The idea behind holding some gold is to have currency in a historically recognized medium, post-fiat collapse, provided all semblance of society, civility and trade haven't collapsed with it. Suppose that 5 years from now this charade of nations borrowing monopoly money from each other is finally up. An IMF-like entity takes the reins and all western currencies are folded into a world currency. Suppose 50 USD can be traded in for 1 "world dollar" on the day it goes live. Suppose 1 world dollar buys you a pack of gum. You've lost the vast majority of your purchasing power. But unless someone figures out alchemy between now and then, it stands to reason that gold (if its possession and trade are not endangered - see below) still can't be set at some arbitrary price point because it maintains the characteristics of a sound store of wealth: durable, divisible, irreproducible, etc. An ounce of gold will still trade in for the equivalent of anything ranging from a high-end computer to a couple months of gasoline. Gold maintains some purchasing power.
Now suppose you're speeding down the road in an armor-plated Honda, firing shots out the passenger window at a band of cannibal blackguards as the driver dodges tank traps and piles of skulls. Society has gone apocalyptic. From my perspective, in this scenario I don't care whether I have in my possession gold or ammo or dollars or canned beans. Life probably isn't worth living, and even if I try, no matter how many Rambo movies I've watched I'm probably dead from a gunshot or infection within months anyway.
Fortunately some variation of the former scenario seems more likely. The powers that be rather enjoy lording over lands that haven't become smoking craters. But who knows. Gold is about storing and stabilizing wealth post-fiat (or en route to a new fiat regime), not post-society.
Suppose that 5 years from now this charade of nations borrowing monopoly money from each other is finally up. An IMF-like entity takes the reins and all western currencies are folded into a world currency. Suppose 50 USD can be traded in for 1 "world dollar" on the day it goes live.
Then we wouldn't have a problem, would we? We'd still have a technological, industrialized civilization. But it has yet to be proven that this will happen and we both know that praxeology doesn't have proper predictive capability.
Society has gone apocalyptic.
Well, yes, that's what's going to happen in the economic collapse, if that occurs. I mean look at the thought process that would occur: 1) My money is worthless! I can't buy anything! 2) Hey...where are all the government services? Utilities? Police? 3) Oh shit. They can't get paid. And I can't pay anyone to do anything! There are no police anymore. No doctors. No courts.... 4) Hey, wait a second. There's no government. THERE IS NO LAW. 5) Freedom! Blood for the blood god! Skulls for the skull throne! 6) I'm going to walk in that store, kick everybody in the head, AND TAKE ALL THE SHIT.
Alternate:
6a) Hey, I have gold! I can pay for that TV I wanted with it... 7) Nah, fuck it. I'll just walk in there, take it, and shotgun whoever tries to stop me. Why pay for anything when I can kick 'em in the head and take their stuff? 8) Blood for the blood god! Skulls for the skull throne!
Life probably isn't worth living, and even if I try, no matter how many Rambo movies I've watched I'm probably dead from a gunshot or infection within months anyway.
I disagree. As I said: "Either you are strong and want to continue living or you are weak and you off yourself. "
Fortunately some variation of the former scenario seems more likely
As I pointed out to Logiphage, I think your assessment of post-collapse is far too rosy.
Now suppose you're speeding down the road in an armor-plated Honda, firing shots out the passenger window at a band of cannibal blackguards as the driver dodges tank traps and piles of skulls. Society has gone apocalyptic. From my perspective, in this scenario I don't care whether I have in my possession gold or ammo or dollars or canned beans. Life probably isn't worth living, and even if I try, no matter how many Rambo movies I've watched I'm probably dead from a gunshot or infection within months anyway.
Fortunately some variation of the former scenario seems more likely. The powers that be rather enjoy lording over lands that haven't become smoking craters. But who knows. Gold is about storing and stabilizing wealth post-fiat (or en route to a new fiat regime), not post-society.
Reply
Then we wouldn't have a problem, would we? We'd still have a technological, industrialized civilization.
But it has yet to be proven that this will happen and we both know that praxeology doesn't have proper predictive capability.
Society has gone apocalyptic.
Well, yes, that's what's going to happen in the economic collapse, if that occurs. I mean look at the thought process that would occur:
1) My money is worthless! I can't buy anything!
2) Hey...where are all the government services? Utilities? Police?
3) Oh shit. They can't get paid. And I can't pay anyone to do anything! There are no police anymore. No doctors. No courts....
4) Hey, wait a second. There's no government. THERE IS NO LAW.
5) Freedom! Blood for the blood god! Skulls for the skull throne!
6) I'm going to walk in that store, kick everybody in the head, AND TAKE ALL THE SHIT.
Alternate:
6a) Hey, I have gold! I can pay for that TV I wanted with it...
7) Nah, fuck it. I'll just walk in there, take it, and shotgun whoever tries to stop me. Why pay for anything when I can kick 'em in the head and take their stuff?
8) Blood for the blood god! Skulls for the skull throne!
Life probably isn't worth living, and even if I try, no matter how many Rambo movies I've watched I'm probably dead from a gunshot or infection within months anyway.
I disagree. As I said: "Either you are strong and want to continue living or you are weak and you off yourself. "
Fortunately some variation of the former scenario seems more likely
As I pointed out to Logiphage, I think your assessment of post-collapse is far too rosy.
Reply
Leave a comment