3 ms·
How are the random deposits of a heavy metal in the earth's crust more predictable then central banks?
by forgottenpswrd 18y ago
How are the random deposits of a heavy metal in the earth's crust more predictable then central banks?
- kragen 18y agoThe last major expansion of the Eurasian gold supply was in the 1500s and 1600s, due to the looting of the Americas, and I think it roughly tripled the amount of gold in circulation. There has never been an event since the advent of gold-as-currency that multiplied by ten the amount of gold in circulation within a century, but that happens to almost every fiat currency almost every century. Predicting which decade it happens in is tricky, though. I think using a fiat currency is probably a good idea, though.
- forgottenpswrd 18y agoI am not so sure predicting when a fiat currency will be inflated is tricky. The money supply and interest rates being econ 101. And thinking of hyper inflation, where does that usually happen? Zimbabwe, Yugoslavia, the Weimar Republic - if a bad government wants to screw you, a gold backed currency won't save you. Does anyone think someone like Mugabe wouldn't just change the rules to do what ever he wants? Besides, even that Money as Debt movie explains that gold is easily manipulated and thus volatile, so not good as a currency.
- jacoblyles 18y agoBillions of dollars are won and lost on Wall Street everytime the Fed meets. If it were as easy as you say to predict the actions of the central bank, this would not be the case.
- forgottenpswrd 18y agoHow many times to the daily fluctuations of wall street affect the rate of inflation or an average person's life? I believe there's been at least one major stock market crash that has not led to a recession.