The Gold Symposium Keynote Presentation 14 & 15 November 2011 Luna Park

1. Fair Money: How a return to the
gold standard will lead to social
justice and fairness in Australia
By Dan Denning
2011 Gold Symposium
Luna Park, Sydney

3. Fair Dinkum and Gold
• The word "dinkum" was reputedly coined on the
Australian goldfields. It comes from one of the
Chinese dialects widely spoken at the diggings: "din"
and "kum" loosely translating as "true gold".
Catherine Le Breton, Leura
• Fair Dinkum was a response of the early Chinese
goldminers to the question: "Are you finding a fair
amount of gold?" because "din-gum" means "good
gold". So over time the expression has become a
positive response to a good news story.
Garry Tipping, Beecroft

4. Dear Australia: A Letter on Fairness
If you want to build and live in a society with
fairness as its central ideal, you absolutely have
to understand gold’s primary significance in the
monetary and political system, as a way of
limiting government power and promoting
individual liberty.

5. Six ideas left to prove
• 1. Define fair money and social justice.
• 2. Show how gold promotes economic fairness
• 3. Show how gold promotes equality
• 4. Show how gold promotes sustainable growth and
the non-wasteful allocation of resources
• 5. Show how gold rewards real productive labour by
preventing the immorality of fractional reserve banking
• 6. Show how stable prices reduce financial volatility,
social instability, and likelihood of global
depression/Armageddon

6. Fair Money Defined
Fair money does not lie about its value. It is not
counterfeit. It is honest. For money to be fair it
must have universal physical properties—as gold
does—or it will always be subject to the use and
abuse of people who seek to control the money
system in order to gain political power and hack
away at individual liberty.

7. Which is to be master?
“When I use a word,”
Humpty Dumpty said, in
rather a scornful tone, “it
means just what I choose it
to mean—neither more nor
less.”
“The question is,” said Alice,
“whether you can make
words mean so many
different things.”
“The question is,” said
Humpty Dumpty, “which is
to be master -- that’s all.”

8. “Social Justice” Defined
• People who seek political mastery over others
use words to manipulate public opinion to
their advantage use this term.
• “Social justice” is not an alternative form of
justice. Justice is justice.
• “Social Justice” is a critique of the free market
system that implies it is fundamentally unfair
and seeks to correct perceived wrongs
through taxation, regulation, and prohibition.

9. Misdiagnosing the illness
• The problem is not
profit or the free
market.
• The problem is that the
market is not free and
money is not sound.
• The economy has been
hijacked by a banking
system while relies on
fiat money.

10. Gold promotes economic fairness
1) A monetary system based on gold
will limit the power of the State to
make war internally and externally.
2) The definancialisation of the
economy will allow people to plan.
3) The value of your labour can’t be
stolen through systematic inflation.

11. Gold promotes equality
• Equality of opportunity vs. equality of
outcome
• An economy system based on sound money
(gold), low taxes, free trade, private property
and the rule of law creates more wealth and
opportunity than any other.
• It turns banking into a low-profit utility based
on prudent risk and capital management.

12. Gold and sustainable growth

13. Austrian Ecologists
• The unchecked expansion of credit beyond
available savings creates giant misallocations of
capital and invariably leads to faster resource
depletion through bogus GDP growth and the
various, resource-intensive manifestations of the
credit bubble.
• With gold as money, growth is more sustainable
and enterprises that create real value are
rewarded.
• Promotes good stewardship

14. Gold rewards productive labour
• It is “unfair” that bankers and financiers make
a lot of money without doing any “work.”
• A financial system based on fiat money will
always be “unfair.” It will reward those who
control the money supply and benefit from
inflation and punish savers and the prudent.
• Prevents immoral fractional reserve banking
from destroying the accumulated value of
your labour.

15. Gold reduces the possibility that the
world will end in 2010
• Reduces financial volatility
• Political instability
• Social instability
• Geopolitical instability
• Mental instability
• Systemic instability

16. Social media, crowd behaviour, and
positive feedback loops increase instability

17. The Madness of Twitter
• The more fiat money and credit expansion create
price instability, the more unstable systems get.
• Social media accelerates and amplifies instability.
• Social media promotes crowd like behaviour.
• Crowds go mad.
• Continuous pricing and information flow short
circuit the decision-making ability of our central
nervous system. We are not built for this.

18. Three crowds in conflict

19. What are the odds of a monetary
system based on fairness?
• Two-tier Euro system
• Bank nationalisation
• Debt restructuring
• Default
• New global fiat system based on SDRs in 2015
• Chaos
• Increasing systemic instability

20. Fore more cheerfulness go to…
www.dailyreckoning.com.au