- Don’t Challenge The Orthodoxy (Market-ticker.org)
I happen to find the esoteria between the gold bugs and various other flavors (and, in my view, mis-flavors) of Misean thought to be highly amusing. From my perspective there’s only one point worthy of consideration in this regard, and that is whether or not the particular economic model under debate counts all credit and currency as “moneyness” and therefore innately fungible when evaluating the impact of various policy decisions and strictures.
We should worry less about what backs our money and more about who controls its value. This gold / paper dispute completely misses the point, especially if you believe GATA that the gold price has been manipulated for decades.
I don’t think that it’s just GATA that thinks that Gold price is manipulated. It’s pretty obvious that it is. But I agree that the real issue is who controls the quantity of currency/money in circulation, whatever form that currency/money is. Gld, paper, it really doesn’t matter if it is controlled and manipulated by a small private section of the population for their own means.
Ahhh, that certainly does seems like a flashpoint indicator. Good going, Mr. Max! Is the Riot going viral? Finally? Conscience flashpoint? Great, I guess! So, guess I’d better go raid the supermarket and hijack, er, “liberate” a truckload of unnafordable frozen chickens. Bon apétit!
“Don’t Challenge The Orthodoxy . . . Unless You Want to be Fired”
… or even worse, you remain on the payroll but get marginalized to somewhere you can’t affect the status quo.
“But I agree that the real issue is who controls the quantity of currency/money in circulation, whatever form that currency/money is.” – GS
The truth in this statement makes it clear than there is a fundamental inversion of social consciousness concerning money. The idea of fiat paper is confused with wealth, power, and control. That is, ‘if I have money, therefore I’m wealthy’. It appears to me that this is the point Jaitly made about confusing the idea (money) for the object (wealth). This seems to be why controlling the quantity of currency/money in circulation works … we trust in federal reserve notes as if they were good as gold and we trust gold as if it were as good as the thing itself. Paper coupons can be printed and perceptual value inflated away, gold cannot.
Anyway, Sandeep will be talking in Munich Germany 3-9 September for whomever lives in that part of the world.
New Austrian School of Economics
Critique of Mainstream Austrian Economics
http://www.feketeresearch.com/index2.php