Sunday, March 07, 2010

Gold is the sovereign of all sovereigns

Whitesmoke's Writing Tool

An amusing play on the difference in meaning of sovereign as a monarch or sovereign as a gold piece incorporates a truth: cash is the king of kings.

Without money to pay their supporters, rulers, be they ancient kings or modern democratic governments, all fail.

Another meaning might refer to gold as a store of wealth that governments can not debase by printing money. Over time, gold tends to hold its value and adjust for inflation, whilst fiat money withers away and eventually becomes worthless.

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