#47785
Malgus
Malgus
Survivalist
member8

If gold is not convertible into a grossly hyper-inflated fake currency (the $US, for example), then will it really be accepted between individuals as a standard of trade?

It will be accepted enough for local economies to lurch along, people to survive, etc. Depending on geographic area, of course. Some areas of the country have a long, proud and hallowed history of telling the government to f*&^ off and then going their own way. Some won’t have any problem chucking the dollar and happily going their own way…

If the .gov “decrees” that only their sh*t dollars will be used, well, just HOW will they enforce that across the nation? In the backwoods? In some guy’s living room? Parallel economies will rise – just like the parallel narco-economy we have right now (and other assorted black and grey markets).

It will be like fighting a Hydra… stamp one out, 3 more rise in it’s place… and if gold isn’t “money” then that means its private property. Like to see the .gov put the clamp down on private citizens trading their own private property… Gold has been “money” for 6,000 years and has done just fine. Just because Helicopter Ben says otherwise don’t make it so…

We’ve always thought of gold as having a dollar-denominated value, but wasn’t that perhaps only because it used to BE convertible into a set amount of dollars?

In that you mean gold = bits of paper? No. Our actual money – the dollar – was physical metal. The paper version came along as a stand-in out of necessity, since there were not enough precious metals to go around… which is where the money troubles of the early Republic come in…

Later, the gold dollar was a paper representation of gold. It was – literally – as good as gold because you could go to any bank and change it for equal amounts of physical gold. Gold is heavy. Much easier carrying around bits of paper as a stand-in.

If gold “money” is a physical representation of a certain amount of labor, then gold is literally interchangeable with labor. Since the gold dollar used to be interchangeable with gold, then gold = paper dollars = labor.

What we have now is not the case. It’s not the “value” of gold going up and down that accounts for it’s change in price. It’s the worthlessness of our fiat dollars when compared to gold that is changing. As the “worth” of our crap fiat dollars craters even more, the price of gold rises… but not it’s value. An ounce of gold mined and refined 3,000 years ago has the same value as an ounce of gold mined and refined yesterday… it is as constant as Polaris.

As far as folks pushing PM’s as a way to preserve wealth being some nefarious scheme to concentrate PM’s to make it easier for confiscation, I don’t think that’s the case.

I think your fears are unfounded re: the .gov having some kind of control over black and grey markets. They can’t even handle the black and grey markets that exist right now. The ones they do eventually bust are just little bits of a much larger whole, which immediately regrow with different players in the game.

How do you expect them to have a measure of control over the thousands of little mini black and grey markets that will spring up like dandelions as a result of Some Event? By decreeing you cannot convert PM’s to fiat currency? Yeah, that will totally work – coz human nature, corruption… plus, everyone gotta eat, ya know?

Rest assured, there will always be some local or regional apparatchik who can be bought off with something Shiny – either to actively look the other way, or for “protection” or to actively aid and abet swapping cash for PM’s… especially if they’re some appointed bank goon. Bank goons know the in’s and out’s of the system better than anyone else, know the “gold isn’t money” line is a scam – a particularly weak Jedi Mind Trick that convinced exactly nobody, but we play along anyway.

They’ll see The Shiny and they know that it will eventually become genuine ‘money’ again, sooner or later… they want to set themselves and their family up and will probably have no compunction against being co-opted, bribed, etc… of all the “morally flexible” types out there, bank goons are some of the ones you want on your side…

The wicked flee when none pursueth..." - Proverbs 28:1