Look Who's Buying the 'Barbarous Relic' Now

Gold is a barbarous relic.

NEW YORK ( TheStreet) -- Even most ordinary people who rarely pay any attention to topics in the realm of economics will be familiar with the expression above. Like most of the Big Lies from the media propaganda machine, our governments have made sure that most of us have heard this one enough times to have it burned into our psyches.

As with most of these Big Lies, this, too, is a blatant perversion of the truth. It will come as no surprise to gold bugs and that dwindling minority who advocate sound monetary policies that the reference to gold as a "barbarous relic" was made by the one and only John Maynard Keynes. It was from Monetary Reform, a book Keynes published in 1924 -- and it was a reference not to gold itself -- but to the gold standard:

In truth, the gold standard is already a barbarous relic ...

Thus the original reference was made by the most infamous paper-printer in all of history, desperately searching for some insult he could hurl at the gold standard in order to attempt to make his monetary nonsense sound appealing to the Sheep -- i.e., the global economics community.

For those not familiar with the mechanics of national economies, the gold standard has often been referred to over history as "the golden handcuffs." How did it acquire this intimidating nickname? Because it absolutely limits our governments from any extreme/insane fiscal or monetary policies without the consequences of those policies being immediately known to the general public.

A government trying to run huge deficits (like the U.S. government was doing during the Vietnam War), would quickly see its "bank account" (i.e., the national gold reserves) quickly evaporate as paying for those deficits emptied the government's Treasury. Thus, the primary reason a gold standard is despised (or rather feared) by the charlatan money-printers like Keynes and the deadbeat governments of modern Western economies is that a gold standard forces governments to pay their bills.

However, the fear/hatred of the Money-Printers and Deadbeats toward the gold standard doesn't end there; it only begins. By definition, a gold standard bases all new currency creation on one's national gold reserves. Thus, these handcuffs also prevent Keynes and all his central-banking ilk from allowing the printing presses to run wild with new money printing -- quickly destroying the value of any currency with dilution. So, in addition to forcing governments to pay their bills, it also prevents them from excessive money printing. Two strikes against the gold standard.