Gold stocks?History of money:1) People organically use gold,...

Gold stocks?

History of money:

1) People organically use gold, silver, copper as money because they have good qualities for such use (scarcity, fungibility).
2) Government and banks say: "hey we noticed you like using gold as money. Well what if we told you that we could make your transactions even easier by taking your gold, giving you a certificate that's 'as good as gold' and then it will be easier to divide the certificate up and it's lighter. Rest assured, we will keep your gold very safe and you can always exchange any certificate for a gold unit whenever you want. Best of both worlds you see."
3) People say "sure why not".
4) Governments/banks are sound for a couple of years until there's a war or economic crisis in which case they say "what if we just lent out certificates even though we don't actually have that much gold, after all, people won't ever ask for their gold all at once".
5) Banks and governments continue but accelerate this process such that after a few decades the money is worthless.
6) People go back to 1) ie organically using gold because they don't trust governments and banks.

It's important to understand point 1) to know why this time it actually is different. Unlike every other currency debasement episode we can't go back to 1) anymore because nobody could purchase stuff online - people would never choose to use currency that shut them out of most transactions.

Now gold most assuredly *could* be used as a basis for online transactions but it requires either banks or governments to set it up. But these entities would never start the process of gold use (they hijack it) because there's no benefit for them and huge cost.

So we can't get to 1) so gold is completely worthless. It will never ever be used as currency.

For the detractors of crypto, well with BTC it's actually possible (inevitable?) to go back to 1).

Anyway, coal. It's energy. Energy is good in times of hyperinflation. Fiat currencies last until people realize that the government/banks are happy to sacrifice it to prop up the economy. It's very clear now that no central banker has any inclination to stand up against the morons in congress/parliament and actually increase interest rates sufficiently to save the credibility of the currency (interest rates will rise but nowhere near as much as inflation). When CPI is at 9% you don't raise rates by 25bp per month. You raise them by 400.

The moment unemployment ticks back over 5% the RBA will very obviously be done (if not sooner). Watch all hell break loose with the $A and, as this process will be happening worldwide, energy commodities as well.