Sunday The reason that all those who have been predicting hyperinflation have been wrong for so long is not hard to find. They are adherents to the Quantity Theory of Money. The QTM states that the more ‘money’ (fiat) is in circulation, the higher that prices will rise. The theory is economically, historically and demonstrably wrong. Many, many factors, … [Read more...]
Fiat’s Value
Saturday Keith Weiner rightfully notes that it is the struggle of the debtors that gives the US$, or any other fiat, its value. But there is a little more to it than that. It is also the desire to gain and to hold dollars in order to secure a future that gives them value. Some people accumulate in order to invest, or simply in order to have something to draw on in … [Read more...]
Money is Not a Good
Thursday “For example, money is not consumed after a transaction, but goods such as pork bellies and copper ingots are. Money is not directly comparable to goods.” Keith Weiner One of the tenets of Dawn of Gold is that goods* and money** are different. Money is not the most marketable good. Money is not, never was and cannot be a good. Prior to 1500BC, … [Read more...]
The Warming Herring
Monday Global Warming is the greatest ever Red Herring, but it has to be acknowledged that it is also the most successful. A whole generation of children have been indoctrinated with the belief that unless we destroy Western Civilization by removing the use of fossil fuels, then Western Civilization will end. It is a combination of Chicken Little writ large and the … [Read more...]
Dollar Demand
Friday Many people understand that currencies are just debt notes and that they will have zero value at the precise point that the debt collapses. So why are they not falling in value? Why is demand for currencies so strong? The answer is that we need them – desperately. It has nothing to do with ‘an idea backed by confidence’ as was suggested to me (again) … [Read more...]