The gold market is a great teacher. Over time – granted, it can be a very long time – gold
provides a rare example of how a free market works. But you have to get your nose out of the
textbooks, look around, and THINK. I believe the last one trips up more people than anything
Economics education, even (especially?) the best money can buy, has progressed very little
beyond rote. Theory and dogma are taught as facts, with which students are required to explain
everything they observe. It is a failure of imagination on a cosmic scale and it has brought us to
where we are today.
To be sure, there are a few maverick institutions that teach the full spectrum of economic
theory. Those who graduate from those schools are by far the best equipped to lead us out of the
quagmire. Unfortunately, they are the least likely to be given the chance.
Power is firmly entrenched in a crony system that isn’t at all friendly towards contrarians. Since
altruism is rarely the force driving business majors, it is not surprising that so many defer to the
status quo. That’s where the money is.
So for now, play along if you must. But that needn’t prevent you from questioning everything
you see. While they may appear to an odd lot, gold bugs perform a vital service and bear
listening to. Think about what they say and practice drawing your own conclusions. After all, it
was they who warned us well in advance of the troubles we are experiencing today.
The time will come when dogged adherence to outdated and faulty dogma will cause the status
quo to self-destruct. When it does, entrepreneurial economists will have their day. The best
preparation you can make is to follow the story of modern economics with an open mind as it
That story is well chronicled in the gold market.