Quote:
Originally Posted by Crowbob
Hello, Tabdullah Numero Uno!
My memory is not what I remember it to be but here goes anyway.
Wasn’t it you who argued a few years back that S & G did not have intrinsic value? I could be wrong, so no offense intended.
Also, after thinking about cryptocurrency, I was trying to figure out where my initial resistance to it being viable was. It is because of its intangibility. It simply doesn’t exist. So, IMO, it’s very difficult for it to somehow have value. I understand I use nonexistent money every day when I use my credit card, write a check or whatever. The card, nor the paper check, has any intrinsic value. What they represent, ie., the money in the accounts, really also doesn’t have any intrinsic value. They are merely pieces of paper. But even further, those pieces of paper (dollars) used to represent the value of gold. But now, since we are off the gold standard, even the gold doesn’t exist. A trillion dollars of newly printed dollars does not automatically and magically create the corresponding pounds or tons of gold.
So my problem with crypto is that it is not one layer removed from gold, as is paper money, which is physical. Nor is it two layers removed from gold, such as a credit card, which is less physical, but crypto is actually THREE layers removed from gold and doesn’t even exist at all!
My house could burn down but the gold within it would still exist. My bank could go broke, but my gold still exists. If the interwebs is kaput my gold still exists.
This reluctance on my part may not be rational, but so what.? Nobody said I was sane to begin with.
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When I was in HS I used go panning for Gold on the E Fork of the San Gabrielle river.. The old guy who worked a the cheap gas station bought Gold coins whenever he had some extra money. So I learned a thing of two..he was happy as a pig in shyte when Nixon took the US off the Gold standard because Gold went from the Bretton Woods fixed in 44 at 35 an oz to 110.. what cause that move was De Gaulle demanding that the US repatriate it's Tourist $$ in Gold... at 35 oz where De Gaulle could turn it around in EU for 110. The US was using the spread in price to finance the SE Asian war games and the welfare state, and De Gaulle had enough of it.
It took a few years for the shyte to catch up with America in the form of INFLATION American prices had to catch up with the real world value of USD's in Gold.. There in lies the inflation of the mid 70's to early 80's. The Saudis realized that they made a bad deal by making all oil transactions to be settled in USD...so as to not be left holding the American bag they bumped the price of oil...so now Americans had to start paying the price for their life style at the pump.
In the mid 80's Americans started to leverage the Brand and it's assets...to pay for their life style...in 08 the Consumer who supported the Global economy with conspicious consumption went bust..the FED and US govt stepped in to continue the PARTAY by printing to support borrowing on the NATIONAL ASSETS and BRAND..all the other nations had to follow suit in order for an economic equilibrium to be maintained..till now the world is awash in debt and debased currencies.. Is there any real value left in the brand and or assets or has it all been leveraged to the hilt? The machinations of the FED n particular have been to make sure that the encumbrance is serviceable..One of their tools is printing money so that any unsold debt is purchased with newly printed money so that interest rates do not get out of hand. They call the QE. or monetary easing of interest rates. By the FED's own behavior they have as much as admitted that monetary policy is nearing it's limits..
Given this trajectory and or state of affairs what is the logical outcome of this behavior? Given that it is a Global state of affairs what will be the scope of the outcome?