Sunday I have just read an article repeating the claim that bubbles are a part of the human condition. They are not. They have a very specific and easily avoidable cause. Bubbles are created by the lack of Gold in circulation. Lacking Gold, there is no access to a store of stable value. Without that, people look for other ways to maintain the value of their wealth. … [Read more...]
Gold Changed the World
Thursday The commonly articulated flaw of fiat ‘money’ is that its value is unstable. While true, the full reality is worse. There is a one-thousand-year track record of governments, always and everywhere, degrading paper money till, ultimately, it ends up worthless. At some point, paper always completely fails. There is no virtue in paper that is ‘backed’ by Gold. … [Read more...]
Is Gold’s Value Entirely Stable?
If I had a definitive answer to that question, then it could only mean that I had found some way of measuring Gold’s value. That would mean that I had found a value more stable than Gold. I haven’t and until someone does, we will continue to have no idea whether Gold’s value is entirely stable. All that can be stated with certainty is that Gold has the most stable value … [Read more...]
The Quality of Money
There are innumerable factors that can cause prices to rise or fall. Only one of them is a constant – government regulations that cause prices to rise. Even taxes go down, for a while, occasionally. New regulations never cease. Every single piece of government regulation adds to the costs of business. Regulation remorselessly drives business costs higher and, in … [Read more...]