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Worth and value, cannot be measured in gold or dolar bills.
see, i think it can.
can they do it to perfection? no, i don't think so but, as long as corruption stays out of it, gold/papr money can do what they were originally intended to do for society. but we're so far gone, so deep into the corruption and complexity we really bastardized a good idea but it was bound to happen i guess.
I have read each and every post (Summer73 excepted) and the gist seems to be that gold is rare which is somewhat true, and has a great track record but very few have either attempted or have come close to demonstrating the as a commodity for exchange has any intrinsic value. What makes an ounce of gold worth whatever dollar amount placed upon it?
I liked my explanation. It is because it is.
Quote:
Originally Posted by ovcatto
One of issue that has piqued my curiosity is how the total reserve value of gold correlates to the size of the economy. For example if let's say the total amount of goal is only a fraction of GDP, then the question becomes how can an economy rise to a certain dollar value if that dollar is pegged to set price in gold.
This isn't just about printing money (which like gold a exchange commodity that can be made rare or abundant at will) but is there enough gold to back an expansive global economy?
no different than diamonds, except diamonds aren't rare at all just falsely perceived as so, thank you De Beers
supposedly, gem-quality diamonds are rare meaning only 30 percent are gem-quality. the other 70 percent are used as industrial diamonds, presumably for cutting and who knows what else.
I liked my explanation. It is because it is. http://www.bearishnews.com/wp-conten...l-debt-gdp.jpg This graph should explain it. Debt the borrowing and re-borrowing of the same limited supply of money.
Nope, that is why we left the gold standard.
Congress shall have the power to . . . and regulate the value thereof.
supposedly, gem-quality diamonds are rare meaning only 30 percent are gem-quality. the other 70 percent are used as industrial diamonds, presumably for cutting and who knows what else.
De Beers has bought diamonds from Russia, Africa and trys to keep most diamonds from hitting the market that way diamonds look precious. In reality with diamonds being produced in Russia, Africa, and Austrialia are way more abundant than most people realize. The real reason is De beers holds most of the diamonds and only lets a portion out each year. Other wise there would be a big drop in cost if the diamonds went to market.
While I would agree that in an apocalyptic scenario that gold would feel sort of worthless(my friend always says that the most valuable items will be guns and ammunition). It is still the perfect foundation for a common currency. Every country has some amounts of gold already in it. Gold is untarnishable, unburnable, and rare. Those dollar bills you have in your pocket wear out very quickly. And are easy to rip, get damaged from water(like being washed), and will degrade into topsoil if left outside.
But what happens when some clever person remembers the plot of Goldfinger?
Sure. Let's make a trade then... 1000 pounds of my conch shells for 100 pounds of your gold sounds good?
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we really bastardized a good idea but it was bound to happen i guess.
