Oh, I am well aware that gold has no intrinsic value- it amuses me greatly when gold bugs argue that it does. However, the sheer quantity of people who believe that it has great value, along with the thousands of years of cultural weight, makes it a phenomenal hedge against currency crises. There's 2.5 billion people in China and India who want the shiny.
There's plenty of black comedy to go around- an expensive war or two and the fiat money printing press will trigger massive inflation. Go to a gold standard, and it sets the country up for some really ugly deflation.
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timeasmymeasure
no subject
Date: 2007-09-20 05:29 am (UTC)There's plenty of black comedy to go around- an expensive war or two and the fiat money printing press will trigger massive inflation. Go to a gold standard, and it sets the country up for some really ugly deflation.