As the Western welfare states crumble beneath the weight of years of unsound policy, inflation, and a byzantine tax system, gold has become an increasingly attractive way of representing wealth. The Telegraph reported that gold has reached an all-time high around the world, and that emerging powers such as China and India have abandoned the American dollar and have increased their gold reserves. In Indonesia, where gold prices recently closed at a price of some 13.6 million rupiahs per ounce, some local governments have recently allowed private mints to issue gold bullion as legal tender to be used as a transaction medium. And last year, Vietnam, also saw an increase in gold trading, as the Vietnamese dong continued to fall.
It will probably be not surprising to the readers of this site that gold is money. As a rare commodity, it is not subject to inflation. Long before fiat currency and inflation had been devised, it was almost universally favored as a medium of exchange. Fiat currency as a medium of exchange has lasted barely half a century, and is already crumbling. In contrast, in societies which were centered on order, the aristocracy as well as the nobility measured wealth in gold, and not in fluctuating money. The Islamic historian and theologian ibn Khaldun warned as early as the 14th century that civilization collapses with government transgressing upon property rights. Fiat currency does this by being continually debased.
The rise of fiat currency is inherently linked to the principle of degeneration, and in particular the degeneration of cities. In general, the city, in its Traditional context is the hub of power and regal bearings. The city was hierarchically arranged under the leadership of the King, and under him, the leaders of the tribes, clans, and families. The rise of fiat currencies in essence created a new class of individuals, and the rise of a fiat economy created a situation in which otherwise insignificant and parasitic individuals could become wealthy. Illegitimate wealth, gained through loaning fiat currency to governments and thus cemented power over royalty. The Rothschild family in Europe rose to prominence in this way.
Such a transfer of power away from the traditional owners of the city and its native peoples to a parasitic banking class represented the ultimate decline of nations. The nation lost its traditional hierarchy, and was now ruled by an alliance of financiers and corrupt politicians. Evola is quite explicit in describing such a phenomenon:
Aristocracy gave way to plutocracy, the warrior, to the banker and industrialist…Trafficking with money and charging interest, activities previouly confined to the ghettos, invaded the new civilisation. According to the expression of W. Sombart, in the promised land of Protestant puritanism, Americanism, capitalism, and the “destilled Jewish spirit” coexist. It is natural that given these congenial premises, the modern representatives of secularized Judaism saw the ways to achieve world domination open up before them.
Today, that system is failing. American, British, and European banks are now failing forcing their governments to frantically bail them out by printing more money, thus further inflating the world economy by increasing the volume of paper in circulation. Such a system will not be sustained any longer, and the entire system based on fiat money and usury is thus a fragile house of cards which has no choice but to be replaced with true and interest free assets which represent tangible worth.