Excellent response, Ron. And, as you correctly point out, I misspoke when I said gold has intrinsic value -- clearly it doesn't, beyond its industrial value. But it does have emotional and political value.
I contend that people are naturally greedy, and governments, being made of people, are more powerfully greedy than individuals. So, they try to own all the wealth they can. For individuals, however, those same governments will try to convince us that worthless pieces of paper are more valuable than tangible assets.
I agree with the facts you cite to support your contention that governments want to foster the belief in gold as currency, but I come to exactly the opposite conclusion. I think that a government's desire to hoard wealth requires that the representation of that wealth be eliminated as a common currency, and be used only among its peers (namely, other governments). Otherwise, the government loses control of the distribution and nodes of accumulation.
But, I have to admit, this discussion is quickly getting over my head, and I may already be farther out on my chosen limb than I care to be. :-)
In any event, it is an interesting discussion.
jim |
