Can BitGold Technology Teach Lord Keynes That He, Not Gold, Is Barbaric?

I recently recommended BitGold as a purchase for this newsletter not only because I believe it has tremendous potential to make shareholders wealthy but also because I think it has the potential to inform the world that it was Lord Keynes who is the barbaric relic, not gold! And with that insight, perhaps we can return to a global monetary standard that again allows citizens of the world to have a more level playing field on which to compete, unlike the current fiat system that is overwhelmingly responsible for growing extremes of wealth and poverty.

I am a gold bug. Naturally I dislike the satanic theology taught by John Maynard Keynes that spending and idleness are good and savings and work are bad. If you combine laziness and excessive spending, Keynes said you can have endless prosperity. But to induce people to live beyond their means, you had to put money in their pockets by lending them money. But that required the demolition of the gold standard, which encourages savings and hard work as well as a fair and honest monetary system.

That you can get wealthy by being lazy and consume more than you earn smacks against the better judgment of sane human beings. However, human nature being what it is, if you tell people the big lie often, especially if it appeals to their base nature, they are likely to ultimately believe it. And so they have! Keep in mind that Keynes was a member of the Fabian Society, which had no difference with the ultimate goals of the Communist party. The only difference was that the Fabians chose to “educate” us all toward Communism rather than forcing us into that form of dictatorship through the barrel of a gun. Of course, just as the Communists had their own elitist system in which the rulers lived in splendor, Keynesian ruling elites who now own and operate our banking system and all Western governments, are also increasingly living in splendor. They are the one-tenth of 1% and among them are the elite who are planning your future and mine every year at the Bilderberg conferences.

So the Keynesian idea was that we could achieve wealth if we only we would work less and spend more. That was lie #1. But it would remain a lie unless you could generate money out of thin air. To do so, Nixon completely separated the world from honest and sound money in 1971 when he severed the dollar from gold so that one country’s more stringent monetary policy would not suck money out of more economically permissive countries. Having gotten rid of gold from money, unlimited amounts of credit could be created and indeed that process toward an absolute chaotic end game is well underway. And guess who gets the first take on this new money creation? Of course! It’s the Keynesian bankers.

But that is only one part of this evil monetary system that has the Keynesians licking their chops. Since fiat money is manufactured by debt, even more gratifying to Keynesian monsters is the ability to lure hundreds of millions of citizens into debt, slowly sucking them into a vortex of helplessness, like turds being flushed down the toilet. Wham! Now you own them and they are your servants! Such is now the pathetic state of the Greeks. In not too much time, I believe it will be the state of Americans as well.

Can Technology Deliver Us from the Clutches of Evil Keynes?

Perhaps there is hope. Perhaps the natural laws of economics can be unleashed by BitGold technology such that even the most strident anti-gold Communists like Paul Krugman will one day learn the truth about evil fiat money and the virtues of nature’s money, namely, gold.

When James Turk, a former Chase banker turned libertarian student of Austrian economics set out to create GoldMoney he had in mind using the unique characteristics of honest money—gold—to help bring the world back to a realization that it is in every honest person’s best interest to use gold as money rather than the fictitious money we are all forced to use over the barrel of a gun. Of course, these legal counterfeiters, which include the bankers and their partners in crime, the government, have set in place all manner of roadblocks against a return to gold monetary. So for example, if gold appreciates in value vis-à-vis the dollar you have to pay a tax. But if the dollar appreciates against other currencies you don’t pay taxes. Also, as we have discussed many times in this letter and on my radio show, major banks are constantly manipulating the price of gold downward. In fact, elsewhere in today’s letter we showed how massive naked shorts undertaken by money center banks are being used to destroy price discovery for physical gold and silver.

But no matter how many laws governments put in place to try to fool Mother Nature, they cannot change the basic fact that gold, and silver for that matter, derive their value not because of law but because the physical properties of those metals have always caused markets to choose them as money whenever there was the opportunity to do so. As Doug Casey used to like to remind his audiences, Aristotle figured out many centuries ago what natural characteristics of gold caused markets to demand it as money. (The same largely applies to silver as well.)

Gold has durability—that’s why we don’t use wheat.
Gold is divisible—that’s why we don’t use diamonds
Gold is convenient—that’s why we don’t use lead.
Gold is consistent—that’s why we don’t use real estate.
Gold has intrinsic value—that’s why we don’t use (or shouldn’t use) paper.

Still, lies told often enough become truths in the minds of the masses until the day arrives when Mother Nature prevails. And given the fact that debt is growing much more rapidly than income as measured by GDP, rendering the global economy ever closer to a systemic default, the day of reckoning is close at hand at least for the Western world.

Enter BitGold

I really became excited about BitGold, not because I believe those of us from the Austrian school of economics will have any success in convincing Communists like Paul Krugman of the virtues of free market economics. Rather, it is the very nature of gold as money, the reality of which is about to be made known, thanks to the foresight of James Turk as well as the brilliance of applying technology to that reality that gives me hope. It is the ability of Roy Sebag and Josh Crumb, the founders of BitGold, to understand the nature of gold as money as well as to foresee and implement technology to hammer that point home, not in an ideological context but in a profit motive context that has made me so bullish on BitGold.

You will remember that bitcoin got a huge boost when Cyprus went “belly up” in 2014. People suddenly used bitcoin as a means to transfer money out of a banking system that was about to collapse because it was insolvent. One problem with bitcoin in addition to security issues is that, like fiat money, it has no intrinsic value. But BitGold is gold. You own grams of gold in your account that you spend or collect in transactions. So with BitGold you have electronic money with intrinsic value behind it, which means its value is not dependent on the ability of others to pay their debts or on the stability of a banking system that has perhaps 40 to 100 times more debt than equity on its balance sheet. With BitGold you have the advantages of bitcoin without the disadvantage of not having intrinsic value.

BitGold is a payment system. In fact, it is like PayPal on steroids. In my interview with Roy Sebag and James Turk, Roy provided the following example of how a BitGold merchant account will be a must-have payment system for large-scale trading operations.

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.