of paper? And starts printing off currency? What makes gold valuable is that it is scarce, we know with quite a bit of certainty how much is below and above the ground, and is has a background of this usage. As we are seeing with "quantitative easing," paper is not scarce.
I the people lose trust in a country the currency goes down exactly because of this. This can also be a good thing, for example when the economy is not competitive and the government has always enough money to provide the basic needs. Not comparable to a resource.
Everybody thinks he knows about economics but does lack basic theories, i don't want explain in every discussion how inflation works.
PS: Please stop downvoting me just because you disagree.
I understand the benefits of monetary inflation in an expanding economy. I also think that "the spontaneous remonetization of precious metals is a Nash equilibrium," or in other words, inevitable. Read this, from 2006:
Why the Global Financial System is About To Collapse
I have not enough time right now to read this whole thing but i browsed it, there is enough stuff to argue with he mentions taxes and all the important elements but it sounds alarmist nonetheless.
Maybe i have to take that back, but i have this problem very often when i argue about these things.
First, it has happened within my grandparents' lifetime.(Weimar Germany, for example.)
Second, inevitability doesn't have a timeline. It could be in a thousand years or tomorrow; that's not the point. The point is: it is expected to happen at some point.
of paper? And starts printing off currency? What makes gold valuable is that it is scarce, we know with quite a bit of certainty how much is below and above the ground, and is has a background of this usage. As we are seeing with "quantitative easing," paper is not scarce.