Why Not a Gold Standard?

[doc_loliday]

Gold is fiat too.

For chickens & ditch-digging, yes.

The reason that gold is used, or "bitcoin mining," is because its supply can only grow at a very slow rate. Royalists do understand that durable goods do actually increase, and if the supply of gold didn't increase, there would be the appearance of deflation, and the last thing the aristocracy wants is to see their Net Worth decrease.

You don't want dollars to increase to quickly either. But too slow is bad too, people won't spend it.

[Speaker to Animals]

Sure it is. It's valuable because its valuable.

It's valuable because there exists a market value for it.

What is the market value of a piece of tissue you pick up off the ground?

Yeah, there's a market for it because people consider it valuable as a currency.

No. There's a market value for it because it has other applications and uses, it's non-perishable, and it's easily convertible.

[Martin Hash]

Gold is fiat too.

For chickens & ditch-digging, yes.

The reason that gold is used, or "bitcoin mining," is because its supply can only grow at a very slow rate. Royalists do understand that durable goods do actually increase, and if the supply of gold didn't increase, there would be the appearance of deflation, and the last thing the aristocracy wants is to see their Net Worth decrease.

You don't want dollars to increase to quickly either. But too slow is bad too, people won't spend it.

I don't know if you've been following me or not but the supply of dollars can increase at any rate as long as supply = demand. The instances of hyper-inflation you are familiar with are when demand > supply.

[doc_loliday]

That's ridiculous. Nobody uses gold because of its conductivity or use for jewelry. People want gold so they have something of value and can buy stuff.

[Martin Hash]

It's valuable because there exists a market value for it.

What is the market value of a piece of tissue you pick up off the ground?

Yeah, there's a market for it because people consider it valuable as a currency.

No. There's a market value for it because it has other applications and uses, it's non-perishable, and it's easily convertible.

Convertible to what? You don't seem to be understanding: gold has little intrinsic value.

[doc_loliday]

You don't want dollars to increase to quickly either. But too slow is bad too, people won't spend it.

I don't know if you've been following me or not but the supply of dollars can increase at any rate as long as supply = demand. The instances of hyper-inflation you are familiar with are when demand > supply.

True enough, I'm not saying dollars are without their problems. Gold has its own too. The price of gold fluctuates too, sometimes wildly.

[Martin Hash]

I think jewelry, which is really status, is why gold was chosen as the fiat in Europe/ME, then it gained extrinsic value as the fiat, which increased its status value; a kind of incestuous feedback loop.

Status items WILL inflate in price as the money supply increases, even if there is sufficient commodites, because people will pay any amount for status, and items only confer status if they're rare. Once a previous status item becomes commonplace, it no longer confers status.

[doc_loliday]

I think jewelry, which is really status, is why gold was chosen as the fiat in Europe/ME, then it gained extrinsic value as the fiat, which increased its status value; a kind of incestuous feedback loop.

Status items WILL inflate in price as the money supply increases, even if there is sufficient commodites, because people will pay any amount for status, and items only confer status if they're rare. Once a previous status item becomes commonplace, it no longer confers status.

Agreed.

[Speaker to Animals]

Yeah, there's a market for it because people consider it valuable as a currency.

No. There's a market value for it because it has other applications and uses, it's non-perishable, and it's easily convertible.

Convertible to what? You don't seem to be understanding: gold has little intrinsic value.

That video Fife posted states it more clearly than I can, dude. You should listen to it. Really sit down and listen to it instead of project onto it.

[Martin Hash]

No. There's a market value for it because it has other applications and uses, it's non-perishable, and it's easily convertible.

Convertible to what? You don't seem to be understanding: gold has little intrinsic value.

That video Fife posted states it more clearly than I can, dude. You should listen to it. Really sit down and listen to it instead of project onto it.

STFU