At last someone came along and said it, and I thank Mr. J.K., a member of this website, for sharing this with me, because this topic has been a subject of some of our members' vidchats, and it adequately explains why I for one have never been a gold bug:

Tangible v Intangible Money – Why Times Have Changed

Now, I'm not advising anything with respect to finances, much less whether, or how much gold, one should have in one's portfolio, if one is rich enough to have something like a portfolio.

What I have often wondered is why in certain schools of economics gold seems to be the be all and end all of money, when a simple examination of history, as I suggested a few days ago, is that media of exchange did not begin with gold, or barter, but with bills of exchange, clay tablets, and -well, to put it bluntly - debt free money.

Indeed, bullion and specie came at a point in history coincident with the rise of the great empires, and began a cycle of the debt-slavery-bullion-military complex that has not abated.  There have been those who have advocated some amount of gold in a portfolio, and I am certainly not in a position to argue. But I do have to wonder how a gold standard would work in an electronic world, where so much transaction (and market manipulation) is conducted electronically.

In this respect, this little article is thought-provoking and, in my opinion, accurate: it's a matter of the physical (not paper) possession of assets.  It's really this that is behind the recent Chinese, Russian, and German attempts to buy physical gold, but this, let it be noted, is but one aspect of diversifying possession of real physical assets.

See you on the flip side.

Joseph P. Farrell

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and "strange stuff". His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into "alternative history and science".


  1. Miguel on August 17, 2013 at 11:16 am

    I am not sure how Mr Armstrong can actually make arguments to the effect that Gold has proven top be the worst performing asset at a time when the exchange price of Gold is proving to divberge from the private transaction price in polaces like China.

    At the fringes of the dollar system one has countries like Vietnam where real estate transactions are only quoted in Gold and settlement may well be taking place in such. There is an effective demonetiozation of the economy.

    India is banning Gold purchases by it citizens as constant buying drains bank deposists…

    It is only a matter of time before countries within the core of the $ system…such as Thailand and Malaysia… see a majority of their ciitizens making massive currency withdrawals to switch into their historically preferred form of money: Gold. $ Inflation is devastating the little locally generated (locals exchanging with locals) growth drive in those economies, rather than the usual export windfall eventual repatriations. More and more people are catching on to the pillage perpetratred by their local Central Banksters-Politicians.

    The trouble for fiat currencies is now starting at the periphery, yet observers have their eyes set on the core and what they see around themselves while sipping on Latte at Starbucks.

  2. thomascrown on August 16, 2013 at 12:06 pm

    Mr Farrell
    I’ve done some research regarding Chinese banking sector. It looks like they are not so independent. Interesting that Chinese authorities allowed to enter Anglo Saxon retail banks to China and lend money to local population, 2) Chinese and Anglo Saxon banks in China are using fractional reserve banking model to expand their money supply,3) to each loan is attached interest. It seems for me it is a game with 1 layer less that in western countries. It is true that PBOC issue debt free credit but it is only delay inevitable; bankruptcy of local population when bubble burst. If you have different information above mentioned topics please let me know.

    • Joseph P. Farrell on August 16, 2013 at 1:06 pm

      I never said the Chinese banks didn’t use fractional reserve or interest on loans…ALL deposit banks do this. What I was talking about was the money itself…

    • henry on August 17, 2013 at 6:13 am

      Unfortunately, the best seller in China has no English edition.

  3. Sagnacity on August 16, 2013 at 11:42 am


    Just to be real clear, I’m not talking about diluting gold, I’m talking about making it–I’m sure that IE has touched on this subject. And no I don’t particularly think it has any intrinsic value.

  4. marcos toledo on August 16, 2013 at 9:53 am

    Gold has many uses money or more rightly a exchange or barter item is just one of them. And only in long distance trade at that though a bill of exchange could be seen as a more secure substitute. The gold standard is just another mantra for our elites to fleece and enslave us as usual thanks for posting the article short to the point.

  5. Robert Barricklow on August 16, 2013 at 8:10 am

    This problem of non expandable money supply is evident in the Euro system, which has been called the equivalent of a gold standard.

    • Robert Barricklow on August 16, 2013 at 8:27 am

      So then what IS this about the gold?
      1. Psychological Warfare?
      To get the masses questioning money.
      Once they find out the true nature of money, the people would want what Abraham Lincoln & Benjamin Franklin wanted: a Public Banking system that worked for mankind as a whole; instead of the curren Tower of Basel(BIS) cancerous private system of money, working for fewer than 1%, at the expense of the rest of mankind AND earth.
      2. Some exotic property of gold being used in interstellar travels/weapons/ect.,?
      3. Combinations of 1 & 2?
      4. Other?

      • jedi on August 16, 2013 at 9:00 am

        forget the money trail, it leads to a brothel …cock a kyoodle doo.

        5) check the source.

        the monkey changers

        • jedi on August 16, 2013 at 9:06 am

          in order to have a intelligent conversation about any topic, the first requirement is intelligence…a vine gift

          check Detroit for the hello ducifer i home and ricky the bongo player is a recording.

    • Robert Barricklow on August 16, 2013 at 8:53 am

      One thing to be concerned with on the “Bail-Ins”, that taking of depositor’s money. Now written into 2005 U.S. Bankuptcy Laws, derivatives take precedent over depositors(it is also written into the cake worldwide). In fact, when Basel III takes effect in 2019, it will shake down any competition left standing..
      The current response of BIS and the Financial Stability Board(under BIS authority/with teeth like the Great White) has been the ultimate display, and the ultimate test, of their global power: the new “bail-in” policies directing critically undercapitalized international banks(real banks working for local & national economies of the people) to convert the money of their creditors in bank equity, effectively confiscating depositors accounts.

      • jedi on August 16, 2013 at 9:13 am

        basically this leads to world wide slavery, and with it all virtues of mankind in the trash….slaves are not people, they are tools that are used and discarded, animals that run for the dinner baal….although they can enjoy bodily functions as well as any handler, there virtues have been bought and paid for… a topic discussed in 1984

        • Robert Barricklow on August 16, 2013 at 9:33 am

          There will be more of it,
          to be sure.

          • jedi on August 16, 2013 at 9:49 am

            on the topic of confiscating depositors accounts, thats bank robbing, an idiots device pulled off by goons aka soldiers… the money printers by printing more of it confiscate by a process normalized as inflation and no one bats an eyelash….on the topic of bats, thats barcadis symbol…the rum makers.

    • Robert Barricklow on August 16, 2013 at 9:10 am

      1. eliminate super-priority staus of derivates in bankruptcy.
      2.Restore portions of the Glass-Steagall Act separating depository banking from investment banking.
      3. Beak-up giant derivative Banks.
      4. Ban derivatives and unwind them.
      Impose a financial transaction tax on Wall Street.
      5. Establish Postal Savings Banks as government- guarnteed depositories for individual savings.
      6. Establish Publically-Owned Banks to be depositories of public monies, following the lead of North Dakota, the only state to completely escape the 2008 banking crisis. North Dakota does not keep its revenues in Wall Street Banks but deposits them in in the state-owned Bank of North dakota by law. It has a mandate to serve the public, and does not gamble in derivatives.

      • jedi on August 16, 2013 at 9:17 am

        why not ban gambling?

        Its always rigged….starting with the issuing bank, a observation that most do not notice.

  6. Sagnacity on August 16, 2013 at 7:31 am

    Russia is buying up gold? And Germany too? (Germany has asked for its physical gold–that’s different, and of course may prompt buying by others if the gold isn’t there to return.) Perhaps China though. Anyhow claims for evidence of what party is buy X Y or Z are frequently obscured and simply wrong, or misleading for-self serving purposes. So evidence for claims about Russia and Germany would needs be very strong.

    Abundant clean energy and clear information about how best to apply it to potable water, food, and man’s existence in this solar system all seem a lot more valuable than some silly yellow metal that John Bedini can certainly make from copper–no he’s not the discoverer of that process. And very likely other parties use that process to make gold in quantity, not from lead or mercury.

    • Jon on August 16, 2013 at 10:14 am

      I agree. Gold has certain intrinsic qualities which make it valuable, but in a speculative market, its value will fluctuate with the winds of chance, not to mention supply.

      And that does not take into account clipping, tungsten fraud, and other ways of diluting the value of gold.

      Many people like gold because they think it is something tangible which they can hold in their hands. But, as history has witnessed, stronger hands can then take it away.

      Skills to adapt and survive in fluid situations, and skills which people always need, are the most important assests to have. A good machine shop and skill in using it could easily be far more important than gold in difficult times. Clean food and water are always a good hold card.

      The current pitch up in the fight over guns omits the fact that guns are no longer the equalizer they once were. Newer, better weapons technology would be far more important to keep in individual’s hands. Another Poxy Clips Theatre diversion.

      Energy will always be king. With enough energy, you can get anything else you want. Hence, the ban on free energy, which would liberate people from any false economy whatsoever. CAF pointed out in a recent video that 40 percent of the cost of manufacturing is energy. Imagine the effect on prices if free energy was available. (I wrote an article about this for Infinite Energy magazine a few years ago.)

      If the elites want to retrench in America, they should unleash a new age of manufacturing with radically cheap energy devices (or “allow” it to happen?). That is the only way we will be able to compete with the cheap (slave) labor of the third world. Americans won’t make good slaves, especially with the crap food they’ve been feeding us.

      That was one mistake the Nazis made – they thought that labor camps solved two problems at once, but the quality of work they got out of prisoners slowed their war effort down enough that it allowed the Allies (with superior manufacturing) to gain too rapidly on them. If they had taken a more humane path with that labor, they might actually have won. (I’m glad they were stupid, or at least ideologically handicapped.)

      • jedi on August 16, 2013 at 10:35 am

        Jon, the nazis and the ruskies wiped out european nobility.

        That was there endgame, …they were not stupid, anything but stupid.

        • LSM on August 16, 2013 at 11:42 am

          no nobility on this planet was ever, ever wiped out (exception: the Romanovs- well, at least on a surface level- then enter “Anna Anderson”- read the Summers/Mangold “The File on the Tsar”)-

          if all European nobilities were wiped out then why do the Windsors (Battenbergs), Dutch royals (so-called “House of Orange”), the royal families of Sweden, Norway, Denmark, Spain, Albania let alone the “unimportant” principality of Monaco (located in France, by the way- a “French Connection”?- you bet) still exist at tax payers’ expense?

          • jedi on August 16, 2013 at 11:53 am

            humpty dumpty sat on the wall…

            what wall would that be, chinas? how about that one up in england?…

            Roman is a anagram for moran btw.

      • Sagnacity on August 16, 2013 at 11:43 am


        See above, where the webware put my response.

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