One of the characteristics of our modern age is an explosion in the prevalence of stealing. Theft has always been with us, of course. It’s the amount of it that’s changed, along with its nature and brazenness.
During the George Floyd riots, our TV screens were filled with images of looters emptying stores without opposition. The practice became so common that many stores closed down in jurisdictions that refused to stop the looters, unable to make a profit in the face of such constant and large-scale larceny.
Identity theft is epidemic, as are electronic credit and debit card theft, phishing attacks, telephone scams, ransom attacks, carjackings, home break-ins, package theft, SIM swap scams, and just about any other form of theft you can think of. Thieves are ruling the roost.
At one time, it was fairly easy for theft-conscious persons to avoid being victims. Anymore, it’s becoming far more difficult because many of the necessary precautions are somewhat or completely out of their control. If you are a veteran and establish an account with the Veterans Administration, you have to provide your name, address, phone number, birth date, and Social Security number to a government agency. It’s everything necessary for identity theft, and government is notoriously slow at keeping up with technological advances such as those necessary to prevent hacking.
Theft is inherent in the human condition, of course. Just watch a couple of toddlers for a few minutes to see how quickly one of them will take something from the other simply because he wants it. Appropriating the person or property of another is one of the most direct ways of obtaining what one wants. It’s so intuitive and natural that people need a good reason NOT to do it. Otherwise, it’s our default way of going about things.
Need more proof? All ten commandments deal with some form of theft or desire to steal. The first four deal with stealing from God; the last six, with stealing from man. The vast majority of any nation’s legal code deals with the prevention or control of theft. Even assault and battery is a form of theft–of health and peace of mind. And murder, of course, is the theft of life.
Preventing theft is therefore a major responsibility and necessity for any nation. Too much theft and the society ceases to function. Preventing theft takes resources, and when too many resources are directed toward preventing theft, too few resources are directed toward producing value. This is observable throughout Latin America, where theft is even more common than in the US.
But too much security can also cause problems. Governments love to outlaw some things in the name of preventing crime. Easy or secret payment systems are especially vulnerable. Large-denomination bills, secret bank accounts, untracked cryptocurrencies, and bearer bonds have all been eliminated or sharply curtailed, even though they can and do (or did) facilitate honest business. Cash has been in the cross hairs for some time now. Gold was outlawed for many years.
Ironically, government’s desire for power often aligns its interests with those of thieves. You’ve probably seen the bumper sticker: “Don’t Steal. The Government Doesn’t Like Competition.” There’s an element of truth to the quip. Governments want to tax every penny of yours they can, so they want to know about every penny you have. Increasingly, they also want to know if you support organizations or efforts committed to limiting their power.
Block chain could help us in the quest for online and electronic security. It not only enables secure currencies, it enables technologies that can secure and privatize sensitive information and valuable transactions. This could also protect us on the internet, but it would also prevent the government from knowing everything we’re doing. Power-hungry governments simply won’t allow that.
Obviously, government is part of the problem, but doing things illegally is a really bad move. Fortunately, it’s not necessary. Gold is legal, and it’s well established as such. It’s inherently valuable, remains so over time, is easy to obtain and store, is private to exchange, and can be made very hard to steal.
That’s a winning combination. Tune into Golden Rule Radio this week for information on how to invest in gold and why. Far from a barbarous relic, gold is one of the most up-to-date and useful things to put your money into. Central banks are doing it like there’s no tomorrow, but you can, too.
Key Takeaways:
- Answers to hard questions
- Trouble moving from periphery to core
- A valuable tutorial on gold investing
The McAlvany Weekly Commentary: Your Questions Answered
Every December David and Kevin solicit questions from their listening audience, and provide the best answers they can. This year does not disappoint. The questions include: Is China still a military threat given its severe economic distress? Given the importance of the base (insurance) leg of the Perspective Triangle, what’s the best way to store one’s precious metals? Another question was concise and pertinent: “Are bonds still safe?” A later question prompted one of David’s valuable book recommendations. Kevin had in the past mentioned a pericope from a book. It described a group of aphasiacs who showed signs of life in only one way: When they were lied to, they laughed. So when they listened to politicians speaking, they laughed hysterically. David gives the reference and highly recommends the book. One questioner asked if it’s true that most movement in a gold bull market happens in the final phase of its run, and, if so, where are we in that bull market? Another question pertains to whether bitcoin is the new gold, and there’s much more.
Credit Bubble Bulletin: Vigilantism and Deleveraging
This week Doug reemphasizes his belief that instability in world markets have made an initial leap from periphery to core. In other words, what began as deleveraging in emerging markets has now begun to affect major markets worldwide. Spotlighting leftist government actions in Colombia and Brazil along with the consequences of their policies, he mentions other peripheral economies well along in their deleveraging process. He also notes that, “It’s tempting to suggest that the revitalized bond vigilantes are now active globally–enveloping the ‘periphery’ while penetrating ‘core’ defenses.” He cites media reports of key rates in key markets rising, but also notes that global corporate debt sales are in record territory. There’s clearly a contrast here: “While the reality of a hostile new environment has begun to sink in at the ‘periphery,’ the exuberant ‘core’ continues to extrapolate ‘terminal phase excess.’”
Hard Asset Insights: Merry Christmas!
Morgan sends Christmas and New Year best wishes to his readers, along with key prices for the week.
Golden Rule Radio: Gold Investing Fundamentals
Gold can form the basis for a highly functional economy, but it hasn’t done so for many decades. Investing in it therefore requires constant awareness and careful use of both its absolute value and its relative value as one investment among many in a fiat currency system. This is not difficult to learn, but it’s easy to misunderstand at the outset. It’s therefore critical to understand. Taking the time to educate yourself on the matter can be highly lucrative and provide great safety for your portfolio. Tory and Rob accordingly take some time this week to provide critical information on how to invest in gold. One of the important things to understand is that people in general turn to gold when and to the degree that they lose faith in the system. So gold, as the insurance leg of the Perspective Triangle, comes into its own when the world looks foreboding. When fair winds and following seas prevail, the growth and income leg comes into its own. There are also asset preservation, privacy, and safety concerns that come into play with gold ownership. Be sure to bookmark and review this crucial tutorial on gold ownership and investing.
