It is also not a "capital good", because it is not significantly part of the means of production.
It is, however, a durable physical wealth asset that can be readily traded for financial capital, which can be used to procure capital goods (or consumption items… or gold!).
If gold were routinely demanded to settle current account imbalances, and was traded free of "fiat gold" (a creditised financial anacronism, left over after the bygone international financial system of yesteryear) and were priced accordingly, this 'Freegold' would significantly reduce the necessity to attract capital account surpluses (for trade deficit countries to go ever-deeper into debt to trade surplus countries).
Balance in global trade would be restored.
Happy happy happy!
4 comments:
Yes, indeed: if; demanded.
(Question Everything™!)
WRT Hildebrandt… I didn't read it. Due to the need to ration my scarce personal resources, I choose to rely on the assessment of a friend on this one.
(…If You Have Time™!)
In whose hands does the surplus (and the choice of how to deal with it) lie?
Well, I would have to guess the Central Banks (and/or their controllers) of those economies running current account surpluses?
how about that one:
Instead of relying on somebodies thinking of what you wanna hear, think for yourself?
SCNR, Greets AD
:-) S'true!
But, as I indicated, who's got time for that shit?
ps: "Some C*nts Never Read" perhaps?
:D
yep, but sometimes always that some old stuff of poor old Fekete&Lipps from the early 80s gets kind of boring, dont you think?
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