Mish Shedlock is one of the best financial observers, of an Austrian econ bent, and a claim to fame for sussing out how credit behaves like money and the distinction between currency inflation and credit (mal-credit) inflation. He's contributed fine work.
But none of us has the whole picture, and Mish has a blind spot for gold. He come up with an actual solution (more or less) to a theoretical problem.
The problem is failure to maintain gold as money, as though gold were fundamental to day to day business. It is not. Gold is only necessary for liquidating relationships. All other commerce can, and must, operate on credit, but only bene-credit, never mal-credit. Under Copernicus' (and later Gresham) the bad drives out the good, Mish has a solution to a problem that does not exist.
But to the point, we need credit, bene-credit, to recover, along with a massive price correction in real estate and equities. People extending usury-free credit all along the production and consumption line is necessary and sufficient to the task. A key feature in bene-credit commerce is people facing people. That is missing in the bitgold debit card.
Watch out, Mish.
Feel free to forward this by email to three of your friends.
But none of us has the whole picture, and Mish has a blind spot for gold. He come up with an actual solution (more or less) to a theoretical problem.
The problem is failure to maintain gold as money, as though gold were fundamental to day to day business. It is not. Gold is only necessary for liquidating relationships. All other commerce can, and must, operate on credit, but only bene-credit, never mal-credit. Under Copernicus' (and later Gresham) the bad drives out the good, Mish has a solution to a problem that does not exist.
I explain below what the buyout of GoldMoney by BitGold means, but first let's start with a look at details of the announcement of the first ever debit card backed by gold in real time.Careful Mish, Toronto is where many a dream comes to tears, and this is Toronto based.
- First Transactional Gold Account – Gold can be used in payments in addition to savings.
- First Gold Merchant Platform – Process Credit/Debit Cards and earn gold!
- First "Real" Gold Card
- BitGold is an online bank account that is backed by gold as opposed to currency
- Gold can be redeemed in as little as 10 gram increments (approximately $370 at today's price)
- Publicly Traded, Audited by PwC, Insured, Backed by Strong Investors
Unlike other cards that sell gold at a premium then issue a debit card, BitGold is a gold-based settlement system in real time. It is also the first gold-based card of any kind available in the US.
But to the point, we need credit, bene-credit, to recover, along with a massive price correction in real estate and equities. People extending usury-free credit all along the production and consumption line is necessary and sufficient to the task. A key feature in bene-credit commerce is people facing people. That is missing in the bitgold debit card.
Watch out, Mish.
Feel free to forward this by email to three of your friends.
1 comments:
I am greatly thankful to you for this exciting blog; I am cheerful because of your smart working really. payday loans
Post a Comment