Gold has no meaning, doesn't need one, it simply is gold, punto, the only real money, the only currency not based on someone's liability ..... it's a small market yes, the very fact of limited supply makes it useful as money, as it cannot be declared into existence [¡fiat lucre!-g-] and printed at the whim of politicians
There are all kinds of 'bugs ... prophets of apocalypse embarrass us imho, it's not logical, because if times ever get that tough what you need is a full range of survival skills, if society breaks down you've got to make your own
Some would like to see a gold standard replace fiat money, well that's illogical too, what happens then is you've got politicians manipulating the yellow .... an official standard would lead directly to confiscation, it would defeat the purpose
This is not so off-topic really - one of the principal real reasons for invasion of Iraq would most certainly have been Hussein's pricing of his oil in euros, this was threatening to the huge advantage gained by the US from the seigneurage effect, use of its currency throughout the world permitting the US Fed to 'issue' an abstract concept at extremely low cost and get real goods and services in exchange ....... as long as this flow is accepted by the Rest of Us, US economic power is increased ... should the direction of flow change, and any significant portion of those promises-to-pay begin to come 'home', there will come fundamental change to the economic world map
Watch for the islamic dinar ... wholly consistent with their religion, and appropriate to their view of Geopolitik ... assuming that they do not want all decisions taken from their hands, which appears to be the case - islamicmint.com
appropriate-economics.org
It's an old story, often discussed at Wong's Scottish Meat Pies And Taquería where we hang out ... and wider still - the fellow who wrote these lines grew up not far from Smith's Kirkcaldy -
' Wae worth thy
power, thou cursed
leaf!
Fell source o' a' my
woe and grief!
For lack o' thee I've
lost my lass!
For lack o' thee I
scrimp my glass!
I see the children of
affliction
Unaided, through
thy curst restriction:
I've seen the
oppressor's cruel
smile
Amid his hapless
victim's spoil;
And for thy potence
vainly wished,
To crush the villain
in the dust: '
robertburns.org |
