Which book was it? Maybe it got lost in the mail. At any rate, thanks for sending it.
In the long run, gold is money, and gold is wealth. That I do not contest.
In the short term, if credit (NOT money!) can be created from thin air, it can also disappear back into thin air. That is obvious to me - I'm not sure why it isn't obvious to others.
The Fed got ahead of itself in credit creation. There is a virtuous cycle of inflation. More begets more. But that cycle also goes into reverse, and when it does, we get deflation. I'm not sure why that is so difficult to understand.
At any rate, like I've said elsewhere, the nice thing about markets is that there is an ultimate reality, and that reality is called PRICE.
The price of an ounce of gold at today's close is under $1,300, and people can talk and argue all they want, and claim it is a conspiracy and that it is manipulated, but that in fact is the price. And that is where the buck stops.
In any market, price is the ultimate reality.
The only way to make sense out of change is to plunge into it, move with it, and join the dance.
- Alan Watts
Want DP delivered to your inbox daily? Subscribe here: