Thursday, August 25, 2011

Gold, Free Money and Violence

Just pondering if there is a link between the recent riots in London and the recent shenanigans on Wall Street over the last few years.

Is there a link between free money and violence?

It seems a flaw in the human psyche that when you are spoiled with other peoples wealth you have less regard for it. You tend to spend it freely and you may even begin to despise the people who unconditionally gave it to you. If you get 'free' money perhaps you appreciate it's value less.

The story of the 'Lost Son' in the bible is one such episode. Here the younger son demanded, and was given, all his inheritance by his father. He blew it all rather quickly and found himself destitute. Lots of money, no regard for wealth and a lack of discipline.

Could a case be made that big Wall Street bankers are in fact just socialists on steroids? Lots of free money available with no work required thereby creating an indiscipline of use.

Furthermore, could a case be made for this argument regarding the recent riots in London? Easy money, in the form of social welfare payments causing some of the receivers to despise the givers. Even to the point of despising the property and assets that earned the taxes to pay the welfare in the first place.

Is there much difference between some of the so called 'poor and neglected' in society that end up despising wealth, and those bankers at the top of society making millions with free money and despising the general public that loaned them the money in the first place. Even to the point of ripping off retired people and main street savers. Handing out violence to people's wealth and lives.

Easy money equals lack of discipline perhaps?

How can gold and savings help solve this violence?

If for no other reason, if you believe that gold is real money, saving it makes you appreciate the wealth that is stored there. Your hours of labour, when saved in gold, will be preserved better than in any other instrument over history. This form of saving engenders the right attitude to wealth and enables the virtuous habit of saving, because saving is a discipline.

You simply will not be wealthy without saving. So why not save in gold and silver until you see opportunity to use that wealth for the better of yourself, family and society.

Gold in New Zealand dollars: $2114.31 per oz
Previous all time high: $2319.47 per oz (23 Aug, 2011)

Silver in New Zealand dollars: $47.85 per oz
Previous all time high: $59.19
per oz (30 Apr, 2011)

Articles of interest:

Kazakh Central Bank Gets ‘Priority Right’ to Buy Gold

See article here


The Anglo-Far East Company
The Original Private Gold and Silver Bullion Custodian
Your reference: an-001

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