Transcending the Mythology of Goldbug Tribalism
by "farfel"
One of the most popular slams against gold in terms of a monetary vehicle is its depiction as being a "barbarous relic." That criticism stems from the fact that gold has been used as money in one form or another for well over 5,000 years. As such, in the minds of those who champion a New Paradigm for mankind, the concept of gold as money is entirely counter-evolutionary since gold is the embodiment of vestigial primitive beliefs that a 21st century enlightened world must reject. These beliefs include:
1) Historical determinism.... the idea that history moves in predetermined
cycles and man is incapable of rising above them. Under this theory, major global developments (war, prosperity, famine, disease, etc.) occur in predictable wave patterns and no amount of human effort (from bio-engineering to alternative energy creation) can suspend or preclude their appearance at various points in time. Most goldbugs subscribe to historical determinism insofar as their unyielding belief that, no matter what fiat monetary instruments exist in the world, no matter how sophisticated or well-considered the fiat-based banking system, ultimately they are doomed -- while gold is destined to supplant them.
2) Tribalism....a man's identification with an ethnic, racial, religious or political group is a form of tribalism and, in ancient times, often the only link between the many disparate distinctive tribes happened to be the common currency of commerce....gold. However, the enlightened 21st century man is expected to reject tribalism in favor of "the Unity of Man," whose ultimate goal is one government, one people, one overriding belief system ...and one fiat currency whose good faith never need be challenged
by other competing currencies since there would be none. In the view of the anti-tribalists, there are huge economic inefficiencies and enormous counterproductive societal tensions in maintaining multiple currencies, multiple governments, multiple languages, multiple religions, etc. Since gold represents a direct link to the most ancient forms of tribalism, it must be destroyed in order for a New Paradigm to emerge that embodies the necessary ingredients for the unification of Man, one that will lead to a virtual state of Paradise on Earth.
3) Shamanism....in the New Paradigm, technology will rule and it will act as The Savior to a world quickly running out of vital natural resources, energy, and tolerance. To that effect, it is imperative to eliminate the guardians of superstition and spirituality (the shamans) who stand in the way of science's progress. Within the New Paradigm, there is room for only one God (technology). Gold is a notable enemy because it is championed by those who attach "magical powers" to the metal insofar as its historical and perpetual ability to save its owner from any potential crisis. In that regard, Gold challenges Technology in the role of Savior, and so Gold must be destroyed.
4) Militarism.....throughout history, when countries have clashed and various fiat currencies have been repudiated as a means of transaction, gold has served as the bridge between warring nations. For example, during WWII, many nations may have refused to conduct business in the currency of Nazi Germany....but they turned a blind eye to the national origins of gold. Gold has the undisputed reputation as the most favored commercial instrument during war. Since the New Paradigm aims to eliminate warfare entirely by creating a Heaven on Earth via technology, naturally, "the money of war" must also go.
5) Animalism.....there are those that believe that Man's membership in the Animal Kingdom condemns him to a destiny in which bestial passions (greed, corruption, envy, hate, etc.) often overcome noble aspirations. This bleak perspective is certainly not endorsed by advocates of the New Paradigm. Instead, they believe that, as technology advances, man's most vile passions will be eliminated. Unfortunately for gold, it is associated throughout
history with inspiring the worst emotions in men. In order for Man to transcend his animal nature, he must dispose of the instrument of commerce so directly associated with many of his most despicable evil deeds.
Although I believe there are certain New Paradigm goals worthy of pursuit, nevertheless, I am totally opposed to the apotheosis of Technology as a means to those various ends. In my mind, the deification of technology has more to do with venal profiteers in Nasdaq stocks, less to do with any true belief that technology will liberate Man from his animal self. Nor do I feel that the New Paradigm's relentless war on gold is anything other than a self-serving, elaborate, intellectual defense of an untenable and astronomical aggregate gold short position accumulated by Wall Street's bullion banks.
In the past, I have written volumes of material concerning the New Paradigm -- and after analyzing the model's concepts for some time now, I do believe that the gold industry and its investors must develop their own "Golden New Paradigm," or else gold may very well end up the deceased victim of its antagonists. That would be truly unfortunate since, today, gold has come to stand for independent thought and action in the face of the universalists who would choose to transform the world into one common denominator, amorphous, blob of humanity. It is particularly ironic given that there was a time not so long ago when the gold industry was perceived as being a private club of old-money, oppressive, Establishment types. Who would have thought there would come a day when the gold industry was forced off of its lofty perch and required to fight a daily battle for survival?
A "Golden New Paradigm" should embrace the best features of its antagonists' model while rejecting the worst. To that effect, I will litanize some entrenched goldbug patterns of behavior that MUST be transformed dramatically or gold will never free itself from the reins and restraints of its Wall Street Masters.
1) Goldbug superstitions....like rats trained in a Skinner Box, goldbugs adhere to a variety of superstitious beliefs, and their behavior is as predictable as the Sun rising in the East and setting in the West. For example, if gold is suddenly promoted on a mainstream business channel (like CNBC), then that is supposed to constitute a SELL signal and the properly trained goldbugs MUST immediately dump their gold investments. Another example: if gold is featured on the cover of a major business magazine, then that is supposed to signal that gold is far too mainstream and must be sold summarily. No doubt these kinds of dependable reactions by conditioned goldbugs must offer great comfort to the heavily gold short bullion banks who can always count on their strong ties to Big Media in order to create a sell panic in the gold sector whenever it is needed. Goldbug superstitions are vestiges of the shamanism which gold's detractors so deplore and, if gold is to play a significant role in the 21st century, then those who believe in gold as a choice financial asset must reject those superstitions which subjugate gold to the arbitrary whims of its manipulators. Otherwise, goldbugs appear no more advanced intellectually than those ancient civilizations who predictably would cower and tremble in the face of each and every solar eclipse.
2) Goldbug determinism.....time and time again, gold's antagonists trot out
statistics that are supposed to send gold investors racing for the exits. For example, the Commitment of Traders Report (COT) is utilized as a means to send shivers up gold investors' spines whenever the commercial traders become heavily net short. At such a time, the Street indoctrinates gold
investors to dump their gold holdings because "the commercial players always know best" and a major gold sell-off is inevitable. Forget the possibility that the figures may not even be remotely accurate or that they are purveyed by a heavily gold short Establishment whose bias against gold is all too evident....because the inevitable nervous reaction by gold investors
provides tremendous solace to those bullion banks who understand the true nature of goldbug determinism. Another example: if the gold lease rate suddenly drops, gold investors are conditioned to believe that there must be ample gold available to lease, the market will soon be flooded with the yellow metal, and the gold price will plummet. Even more ironic, many gold investors have been conditioned to believe that when the lease rate jumps, there will be a big dump in gold since shorts have borrowed large amounts of gold in order to short sell it into the market. So where the lease rate is concerned, the Street has whipped gold investors into believing that either a rise or a fall is a lose-lose situation for the price of gold....and as preposterous as it
sounds, it is all so true. Essentially, if gold is to become a meaningful factor in the 21st century, then it must break free of the shackles of its own
deterministic history. What that means is the gold industry must accept that the old rules governing gold's behavior need not apply any longer and there are simply no limits for what role gold can play in the shaping of the next global currency system.
3) Goldbug divisiveness...one of the saddest things to see in any oppressed group or culture is the inability to form a consensus on issues that truly matter. Today, there is little doubt that goldbugism is an oppressed culture and its members are about as united as the Palestinians and Israelis. There are notable and significant schisms within goldbug culture -- and I suggest most of the conflicts are encouraged by gold's opponents. After all, internal dissension is the best tool for suppression of any group since it does not require the active and ongoing participation of the group's antagonists. Instead, the group's members become their own worst enemies. What that means is that internecine disputes between the South African devotees vs. the North American gold advocates....the hedgers vs. the non-hedgers...the physical pushers vs. the paper promoters...the pre-1933 gold coin disciples vs. the gold bullion exponents...the GATA lovers vs. the GATA haters....all these little wars serve to keep goldbugs warring amongst themselves instead of confronting the true enemy: the gold short bullion bank Establishment and their mining industry proxies, those collusive cronies who covertly created the gold carry trade which hobbled an entire industry and likely would have destroyed it by now if not for the creation of the internet, an
alternative medium for communicating information amongst desperate, bewildered gold investors trying to figure out collectively why gold was sinking into the toilet. Somehow, all the petty arguments within the gold industry need to be placed aside for now and gold's supporters must unite in a solid cohesive front. If gold is to really matter in this new Millennium, then the gold industry must create a unity of purpose much more powerful and potent than that held by its bullion bank foes.
In the end analysis, each and every gold investor cannot do it alone -- but they can begin the battle by freeing their minds of the tired old catchphrases and the brain-dead rules of the game that limit the potential of the asset.
I try to do my share in my own little way. Whenever anybody asks me where I think gold is going, I usually like to say that I have absolutely no idea. However, at the same time, I like to point out that gold trades without a limit-up rule and so, with regard to its potential price rise, the sky is the limit.
Yes, close your eyes for a second, clear out the cobwebs of all your doubts, now open your eyes, then look up and see.....
The sky IS the limit.
"farfel"
19 December 2002
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