Why would anyone want gold standard?

[Pulvinar]

I was 13 in 1980. Not that this has anything to do with anything. I am watching what is happening in the world right now, not trying to predict the future based on what happened in the past regardless of the fact that the situation is very different.

So you don't remember any resource problems around 1980? The price of gas in the US in 1981 was higher than today's price (adjusted for inflation). According to some the world economy was coming to an end then too, or the price of gold wouldn't have been rising-- the particulars don't matter.

I'll assume you didn't have anything to invest at the time, if you cared about such things.

 

[kevsta]

So you don't remember any resource problems around 1980? The price of gas in the US in 1981 was higher than today's price (adjusted for inflation). According to some the world economy was coming to an end then too, or the price of gold wouldn't have been rising-- the particulars don't matter.

.

if Volker hadn't taken the action he did, they were going to be right.

THIS TIME THEY CANNOT RAISE INTEREST RATES WITHOUT SELF DESTRUCTING

why is this so difficult to understand? negative real interest rates until at least 2013, and without any doubt more (global) Ctl +P between then and now too = Gold continuing on upwards.

so simple a child should be able to understand.

 

[The Central Scrutinizer]

So you don't remember any resource problems around 1980? The price of gas in the US in 1981 was higher than today's price (adjusted for inflation). According to some the world economy was coming to an end then too, or the price of gold wouldn't have been rising-- the particulars don't matter.

Don't you get it? This time, it really is different.

 

[The Central Scrutinizer]

so simple a child should be able to understand.

 

[kevsta]

I was 13 in 1980. Not that this has anything to do with anything. I am watching what is happening in the world right now, not trying to predict the future based on what happened in the past regardless of the fact that the situation is very different.

this nonsense they continually dream up about it being absolutely set in stone that Gold always crashes, when in fact we have a set of exactly one previous case.

this time, (the second time ever) of course will definitely be exactly the same as the first and only ever previous time, despite a wholly different set of inputs

 

[kevsta]

to be fair, there is room in this thread for some laughing at the people who think "this time will be different" but we should be laughing at the paperbugs.

history seems to show exactly zero cases of gold becoming worthless, and oh, just every paper currency ever throughout history has gone to zero eventually.

but yes, this time, really is different

 

[Sceptic-PK]

if Volker hadn't taken the action he did, they were going to be right.

THIS TIME THEY CANNOT RAISE INTEREST RATES WITHOUT SELF DESTRUCTING

why is this so difficult to understand? negative real interest rates until at least 2013, and without any doubt more (global) Ctl +P between then and now too = Gold continuing on upwards.

so simple a child should be able to understand.

And what does any of that have to do with countries choosing to adopt a gold standard?

 

[kevsta]

And what does any of that have to do with countries choosing to adopt a gold standard?

not much, we're way off topic, I've basically just been responding to the trolls tangential distractions.

in this post I asked a question, nobody has yet wanted to respond to.

I am taking it that a few will have definitely watched it, and can formulate no valid counter arguments of any sort.

instead here we are. here is the link again http://www.bloomberg.com/video/79944740/

it is on-topic, and it will become more so with time.

 

[kevsta]

It's actually relatively useless as an industrial metal because it is so soft and because it is less conductive of both heat and electricity than silver, which is much cheaper (at the moment - who knows what may happen in the future.)

for higher quality electronic applications gold is the preferred choice over silver because it does not form oxides or sulfides, so does not tarnish, and has greater longevity.

It is also preferred for sensitive electronic devices for this reason and because it does not react with the device's semiconducting material like silver can over time.

 

[UndercoverElephant]

So you don't remember any resource problems around 1980? The price of gas in the US in 1981 was higher than today's price (adjusted for inflation).

Yes, and there is a very important difference. Then the "resource problem" was actually a political problem. This time it is a physical problem.

 

[The Central Scrutinizer]

Yes, and there is a very important difference. Then the "resource problem" was actually a political problem. This time it is a physical problem.

Let me guess...."Peak Oil"?

How is today's Peak Oil different than the Peak Oil of the 70's. Then compare it to the Peak Oil of the 80's, 90's and 2000's.

I already know that this time it is different (it always is), so you can skip that part.

 

[Sledge]

I have no idea why anyone would actually want this back.

Let us consider the words of Darwin Mayflower: "Money isn't everything - gold is. **** T-bills! **** blue chip stocks! **** junk bonds! We've got the real deal! Money will always be paper, but gold will always be GOLD!"

 

[WildCat]

 

[elbe]

for higher quality electronic applications gold is the preferred choice over silver because it does not form oxides or sulfides, so does not tarnish, and has greater longevity.

It is also preferred for sensitive electronic devices for this reason and because it does not react with the device's semiconducting material like silver can over time.

Maybe I'm missing something but wouldn't that be a good reason not to use gold as currency?

 

[The Central Scrutinizer]

Maybe I'm missing something but wouldn't that be a good reason not to use gold as currency?

It's best if you don't think too much when it comes to gold.

 

[kevsta]

Maybe I'm missing something but wouldn't that be a good reason not to use gold as currency?

why? because it has other uses too?

 

[kevsta]

you people had better get used to the idea, because you're going to be hearing a lot more about it as time progresses.

here's 79 reasons the gold standard is a good idea.

This blogger notes that the gold standard discussion has turned into a most emotional debate where proponents and the fiat money camp throw mud at each other. I consider this an interim stage on the way to sound money.

I know it sucks to have been indoctrinated with all that Keynesian woo from an early age, but that's what happened, and as it's now failed, it's time to face reality and lose all the mumbo jumbo.

 

[kevsta]

what will be will be, we (could if anyone dared) debate what might be next, all day long, but actually, only time will tell. however, you are in fact just as likely to be incorrect as we (or I) in this debate, nobody knows the future.

I am actually more interested in the psychology of you rabid anti gold people.

http://mises.org/daily/3368

For some reason, there are a lot of people out there who can't stand the gold standard. Maybe their hostility is in reaction to the large (and growing) number of gold bugs who think the worst day in history was August 15, 1971. But since I'm an economist, not a psychoanalyst, all I can really do is patiently explain how silly the antigold arguments are, rather than speculate on the motives of their authors.

what I am interested in is how you got like you are. why you irrationally hate the idea and by extension anyone who espouses it. why you feel it is ok to troll and feel superior, without ever once addressing a single question.

this to me, is baffling, not the fact that we disagree, but the intellectually superior smugness, and especially so, in the face of a continually rising gold price, which we have all been telling you is going to happen.

you (collectively) on the other hand have been bubble calling since $800 or less, and are as collectively wrong as it is possible to be on price, bubbles require major participation, and a mania, neither of which we have yet.

so why the cocksure confidence about the future? dont you know the old adage about pride and falls? don't you remember how humble all you know-it-alls suddenly became around the 08/09 crisis? obviously everything is all fixed and rosy again now though short memories..

I have a theory on this, please feel free to comment or critique with your opinions as it relates to you.

types of people who irrationally mock / hate gold and anybody who mentions it.

1. people with no money to spare ever.
2. people who would lose advantages gained from the current system, banks, governments and their media etc.
3. academia & econ professors (see 1 & 2.)
4. people who are locked into 401k's and cannot easily get out (see 1.)
5. people who are locked into real estate and cannot easily get out (see 1.)
6. people who see, but are too scared to partake (bull market wall of worry)
6. keynesian woo disciples.

that about has it covered, which of these are you all?

if none of the above covers you, please explain why you think, and act here, like you do.

 

[UndercoverElephant]

I am actually more interested in the psychology of you rabid anti gold people.

what I am interested in is how you got like you are. why you irrationally hate the idea and by extension anyone who espouses it. why you feel it is ok to troll and feel superior, without ever once addressing a single question.

this to me, is baffling, not the fact that we disagree, but the intellectually superior smugness, and especially so, in the face of a continually rising gold price, which we have all been telling you is going to happen.

I think this is in part inherited from the general intellectually superior smugness of "skeptics" in general. Certain people grow up looking down their noses on believers in religion, paranormalism and silly conspiracy theories. Whilst this is justified to a certain extent (because some of those believers really do believe in things that are totally stupid), it leads to a more general attitude of intellectual superiority over everybody who doesn't agree with them about almost anything. They then end up thinking they can be first class philosophers without studying philosophy or experts on monetary history without studying that either.

I have a theory on this, please feel free to comment or critique with your opinions as it relates to you.

types of people who irrationally mock / hate gold and anybody who mentions it.

1. people with no money to spare ever.

I know plenty of people with no money to spare who are quite happy to say they'd buy gold if they had savings. So this is no excuse.

2. people who would lose advantages gained from the current system, banks, governments and their media etc.

Yep.

3. academia & econ professors (see 1 & 2.)

Economists do tend to suffer from "rigid thinking syndrome." Elsewhere in academia I have not found much resistance to gold.

5. people who are locked into real estate and cannot easily get out

Yes.

6. people who see, but are too scared to partake (bull market wall of worry)
7. keynesian woo disciples.

And yes.

 

[kevsta]

I think this is in part inherited from the general intellectually superior smugness of "skeptics" in general. Certain people grow up looking down their noses on believers in religion, paranormalism and silly conspiracy theories. Whilst this is justified to a certain extent (because some of those believers really do believe in things that are totally stupid), it leads to a more general attitude of intellectual superiority over everybody who doesn't agree with them about almost anything. They then end up thinking they can be first class philosophers without studying philosophy or experts on monetary history without studying that either.

this. nicely put, accurate description IMO.

I know plenty of people with no money to spare who are quite happy to say they'd buy gold if they had savings. So this is no excuse.

I know plenty who refuse to discuss or or even think about it, or anything to do with their financial futures in fact, through despondency and a feeling of hopelessness, that its all running away from them, price and time-wise.

this post I would probably also categorize as 1. IMO anybody who would only consider buying a steadily appreciating asset if it fell to 1/36 to 1/90th of it's current price is either broke or stupid. I find it hard to believe he is stupid, even given some of his previous answers.

Economists do tend to suffer from "rigid thinking syndrome." Elsewhere in academia I have not found much resistance to gold.

interesting.