Central banks are a monumental fraud that has hoodwinked generations.  No other institution has inflicted as much economic damage under the guise of public benefit.  They manufacture inflation, a silent force of destruction masked as policy.  Inflation is nothing but decay; it’s not a lever to prosperity but a ticking time bomb.  Make no mistake—its ultimate goal is societal destruction, masked only by the temporary illusion of abundance.  Central banks consume capital under the guise of “stimulus.” This is the real enemy lurking within our financial system, endangering freedoms and wealth alike.

The reasoning behind central banking is laughably circular.  People use paper money to buy goods and services because they assume others will accept it—often because they’re legally bound to do so.  This cycle is sustained by coercion rather than value.  Gold, on the other hand, has intrinsic value that transcends legal tender laws.  Gold was valued yesterday, last year, and for millennia because of its rarity and universal acceptance.  Unlike paper money, gold doesn’t derive value from belief or force but from its proven history as a medium of exchange, rooted in barter and real utility.

When central banks pump money into the economy, prices don’t rise in unison.  The first recipients of this new money—the banks and well-connected firms—spend it at existing price levels.  As they inject their purchases into the market, prices start to climb.  By the time this “new” money trickles down to the average person, prices have already inflated.  This uneven rise is a wealth transfer, a hidden tax that strips purchasing power from those furthest from the financial spigot.  Even if governments distributed money from helicopters, the first collectors would still get the advantage, leaving the rest to pay inflated prices.

A common pro-central bank argument claims that gold is too “inflexible” to meet society’s needs.  This is a red herring meant to make the public believe economic stability is too complex for common understanding.  The real issue is that governments can’t counterfeit gold, making it a barrier to unrestrained spending.  Gold-backed money limits a government’s ability to steal through inflation, acting as a protector of freedom.  With fiat money, there’s no restraint—governments print as they please, without regard for the economic ruin that follows.

Arguments against gold are little more than shallow insults.  It’s called “a barbarous relic,” “a pet rock,” but never is a serious debate mounted against it. The reason is simple: central banks can’t argue against gold because it exposes their scheme.  Central banks thrive on this legal counterfeiting, using fiat money to support policies that erode personal liberty.  Any attack on gold is an attempt to keep the masses in the dark, perpetuating the cycle of inflation, debt, and dependency.

Until people awaken to the central banks’ true role in diminishing freedom, this legalized counterfeiting will persist, eroding wealth and independence in equal measure.

References

Ludwig von Mises; Money, Method, and Market Process

Ludwig von Mises; Economic Policy