Bill Murphy, Chairman of GATA, clues people into some of the fundamentals of the gold bull market that is underway.
Amazingly, this interview is on Bloomberg (the mass media)! The boyz/cartel must be properly positioned to make it on the upside now. Bernie Lo in Hongkong interviews Bill Murphy in Dallas, Texas.
The sound is low. If you plug ear phones into your machine, you can hear it better. The value of the information is worth putting up with the low sound. This interview consists of 3 parts.
Asia Confidential - Bernie Lo interviews Bill Murphy, Chairman of GATA November 2009 Part 1
Part 2 of 3
Part 3 of 3
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The Golden Sextant
Viva la Restoration
Remarks of Robert K. Landis
In Austrian teaching, money originates in the market: …all money has originated, and must originate, in a useful commodity chosen by the free market as a medium of exchange. The unit of money is basically just a unit of weight of the monetary commodity – usually a metal, such as gold or silver. Government has no role in the definition or selection of money, let alone its creation, price or quantity. That is the market’s function.
In Keynesian theory, by contrast, money originates in the state. Government has a total monopoly on money, starting with its very definition. It is not chosen in free exchange, it is imposed by force.
...bad ideas have bad consequences.
I believe it fair to say that as a society, we Americans have reached a dead end. We are bankrupt, and not just financially. Our leading institutions are corrupt and discredited. Our leadership class has betrayed its trust, openly and repeatedly.
Our financial and economic crisis will in due course lead to an intellectual and cultural crisis. We may yet avoid the fury and violence that have attended other paradigm shifts, other imperial collapses. But we will need to be very lucky indeed. That’s because on the one hand, this is about power which will not be voluntarily relinquished, and on the other, there is no reasoning with an angry mob.
In the meantime, what keeps the current system going?
You, meaning foreign investors, still lend us your savings. This just enables us to prolong the process, defer the resolution, and increase its ultimate cost.
When will it end?
Whenever you cut us off.
At some point, foreign holders will sell our debt in earnest, and buy gold with a conviction resembling panic.
And so, finally, I come to gold. This is, after all, a gold conference. Why then do I talk so much about politics?
Because I think it’s impossible to understand gold without understanding its political dimension. Gold is permanent, natural money, the antithesis of money made from nothing, money backed by force alone. It is a potent symbol of private property; of voluntary exchange taking place outside the control of the state; of limits on state power; and of resistance to the runaway state.
Left to its own devices, gold is the ultimate barometer of public confidence in government. It is also the ultimate means for ordinary citizens to opt-out of an oppressive, fraudulent system.
That is why gangsters who wield power in the name of the “people” always make ownership of gold a crime. So it was in France during the Revolution, in Germany during the Nazi era, in Russia during the Soviet era, in China during Mao’s rule, and in the United States from 1933 through 1974. It is why, even during periods when the ownership of gold is not outlawed, its price is ‘governed’, as one commentator puts it, or officially manipulated, as others of us put it.
We know from history and experience that once the free market has lost control over the definition and creation of money, individuals have lost their liberty.
That’s why neither a central bank nor fiat money find support in the Constitution of the United States, and why our monetary system, which has these two elements as its very foundation, is unconstitutional on its face.