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That's an odd assertion to make, considering the current condition of fiat currencies. Gold is more or less untethered to anything right now, other than what p

That's an odd assertion to make, considering the current condition of fiat currencies. Gold is more or less untethered to anything right now, other than what people think it's worth as a hedge. There is an intrinsic value in industrial applications, but that's an edge case. So you are basically valuing gold based on what you can get for it in fiat currencies, which is like using a yardstick to measure itself. Inflation after closing the gold window in the 70s has been staggering. If you have to cough up something--gold, silver, goats, something--for your currency, you can't play the sorts of games we do now with dollars.

dragonwriter 3y ago
> That's an odd assertion to make, considering the current condition of fiat currencies. Its not, if you look at the actual inflation-adjusted price of gold over time. The claim that the exchange value of gold for other goods and services should be more stable than the exchange rate of fiat currencies for goods and services simply is inconsistent with the facts. > If you have to cough up something--gold, silver, goats, something--for your currency, you can't play the sorts of games we do now with dollars. Yes, its much harder to actively manage a commodity currency for price stability, which is the main “game” played with fiat currencies.
- landemva 3y ago
  > the exchange rate of fiat currencies for goods and services simply is inconsistent with the facts. Those who did well in the birthing geo lottery of North America have a different experience than most others. Even European nations in past 25 years cancelled their currencies.
  - laurencerowe 3y ago
    EU countries who switched to the Euro did not cancel their currency. It automatically converted and you had years to convert physical currency at the bank.
    - landemva 3y ago
      If you find a 25 year old buried bucket of Portuguese Escudo, US dollar, and gold, which still spends? Which was cancelled or went to zero? Europe has frequently cancelled their currencies over past 25 and 100 years. Those who were born into US dollar over past 25 or 100 years may believe fiat currency stays around, but that is a US-centric view. Maybe Austrians have a valid historical concern about cash.

dragonwriter 3y ago

> That's an odd assertion to make, considering the current condition of fiat currencies. Its not, if you look at the actual inflation-adjusted price of gold over time. The claim that the exchange value of gold for other goods and services should be more stable than the exchange rate of fiat currencies for goods and services simply is inconsistent with the facts. > If you have to cough up something--gold, silver, goats, something--for your currency, you can't play the sorts of games we do now with dollars. Yes, its much harder to actively manage a commodity currency for price stability, which is the main “game” played with fiat currencies.

landemva 3y ago
> the exchange rate of fiat currencies for goods and services simply is inconsistent with the facts. Those who did well in the birthing geo lottery of North America have a different experience than most others. Even European nations in past 25 years cancelled their currencies.
- laurencerowe 3y ago
  EU countries who switched to the Euro did not cancel their currency. It automatically converted and you had years to convert physical currency at the bank.
  - landemva 3y ago
    If you find a 25 year old buried bucket of Portuguese Escudo, US dollar, and gold, which still spends? Which was cancelled or went to zero? Europe has frequently cancelled their currencies over past 25 and 100 years. Those who were born into US dollar over past 25 or 100 years may believe fiat currency stays around, but that is a US-centric view. Maybe Austrians have a valid historical concern about cash.