All Clowns Must Be Destroyed Message Board

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Pastimes : All Clowns Must Be Destroyed

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To: BGR who wrote (37587)	6/2/2000 11:18:00 PM
From: pater tenebrarum	Read Replies (2) of 42523

BGR, sorry, it has nothing to do with Big Macs. the reason why gold goes up during deflations is that money fleeing paper assets partly finds a home there (the other home is government bonds). unfortunately Ascani's historical study is not for free, but i assure you it is very interesting (you can find it at the bottom of the page, it's entitled "gold in a deflationary economy") gmsresearch.com btw, gold as a form of money quite logically has increased purchasing power during a deflation, even if its dollar price should stay unchanged. since the miners input costs are falling, their profits increase even if the PoG does not rise. but funny enough, the PoG DOES tend to rise during outright deflation periods. the only environment deadly for gold is disinflation, i.e. mild, or falling inflation. it does well whenever extremes, i.e. inflation or deflation are taking root.

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