Some people have expressed annoyance to the systematic use by me of references to the rules of goldbuggery while suugesting that those rules do not exist except in my mind.
First, let me tell you that I neither invented the rules nor compiled them. Who made the rules were the goldbigs themselves and who compiled them was, apparently, a guy called Barry Ritholtz. See link bellow.
Second, if Goldbuggerism is amenable to codification in no more than 12 paragraphs, then it must be because in its essence it is a very simple matter. Actually, once you are in position to know the rules, you soon realize that everything being posted here does revolve around them.
In other words, once you know the 12 rules you are in possession of a powerful schema of interpretation that helps you never get lost.
Examples:
Apparently SP posted this:
"Why aren't our Australian gold miners forming their own gold production cartel for Australian produced gold - where they refuse to accept a price for their gold set by sales of billions of dollars of paper backed by no gold. Why aren't our Australian gold miners instead marketing their combined gold production each month direct to buyers such as China and Russia?"
And in response Happycats said this:
"Aussie gold is mostly mined by Americans, Canadians and South Africans.
China is the world's largest producer of the metal."
What to make out of it?
Well, rule 1 states that:
Gold is a Currency: This is rule number 1. It is not a decorative or industrial metal, it is a permanent store of value, as dictated by Greeks in Lydia around 700 B.C. And, it shall be ever thus.
While rule 2 states:
The price of gold cannot fall, it can only be manipulated lower: When gold’s price falls, it is an unnatural act. It can only occur as the result of an international cabal of Central Bankers and politicians. Its a conspiracy, and we know who the guilty parties are.
And rule 12 states:
China & India know the value of Gold; the Western world does not: The massive buying of gold by consumers in Chindia reflects the culture, intelligence and investing savvy of the people in these countries. The West doesn’t get it, and it is their loss.
By combining these three rules one immediately can realize the following:
That the savvy Chinese, understanding that gold is the currency of the future (rule 1) would do, due to their position of number 1 gold producer in the world, everything in the power to undermine any attempt at the formation of a gold cartel. This because they are still in the process of accumulating gold, which they want to buy from the West (rule 12) at the cheapest possible prices.
And because they want to buy gold from the West a the cheapest possible prices they would not hesitate, if necessary, in assisting Ben and the other centrals bankers in their permanent effort (conspiracy) to bring the price of gold down (rule 2).
Without the rules, you would never understand why the People's bank of China has also joined the conspirators.
At this point I hear you asking, what about the Americans, Canadians and South Africans miners?
To begin with, because the South African miners are foreign owned, we can for obvious reasons remove them ending up with only the Americans and the Canadians.
However, as you have already started suspecting, the Canadians miners are themselves owned to a large extent by the Americans, which means in the end that all these miners are also part of the group of conspirators working in support of the dollar by producing as much gold as possible from mines around the world and in so doing putting a lead in the pog (rule 2 again).
As you can see by knowing the rules you will be able to see more with your both eyes closed than the entire world with theirs open.
