John Dowe

Gold Austrian Ducat Coin

They are defined in terms of gold but can never actually be redeemed in the metal.'5 They are intended forever to remain abstractions—evi- dences of debt that can never be repaid. Money is to be debt and debt is to be credit, and the debt is evidenced by interest-bearing notes or bonds. When due, the principal and the interest on the bonds are paid from the proceeds raised by the sale of more bonds.

The more we get into debt the richer we are to become. The IOU’s, called bonds, are deposited in the banks where they are called “assets," and therefore more "money” can be created from these assets to make new loans, and new loans mean more assets, and more assets mean more money—and so on into infinity. It is the perfect system, unified, self-contained, abstract—but if we try to touch it, it may one day disappear. Lenin is said to have predicted that the free world would eventu- ally destroy itself by debauching its own currency. Whatever else may be said of this Marxist Machiavelli, it is obvious that he was an astute observer of history. There is an old Swiss saying, “Good money is coined freedom.” These hardy mountain people have also learned the lessons of history well. They know that their destiny depends, as did that of the ancient Byzantine Empire, on the world’s respect for their money rather than for the military power they can display. It is no accident that the Swiss have be- come the indispensable bankers to the world; they have the world’s most reliable money—backed 100 percent by gold. They sum up their future very simply: “No gold; no Swiss.” But if good money still circulates in parts of the West, despite the inflationary illness that has become chronic with us, the same can no longer be said of good intrinsic-value coin.

Credit and monetary inflation can seldom be contained within the borders of those countries that originated it. The paper dollars of the U.S., when they can no longer be exchanged for intrinsic-value coin or bullion at home (our gold coins were taken from us long ago and nearly all our subsidiary silver has disappeared into the hoarder’s vaults), reach out for the good coin of other countries."s Despite laws to the contrary, the silver and gold coins of Canada, 56 HOW TO INVEST IN GOLD COINS Mexico and even Switzerland, for example, have been exported to the limit.