You see, tribal life and the human nature that comes with it will not allow any monetary system to “completely” destroy the wealth of a good portion of society. Even if everyone is plainly shown that they are going to lose something, they would still opt for the good of the overall tribe. This is why we return, time and again, to fiat monetary systems. In the few examples where a gold system brings the harsh reality of loses to bear on a nation, war is usually the result. Not a good outcome.
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Those responsible for their losses must bear them, but not so as they are destroyed.
A child must suffer consequences to learn their limits; yet those consequences must be limited. Similarly, at some point, a society as a whole acts as a parent, to limit the damage suffered by those who don’t know better, those who have no choice in the matter, those who were caught in the wrong place at the wrong time.
Gold is unforgiving. It is unmoved by human need or emotion. It is not able to be created from nothing. All of these combine to reinforce one thing; gold should not be used as a peoples currency. There are times when currency debasement is a necessary wrong, so that the many can bear the cost of that which could not be borne by the few.
As such there is an inherent danger and opportunity in holding gold. It is value which cannot be taken through debasement. It allows you to stand apart from the masses who lose a percentage of what they own every time more currency is injected into the system. In standing apart, you assume your own responsibility regarding how you choose to help those who cannot bear the losses they have suffered. There are times when to be seen not to be ‘chipping in’, will not be tolerated.
When currencies fail, for fail they do; value flows back into gold. If you hold gold, and gold is now worth fifty times as much currency as it had been, where does that leave you? Where does that leave you when those around see the value of their savings drop to a minor fraction of what they were? What responsibility does that place on your shoulders? Is that value yours?
I won’t answer those questions. Different people will answer differently. But consider the other questions, that those without gold would be asking at that point.
What just happened to me? Why did this happen to me? Who did this to me? Who benefited from my loss? Where can I go for help?
In times past, the answers to those questions lead to lynchings, riots and the guillotine. Consider carefully the way forward.