Home › Forums › Financial Markets/Economics › Gold Redux: What do you folks thing about this?
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Aecetia.
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May 31, 2009 at 11:26 AM #408537May 31, 2009 at 12:34 PM #407849
Arraya
ParticipantAllan is correct, in principle. Though, I think, technically off a bit. Gold is like fiat, in a sense, a perception game. Though, it is subject to the rules of physics, which I like, unlike fiat. Still, It takes a bunch of people to agree that it is worth something beyond it’s utility. Gold has utility, unlike fiat, but not much by commodity standards.
Fiat is backed by debt and the ability to pay it back. As the ability to pay it back goes down so does it’s value.
Fiat is GUARANTEED to go down in value. At this juncture, I think, a sudden dramatic drop is in the cards.
A sudden drop in fiat could cause a perception/psychological shift.
People have a long history of using gold as money
We have not seen gold fever yet
May 31, 2009 at 12:34 PM #408087ParticipantAllan is correct, in principle. Though, I think, technically off a bit. Gold is like fiat, in a sense, a perception game. Though, it is subject to the rules of physics, which I like, unlike fiat. Still, It takes a bunch of people to agree that it is worth something beyond it’s utility. Gold has utility, unlike fiat, but not much by commodity standards.
Fiat is backed by debt and the ability to pay it back. As the ability to pay it back goes down so does it’s value.
Fiat is GUARANTEED to go down in value. At this juncture, I think, a sudden dramatic drop is in the cards.
A sudden drop in fiat could cause a perception/psychological shift.
People have a long history of using gold as money
We have not seen gold fever yet
May 31, 2009 at 12:34 PM #408331ParticipantAllan is correct, in principle. Though, I think, technically off a bit. Gold is like fiat, in a sense, a perception game. Though, it is subject to the rules of physics, which I like, unlike fiat. Still, It takes a bunch of people to agree that it is worth something beyond it’s utility. Gold has utility, unlike fiat, but not much by commodity standards.
Fiat is backed by debt and the ability to pay it back. As the ability to pay it back goes down so does it’s value.
Fiat is GUARANTEED to go down in value. At this juncture, I think, a sudden dramatic drop is in the cards.
A sudden drop in fiat could cause a perception/psychological shift.
People have a long history of using gold as money
We have not seen gold fever yet
May 31, 2009 at 12:34 PM #408394ParticipantAllan is correct, in principle. Though, I think, technically off a bit. Gold is like fiat, in a sense, a perception game. Though, it is subject to the rules of physics, which I like, unlike fiat. Still, It takes a bunch of people to agree that it is worth something beyond it’s utility. Gold has utility, unlike fiat, but not much by commodity standards.
Fiat is backed by debt and the ability to pay it back. As the ability to pay it back goes down so does it’s value.
Fiat is GUARANTEED to go down in value. At this juncture, I think, a sudden dramatic drop is in the cards.
A sudden drop in fiat could cause a perception/psychological shift.
People have a long history of using gold as money
We have not seen gold fever yet
May 31, 2009 at 12:34 PM #408542ParticipantAllan is correct, in principle. Though, I think, technically off a bit. Gold is like fiat, in a sense, a perception game. Though, it is subject to the rules of physics, which I like, unlike fiat. Still, It takes a bunch of people to agree that it is worth something beyond it’s utility. Gold has utility, unlike fiat, but not much by commodity standards.
Fiat is backed by debt and the ability to pay it back. As the ability to pay it back goes down so does it’s value.
Fiat is GUARANTEED to go down in value. At this juncture, I think, a sudden dramatic drop is in the cards.
A sudden drop in fiat could cause a perception/psychological shift.
People have a long history of using gold as money
We have not seen gold fever yet
May 31, 2009 at 2:02 PM #407889Allan from Fallbrook
Participant[quote=peterb]Venetian Bonds and silk, yeah that’s got staying power.[/quote]
Peter: Which makes my point exactly. Hence the use of the term “historically speaking”. Gold, fiat currency and other financial instruments have fluctuated wildly over the years, which removes the underpinnings from your argument that gold enjoys superior staying power versus ALL other forms of money.
And, let’s be clear: Money is not necessarily fiat currency, which furthers weakens the focal point around which your argument coheres.
I’m sure you meant your comment in a snide fashion, but it’s true and on point without you obviously realizing it.
May 31, 2009 at 2:02 PM #408127Participant[quote=peterb]Venetian Bonds and silk, yeah that’s got staying power.[/quote]
Peter: Which makes my point exactly. Hence the use of the term “historically speaking”. Gold, fiat currency and other financial instruments have fluctuated wildly over the years, which removes the underpinnings from your argument that gold enjoys superior staying power versus ALL other forms of money.
And, let’s be clear: Money is not necessarily fiat currency, which furthers weakens the focal point around which your argument coheres.
I’m sure you meant your comment in a snide fashion, but it’s true and on point without you obviously realizing it.
May 31, 2009 at 2:02 PM #408370Participant[quote=peterb]Venetian Bonds and silk, yeah that’s got staying power.[/quote]
Peter: Which makes my point exactly. Hence the use of the term “historically speaking”. Gold, fiat currency and other financial instruments have fluctuated wildly over the years, which removes the underpinnings from your argument that gold enjoys superior staying power versus ALL other forms of money.
And, let’s be clear: Money is not necessarily fiat currency, which furthers weakens the focal point around which your argument coheres.
I’m sure you meant your comment in a snide fashion, but it’s true and on point without you obviously realizing it.
May 31, 2009 at 2:02 PM #408434Participant[quote=peterb]Venetian Bonds and silk, yeah that’s got staying power.[/quote]
Peter: Which makes my point exactly. Hence the use of the term “historically speaking”. Gold, fiat currency and other financial instruments have fluctuated wildly over the years, which removes the underpinnings from your argument that gold enjoys superior staying power versus ALL other forms of money.
And, let’s be clear: Money is not necessarily fiat currency, which furthers weakens the focal point around which your argument coheres.
I’m sure you meant your comment in a snide fashion, but it’s true and on point without you obviously realizing it.
May 31, 2009 at 2:02 PM #408582Participant[quote=peterb]Venetian Bonds and silk, yeah that’s got staying power.[/quote]
Peter: Which makes my point exactly. Hence the use of the term “historically speaking”. Gold, fiat currency and other financial instruments have fluctuated wildly over the years, which removes the underpinnings from your argument that gold enjoys superior staying power versus ALL other forms of money.
And, let’s be clear: Money is not necessarily fiat currency, which furthers weakens the focal point around which your argument coheres.
I’m sure you meant your comment in a snide fashion, but it’s true and on point without you obviously realizing it.
May 31, 2009 at 2:06 PM #407894Participant[quote=Arraya]Allan is correct, in principle. Though, I think, technically off a bit. Gold is like fiat, in a sense, a perception game. Though, it is subject to the rules of physics, which I like, unlike fiat. Still, It takes a bunch of people to agree that it is worth something beyond it’s utility. Gold has utility, unlike fiat, but not much by commodity standards.
Fiat is backed by debt and the ability to pay it back. As the ability to pay it back goes down so does it’s value.
Fiat is GUARANTEED to go down in value. At this juncture, I think, a sudden dramatic drop is in the cards.
A sudden drop in fiat could cause a perception/psychological shift.
People have a long history of using gold as money
We have not seen gold fever yet
[/quote]
Arraya: Thanks. You did a better job of making my point than I did, but you hit it on the head.
Part of the problem with arguments like Peter’s and Scaredy’s is that they also ignore the social constructs necessary to impart value to gold or fiat currency or Dutch tulips, for that matter.
Gold is not possessed of an intrinsic value, that value is imparted or, more correctly, set. It is set by a wide variety of factors, but I doubt you will see a wholesale collapse of the dollar, immediately followed by gold becoming the de facto REAL MONEY.
Using “history” and “facts” without fully understanding either also destroys the ability to effectively argue a point, too.
May 31, 2009 at 2:06 PM #408132Participant[quote=Arraya]Allan is correct, in principle. Though, I think, technically off a bit. Gold is like fiat, in a sense, a perception game. Though, it is subject to the rules of physics, which I like, unlike fiat. Still, It takes a bunch of people to agree that it is worth something beyond it’s utility. Gold has utility, unlike fiat, but not much by commodity standards.
Fiat is backed by debt and the ability to pay it back. As the ability to pay it back goes down so does it’s value.
Fiat is GUARANTEED to go down in value. At this juncture, I think, a sudden dramatic drop is in the cards.
A sudden drop in fiat could cause a perception/psychological shift.
People have a long history of using gold as money
We have not seen gold fever yet
[/quote]
Arraya: Thanks. You did a better job of making my point than I did, but you hit it on the head.
Part of the problem with arguments like Peter’s and Scaredy’s is that they also ignore the social constructs necessary to impart value to gold or fiat currency or Dutch tulips, for that matter.
Gold is not possessed of an intrinsic value, that value is imparted or, more correctly, set. It is set by a wide variety of factors, but I doubt you will see a wholesale collapse of the dollar, immediately followed by gold becoming the de facto REAL MONEY.
Using “history” and “facts” without fully understanding either also destroys the ability to effectively argue a point, too.
May 31, 2009 at 2:06 PM #408375Participant[quote=Arraya]Allan is correct, in principle. Though, I think, technically off a bit. Gold is like fiat, in a sense, a perception game. Though, it is subject to the rules of physics, which I like, unlike fiat. Still, It takes a bunch of people to agree that it is worth something beyond it’s utility. Gold has utility, unlike fiat, but not much by commodity standards.
Fiat is backed by debt and the ability to pay it back. As the ability to pay it back goes down so does it’s value.
Fiat is GUARANTEED to go down in value. At this juncture, I think, a sudden dramatic drop is in the cards.
A sudden drop in fiat could cause a perception/psychological shift.
People have a long history of using gold as money
We have not seen gold fever yet
[/quote]
Arraya: Thanks. You did a better job of making my point than I did, but you hit it on the head.
Part of the problem with arguments like Peter’s and Scaredy’s is that they also ignore the social constructs necessary to impart value to gold or fiat currency or Dutch tulips, for that matter.
Gold is not possessed of an intrinsic value, that value is imparted or, more correctly, set. It is set by a wide variety of factors, but I doubt you will see a wholesale collapse of the dollar, immediately followed by gold becoming the de facto REAL MONEY.
Using “history” and “facts” without fully understanding either also destroys the ability to effectively argue a point, too.
May 31, 2009 at 2:06 PM #408439Participant[quote=Arraya]Allan is correct, in principle. Though, I think, technically off a bit. Gold is like fiat, in a sense, a perception game. Though, it is subject to the rules of physics, which I like, unlike fiat. Still, It takes a bunch of people to agree that it is worth something beyond it’s utility. Gold has utility, unlike fiat, but not much by commodity standards.
Fiat is backed by debt and the ability to pay it back. As the ability to pay it back goes down so does it’s value.
Fiat is GUARANTEED to go down in value. At this juncture, I think, a sudden dramatic drop is in the cards.
A sudden drop in fiat could cause a perception/psychological shift.
People have a long history of using gold as money
We have not seen gold fever yet
[/quote]
Arraya: Thanks. You did a better job of making my point than I did, but you hit it on the head.
Part of the problem with arguments like Peter’s and Scaredy’s is that they also ignore the social constructs necessary to impart value to gold or fiat currency or Dutch tulips, for that matter.
Gold is not possessed of an intrinsic value, that value is imparted or, more correctly, set. It is set by a wide variety of factors, but I doubt you will see a wholesale collapse of the dollar, immediately followed by gold becoming the de facto REAL MONEY.
Using “history” and “facts” without fully understanding either also destroys the ability to effectively argue a point, too.
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