Thursday A neat example of Keith Weiner’s ‘perverse incentives produce perverse outcomes’. “Yi blamed not only government attempts to hide the real data for the discrepancies in numbers, but widespread corruption at the local level. Parents reportedly purchase birth certificates from hospitals for babies that do not exist to receive more public benefits; local governments … [Read more...]
Fiat’s Value
Saturday Keith Weiner rightfully notes that it is the struggle of the debtors that gives the US$, or any other fiat, its value. But there is a little more to it than that. It is also the desire to gain and to hold dollars in order to secure a future that gives them value. Some people accumulate in order to invest, or simply in order to have something to draw on in … [Read more...]
Money is Not a Good
Thursday “For example, money is not consumed after a transaction, but goods such as pork bellies and copper ingots are. Money is not directly comparable to goods.” Keith Weiner One of the tenets of Dawn of Gold is that goods* and money** are different. Money is not the most marketable good. Money is not, never was and cannot be a good. Prior to 1500BC, … [Read more...]
The Day the Banks Don’t Open
Friday The day that the banks don’t open is the day that the jig is up. How far away is that? I just don’t know and no amount of noggin strain will produce that datum. It cannot be known. That said, I had dinner in Sydney last night with the legendary Keith Weiner. He is of the opinion that the strength of the US$ will see continued capital inflows into … [Read more...]
Venezuelan Bolivar – Buy and Hold (joke)
Tuesday For as long as people continue to believe that the value of Gold is measured in dollars, then they will fail to grasp the fundamentals of not only money, but what is happening in the world. Central Bank approved Graph – Price of Gold in Au$s Reality Graph – Price of Au$s in milligrams money Yes, the ‘price of Gold’ is going up in terms of Au$s, and most … [Read more...]