Hello again Ron. You Said >>> Now if the Swiss Franc goes up in value due solely to the rise in the price of gold, is this a proper reflection of the inherent worth of its economy or unemployment rate? Who has a larger GDP, and technical prowess, as well as the military, and political power to protect their interests here or abroad? <<<
Why is that the Swiss Frank would increase in value due to a rise in the price of gold and the USA dollar would lose value, I think the USA
has the single largest supply of gold in the world how could an asset of this value undermine the economy and currency of the USA.
An ounce of gold at this moment in Canada is $ 433.40. As the Canadian dollar lost value compared to the US$ the price of gold
rose however the cost of bread, oil, clothes etc. stayed much the same so the Canadian dollar is still worth a dollar the only big change
is gold is more expensive.
You said >>>Now where the H*ll is the logic in substituting one financial illusion for a previous one? I accept that the Fiat system is an illusion. Money is an illusion. Gold is an illusion. But so long as we believe it is real, it works as a storehouse of value.<<<
Not sure why you would want to substitute one for the other ?
If they both have an illusion of value whats the point in choosing just one you may choose the wrong illusion, use both and create real money.
You said >>>Rightly or wrongly, we have a Fiat system based upon the economic strengths and weaknesses of our underlying economies. Throwing in an irrelevant commodity like gold, platinum, palladium, or diamonds, as a competitor to that system would be devastating and cause drastic economic disruptions.<<<
According to Duisenberg it is not an irrelevant commodity it is a reserve used to defend their local currency.
European Central Bank president Wim Duisenberg said that
gold's role in the central bank reserves is to defend local
currencies, not capital appreciation.
Take care
Lorne
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