gold, page-49304

Now this a voice of reason, well said eztrang.

There is no evidence that I have read to suggest that restricting the supply of money by aligning it with gold is the answer.

The truth is in front of our eyes. The world is ticking along nicely with the to be expected occasional bump in the road. If central backs and monetary policy were overdue a rethink, and dismantle 'the system', it would have happened around 2008-2009.

I hasten to add a singular recession does not prove a failing system, recessions make sense due to imperfect cycles of growth. When the inevitable recession occurs I will be rubbing my hands at the opportunities it will provide. And that certainly does not include gold.

The arrogance of some of goldbugs in this thread beggars belief. Name calling and arrogant 'I've already told you what to believe'.

There will be meaningful change, it's called evolution. Not regression to a time in the past. Electronic currency (Blockchain or an iteration of it) will come to the fore. Designed to reduce friction in transaction. The notion that growth is restricted by a relic of the past (gold) is ludicrous. Gold will have a place but not in the mainstream monetary system.

The contradictions coming out of goldbugs is astounding. One minute it is the $US is doomed, then fiat system is doomed, then China will host the reserve currency - ironic as it was Chains that introduced fiat, then fiat will remain just backed by gold or perhaps some other commodity, then heaven knows what. Talk about misguided thinking.

Some say money has to be backed by something. It is backed by something - the cars you drive, houses you live in food on the shelf, theatres that you visit, football games you watch. If money was not backed by something you would have rampant inflation. You and I having pockets of notes chasing a dwindling supply of fish & chips!

I'm certain that many of those bamboozled by the size of debt figures see that debt through the lens of a consumer in outer Sydney. Of course a family allowing debt to spiral would be bankrupt very soon - the debt those emotive time clocks refer to is not the same. Debt can be extinguished as quickly as it is created - though I see no evidence of it curtailing in the near term. I wonder how many armchair economists realise that money supply is wound back when a loan is retired! Ongoing loans feed the economy through the customers those loans create for products and services.

Thos bamboozled by the whole affair need to consider just one measure - inflation. It is easy to understand that if there is too much money sloshing around in the system not going to work in productive capacity then it will create buying pressure and price rises. We don't have inflation, in fact what we have is subdued inflation, we could do with a little more stimulus.

In the present day, it pleases me to an extent, that there are those willing to have their thinking clouded by seemingly erudite authors. Their illusions give opportunities for pragmatic traders/investors to earn a quid. I do feel sorry for the silent ones that are swayed by outrageous prophets of doom and the rise of gold. Gold will not make you rich, but it might win you favours with the fairer sex.