old fogey

Return of the 'Super Dollar'?

Despite my moniker, I have only been in the markets for about twelve years. I have run a manufacturing plant that started out with an old $300 lathe. The plant was closed after forty six years due to my retirement. There is your thumbnail bio.

The productivity numbers are just plain BS! Micro productivity is pieces per man, whereas macro productivity is per nation. To be productive requires a product, something tangible. Selling more clothes, cars, drugs, or any product or service, (in and of it self) with fewer employees is not a productive increase.
Commodities i.e. agri, mineral, energy, metals mined, etc. are products, that are tangible.
Services are not products, and technolgy that replaces or enhances labor output often reduces payroll, but not necessarily the cost of goods or services.

Printing more dollars wether for bailout or whatever (without true productivity basis), will increase the cost of both goods and services in the country of fiat origin. The term is inflation. Deflation from lack of money (unemployment, exhausted savings, credit limits) is held at bay only until the printing stops. Meanwhile the standard of living drops for the majority then we have deflation.

Ultimately, even in the heyday of Rome, an ounce of gold would purchase a toga, sash, sandals and a wreath for the head. Today an ounce of gold still buys a suit, shoes, belt and hat of reasonable quality.

Gold price may rise or fall, but it is convertable to almost any fiat; and therefore is a universal currency storehouse, i.e a suit of clothes in any land.
Arbitrage may affect quality of the outfit, and that is at the hand of the exchanger.

I agree about holding some gold but not the author's comments about productivity and deflation. I wonder if he ever really produced anything but words.