Competition for the Fed Reserve?

Originally posted by AThousandYoung
No, that means the price of the dollar went down, not that the price of gold went up - from this perspective.

Anyway, I'm not buying gold. I think these people are fools. But this is my understanding of the logic.

No it actually means that the value of gold in terms of other goods (i.e., some basket or average of goods) went up. Generally speaking the car is worth far fewer of these gold coins. In other words, in a gold-backed currency world you'd have a massive deflation.

By the same token, if the Swiss Bank put some gold into circulation, thereby significantly increasing the world supply of gold, the value of gold relative to other goods would decline and you'd have inflation.

Originally posted by Palynka
The closest we have to a price of money are interest rates (which is why interest rates are used for monetary policy), but that's not the issue here.

If the price of gold relative to cars goes up, that means deflation, i.e. cars are worth less units of money (like you say, the unit of account doesn't change but what it can buy will inevitably do). If wa ...[text shortened]... mployees. In other words, an in-built mechanism to generate more unemployment during a crisis.

The deflationary death spiral . . .

Originally posted by telerion
No it actually means that the value of gold in terms of other goods (i.e., some basket or average of goods) went up. Generally speaking the car is worth far fewer of these gold coins. In other words, in a gold-backed currency world you'd have a massive deflation.

By the same token, if the Swiss Bank put some gold into circulation, thereby sign ...[text shortened]... ply of gold, the value of gold relative to other goods would decline and you'd have inflation.

Deflation favors those with currency in their hands no? This is where the idea of profiting from gold as a long term investment comes in.

Originally posted by AThousandYoung
Deflation favors those with currency in their hands no? This is where the idea of profiting from gold as a long term investment comes in.

So you want a currency that favors profits of gold investors over employment? 😕

Originally posted by telerion
You're right.

The thing I wonder with most of these gold bugs is do they actually have the physical gold in their possession or do they have some claims on gold through some firm? I guarantee if the apocalypse occurs tomorrow any claim to gold is going to be just as worthless as a Treasury or a stock.

And I wonder how this new gold economy is goin ...[text shortened]... r life savings in a such a volatile asset with very few good underlying fundamentals.

Those who plan to bunker down for the apocalypse have the consumables they need. The gold is for extra wealth on top of the consumables.

Originally posted by Palynka
So you want a currency that favors profits of gold investors over employment? 😕

Not me. But for those with fortess compounds out in the wilderness - "employment" is not something they're concerned about. Most of these folks are pretty self-sufficient.

Originally posted by telerion
I mean let's say during the apocalypse that I personally (having no stake in gold) lose my job and all of my financial wealth. My most immediate needs are going to be consumption goods like the ones you listed (no, I don't smoke). That's the thing I'm gonna barter for.

You may not smoke now, but when the apocalypse happens there's a good chance you might need something to help the stress while you figure out how you're going to deal with the situation. Avoiding cancer won't be at the top of your list of priorities at that time.

Originally posted by telerion
No it actually means that the value of gold in terms of other goods (i.e., some basket or average of goods) went up. Generally speaking the car is worth far fewer of these gold coins. In other words, in a gold-backed currency world you'd have a massive deflation.

By the same token, if the Swiss Bank put some gold into circulation, thereby sign ...[text shortened]... ply of gold, the value of gold relative to other goods would decline and you'd have inflation.

As if a fiat currency world does not have hyperinflation or deflation.

People can buy currencies and affect the value too. You act as if gold is unique in that way.

Much of the gold buying is because of fiat currency, not despite it.

Originally posted by AThousandYoung
Not me. But for those with fortess compounds out in the wilderness - "employment" is not something they're concerned about. Most of these folks are pretty self-sufficient.

I'm not sure what you're arguing for here.

Are Metal Brain or Ron Paul one of these hiding in fortress compounds out in the wilderness? There are a lot of non-hermit types who think the Fed is Satan (who is just Rothschild in disguise, as we all know).

Originally posted by Palynka
I'm not sure what you're arguing for here.

Are Metal Brain or Ron Paul one of these hiding in fortress compounds out in the wilderness? There are a lot of non-hermit types who think the Fed is Satan (who is just Rothschild in disguise, as we all know).

Ron Paul is different. He wants government troops to enforce gold backed currency, as opposed to wanting to have gold himself.

I don't know anything about Metal Brain.

Originally posted by Metal Brain
As if a fiat currency world does not have hyperinflation or deflation.

People can buy currencies and affect the value too. You act as if gold is unique in that way.

Much of the gold buying is because of fiat currency, not despite it.

Deflect, deflect, deflect.

Are you going to admit that your gold backed currency proposal would feature a mechanism that induces deflation during crises? And that this mechanism is not present with a fiat currency?

Originally posted by AThousandYoung
Ron Paul is different. He wants government troops to enforce gold backed currency, as opposed to wanting to have gold himself.

I don't know anything about Metal Brain.

So he wants this deflation-inducing mechanism? The other options are that he doesn't have a clue about the effects of his proposals OR he conveniently ignores it because it completely undermines his argument.

Originally posted by Palynka
So he wants this deflation-inducing mechanism? The other options are that he doesn't have a clue about the effects of his proposals OR he conveniently ignores it because it completely undermines his argument.

I imagine he disagrees with your economic analysis. I don't really know.

Originally posted by telerion
No it actually means that the value of gold in terms of other goods (i.e., some basket or average of goods) went up. Generally speaking the car is worth far fewer of these gold coins. In other words, in a gold-backed currency world you'd have a massive deflation.

By the same token, if the Swiss Bank put some gold into circulation, thereby sign ...[text shortened]... ply of gold, the value of gold relative to other goods would decline and you'd have inflation.

Who cares what Switzerland is doing? Unless they're going to ship that gold to the mainland US it won't affect much here. If prices do go down...well, then buy more gold!

EDIT

Remember an apocalypse is going to happen. That's part of the whole plan.

Originally posted by AThousandYoung
I imagine he disagrees with your economic analysis. I don't really know.

So you think he doesn't have clue about the effects of his proposal? Or do YOU disagree with me?