August 15, 2011 – Make no mistake, gold bullion is definitely heading for a bubble. We just haven’t got there yet. But the day is coming when a single act will finally bring an end to the metal’s historic run – global re-monetization of gold.

Of course I expect very few of us will be around to witness that day. I fear the world has not learned a very important lesson yet and will make one final stab at a fiat money based economy, perhaps with some form of global currency. For a while things will pick up again, as it always does when a new currency emerges. But inevitably it too will fail, with repercussions that will make the fallout from this crisis seem mild.

The corrupting influence of fiat money has proven to be irresistible every time it has been adopted. Culture evolves slowly, growing around widely accepted tenets of the day. The more ingrained those tenets become, the more unshakable is the dogma and the more difficult it becomes to change course.

It will never again be as easy to return to hard currency as it is today, but it will never again be as difficult to sway popular opinion in that direction. Humans need faith to survive and we vest our faith in our dogma. It is our nature to believe that everything is as it should be. And it will take a great deal more than the troubles we face today to cast aside our preconceived notions and seek out a better way.

Just look at the headlines. All weekend long the media speculated on what will happen to our 401Ks when Wall Street gets back to work this week. Meanwhile the President has abandoned his office to rejoin Congress on the campaign trail, where everyone is spoon feeding the public with the Pablum it craves rather than telling us like it is. There was one voice of reason, however, but he has now withdrawn for lack of popular support.

Tim Pawlenty was a bulldog with his teeth firmly clenched around the Fed’s leg. He didn’t come to us with any grandiose plans or flowery speech about how everything was going to be all right. But he knew that nothing else would matter if we didn’t start by abolishing the Fed.

Andy Duncan tells a strikingly similar story in the Mises Daily and pleads for the one voice decrying the Bank of England’s “abysmal record of incompetence, predictive failure, and dismal Keynesianism” to be heard.

I would rejoice at the end of the bull run on gold bullion, but it seems unlikely I will live to see that better world.

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Jonathan Monroe

Senior Staff Writer - Gold-Bullion.org