tag:blogger.com,1999:blog-5673441815180854503.post3452590549029004475..comments2023-09-10T09:54:59.309+01:00Comments on Screwtape Files: Krugman on Bitcoin and GoldLouis Cypherhttp://www.blogger.com/profile/07670126160101669248noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5673441815180854503.post-2290318635171385842011-09-09T14:06:41.632+01:002011-09-09T14:06:41.632+01:00You got to love economists. At one point in time t...You got to love economists. At one point in time the problems of the world stemmed from the fact that not enough people were saving. Now it's because we are not spending. Well jackasses, that's because all the money is in the bankers hands. Make them spend it or take it away from them. <br />I would love to gather up all the economists and bankers and isolate them on one little island and tell them "you don't get off the island until you have a working society" The first thing they would do is set up a central bank and fix interest rates. Then they would sit around waiting for the working and middle class to show up and feed them. They would all starve to death before it dawned on them the game only works if the majority works for the minority. What a game. We all work a couple of steps removed for the banks and they have no responsibility towards their contract employees. <br />I'm in a pissy mood after watching that crap that GM posted. Ugh!Louis Cypherhttps://www.blogger.com/profile/07670126160101669248noreply@blogger.comtag:blogger.com,1999:blog-5673441815180854503.post-31669979714858285072011-09-09T08:47:28.656+01:002011-09-09T08:47:28.656+01:00I just wish Krugman would read FOFOA and get over ...I just wish Krugman would read FOFOA and get over it. Mr Krugman's anti-hoarding comments are really tired - I suppose it is a common wish to 'free up' the savings of other people .. I mean, how <i>dare</i> anyone choose to store their wealth until they need it! What are they thinking? (sarcasm).<br /><br />FOFOA's stuff reconciles it all once you distinguish between store of value and medium of exchange. I'm with Ben Bernanke - we need <i>unrestricted</i> amounts of additional fiat to help lubricate the moving parts of the economy, Paul Krugman is right - that hoarding fiat will stifle things and cause depression. And Central Banks (like the swiss) will act in their own national interests to balance whatever they need to balance, store of value be damned. The FOFOA <a href="http://goldchat.blogspot.com/2011/09/fofoarain-take-on-swiss-move.html" rel="nofollow">lens</a> makes it make sense. So fiat is a poor store of value, contrary to what we've been educated for most of our life.<br /><br />Finally for what it's worth, Patrice Ayme had an interesting comment on that Paul Krugman story, about using 'Absolute Worth Energy' as an anchor "<i>Evaluate everything allowed for trade in term of the energy spent to acquire it</i>". That would be impossible to implement, but because gold production takes very large amounts of energy, then gold is already an excelent proxy for that - i.e. established, accessible, divisible, etc. Yes, gold is just a dumb inert metal, but all it's qualities make it a great reference point. Hopefully it will get us through these turbulent times.Warren Jameshttps://www.blogger.com/profile/00631403827559820571noreply@blogger.com