Here is a excellent essay on buying gold, that is thinking like buying life insurance, betting that you'll die young but hoping you never win. He says you buy gold betting it is going to $10,000 but hoping it goes to $500.
Just so. But that would assume the game is to get it right, when it is not. It is to play it so close to the margin that you sheer the sheep but do not slaughter them (Tiberius).
Feel free to forward this by email to three of your friends.
What would a world with $500/oz gold look like?
It would be a world with a strong USD brought about by a surplus in federal / state / local government budgets across the country. Where the government debt is slowly shrinking instead of growing by leaps and bounds.
It would look like a country with full employment in good manufacturing, mining & agricultural jobs that create wealth for everyone.
It would look like balanced trade with the rest of the world instead of a staggering trade deficit that keeps getting larger.
It would look like a Federal Reserve with a much lower profile that doesn’t conjure up $1 trillion / year out of thin air. (Maybe no Federal Reserve at all?)
Just so. But that would assume the game is to get it right, when it is not. It is to play it so close to the margin that you sheer the sheep but do not slaughter them (Tiberius).
Feel free to forward this by email to three of your friends.
2 comments:
http://mikenormaneconomics.blogspot.com/2013/10/but-i-thought-gold-was-money.html
"But...I thought gold was already money?? Mike Norman
Not unless government privileges it as such - a point lost on many so-called libertarians."
Do we need the State to tell us what we can use as money?
You'd have o believe the state preceded gold-as-money to believe what Mike says, you'd have to believe that that state plays a required role in money to believe what Mike says.
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