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Why the United States Needs to Encourage Americans to Hold Gold.

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Times have changed since I first became involved in Gold on an almost full time basis in 2010.  This article, published by The Federalist, would have been unthinkable just ten years ago…

“While discouraging and even prohibiting Americans from owning gold was never good policy, it was at least understandable at a time the Federal Reserve was struggling to maintain parity between the dollar and a fixed weight of gold. But continuing this policy is deeply misguided at a time the dollar bears no fixed relation to gold and other nations, most notably China, are encouraging their citizens to accumulate gold.”

Congressman Criticizes U.S. Mint for “Disappointing and Concerning” Inaction on Counterfeit Precious Metals Coins

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An interesting piece from Fox8live that was published Tuesday, March 13th 2018, 4:30 am AEDT.  The US Mint seems to not deem it important to protect the integrity of its money.

U.S. Secret Service Also Frustrated with U.S. Mint’s “Lack of Supporting Action”

WASHINGTON, D.C., USA, March 12, 2018 /EINPresswire.com/ — Congressmen Alex Mooney (R-WV) criticized the United States Mint for its “disappointing and concerning” lack of awareness or action on the growing problem of high-quality counterfeits of U.S. precious-metals coins entering the country from China and elsewhere.

In a letter dated March 6, Rep. Mooney took the U.S. Mint to task on its perfunctory one-page response to a prior letter that he and Congressman Frank Lucas sent last October asking for information as to whether, and to what extent, the U.S. Mint has taken proactive steps to protect the integrity of America’s minted coins, including reviewing and implementing the anti-counterfeiting measures already put in place by certain foreign government and private mints.

“The U.S. Mint’s response dated November 17, 2017, seemed to suggest a belief that the problem was not significant,” wrote Mooney in his March 6 letter.
“However, the U.S. Secret Service has since briefed my office about the extent of this activity and its frustration with a lack of supportive actions by other agencies, including the U.S. Mint.”

“The matter of counterfeits has been repeatedly raised as a serious issue in the coin industry press As your team is aware, there have been anti-counterfeiting technologies on the market for some time and many of these technologies have already been adopted by some of your ‘competitors,’” continued Rep. Mooney.

Mooney also mentioned one of these technologies (called Veriscan) and relayed an interesting offer by U.S. based Manfra, Tordella & Brookes, which currently provides the blanks for the U.S. Mint’s Palladium Eagle Coins, “to arrange the incorporation of (the anti-counterfeiting technology) on the next issuance of the U.S. Mint’s palladium coins without charge” as well as “back authenticate already issued U.S. Mint coins, provided the dies and production samples are available.”

As a member of the House Financial Services subcommittee which oversees the U.S. Mint, Congressmen Mooney has been leading a congressional inquiry into the counterfeiting problem, seeking information from federal agencies about the nature and quantity of complaints and resulting investigations regarding counterfeit U.S. gold, silver, and platinum coins and what anti-counterfeiting programs, if any, are in place to protect the integrity of U.S. coins minted specifically of gold, silver, platinum, and palladium.

“We commend Representative Mooney for his ongoing action in defending sound money and for helping Congress exercise its oversight duties in accordance with Article I, Section 8, Clause 5 of the U.S. Constitution,” said Stefan Gleason, Director of theSound Money Defense League.

“It’s vital the U.S. Mint stop sitting on the sidelines and provide support to the U.S. Secret Service as well as the precious metals industry in tackling the problem of counterfeit precious metals coins.”

“Unfortunately, there is clearly a lackadaisical attitude at the U.S. Mint toward protecting the only constitutional currency that is currently even produced by the federal government,” continued Gleason.

A full copy of the Rep. Mooney’s March 6, letter can be found here. His original October 27, 2017 letter is found here, and the U.S. Mint’s perfunctory response dated November 17, 2017 is here.

The U.S. Mint produces1-ounce American Gold Eagles, Silver Eagles, and other precious-metals coins.

The Sound Money Defense League is an Idaho-based public policy group working nationally to bring back gold and silver as America’s constitutional money. For comment or more information, call 1-208-577-2225 or email jp.cortez@soundmoneydefense.org.

Jp Cortez
Sound Money Defense League
208-577-2225
email us here

Bubbles

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I have just read an article repeating the claim that bubbles are a part of the human condition.  They are not.

They have a very specific and easily avoidable cause.

Bubbles are created by the lack of Gold in circulation.  Lacking Gold, there is no access to a store of stable value.  Without that, people look for other ways to maintain the value of their wealth.  Essentially, it brings about a return to the days of trading goods.

A trading good achieved that status by holding a relatively stable value over time – compared to other goods.  That made them highly desirable to those wishing to hang on to the value of their surplus production.  Cattle, salted fish and salt etc. all acted as trading goods.

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When Gold (money) appeared on the scene (circa 1500BC), the dynamics of the marketplace were revolutionised.  The world entered its first golden age.

For the last 3,500 years, whenever money has been withdrawn from the marketplace, people have been forced to look for wealth preservation elsewhere.

Thus bubbles.

When Gold is in circulation, its properties are well understood.  Today, it is not and they are not.

Today we have major bubbles in stocks, bonds and real estate.  They are just modern day trading goods.  All of these monetary substitutes will end up with the stability of value of cattle with foot and mouth disease.

There has never been a bubble when unadulterated Gold coins were in circulation.  Bubbles are not a part of the human condition, they are a part of the government monopoly of money condition.

Article first published here

Freedom Fest Survey

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Please click here to answer a quick survey for Freedom Fest.  They are looking to locate the fifty most influential Libertarians.  Freedom Fest is a big deal in the US.  Any organisation promoting genuine freedom will be supported by the Gold Standard Institute.

Self-interest?  Of course; the achievement of genuine freedom would mean circulating Gold.

It is odd though, that the person working most effectively to promote Gold and economic freedom is not even on the lists.  I refer of course to Dr. Keith Weiner.

There are many people who still do not understand the connection between Gold, and not just economic freedom, but the freedom of the individual across the whole span of existence.

Monetary Stockholm Syndrome

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From here

The policies of President Reagan led to the strong dollar decades.  Did that lead to a mass sell-off of dollars?  Of course not.  People are unwilling to sell things that they believe are going to increase in value.

It was only when the value of the dollar came into question at the turn of the 21st century that they began to be sold.  At that time, an ounce of Gold would buy 270 dollars.  For a brief period, the dollar rallied, then its value declined sharply.  By August 2012, the same ounce would buy 1794 dollars.

At that point, dollar demand grew again.  Sane people breathed a sigh of relief.

People sell their dollars when they think that the trend is down and buy when they think that the trend is up.  The most novice of investors would understand that strategy.

The person who believes that they are ‘buying Gold’, is overlooking the first step of their thinking.  What made them want to ‘buy Gold’?  It is always and invariably because they believe that the dollar (or their local currency) is weakening, or is about to.  The reality is that they are selling dollars, but they are so used to thinking of dollars as money that they cannot adjust their thinking to accord with their logic.  It’s monetary Stockholm syndrome.

Gold is never bought or sold; either in theory or practice.  It is always the variable value, the currencies, that are bought and sold.  The measure of the transaction is the invariable value – Gold.

After seventeen years of watching people glaze over trying to understand this, I know that these words will not penetrate.  But still I try – always the optimist.  The irony is, that while they claim to not understand the theory, they conform to it in practice.

Philip Barton January 2017

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