Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: ex 98C MI Dude

In times of crisis, I would much rather my currency be based on oil or grain. Gold only has a perception value and in times of true crisis, could be worth nothing if no one found value in it.

In other words, if the SHTF, you can’t eat gold, you can’t shoot gold, and you can’t burn gold.

We also produce very little gold, so in times of crisis, we can be held hostage by external forces.


60 posted on 01/04/2011 1:32:23 PM PST by mnehring
[ Post Reply | Private Reply | To 56 | View Replies ]


To: mnehring
Basing a currency on a consumable is probably not the best way to go, especially during a crisis. Grain is probably the worst. A bad harvest in the middle of a problem, and suddenly you have a financial crisis as well. Oil has the same disability. A flexible currency is best.

A major reason why gold is considered stable is because it isn't really used for anything else. It doesn't tarnish in its purest state, nor corrode. Put it in a fire, and it comes out gold. It does have its place as a store of wealth, but not as currency in an economy of scale anymore.

63 posted on 01/04/2011 1:40:44 PM PST by ex 98C MI Dude (Alea Iacta Est)
[ Post Reply | Private Reply | To 60 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson