The Lies They Tell: Devaluation's Affect on Gold #gold

Key Concepts

• Gold backing of currency
• Devaluation
• Free market price of gold
• Official price of gold
• Cognitive dissonance
• Political gesture

The Relationship Between Devaluation and Gold

The transcript discusses the perceived relationship between currency devaluation and the price of gold, highlighting a specific instance where an article presented contradictory information.

Contradictory Statements in an Article

The article in question stated that since the United States is no longer willing to back dollars with gold, the changes are "largely political gesture" and "nothing is supposed to change." This implies that the devaluation should have no real impact on the value or perception of gold.

However, in the same article, it was also stated that "the price of gold in the free market for such things as filling teeth or earrings or spaceflight equipment has risen to approximately double the old official price." This presents a direct contradiction to the earlier assertion.

Analysis of the Contradiction

The speaker points out that this tactic of presenting two opposing statements within the same article is a common strategy. The intention behind this is to induce "cognitive dissonance" in the reader. Cognitive dissonance is a psychological phenomenon where a person holds two or more contradictory beliefs, ideas, or values, or participates in an action that goes against one of these. This confusion often leads the public to "do nothing" and passively accept the situation.

Purpose of the Tactic

The speaker argues that this method was employed as a "tool to get the public to adopt it and accept what was happening and not do anything about" the devaluation. By creating confusion and a sense of inevitability, the public is less likely to question or resist the changes.

Synthesis/Conclusion

The core takeaway is that the apparent contradiction in the article regarding the devaluation of currency and the price of gold was a deliberate tactic to confuse the public. The article simultaneously claimed the devaluation was a mere political gesture with no real impact, while also noting a significant increase in the free market price of gold. This strategy aims to create cognitive dissonance, leading the public to passively accept the devaluation without taking any action or questioning the underlying economic implications. The speaker emphasizes that this is a common method used to manipulate public perception and acceptance of significant financial changes.