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To: Jim 0216

Gold, in and of itself, is worthless as a standard for monetary policy.

Yes, it has historical value but in reality it is all perceived value.

From my seat, the only thing that can be used as a basis for any currency is Energy.

Oil, coal and whatever other thing that produces energy.

Measured in BTUs.

Energy is life.

Energy is needed to conduct business and its usage can be measured.

While many people idealize a Gold standard at the end of the day we are on an “ENERGY STANDARD”.

Energy is to only thing that can measure life and business expansion and contractions that would provide any real basis for value.

Maybe it’s just me.


93 posted on 06/28/2016 2:12:33 PM PDT by Zeneta
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To: Zeneta

Keep it simple. It’s not the value of gold that matters. Its more it’s permanence. Again all you’re doing is fixing a measurement standard, like the wight measurement on your bathroom scales. The measurement itself isn’t the point. It’s the fact it’s fixed and reliable, the way you always know that a pound is always sixteen ounces, so you can tell whether you’ve gained weight or lost weight - the scale has a higher reading because you actually gained weight, not because you fooled yourself by changing to measurement of a pound on the scale.

In the same way buyers and sellers can rely on prices being an accurate measure of the relative value goods and services, knowing that changes in prices is not because somebody has changed the measurement of the dollar - changing the measurement of the dollar doesn’t change the intrinsic value of the goods and services, it only fools you into thinking intrinsic value has changed.


95 posted on 06/28/2016 2:36:23 PM PDT by Jim W N
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