By Stephen Buller
I was chatting at a party the other day and, as often happens, found myself talking about our monetary system. I used the term “fiat currency,” and someone asked what that was. I know it’s annoying when people talk about their field in foreign terms and acronyms, as if everyone should know what they’re talking about – and here I’d gone and done it.
I answered simply, “Money that’s based on trust in your government rather than something real – like gold.” Was I presumptuous throwing this term around? Yes. Should we all understand this term? In my opinion, yes. The concept of money should be taught in detail by the time someone graduates high school.
Why isn’t it?
Because our current monetary system depends on the ignorance of the masses. It is a system of theft from the many to the few. A debt-based system requires people to live beyond their means, and a fiat system requires people to believe something is money that is not.
Enter the article’s title. “The Lord of the Rings'” One Ring was magically enchanted to be indestructible, save by the fires of Mount Doom, making it slightly more impressive than the raw material from which it was forged. Gollum’s “precious” was made of gold. Mr. Tolkien demonstrates that fantasy writers need a firm grasp on reality to be effective.
My passion for gold as money is on par with my passion for fantasy stories. We call gold and silver “precious” metals for a reason. This word means “of great value; not to be wasted or treated carelessly.” I have written about gold as money in past articles, so instead of repeating myself, I want to quote an authority on the subject. Below is from “The Morgan Report.”
“When money loses its integrity, freedom soon follows. Throughout history, the erosion of honest currency has marched in lockstep with the erosion of civil liberties. The connection is not coincidental, it’s causal. Because money is not just a medium of exchange; it is the lifeblood of voluntary action. When it’s corrupted, everything downstream begins to decay – personal agency, self-reliance, and ultimately, freedom itself.”
Mr. Morgan uses the term “honest currency” in place of the commonly used term “sound money.” Gold and silver were originally called sound money because they made a ringing sound when dropped. I think it stuck because sound also means “sensible.”
The reason honest currency is important comes back to that word trust. If people don’t trust their hard work will be rewarded, they’ll stop working. If people don’t trust their money will retain its value, they’ll spend it all. If people don’t trust they have a chance at a better future, they’ll stop planning.
Mr. Morgan’s reference to “voluntary action” is vital. Sound money allows people to build self-reliance and engage in partnerships and collaborations only when it benefits all parties involved. Fiat currency forces dependency on a government which steals from the many to give to the few.
Why am I so passionate about this subject? For one, I think we’re at an inflection point – in many ways – in our society, and in the next few years, money will play a huge role in either empowering the individual or enslaving them to new and terrifying degrees.
If this is shocking to you, know that it’s nothing new. Nixon admitted we’d broken from gold in 1971, and really it happened long before that. In 2008, the Fed decided it could create as much currency as it wanted, and it has manipulated interest rates since its inception in 1913. In 2020, the Fed removed reserve requirements completely, meaning banks can loan out as much currency as they, want with nothing in their vaults, not even paper notes, or digits on a screen.
Go back to ancient Rome, and the Caesars at least did the hard work of melting down gold coins and mixing in base metals such as copper to debase their currency. But in truth, they probably had their slaves do that.
Looking to the future, the more people understand what money is, and its powerful role in society, the harder it will be for governments to shepherd us into the next pen of central bank digital currencies and begin the scam all over again.
Gold was priced at $2,625/oz. at the beginning of 2025 and reached a high of $4,356/oz. in late October. It has pulled back about $400/oz. on the commodities exchange, but the price of physical gold bullion only dropped about $200/oz. Tolkien said evil cannot create but can only corrupt. Even gold has been corrupted by derivatives and exchanges.
The disconnect between reality and fantasy is becoming apparent. If you think your house has gone up in value, check it against gold. If you think your stock portfolio has returned 7% year-over-year, check it against gold. If you think your dollar will buy you as much tomorrow as it does today …
No one knows how the next monetary reset will occur, but one thing is certain: As world governments continue to expand their currency supplies as the only means of maintaining wealth and power for their constituents, the price of gold as measured in those currencies will go up. More accurately, the value of those currencies will race to zero – as they always have throughout history.
