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Inquisitive minds are wondering how anyone could possibly think the € might survive if (when) the $ fails — surely it must be taken down wit...
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For years, Freegolders have maintained " gold will reach 55,000 dollars in todays dollars ". What has not been said is "... -
Not us - we just want to devalue... and go! So... what does this chart say to YOU ??? Pay careful attention to the divergence bet...
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Today the Long Wave folks have a new article up, giving their forecast for 2010 in the context of their assessment we are firmly in the econ...
5 comments:
IMO, during the BW Standard gold still figured- as the anchor for the dollar.
Post 1971 gold no longer figures.
Freegold: gold floats, currencies find relative levels below surface, with gold as benchmark. More precisely, each currency creates its own pool for gold to float upon, with the smaller (relatively) pools being the stronger currencies, in that they buy more gold (are stronger in gold).
Is it possible for a currency to float ABOVE gold? In my view, albeit perhaps not indefinitely, it's a YES.
I can see the euro at times holding value even better than gold.
... in order to stay in line with the single mandate: consumer price stability.
I can't see it happening often, but it's a possibility.
Technically gold floats on the currency, regardless of the volume of said currency, which was why I suggested currencies have individual pools to float the benchmark.
Maybe a case could be made that a currency could float above gold, but currencies are not compared to gold, but rather valued by it. It does not create an intuitively accurate image for me.
It seems the visual analogy used successfully in the preceding slides does not carry over so well into the Freegold one?
I am interested in a reader gaining an intuitively understood model rather than a technically understood one, but this is just my opinion that an intuitive understanding is (in this case at least) of more practical value than a technical one.
"Technically gold floats on the currency"
An interesting point, and one which perhaps stands the images in the slides on its head. I'd need to mull that over to come up with a better image to convey it, but unfortunately right now I have a couple of problems on my hands and a break coming up imminently. If you think of a good alternative concept, be sure to let me know! :-)
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