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People used to think that learning to read evidenced human progress; they still celebrate the decline of illiteracy as a great victory; they condemn countries with a large proportion of illiterates; they think that reading is a road to freedom. All this is debatable, for the important thing is not to be able to read, but to understand what one reads, to reflect on and judge what one reads. Outside of that, reading has no meaning (and even destroys certain automatic qualities of memory and observation). But to talk about critical faculties and discernment is to talk about something far above primary education and to consider a very small minority. The vast majority of people, perhaps 90 percent, know how to read, but do not exercise their intelligence beyond this. They attribute authority and eminent value to the printed word, or, conversely, reject it altogether. As these people do not possess enough knowledge to reflect and discern, they believe—or disbelieve—in toto what they read. And as such people, moreover, will select the easiest, not the hardest, reading matter, they are precisely on the level at which the printed word can seize and convince them without opposition. They are perfectly adapted to propaganda.

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Actually, no. I won't ever go digital. I work with thirty-five or large format. I like the hand-jobs, you know. And I still do most of my own printing. I've developed such a profound distaste for touch-up and modern artifice—comes from snapping too many derelicts and detritus, perhaps, but I love it. Photo bloody Shop can go stuff it. A picture should be honest, even if the subject is contrived on the ground, you know; not dolled-up for advertising punch or sex appeal.

The next chart shows the real returns from holding gold between 1850 and the present. From 1850 to 1971, gold returned (through its appreciation) an amount that roughly equaled the amount of money lost to inflation on average, though there were big variations around that average both across countries (e.g., Germany seeing large gold outperformance, while countries with only limited devaluations, like the US, saw gold prices not keep up with inflation) and across time (e.g., the 1930s currency devaluations and the World War II-era devaluations of money that were part of the formation of the Bretton Woods monetary system in 1944). After the war, gold stayed steady in price across most countries, while money and credit expanded until 1971. Then, in 1971, there was a shift from a Type 2 monetary system (notes backed by gold) to a Type 3 fiat monetary system. That delinking of currencies from gold gave central banks the unconstrained ability to create money and credit. That led to high inflation and low real interest rates, which led to the big appreciation in the real gold price until 1980–81, when interest rates were raised significantly above the inflation rate, leading currencies to strengthen and gold to fall until 2000. That is when central banks pushed interest rates down relative to inflation rates and, when they couldn’t push rates any lower by normal means, printed money and bought financial assets, which supported gold prices.

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