issues. I’ll keep trying to find working links. Basically, Bridget stated that gold was getting negative attention since it was backed by nothing, whereas the U.S. dollar is backed by the government and people, or something along those lines. She claims to quote Todd Hirsch, “Alberta’s foremost economist.” – Note – soon after the video was taken off YouTube is was found at Natural News. We can’t say for how long.)
First, apparently this is real. The person who posted it claims it was on CTV (Canada) – based out of Calgary, Alberta. It took me a while to come to grips that this was real. Then there is the dilemma as to whether to laugh or cry.
Now, I want to be charitable toward Bridget. I don’t know her. I don’t know her background. One thing is apparent though, she has not had adequate economic education. Let’s be fair though. There are a lot of unkind comments being made about this young lady. But, the fact is, she’s a product of her society. It’s likely that she’s a victim of the state indcotrination institutions of her country of origin. Her understanding of the financial systems of her culture are based on what she’s learned in school, from her parents and from her friends. Of course, her parents should know better, though it’s likely that they were raised and weaned on fake money too. But our younger generations have all cut their teeth and traded in nothing but fiat. Unless they’re told differently, they think in terms of empty fed promises. So, let’s be kind toward Bridget. She needs help in understanding how economies work. She needs to be introduced to Mr. Mises in order to put Mr. Keynes behind her.
I know that at one time I didn’t get this either. It’s likely than anyone under 50 years old hasn’t, at one time in their lives, bought into the idea that dollars are actually money. It’s quite a challenge to change one’s referent from fiat to real. Perhaps you notice that we try to refer to the exchange of dollars for metals as buying or selling dollars, rather than the other way around. This is intentional, highlighting the fact that gold is real money while Federal Reserve Notes are simply backed by the promise that they’re good for trade and commerce purposes. Really, that’s all that backs them; a promise from those who print them, backed by your government officials. So, we buy dollars with gold or sell dollars for gold.
Now, I could strive to explain this to you and reveal how inadequate I am at doing so, or I could offer to let someone who has real knowledge about these things inform you so that you can really understand. David McAlvany has followed in the footsteps of his father in helping people to understand the truth regarding world currencies and monetary fundamentals. Here he offers a good historical overview of the battle between gold and fiat currency.
We’ve talked about this before, but it’s worth mentioning again, and again, and again… The artificial money, known as fiat currency, is a system devised by man in an effort to control his financial environment. But man has a tendency to corrupt anything that he has control of. In fact, it seems evident that fiat currency was, in its very development, a corruption. But gold is not. Contrary to Bridget’s claims, gold is backed by it’s own makeup. It’s backed by gold’s molecular structure. This is inherent value. And since creation it has been so. So try to train yourself to think in terms of real value rather than empty promises.
In other words, think in terms of the truth. And let this mindest so permeate your life as to lay a solid foundation of verity in regard to every aspect, politics, economics, social perceptions and, especially, in regard to religion. Be humble and willing to recognize where your perceptions are wrong in all these areas, but especially in regard to your ideas about Jesus. He is the way the truth and the life, and the door to our heavenly Father. Any other claim is a fiat religion, backed only by men.