Bridget is chronically stupid. Our non-Canadian friends have no idea of the history of Canadian business reporting. The announcer in the office looks like she is in a trance and probably is. She would never think of questioning what Bridget is saying because it would affect her hangover. Gold does the backing, she should read up on it, or watch a movie, poor silly cow. What she should have said is no major currency is backed by gold and these currencies are make believe.
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Quote from the Treasure of the Sierra Madre.
Howard: Say, answer me this one, will you? Why is gold worth some twenty bucks an ounce?
Flophouse Bum: I don't know. Because it's scarce.
Howard: A thousand men, say, go searchin' for gold. After six months, one of them's lucky: one out of a thousand. His find represents not only his own labor, but that of nine hundred and ninety-nine others to boot. That's six thousand months, five hundred years, scramblin' over a mountain, goin' hungry and thirsty. An ounce of gold, mister, is worth what it is because of the human labor that went into the findin' and the gettin' of it.
Flophouse Bum: I never thought of it just like that.
Howard: Well, there's no other explanation, mister. Gold itself ain't good for nothing except making jewelry with and gold teeth.
When Bridget isn't perming her ears should might like to read this by the former head of the US Federal Reserve.
GOLD - by Alan Greenspan
Gold and economic freedom are inseparable, . . . the gold standard is an instrument of laissez-faire and . . . each implies and requires the other.
What medium of exchange will be acceptable to all participants in an economy is not determined arbitrarily. Where store-of-value considerations are important, as they are in richer, more civilized societies, the medium of exchange must be a durable commodity, usually a metal. A metal is generally chosen because it is homogeneous and divisible: every unit is the same as every other and it can be blended or formed in any quantity. Precious jewels, for example, are neither homogeneous nor divisible.
More important, the commodity chosen as a medium must be a luxury. Human desires for luxuries are unlimited and, therefore, luxury goods are always in demand and will always be acceptable . . . .
The term “luxury good” implies scarcity and high unit value. Having a high unit value, such a good is easily portable; for instance, an ounce of gold is worth a half-ton of pig iron . . . .
Under the gold standard, a free banking system stands as the protector of an economy’s stability and balanced growth.
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold . . . .
The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the “hidden” confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard. |
