Comment by nradov
4 hours ago
No country is accumulating more than token amounts of gold. There just isn't much physical gold available relative to the size of the world economy.
4 hours ago
No country is accumulating more than token amounts of gold. There just isn't much physical gold available relative to the size of the world economy.
The amount of money in the world is also minuscule relative to the size of the world economy. Such is the nature of widescale financialization that the market capitalization of various financial assets greatly exceeds the amount of money in the world. When you think about it, it sometimes makes you wonder if people will look back at this time with some degree of bemusement. I mean it's easy to understand how, and even why, we ended up here. But it's still a nonsensical place to be nonetheless.
Your comment makes no sense. There's no need for a larger money supply. The current situation is sensible (at least to anyone who understands basic finance).
I'm not saying there's need for a larger monetary supply. I'm saying that the world economy's 'value' is heavily driven by financialization, which is increasingly disconnected from reality, even more so as governments have gradually descended to 'stock market = economy' which leads directly to Goodhart's Law, and will eventually culminate in a 'correction.'
So for instance yeah the US only has about 1PE (Peak Elon) of gold, but the entire global level of US reserves are only about 5PE!
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