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To: grumpygresh
The "fiat currency" rationale for justifying the current price of gold bubble is a red herring -IMHO.

"The real price of every thing, what every thing really costs to the man who wants to acquire it, is the toil and trouble of acquiring it...
But though labour be the real measure of the exchangeable value of all commodities, it is not that by which their value is commonly estimated...
Every commodity, besides, is more frequently exchanged for, and thereby compared with, other commodities than with labour."
- Adam Smith, The Wealth of Nations, 1776

10 posted on 09/05/2011 9:16:54 AM PDT by Riodacat (And when all is said and done, there'll be a hell of a lot more said than done......)
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To: Riodacat

The problem with your theory (Adam Smith’s) is that central banks the world over are purchasing gold as a hedge to their wealth. Things are changing and actually the world is trending back to the gold standard by proxy.
Maybe a better way to view the situation is-How much gold(not currency) is your labor worth?


11 posted on 09/05/2011 9:43:40 AM PDT by cornfedcowboy (Trust in God, but empty the clip.)
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To: Riodacat

Right now ww are seeing the currency bubble bursting. The reason gold is high is because the supply of currency and the size of central bank balance sheets have increased enormously.


12 posted on 09/05/2011 10:42:20 AM PDT by grumpygresh (Democrats delenda est)
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