Gold and silver in Britain’s coins – where did it come from and how did it get here?
Two thousand years of monetary history and what it tells us about fiat currencies
“Chancellors of the past would be turning in their graves – envious of Rishi Sunak’s ability to conjure money from thin air. In the past, there were three ways to increase money supply: Trade for precious metals, capture the wealth in battle and mine the metals. Over two millennia, the people of Britain have done all three. Rishi Sunak doesn’t have to do any of that – so much easier to wave a magic wand like Harry Potter.”
USAGOLD note: So true, but the process can lead to an unhealthy conclusion. Political conjuring of this sort points up the need to own gold and silver as part of one’s personal defenses. This point is well made in the ultra-long term chart reproduced below. Note the stability in the consumer price index for more than 700 years until Britain went off the gold standard launching a fiat money economy.
Sources: Bank of England, ICE Benchmark Administration Limited, St. Louis Federal Reserve [FRED]
Repost from 9-28-2020