JEM, I know what in great detail what you are critical of,what I don't know,(and I've been reading your comments for years)is what you admire. I'm easy,I admire Economics built on integrity,and I admire leadership with results,like FDR,as opposed to Obama or Bush. I believe that you are dystopian,but again,if you have ever given us a frame of reference that demonstrates the world you approve of;I guess I missed that Post.
What you fail to recognize is that gold doesn’t have a constant value either – it fluctuates in relation to currencies.
Au Contraire,Currencies flucuate in relation to Gold.
In the coming alleged economic armageddon gold will be worthless, food and water and guns and bullets will be king. How could that be?
I'm not aware of Gold being worthless anywhere in the last 4000 years, but There's always a first time.
I can’t believe you cannot answer a simple question yet
I'll try again,you can't devalue gold to Zero.
We'll worry about running out of Gold later,right now,we need to reconstruct our currency,I'd be happy with $35 Oz money,wouldn't you?
So what is the difference?
You can't print Gold,and by printing,make it worthless,you can do that with paper money/Weimar. You can manipulate the cost of Gold,but you can't make it worthless. I can't believe I'm writing this.
I don’t think you can because for a long time you haven’t yet given an explanation for why gold has value that would differ from paper.
Why do the markets believe it takes 1300 pieces of paper to equal the value of 1oz of gold? It takes a very unusual person to not understand that Gold backing makes paper money more valuable.
half of that decade, we had fallen so far by that point.What was the M1 around that time?
I know for a FACT that the Money Supply was very stable from 1944-1971,and exploded after that.
I'm waiting you out,as the years go by,and the economic crisis persists,It will be a relief when the Fiat Paper Bugs cry uncle,and admit that keeping on with the same plan,and expecting a different result,is Futility.
"What the goldbugs always forget is that by their scenerio once we cannot find more gold our currency is done, it cannot expand and so goes economic expansion with it. Once again I will ask – why is gold valuable?"
It is valuable because many individuals and markets percieve that it is valuable,and have percieved that value for a long time,approacing 1300 paper dollars per oz of the crap. We need a big jolt of ECT for this economy,and Gold has shock value.
"Indeed, in the 1950s the top rate of taxation in the U.S. was 90%, but the S&P 500 rose 253% that decade. My explanation for why is that the dollar had a strict definition of 1/35th of an ounce of gold. Markets love currency certainty, and stocks soared'
Expansion? 25% a year? that's not good enough for you?
JEM/We are in a cultural war for our survival. And we are barely playing defense.
Survival is expensive. Our only remaining asset is our sovereign ability to print money. But here's a reminder from recent history.
"When he came into office in 1933, Roosevelt found unemployment at 33 percent (not the mere 25 percent that this nursery school of detractors claims), with no direct federal assistance for the jobless; the banking system and stock and commodity exchanges closed; farm prices beneath subsistence levels; 45 percent of residential housing under threat of foreclosure; and machine-gun nests at the corners and on the steps of Washington’s great federal buildings for the first time since the Civil War.
When he left the White House twelve years and 39 days later, to the most heart-rending dirges and lamentations the nation had uttered or heard since Lincoln departed (on the same caisson), unemployment was less than half of 1 percent; millions of mortgages and the whole banking system had been refinanced; most of rural America benefited for the first time from electricity and flood and drought control; Prohibition had long been repealed and the liquor industry repossessed from the folkloric gangsters who had been running it; the U.S. had pioneered nuclear fission and set up the United Nations, had half the world’s economic production, was on the verge of the defeat of Nazi Germany and imperialist Japan, and had unlimited moral authority, military and economic power, and cultural influence"
Conrad Black wrote that in NRO today. Also,please consider the article posted here.