Wednesday , 24 July 2024

Debt, Not Gold, Is the Barbarous Relic – Here’s Why

Agriculture was our earliest form of savings and it was thegold2 key ingredient to civilization. With a vast pool of food savings at his disposal, early man could put down roots and build societies without having to worry about where the next meal would come from. It was this sense of savings that formed the dividing line between primitive man and civilized man.

By: Simon Black, Founder,

This reminds me of that old criticism about gold being a “barbarous relic”. John Maynard Keynes first coined the term when he denounced the gold standard, and Paul Krugman has echoed this sentiment in our own time. (Both men are champions of government spending and the inexhaustible creation of paper money.) It’s a curious statement, though, given that gold is an acknowledged form of savings.

Even governments and central banks around the world continue to hold gold as part of their official reserves.

  • Owning gold is saving, which by definition is civilized, i.e. NOT barbarous.
  • Debt, on the other hand, is the exact opposite. It is a lack of savings that shows a complete disregard for the future.

It is the modern equivalent of gorging on some wild beast with no thought to tomorrow’s meal… or in this case, no thought of tomorrow’s generation.

Debt is the barbarous relic, not gold, and governments are up to their eyeballs in it, continuing to engage in this primitive, uncivilized behavior with wanton abandon.

Don’t expect them to change their ways

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[The original article* was written by Simon Black ( and is presented above by the editorial team of (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter (see sample hereregister here) in a slightly edited ([ ]) and abridged (…) format to provide a fast and easy read.]