Quote:
Originally Posted by BobR
They are still selling land in California. I don't think that it happens very often that people "happen to find some gold on their property". Having the potential for gold is one thing. Investing the time, money and resources into extracting the gold at a profit is something else. Gold is difficult and expensive to find. The fact that it cannot be produced easily is what makes it a good medium to use as the basis of a currency.
In contrast is paper money which is worth nothing if we stop believing in it!
I see that gold prices have hit an all time high today. Here's a link to current gold prices, or what I call "the US Dollar Crash-O-Meter":
24-hour Spot Chart - Gold
You are largely correct. And skyrocketing gold prices are a very good indicator that what we are currently doing as a country (and have been doing for much longer than the last year) is not working too well. |
Well, I have my own opinion but it doesn't matter who has the gold, what matters is how smart your people are and how efficient you are at producing goods and energy.
If we needed to colonize the moon we aren't going to send Hank Paulson up there with a bunch of Gold and Derivatives in his hands. We would send intelligent, highly trained people up there with the tools to get the job done.
The biggest thing the U.S. could do to inflate the value of the dollar would be to start producing stuff the world actually needs (not like the junk that China produces) and sell it to them and provide them loans at very mediocre interest rates to pay for the stuff.
Africa needs water infrastructure, tractors to farm, modernization of their schools, so does Central and South America.
My god? Think about how many problems we would cure by helping Mexico pull itself out of third-world country status through development.
