govts will want much, much higher gold prices , page-2

Ladies and gents,

If gold is money, the only real money, then any increase in its value would be deflationary. That is right, DEFLATIONARY.

Remember, for gold, the only real money, to go up in value then the prices of everything else as measured in terms of that money must be falling and that is called DEFLATION. See link below.

http://en.wikipedia.org/wiki/Deflation

Now let me ask this question: Why would governments around the world want deflation? The worst of the two evils (inflation and deflation). Are they really wanting the world to be facing a 1930 style deflationary environment as it did during the Great Depression?

Does it really make sense to you?

Now note these two things:

1 - if gold goes up in price due to inflation then the same thing would be happening to everything else, including the price of labor, bread, cinema tickets, oil, air fares, and so on almost ad nausea. But if that happens then gold, the only real money, would not be going up in value in relation to anything else except paper money.

2 - if the price of gold is determined by the law of offer and demand and gold is the only real money then how would it be possible for us to have stable prices? Who would be able to fix the price of gold if gold's spot price would be going up and down almost by the hour?