Gold

The classic question asked before every election has been, “Are you better off today than you were 1, 2, 3 or 4 years ago?” ‘Better’ was roughly defined in economic terms: jobs, prospects, opportunities, purchasing power, safety, stability, etc. Clearly, the political class has decided that the traditional markers of the economic health of a nation are no longer relevant; that now the notion of ‘social justice’ must be factored in and even take priority over any other consideration. At the same time, every indicator reflecting the relative health of economic activity has been trending downwards.

In our own country, the Obama administration has been promoting policies that have accelerated this downward trend. The popularity of gold is a reflection of the uncertainty and outright fear that the markets are about to collapse. Our administration has done nothing to alleviate such fears. In fact, every policy already enacted as well as proposed seems specifically designed to drive markets down even further. We can no longer interpret this as coincidence, mistake or stupidity. Along with everything else that’s been happening – socially, politically and internationally – it would be foolish to assume that we are not facing a profound change from the way in which we have been conducting our everyday lives.

Gold is seen as the final hedge should everything else collapse around us. It is a fantasy. After everything else has gone up in smoke, a retreat to gold cannot save us. Look at it in practical terms. Imagine lugging a gold bar to the ruin of a store with empty shelves in search of a loaf of bread. People are actually assuming that gold will be capable of performing alchemy in reverse and produce bread.

The futility of hoarding gold was aptly demonstrated during previous wars. When the invading armies were said to be approaching the town, the people packed up their valuables (including their gold candelabras) into wagons and set out to escape certain death, rape and plunder. Along the way they could see all the things once deemed valuable (including gold) strewn by the roadside as so much refuse. They did not even slow their pace. Instead, in a desperate effort to lighten their own load, they dumped their valuables as well. The lucky ones arrived at a safe haven with barely the threads on their backs.

Their ultimate goal was to reach America which promised nothing more than a new start. With America in ashes, there will no longer be anywhere to run to. Gold or no gold, when hope is extinguished humanity has failed.