Hi Ron,
>>In those events, money of any type is an illusion. It is back to the barter system.<<
If we get to this point we are all in trouble and more then likely will not be wasting time or money debating theories.
Rather than an illusion, I believe that denominated paper acts as a efficient medium of exchange for the eventual purchase of tangible goods and services.
The illusion, per say, is the confidence the holder has in redeeming something tangible at the end of the day. It is a confidence game, as you stated.
I agree that a gold backing does not necessarily give a currency strength dollar for dollar, but can aid in the initial building of confidence (for the illusion) But with that said, it will play a big role if the currency collapses at the end of the day.
>>Money, in any form, is only valuable if a large percentage of the population believe in it as a means of exchange.
Agreed
>>Gold in an illusion that destroys the illusion of Fiat. Extreme and sudden damage to either illusion has to have repercussions for the rest of the global economy.<<
Agreed......This is precisely why I believe they are mismanaging their manipulation of the situation. They should have, and still should, let gold rise slowly, as the fundamentals, as even simply a commodity, are telling us it should.
I have a few more comments, but have to run.
Talk to you soon,
Rich
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