Wat voor definitie mogen we daar nu wel geven en wat is het beslist niet. Hieronder zijn de Freegold omschrijvingen van Fofoa eens op een rijtje gezet. Het concept van Freegold is iets dat verschillende dingen betekent voor vele mensen met duidelijk uiteenlopende achtergronden. Freegold is aan de ene kant doodsimpel, maar toch ook weer zeldzaam ingewikkeld tegelijkertijd. We zijn op de goede weg, maar het gaat wel erg langzaam.
Wat is Freegold?
Omdat ik al vele discussies over Freegold met een aantal mensen achter de rug heb, leek het me gewenst om eens uit te vissen wat er dan achter de term Freegold schuilgaat. Echt wijzer ben ik er niet van geworden, maar misschien dat anderen uit de brei van antwoorden, wel een fatsoenlijke definitie kunnen brouwen. Als basis hiervoor heb ik Fofoa met zijn verzamelartikel genomen.
From my point of view Freegold is not ‘solution for’ but will be the ‘result of’ the current financial mess that we are in today. To better understand what lies ahead, one must be willing to have an open mind and think objectively. More importantly, the seeker must be willing to set aside triggering emotions that prevent thinking as the ‘other’.
Freegold… is kind of like a runaway freight train coming right at us. It is not stoppable and it is not controllable. It has a mind of its own and too much momentum to do anything but prepare for its arrival.
Freegold flows from the ‘retirement’ of a system based on a bastardised single fiat currency.
A true paradigm shift.
Freegold is the end of today’s massively-leveraged, fractionally-reserved bullion banking system.
What went wrong during the gold standard was…the fact that physical gold and the unit of credit traded at the same price.
The solution is… never denominate credit in a weight of gold. More precisely… to avoid that any of the credit that circulates as currency…. is denominated in a weight of gold.
Following the work of Another, FOA and FOFOA…we use the term free gold value for the price of gold that you would get if gold were not tight to credit…
Victor the Cleaner
Freegold gives the market a real point of reference, physical gold, from which to assess the relative values of everything else. This is the point of reference originally chosen by the natural evolution of money, over thousands of years. Nobody invented money. It evolved naturally from our desire to exchange goods and services.
There’s a reason governments and central banks hold massive amounts of gold as reserves. They hold gold for the day that simply printing money no longer allows them to kick the can down the road any longer. When that time comes, all those gold reserves will be revalued, the world’s currencies will be devaluated against those reserves and we start all over again.
Freegold: Able to save without any need to understand Futures, Options, Bonds, Banks and Currencies. No need to understand Derivatives…
‘Saving for the rest of us’
Easy, simple, natural and beautiful. Some coins, some bars, that’s it. No struggling with risks anymore. Saving for living instead of living for evaporating savings.
Freegold is not the stateless free market.
Freegold is a market reaction to the existence of states and their attempt to fuse the store of wealth with their fiat medium of exchange.
Sure, Freegold will certainly limit statist encroachment as it makes it harder for the State’s to spend beyond their means and exploit seigniorage, but Freegold does not equal market anarchy.
Freegold is in some respects the re-emergence of the market’s dominance vis a vis states, but it is not the absence of the state.
This is what Freegold is all about.
It is about deducing the inevitable implications of an unstoppable avalanche. And it is about fiat currency finally finding its natural equilibrium with a parallel physical gold wealth reserve.
This is what gold will be freed from:
the fractional reserve banking practice, which is a carryover from the gold standard.
This is the free in Freegold.
Freegold is evolutionary mechanism by which the world will be able to rebalance. Gold is the thing that anyone wishing to maintain their purchasing power must hold, as the currencies are devalued against it to varying degrees. But as individuals we can choose to do that, or not do it, just as we see fit.
Freegold = an astronomical rise in price/value of an ounce of gold when it becomes free from the delution caused by the creation of paper gold. When 1 ounce of gold equals 1 ounce of metal, and does not equal approximately 100 gold certificates, each denominated 1 ounce of gold (that is 100 pieces of paper per ounce of real gold) gold ill be free to reclaim its place as the wealth reserve par excellence.
In the current monetary system, almost all savings are ‘paper’ (i.e. physical currency, currency denominated accounts like checking and saving accounts, Certificates of Deposit, stocks, bonds etc). Today’s savers hope to exchange these ‘paper’ claims in the future in real physical assets. Over time, ‘paper’ claims have grown magnitudes larger than the real assets which exist in our world. There are not enough real assets to satisfy all the ‘paper’ claims which exist.
Imagine a balloon stretched to its limits. When it pops, all the air inside the balloon dissipates, leaving only torn and shredded rubber behind. It is reaching its limits, and sometime soon, it will break. ‘P‘per’ promises will disappear and those who counted their wealth in ‘paper’ will see that wealth disappear – in an instant. Those who hold their wealth in real, physical assets, will see their wealth through the transition.
After the system breaks, savers will seek a store of value which is real – something you can touch and possess. The world has already chosen physical gold as the primary wealth reserve. Those who live in the west have forgotten the historical use of gold as a store of value. But, while the old system still exists, we have the opportunity of a lifetime, to convert some of our ‘paper’ tp physical gold. This will allow us to carry our wealth, intact, to the new system.
No-one knows how much time is left – but it is better to be too early, than to be a day too late. Gold – get you some (h/t Ari).
Freegold is when gold becomes the focal point of reserves (savings), from the household level to the central bank level. It is defined as gold free from gold banking and other gold derivatives that create false gold supply in the form of paper claims (credits) for physical gold. Demand for gold is met solely by physical gold supply.
Physical gold and gold credits are no longer considered to be the same thing. The focal point for savings (reserves) shifts from credit (someone else’s debt) to payment in full and as it pertains to gold, from paper gold to physical gold in possession.
Freegold is a condition in which physical gold trades free of fractionalization schemes designed to artificially expand the stock of physical gold by means of derivative instruments, specifically, Futures, Exchange Traded Funds and gold mining shares. The evolution into a physical only market is necessitated by a host of requirements, the primary one being the need for savers the world over to possess an asset safe from the inevitable loss of purchasing power experienced by all currency and its debt derivatives.
Freegold is the time when there is no longer credit denominated in gold. By being unshackled from that physical gold is free to return to the center of the monetary system where it will evaluate all currencies. Where it is the reference point for value. Physical gold will be freely sold and bought against all currencies – allowing the user to completely exit the monetary system by holding physical gold which will retain its purchasing power for however long one holds that physical gold. It is the realization that physical gold is a wealth asset par excellence.
Freegold. An economic regime whereby the functions of money are split over multiple mediums.
These mediums are freely exchangeable at a floating exchange rate and contracts are only enforceable in the medium of exchange.
Freegold. A monetary system in which long-term savings (transaction settlement) self-focuses in a medium that is not essential to the real economy.
Large scale demand for this settlement medium, from international trading all the way down to personal savings. does not affect consumer prices (and the price transaction mechanism) because this medium is not used in industry or as a raw material.
To work, this medium cannot be debt based and must be already a focal point of the global super-organism: gold.
Freegold is the return of ‘advanced’ paper savers to a natural state of appreciation of physical gold for savings and final payment. It will coincide with first depreciation, than collapse of excessive promises in the current financial system. All monetary institutions and governments will thenceforth be forced to accept that temporal performance of paper instruments will be measured in gold. Gold’s role as savings/reserve as final payment will function on all levels from intrapersonal to international.
Freegold is a gold stabilized monetary system.
Freegold is the recognition and differentiation of wealth and money, as well as savings and investment.
Robert LeRoy Parker
Freegold: where your money is soft and your savings are hard.
Freegold is not a monetary standard based on a durable commodity. It is a monetary standard based on pure, printable fiat.
Paper gold will no longer expand to meet demand…..This allows the price of physical gold to float free of paper gold and fiat currencies.
Freegold – a monetary system with animal spirits held in check and anchored to the physical reality by physical gold held as a pure wealth asset outside of the financial system.
Max De Niro
There’s too much imaginary wealth relative to real-world things. There is too much paper gold relative to real gold. Eventually, these things will reconcile. Freegold.
For a monetary system to work anyone, anywhere must be able to exchange the currency for gold at a floating rate. This is FREEGOLD. It is all of the natural consequences that will flow from the ending of fractional reserve banking, an unsustainable carryover from the official gold standard of yesteryear.
The definition of store of value as a monetary function is how long participants are willing to hold any surplus of said money for the purpose of storing value. The separation of this role from transactional currency means that surplus currency will be spent rather than stored for its long term value. What you spend it on is up to you. Freedom of choice!!!! But the ‘focal point’ of this global activity will probably be not baseball cards.
The concept of money/credit has had a stranglehold on the value of gold since antiquity – the last time gold was simply the most widely tradable wealth item. Today is different.
Today gold has a stranglehold on the entire global monetary and financial system as it holds (to quote Another) the ‘big poker hand’. The system appears to be pushing gold around with its big stack, but very soon they will both be all in and we’ll get to see their hole cards.
Freegold is what happens after the Dollar International Monetary System collapses under its own weight and pure fiat currencies bid for unemcumbered gold.
Freegold is physical gold freed from paper. Gold is valued by the superorganism for its utility as a store of value. Fiat/credit finds an equilibrium with gold utilized as a wealth reserve.
Freegold reconciles the stability of the Gold Standard with the flexibility of the FIAT regime through separating the Medium of Exchange and the Store of Value, thus creating a globald peace-mongering monetary system with the potential to last a millennium.
Gold will be free to do what it does best, preserve wealth through generations… Freegold will aid in balance, accountability, transparency and honesty….. An organic system to work with humanity’s natural tendencies….
Freegold is the realization that one should store … purchasing power (i.e. save) in a physical item that is useless (for all intents and purposes) in one’s daily life… yet at the same time is naturally indestructible…All paper vehicles for saving fail this criteria. All commodities (including silver) fail also. Only physical gold fits the bill, hence……Freegold
Freegold is a self-referential corrective mechanism as a stable value reference which in turn brings stability to other assets through relative association with a stable value of gold, in essence the ‘anti-bubble’.
Freegold is the end of QE, WITHOUT Armageddon.
This we grasp from the flower of understanding.
A simple saver in today’s world is forced to save in one or all financial markets, a gladiatorial arena of constantly shifting winners and losers. There is no choice but to join the fight, else be abused. Freegold will allow a saver to opt-out of the fight, to leave the arena. Let those so inclined, duel for the high-stakes and fortunes.
Freegold is Money 2.0 ‘Back to the future’.
We all know, intuitively, that a system based purely on confidence on confidence and trust in one another is, sooner or later going to collapse – this parallel monetary and societal destruction has happened over and over throughout history.
The Euro-Freegold project was designed in anticipation of the next time a purely-confidence-based fiat currency (the US Dollar) reaches the moment where its credibility has peaked and it has entered terminal decline via hyperinflation. The intention of the men who created the Euro was to allow the monetary collapse to occur without the concurrent social destruction.
The Euro accomplishes this by separating the store of value function of money from the medium of exchange and unit of account functions. Physical gold bullion as the store of value for savers and infinitely expandable fiat currency for governments….
Freegold is the superorganism viewing the world through the focal point….from countless angles.
Paper gold and physical gold are entirely different things, but they are not free from each other – they are tied together by the same price. The West keeps oil and gold affordable by balancing upward forces of Eastern demand for physical gold with downward forces of increased supply of Western paper gold….Physical gold will be restored to its historical place as the best store of value. The price of physical gold will rise, pulling itself free and then floating freely against all currencies. Freegold.
Freegold is gold allowed to trade among individuals as well as nations at its true market value. Paper proxies, which dilute and obscure gold’s real value are abolished. Gold is free from fixed price links to any nation’s currency. The gold price expressed in each currency reflects the effectiveness of that nation’s monetary policy management and its economic health. The flow of gold between creditor and debtor nations serves as a natural equilibrium mechanism that over time counteracts imbalances. Gold serves as the ultimate wealth storage asset. It removes the need to save in alternative vehicles which all inherently pose the risks of debasement or loss.
Physical gold, unfettered by a commodity futures market, unpegged by governments, central banks and currency issuers; is recognized globally as a premier store of value for saving; is traded openly between individuals, corporate entities, governments and currency issuers as a secondary medium of exchange; is used as a reference point reserve asset for currency issuers such that its floating value is seen to indicate one currency’s strength relative to another.
There comes a time in all things when one must do nothing and simply wait. This an ages old truth that crosses all boundaries of life’s endeavours; for everything is not always in the doing, but also in the watching. Any good farmer knows that he does not grow a crop; he prepares his fields so the growing, he knows is coming, can take nature’s course.
My friends, we crossed time and space, while plowing these fields of understanding…it won’t be long before the rains come, and the ground begins to open.
Nou lijkt het me dat iedereen die hier zijn bijdrage aan geleverd heeft, best wel over Freegold heeft nagedacht. En één ding staat hier als een paal boven water en dat is dat iedereen het er over eens is dat goud, op de een of andere manier, verbonden zou moeten zijn aan het monetaire systeem. Nou daar verschillen ze dan niet veel van in mening met centrale banken en overheden.
Goud als wettig betaalmiddel
Wat ik persoonlijk mis in bijna alle omschrijvingen, is de herintroductie van goud als wettig betaalmiddel. En dat lijkt me een voorwaarde. Wat voor zin heeft het om te sparen in iets, waarmee je niet zou kunnen betalen, zonder omwegen. En dan niet in de vorm van munten met ‘face value’ of iets dergelijks, maar wel in de vorm van een vaste gewichtseenheid, waaraan willekeurig welke fiatwaarde gehangen kan worden. En dat kunnen dagprijzen zijn, of prijzen per kwartaal. Ik verwacht wel dat die fiatwaarde zich dan redelijk snel op een bepaald niveau zal blijven handhaven, omdat het als wettig betaalmiddel gebruikt kan worden, waarmee het dan indirect meer stabiliteit aan de fiatwaarde geeft. Voor mijn gevoel is de term Freegold voorlopig nog steeds een modewoord, welke betekenis niet vast staat. En als je dat woord niet gebruikt zoals er toch veel grote jongens doen, dan tel je niet meer mee. Nee geef mij voorlopig maar de unadulterated gold standard, die is al wat preciezer of liever nog het nu al mogelijke systeem als omschreven in Dorothy’s Silver Shoes als begin naar de echte goudstandaard.