For some reason a post announcing a seminar becomes a colloquy on gold as money -
The practical use of gold primarily is a conductor of electricity in industrial applications, and for silver, it is development of photographs. Of course each has many other practical applications, which make it always and everywhere valuable in its own right. The value is universal, but as to absolute, well the value is relative, as in anything else. We all badly want that first beer, but when the thirst is slaked, that 4th beer is not so valuable. That is no reflection on beer, just a reflection on its' perfidious devotees.
You contradict yourself when say you want only a medium of exchange, and in the same sentence want it also not controlled by a central authority. OK. Gold, and the price thereof, is not controlled by any authority, which is why it is hated by all central authority, and only by law is the good money (gold) driven out by the bad, legal tender currency (copenicus's law, or gresham's law).
No one would use gold to buy a house, as money, when you can use federal reserve notes, monopoly currency, to acquire the same rights. Why use perfectly good money when sellers will take fiat currency? Same with a good plate of beef chow yuk. Or a car.
Now, you may not really care one way or another for a medium of exchange, perhaps what is really missing is benecredit. Especially as we head into deflation, the self (customer) employed who have their assets tied up as credit extended to customers are going to be in the best position for the next forty years.
Feel free to forward this by email to three of your friends.
In no way is gold a tally at all. Gold is money, not a tally.
Anonymous said...In what way is gold less of a tally? It is a commodity but what practical use does it have. Its a piece of metal after all. There is no absolute or universal value as far as I see it. I just want a medium of exchange, that is all, that isnt controller by a central authority. Is that too much to ask for?
The practical use of gold primarily is a conductor of electricity in industrial applications, and for silver, it is development of photographs. Of course each has many other practical applications, which make it always and everywhere valuable in its own right. The value is universal, but as to absolute, well the value is relative, as in anything else. We all badly want that first beer, but when the thirst is slaked, that 4th beer is not so valuable. That is no reflection on beer, just a reflection on its' perfidious devotees.
You contradict yourself when say you want only a medium of exchange, and in the same sentence want it also not controlled by a central authority. OK. Gold, and the price thereof, is not controlled by any authority, which is why it is hated by all central authority, and only by law is the good money (gold) driven out by the bad, legal tender currency (copenicus's law, or gresham's law).
No one would use gold to buy a house, as money, when you can use federal reserve notes, monopoly currency, to acquire the same rights. Why use perfectly good money when sellers will take fiat currency? Same with a good plate of beef chow yuk. Or a car.
Now, you may not really care one way or another for a medium of exchange, perhaps what is really missing is benecredit. Especially as we head into deflation, the self (customer) employed who have their assets tied up as credit extended to customers are going to be in the best position for the next forty years.
Feel free to forward this by email to three of your friends.
1 comments:
I still don't get it.
Gold cannot be used as currency, hence we need fiat currency backed by gold. That on the other gives control over the gold by the central banks. In 1971 the world was cheated by Nixon as you know.
Bitcoin claims to do away with any central authority. Personally I'm not a 100% sure about this. First I want to know it is secure (it cannot be spent twice). Secondly I want to know who is the creator of it.
But again, to my point. In no way do I think gold is somehow a better medium of exchange than paper, beer or Chow steak. Bitcoin isn't better than gold but gold isn't better than Bitcoin. Value is all relative.
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