>>Sure, gold could be the new currency, [albeit an atavistic "new", going back to barbarian times], but that would mean it would be worth about $10,000 an ounce if it replaced currencies other than the US$.
You have just made TJ's case.
>> That would be a problem because it would set off an absurd gold economy, with people spending huge efforts digging up more of the stuff and filtering the oceans, instead of doing something useful.
IMHO it is very useful to have a medium of exchange (or store of value) that is strictly limited (or at least more limited than paper) and that has its own intrinsic value (see human history and human nature (which, it can be argued, has not really evolved all that much in 2,000 years (the age of spears to present)).
Humans need a medium of exchange... otherwise they have difficulty valuing work, production, and exchange of same. And storing that value for future use. Then you get breakdowns of systems (like now) and societies if this continues. An undisputed intrinsically valued medium of exchange has societal and individual worth (see present state of things, when intrinsic valued medium of exchange does not exist).
>> It would be like Easter Islanders with their moais, which was a way of keeping young men busy, but not actually useful. en.wikipedia.org
>>Digging gold would be hugely capital intensive and it's not as though young men don't have useful work to do already. You couldn't just send 1,000,000 of them out into the wilds with shovels, telling them to bring back gold.
Someone (or organization of someones) would do it, for profit.
And, IMHO worth it. See present day events to be somewhat avoided.
>>The tax on US$ is only about 5% historically, which is a typical sort of royalty which we pay for things like CDMA, medicines and other useful things we need.
>>But I agree that it's still a cost to be avoided, which is why I am busy developing my new cybercurrency, the Qi. I have a prototype in the shed and it does 60 mpg already and I haven't even fitted a turbo-charger yet. It's weightless, can carry 10 billion people, works in real-time, is secure and reliable.
What will strictly limit the issuance of Qi? No doubt an all seeing protective government. Hasn't worked out so well...
A private or public medium of exchange that is readily varifiable and of itself has value such as gold, or that is strictly limited and readily convertible to say, oil, coal, uranium, etc. is needed. I wouldn't trust a Qi. Why should I? Why should anyone?
>>People wanting gold as money is like generals wanting to fight the previous war using techniques like onagers, battlements and spears.
Gold is about relations between humans and intrinsically valued medium of exchange -- ie: about human nature, which has not evolved much IMHO since age of spears. And nothing has come to replace it which holds its value over long term, except oil, coal, base metals, all of which are hugely inconvenient as exchange medium.
I would argue that gold is money. Anywhere. Except for paying taxes to those governments that are dead set against it. For the citizens it seems to have universal acceptability...
>>Meanwhile, I see General Ashkenazi [what a great name] is meeting with the boss of the USA military system fairly urgently. telegraph.co.uk. I'm on General Ashkenazi's side. Also on King George II's side. I'm not in favour of President Amendiejihad and his war against Jews.
Me neither. But then, said war will surely not be good for the US... and I would guess, not good for Iran... except for those who want to bring back the third Imam (pardon me if I got the number wrong). I would also very much not expect this to be good for the USD, (sink a few AC carriers, and what happens to USD?) but who knows for sure.
>>If the Straits of Hormuz are closed [which is very likely because ship insurers won't want to carry the risk and mariners might find it dodgy too], that will cause the price of oil to zoom higher. That should make for interesting times.
Where would Russia/China/India wind up in such a dispute? Could really be quite messy and totally out of control. Somehow GWB does not inspire confidence. Neither do the Dems who expediently refused to impeach him. If war ensues, bet they will wish for a re-do on that.
RJA |
