The Destiny of Mankind Hinges Upon Gold

I must have read fifty accounts, in the FT and others of that ilk, about what went wrong with the Euro. I have yet to read one that comes out with the plain, unvarnished truth. The whole bloody Establishment of bankers, politicians, economists and journalist whores sings the same song: “The euro came to grief because there was no fiscal union”. Therefore, the solution to be inferred is that fiscal union would remedy the case of the European Union’s imminent collapse.

Let’s face it: the euro is a fiat currency and fiat always ends up in disaster.

Our civilization is in evident decline. If it weren’t, we would find several eminent economists of the stature of Jacques Rueff in the halls of power; he was the French economist who wisely counseled General Charles de Gaulle to remove France’s gold from the cellars of the NY Fed and transfer it to France.

Jacques Rueff was a man capable of understanding the fundamentals of how the world works. His vision was clear, and his intellectual scope was capable of taking in the details of local commerce as well its international workings. Men and women of his capacity are still around today, but they are not welcome in the higher reaches of politics.

Rueff wrote a little book in 1963, “L’Age de L’Inflation”  (“The Age of Inflation”) made up of some articles he had written. He wrote an “Introduction” to his book, and the very first words are these:

“LE SORT DE L’HOMME SE JOUE SUR LA MONNAIE”

A loose translation, taking into account the content of his book, would be:

“THE DESTINY OF MANKIND HINGES UPON GOLD”

Europe is a great mess today because those in power made the wrong choice when deciding what currency the European Union should use. They chose a fiat currency instead of the Gold Standard and currency redeemable in gold at sight. That is the Original Sin of the euro.

Rueff was also active when the European Union was being forged. His book’s fifth essay ends with these prophetic words:

“L’ EUROPE SE FERA SUR LA MONNAIE, OU NE SE FERA PAS”

Translated loosely and considering Rueff’s views, this would be:

“EUROPE WILL BE BUILT UPON GOLD,
OR IT WILL NOT BE BUILT”

Indeed, United Europe is falling apart. By the time you read this, it may already have collapsed. But it is falling apart not because of a lack of “Fiscal Union”. It is collapsing because of the absence of the fundamental means for free international collaboration, based on the realities of each nation of Europe: there is no gold standard at work.

Somewhere in his books, Ludwig von Mises states that the beginning of the end of the Austrian Empire came when the gold coin stopped circulating in the Empire. It was this stable and trustworthy money that had held together an Empire made up of several nations with very different cultures. When the gold coin disappeared, the unifying factor was gone as well.

Gold is the money for societies made up of men and women who wish to live in the real world.

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