Mr. Ash notes that Stephen Harmston, erstwhile economist at Bannock Consulting, wrote that “across 2,500 years, gold has retained its purchasing power, relative to bread at least” which is seemingly proved when one considers that “It is said that an ounce of gold bought 350 loaves of bread in the time of Nebuchadnezzar, king of Babylon, who died in 562 BC” which is roughly what it buys today, a stretch of 2,500 years, while the dollar, on the other hand, has lost 97% of its buying power since 1913, less than 100 years ago, when the detestable Federal Reserve was given its diabolical unholy control of the nation’s banks and money by a corrupt Congress and allowed by a corrupt Supreme Court.
Anyone who goes into a grocery store knows that inflation is eating your dollars alive.
There is a reason countries and Central Banks are moving to gold.
And as you have read on this blog many times, and will again in the future: Lead is the new gold.
Kerodin
III
I am certainly no economist and I can see the wisdom of using gold as a means to store excess wealth but find it hard to comprehend how it could be used on small transactions effectively. The fact that the spot price is subject to volatility, just like last Fridays sell off where it lost 80 dollars an ounce in price, makes it difficult to use as a daily currency. On top of that, if you use gold, what are you going to accept as change, chickens and goats?
ReplyDeleteHardly anyone has stacks of silver on hand and small units of gold don't readily exist. That still leaves FRN's . Not to mention the portability of metal as an exchange medium. Metal coins are heavy and bulky.
Think treasure chest heavy.
I still think gold and silver are good choices to store excess wealth, the key word there is excess. Not as a daily use item. That is something that is going to have to be addressed here shortly.
Just my rapidly devaluating $.02.