We made a material edit to the War and Peace post and wanted to direct your attention to it.
We believe the following based on Zoltan's 4 prices of money analysis and our own noting of pyramid similarities:
1- If confidence in the "true price level of money" is The Fed's concern, then to reduce concern until people trust your "price level" again, you are most likely at least considering partially rebacking your money with Gold for a period.
2- You would then be buying Gold alongside the BRICS folks if this conjecture is correct. If for no other reason, just to reopen trade in this new Mercantilistically fragmented multipolar world. Because, ultimately if you do not agree on the money, you cannot coexist economically.
3- As to a multipolar world. There cannot be trade with Monetary Multipolarity. Without monetary unity/agreement at the pyramid's base and settlement medium, there is only barter for international trade.
Either trade partners agree on SPOT or the resulting monetary friction will cause trade reduction and eventually war. Either create a basket with the economic commodities plus the intellectual capital used to add economic value to those commodities.. or use some mix of Gold, Silver, and Bitcoin. If you do not agree on the settlement medium, you cannot trade. Unless you split the money into 2 parts. A domestic component, and an international settlement component.
That is ultimately our thesis here. and why we believe the US is in the market buying Gold for the last 12 months. If they aren’t, they are fools. Have a good day.
My point exactly. Who will do all the moving storing, weighing, vaulting, everything? Gold would re-price at a 30% discount. I'd be buying more just because it has no counter-party risk, not because it's going to replace fiat currency.
If trade partners cannot be trustworthy the money must be for them...
They will not under any circumstances use Bitcoin. The fixed limit is a disaster for use as any type of money at a sovereign level or above.
My point exactly. Who will do all the moving storing, weighing, vaulting, everything? Gold would re-price at a 30% discount. I'd be buying more just because it has no counter-party risk, not because it's going to replace fiat currency.
If you can't (don't) have confidence in what is passed off as "money",
then there needs to be something you can have confidence in. Both
sides of a transaction have to agree on the "money".
bingo