Comment by mwkaufma
19 hours ago
>> Rather, what we need to do is to calibrate the physical economy such that we can benchmark the monetary against the material. This enables us to avoid the futility of measuring the monetary only against itself.
Garden-variety Gold Standard quackery.
Wait, it's not obvious to me why this is quackery?
It makes people uncomfortable. That's the long and the short of it.
I kept having my bad vibes meter triggered by the italics so thanks for making the connection for me.
My spider sense was going off because they spend the first several pages constructing the most obtuse definition of Inflation without just saying it.
That may be 100% true, but the market can remain irrational longer than you can remain solvent, and in this case, gold has been doing awkwardly well under current conditions.
By the article's _own_ parable: if you were starving on a desert island, you wouldn't be relieved to be airdropped a briefcase full of gold. You're benchmarking money to money.
IMO, combining gold money arguments with observations about the price of gold is contradictory. If gold is money, then you should never wonder about the "price of gold" as gold should be used to price things.
Roughly half the gold produced each year vanishes into gold hoards. Half.
This has been going on for forty years. There's literally decades of gold production sitting in hoards all around the world.
Gold prices could get very strange very fast.