“Aboriginals believe in two forms of time; two parallel streams of activity. One is the daily objective activity, the other is an infinite spiritual cycle called the ‘dreamtime’, more real than reality itself. Whatever happens in the dreamtime establishes the values, symbols, and laws of Aboriginal society. It was believed that some people of unusual spiritual powers had contact with the dreamtime.”‘ – The Last Wave
Yeah, ok, whatever. By the same definition, we might imagine how a heroin junky goes about planning his day, too. In the end, it matters quite a lot whether this notion of Dreamtime has anything at all to do with actual reality.
This concept was examined in a recent article in the Daily Bell, which suggests that the central banking model was itself akin to a kind of “euphoric dreamtime” or “a kind of fantasy…. that a tightly managed and endlessly inflated fiat-money regime was the key to prosperity“. Unfortunately, this “dreamtime” has also proven to be founded on the false premise (and promise) of unsound money.
As the article rightfully states, the buying of gold and silver should not be lumped in with other “investment” entities. These are not stocks, nor are they, in the classic sense, merely commodities. These are, first and foremost, money metals.
This point of view was offered in response to the view that the rise in precious metals prices is merely the newest investment bubbles, notably as expressed in a recent CNN article . I could go on to say that this is, more-or-less, “conventional wisdom”, expressed even by one of my favorites, Dave Ramsey, who says, in effect, “why would you buy something when it’s selling for it’s highest price ever?”
Well, my response, like that expressed by the Daily Bell, is that those prices just happen to reflect the fact that the dollar (you know, the paper commodity that we use to buy gold?) is at it’s lowest intrinsic value ever. Dollars, as we know them today, afterall, are merely 0% Treasury bills – a debt instrument paying no interest in an inflationary economic model. What makes you think that any depreciating asset, especially those with the half-life of a just-caught fish, are going to help you sitting in your bank account?
Perhaps, we’ll talk more about this notion of intrinsic value in the future, but let’s just say, for now, that many of us have been led (astray) to believe that savers are somehow rewarded in this life. “Save for the future”, we’re told. Maybe we’ll be rewarded in heaven, just not on Planet Earth. Anyone who’s been alive over the past sixty or seventy years ought to know better than that.
Stocks, or bonds, we’re told, are the only way to keep pace with inflation and accrue capital appreciation. Have you noticed how well that’s working out? Nifty advice there. Of course, there is reason to believe that “good” companies and innovative technology should be reasonably well situated to keep pace with inflation, assuming we have a reasonable basis for understanding the true rate of inflation, otherwise known as currency depreciation.
The problem with these strategies, as we’ve discovered, is the fact that many – if not most – “investment” vehicles are greatly leveraged with fiat debt instruments. Leverage, mind you, works both ways, accelerating growth along with attendant risk of decline. This is the reality of “dreamtime”.
Sadly, when a sizable enough majority of our society shares a common belief, even false premises will work – for a time. You’d have been punished to not own a home in the 1970s, just as many were in the early part of this decade. It sort of goes without saying that you have also been punished if you stayed in either the stock market or housing market past it’s recent due date.
Conventional wisdom is fine, so long as the fundamentals are based on sound principles. Anyone who’s been watching the world over the past 10-20 years should know better by now. It is fair to say that our monetary paradigm should be more accurately described as a “reprobate dreamtime”. Reprobate, meaning: “depraved, unprincipled, wicked“, and, in a spiritual sense: “rejected by God and beyond hope of salvation.”
We were given righteous monetary principles by our founders, notably Thomas Jefferson, who said: “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. “
Does that help to put “reprobate” firmly in context? Sounds an awful lot like today’s headlines and, sadly, reflects the faith we’ve come to put in these institutions, even Ben Bernanke’s “Man of the Year” status. Dreamtime, indeed.
As for gold – no, it’s not an “investment”. It’s monetary insurance.
10….because they received not the love of the truth, that they might be saved. 11And for this cause God shall send them strong delusion, that they should believe a lie: 12That they all might be damned who believed not the truth, but had pleasure in unrighteousness. – 2 Thessalonians 2.
28And even as they did not like to retain God in their knowledge, God gave them over to a reprobate mind, to do those things which are not convenient; – Romans 1:28