Currencies fully redeemable in gold, by law, or gold and silver itself, are not as readily subject to manipulation by a fiscally irresponsible government or a monetarily irresponsible central bank. That is why over many millenia, people always gravitate towards precious metals. It really is as simple as that.
It's not as simple as that. People have gravitated towards tulips, or real estate, or Internet sticks, or fine art, or xxx. Gold and silver are just stuff. The US dollar is backed by US wealth, by the incredible value of the property the government/we own, by our imagination and productivity and work ethic and willingness to pay taxes and rule of law.
You could easily put all your money in gold, in a minute. Yet you don't, you are instinctively invested in things that trade in US dollars. Why? Gold is more easily manipulated than the US dollar.
You seem to want to go back to the early 20th century with the booms and depressions and the poor houses and wretched poverty. It's not going to happen, so get with the program. The path is to incrementally refine our system to make things incrementally better for everyone.
You used to be a sensible policy wonk. I liked that MM better... much more conservative and less nut case. |
