Fair Money: How a return to the gold standard will lead to social justice and fairness in Australia

By Dan Denning

2011 Gold Symposium

Luna Park, Sydney

Fair Dinkum and Gold

• The word "dinkum" was reputedly coined on the Australian goldfields. It comes from one of the Chinese dialects widely spoken at the diggings: "din" and "kum" loosely translating as "true gold". Catherine Le Breton, Leura

• Fair Dinkum was a response of the early Chinese goldminers to the question: "Are you finding a fair amount of gold?" because "din-gum" means "good gold". So over time the expression has become a positive response to a good news story. Garry Tipping, Beecroft

Dear Australia: A Letter on Fairness

If you want to build and live in a society with fairness as its central ideal, you absolutely have to understand gold’s primary significance in the monetary and political system, as a way of limiting government power and promoting individual liberty.

Six ideas left to prove

• 1. Define fair money and social justice.

• 2. Show how gold promotes economic fairness

• 3. Show how gold promotes equality

• 4. Show how gold promotes sustainable growth and the non-wasteful allocation of resources

• 5. Show how gold rewards real productive labour by preventing the immorality of fractional reserve banking

• 6. Show how stable prices reduce financial volatility, social instability, and likelihood of global depression/Armageddon

Fair Money Defined

Fair money does not lie about its value. It is not counterfeit. It is honest. For money to be fair it must have universal physical properties—as gold does—or it will always be subject to the use and abuse of people who seek to control the money system in order to gain political power and hack away at individual liberty.

Which is to be master?

“When I use a word,” Humpty Dumpty said, in rather a scornful tone, “it means just what I choose it to mean—neither more nor less.” “The question is,” said Alice, “whether you can make words mean so many different things.” “The question is,” said Humpty Dumpty, “which is to be master -- that’s all.”

“Social Justice” Defined

• People who seek political mastery over others use words to manipulate public opinion to their advantage use this term.

• “Social justice” is not an alternative form of justice. Justice is justice.

• “Social Justice” is a critique of the free market system that implies it is fundamentally unfair and seeks to correct perceived wrongs through taxation, regulation, and prohibition.

Misdiagnosing the illness

• The problem is not profit or the free market.

• The problem is that the market is not free and money is not sound.

• The economy has been hijacked by a banking system while relies on fiat money.

Gold promotes economic fairness

1) A monetary system based on gold will limit the power of the State to make war internally and externally.

2) The definancialisation of the economy will allow people to plan.

3) The value of your labour can’t be stolen through systematic inflation.

Gold promotes equality

• Equality of opportunity vs. equality of outcome

• An economy system based on sound money (gold), low taxes, free trade, private property and the rule of law creates more wealth and opportunity than any other.

• It turns banking into a low-profit utility based on prudent risk and capital management.

Gold and sustainable growth

Austrian Ecologists

• The unchecked expansion of credit beyond available savings creates giant misallocations of capital and invariably leads to faster resource depletion through bogus GDP growth and the various, resource-intensive manifestations of the credit bubble.

• With gold as money, growth is more sustainable and enterprises that create real value are rewarded.

• Promotes good stewardship

Gold rewards productive labour

• It is “unfair” that bankers and financiers make a lot of money without doing any “work.”

• A financial system based on fiat money will always be “unfair.” It will reward those who control the money supply and benefit from inflation and punish savers and the prudent.

• Prevents immoral fractional reserve banking from destroying the accumulated value of your labour.

Gold reduces the possibility that the world will end in 2010

• Reduces financial volatility

• Political instability

• Social instability

• Geopolitical instability

• Mental instability

• Systemic instability

Social media, crowd behaviour, and positive feedback loops increase instability

The Madness of Twitter

• The more fiat money and credit expansion create price instability, the more unstable systems get.

• Social media accelerates and amplifies instability.

• Social media promotes crowd like behaviour.

• Crowds go mad.

• Continuous pricing and information flow short circuit the decision-making ability of our central nervous system. We are not built for this.

Three crowds in conflict

What are the odds of a monetary system based on fairness?

• Two-tier Euro system

• Bank nationalisation

• Debt restructuring

• Default

• New global fiat system based on SDRs in 2015

• Chaos

• Increasing systemic instability

Fore more cheerfulness go to…

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