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To: wonk who wrote (79053)	9/5/2011 10:13:01 PM
From: carranza2	Read Replies (1) \| Respond to of 218108

well, i have not read General Theory and am unlikely to given the turgid style. the logic is suspect, too. keynes could not have been aware of the relationship between real rates and gold prices, and therefore gold mining. he might not have written the paragraphs you cite if he had been. there is no gambling involved at all, esp. in view of improved geological work. plus, gold-mining is a slap in the face at fiat currencies. why go mining for something which is declining in value? and gold mining indeed increases the stock of wealth. my investments are proof-positive of this. very clever argumentation, but totally wrong. keynes and mq must be related. i probably could have traded bananas for gold with him, too. there seems to exist a class of investors who simply do not get gold. mq is one and dale baker is another. i ran into this while searching for references to gold in his 'lose 50%' thread, gold has been a triple (nearly) since then. the thing is, it is important to understand because it gains in value in difficult times, when shares cheapen even as rates fall. Message 23814874 mq's posts damning gold as a barbarous relic are legion, too numerous to mention. the entire month of September is fraught with risk, best buy bullion if you haven't already. tomorrow

To: wonk who wrote (79053)	9/7/2011 8:28:41 AM
From: skinowski	Respond to of 218108

The analogy between gold mining and digging useless holes in the ground (in lieu of an "economic stimulus") is really not a good one. Think what you will about gold, but it is something that people want - and are willing to invest their own labor and money in order to get it. If the treasury would burry bottles with cash, what happens is that 1) people who are paid salaries which come from taxes do something useless, 2) the cash they burry is tax money, 3) they collect an additional tax from those who would bid for the right to dig that cash out. Altogether, it all adds up to a great amount of expensive useless activity and a great misallocation of wealth and resources. It's even worse than a "typical" government stimulus. Generally, the suggestion that even a wasteful expenditure is better than nothing seems to be based on the so called Broken Window fallacy: www.investopedia.com/ask/answers/08/broken-window-fallacy.asp#axzz1XGbRfWeg