From: Michael S. Lorrey (retroman@turbont.net)
Date: Mon Sep 11 2000 - 10:28:43 MDT
Forrest Bishop wrote:
>
> With gold, "the buck stops here." People have always accepted
> gold as payment in full and always accepted it in trade. In
> practice gold has _never_ acted like an IOU that might not be
> good anymore. Fiat eventually always has. And additionally, if
> history is any guide at all, because of "inflation" you can be
> absolutely certain those fiat certificates -- unlike the gold --
> you've been stashing under the mattress will buy less at year's
> end than they do today. Fiat virtually NEVER goes up in terms of
> what it can buy -- except in rare cases when productivity in
> isolated products temporarily out-runs money-supply inflation.
This central claim is pure bogosity. Today, one ounce of gold is worth 1-5 days
work by the average worker. 200 or more years ago, one ounce of gold was an
entire season's wages. This is clear evidence that gold has deflated in value.
This archive was generated by hypermail 2.1.5 : Fri Nov 01 2002 - 15:30:54 MST