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To: carranza2 who wrote (80437)	9/27/2011 1:19:59 PM
From: KyrosL	Read Replies (1) \| Respond to of 217842

The Florida real estate purchasing power of my USD increased tremendously this year. I have bought Florida real estate at inflation adjusted prices last seen more than a generation ago. The present construction costs of this real estate is well over what I paid. My USD did not feel valueless at all.

To: carranza2 who wrote (80437)	9/27/2011 2:34:49 PM
From: Maurice Winn	1 Recommendation Read Replies (3) \| Respond to of 217842

C2, your sophistry was not as sophisticated as mine and Kyros has correclty called you on it. Yes, theoretically, paper money is worth nothing and is unbacked but as I explained, there are long run matters of marginal production. Kyros is finding his US$ are actually of great value. That's because Americans and others want them to be. It's their minds which remain robust. A bet for Aztecs against the American Mind is not a slam dunk. <The USD is backed by nothing, not even the good faith and credit of the US. The US Treasury does not stand behind the USD and no other government backs in the sense that it will give you something tangible in exchange for it. The USD, and all unbacked currencies for that matter, suffer from the same defect as thier value is dependent on two things: the number of notes (whether pixielated or real) in circulation and the trust the markets have in the notion that a piece of paper can serve as a store of value. > Aztec minds have bet the price of gold to all time record levels as measured by "number of hours of work it takes to dig out another wheelbarrow full of gold". When people can work for a fraction of that time and still get the same price for their labour, guess what they will do. Yes, gold is real. The price is not. This is a battle for the mind of Man. While conspiracy theorists, Doomsters, Alarmists, academics and wild-eyed sophists can thrash around in Cyberspace explaining why gold is great and good, and pixelated processes of pecuniary proliferation produce pandemonium, the average bloke has their own mind, blithely ignoring our rants and goes about their prosaic banal business. As Kyros explained, out on the street, he can buy nice houses for US$. Rumours of US$ death are greatly exaggerated. Claims that there is a new Gold Standard Second Coming imminent any minute, a Rapture where the true believers will be swept up and will rule the world are wishful thinking. The lovely lady on that video was right - US$ is real if she and her viewers and others agree that she is. If she says gold is unbacked by anything then it really is if she and they declare that to be so. Meanwhile, if Glod Bugs bid gold up faster than houses were bid up in the housing boom, more production will come on stream looking for a greater fool. The real price of gold is a matter of whether it's more profitable for shovel ready workers to dig gold, copper, coal, iron, titanium, lanthanides, diamonds, dirt or sand. Mqurice