Reply to Thread

Message:: [QUOTE="V. Kurt Bellman, post: 2292780, member: 71723"]You can't be this dense, can you? I am speaking out of one side - the "dollar is real legal money and gold is not" side. No change. Not now, not ever. What gives the U.S. Dollar value is a claim on 1/GDP (fraction) of the U.S. economy. In other words, it is backed by what it was or can be spent on. As GDP rises, even ethereal goods like software count as part of GDP, the money supply HAS TO rise or deflation happens, aka a liquidity shortage/crisis/collapse. See 2008, approx. August. Then the money supply was literally disappearing due to a liquidity freeze. The velocity of money, M2V, has not only not recovered, it continues to decline to this day!!!! Gold, on the other hand, gives you a claim on... , well..., umm, considerable wear on your pocket seams? If nobody HAS DOLLARS to give you for your gold, you have a paperweight. There is NO inflation danger, period! None whatsoever. Deflation is, as Stockman wrote, a very clear and very present danger.[/QUOTE]