Johnnymack

Mac vs. PC vs. Gold

When you think about it, Gold is just a "fiat currency" too.
Sure, it has a LONG history, but in some apocalyptic future, what will you be doing with that gold horde?
Oh... you'll be trading it for food, clean water, shelter, and fuel, won't you?
So WHAT IS "money"?
In "Your Money or Your Life", the author explains that money really represents "life energy". So you go to work, and donate some "life energy" to get "money", as a value keeper. You exchange that money with other people who do things for you, with the same incentive (design and build your house, car, bicycle, etc). Where does gold really enter into this? ok, instead of having a wealth of several pounds of gold, if we unwind the currency into gold (hey! that's creating a GOLD BUBBLE!) we all end up with a few grains of gold. So what? we really have no use for the stuff that a few grains wouldn't cover anyway! Sure, it's PRETTY in jewelry, makes good tooth fillings (did fluoride toothpaste wreck the value of gold??) and conducts electric swell. But a little goes a LONG way, and modern people are not going to revolve their life around how much of a metal element they need or consume.
Also, TONS of it are mined every year, so you can't say it's value doesn't inflate either.