Paper Promises, Golden Truths

Paper money eventually returns to its intrinsic value – zero. — Voltaire, 18th century

In films and TV shows set in the future, money is usually a digital government currency.

Credits, cubits, and chits are a few names I recall. This is a globalist CBDC-based vision of the future. Bleak.

But in one of my favorite sci-fi movies, Looper, precious metals reign supreme as money. In that film, the inevitable breakdown in fiat currency has already occurred and hard money has made a comeback.

This latter scenario is far more likely. Time and time again, central banks and governments have proven they cannot be trusted with the power to create unlimited money. It doesn’t matter whether it’s paper or digital money, central bankers will print too much of it given the chance.

Without exception, every fiat currency in history has trended towards zero. Government digital money will be no different.

Voltaire wasn’t exaggerating when he said, “paper money eventually returns to its intrinsic value – zero”. In fact, he had just experienced it first-hand following France’s disastrous fiat experiments of the 1700s.

It’s a question of when, not if. And time is running short.

The Dollar Had a Good Run

This fiat period has lasted longer than most. The dollar has been an unusually robust paper currency, and due some clever engineering, it essentially became an oil-backed currency (for many decades, oil producers would only accept dollars for oil).

The dollar will remain an important player for some time to come. But the era of the petrodollar system, where the dollar was the only way to buy oil, is over.

We are entering a new multi-polar era where countries use their own currencies to buy oil and other goods. And the U.S. is no longer the sole superpower.

Central banks around the world are gobbling up gold and diversifying away from the dollar as debt spirals out of control.

We’re approaching the end game now. This is why we’ve been pounding the table on gold and silver so much lately. And it’s why we will continue to going forward.

Once and Future Money