Phil > I still question the importance and consequence of all that exploding debt
That seems to be a philosophical rather than an economic question. As we have discussed, if no-one calls-up the debt or forecloses, then the debt, and its extent, is irrelevant. So, it's effectively a two-way street between debtor and creditor -- you scratch my back and I'll scratch yours. As long as the US "looks" rich and powerful, buys Asian trinkets and pays the interest on its borrowings, it's business as usual.
I suppose if one views gold as a kind of insurance against a catastrophic occurrence, then it may have a value apart from its use as a commodity or a currency hedge. What that value is, I can't say. But then, so has real estate a value, also other "hard assets" eg art or collectibles and even the unfelled trees, which you mentioned. In fact, virgin land, especially for eco-tourism, is the "in" thing these days. As far as property is concerned, a view of the ocean commands an enormous premium. I imagine, so does fresh, mountain air or unpolluted water. Perhaps, in the end, the most valuable things are those which man has not yet put his little hands on. Those things are, as yet, priceless. |
