FOFOFOA or EOFOFOA?

June 2, 2011

charley2u, over at the unique and intriguing Marxian blog Re: The People, wrote a post (which looks like it will be part of a series of posts) answering my call for eir perspective of FOFOA’s unique and intriguing hyperinflation prediction. Be sure to check it out, along with the rest of both blogs.

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Posted in Economics | 3 Comments »
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3 Responses to “FOFOFOA or EOFOFOA?”

  1. Brian M Says:

    June 15, 2011 at 10:44

    What is the intrinsic value of gold? You can’t eat it. You can’t drink it. You can’t smoke it. Gold is still a fetish currency with no real value during an apocalyptic event.

  2. Neverfox Says:

    June 15, 2011 at 11:00

    I’m not sure anyone is talking about intrinsic value, if you’re using that word as it is commonly used in philosophical circles.

    FOFOA:

    …”you can’t eat your gold.” That’s right, gold is not at its highest and best use being spent (circulated) as a currency during a hunger crisis. Instead, if you are one with PLENTY of net worth, gold is the very best way to shuttle your wealth THROUGH a crisis to the other side. If you are forced to deploy this wealth for food during a crisis, then you apparently planned poorly.

    FOFOA:

    Every time gold has a big up day like today I see a lot of forum comments from people that say “you can’t eat gold”. Or, “I’d rather buy some farm land”. Or, “Gold is no different than any other commodity, why not buy silver? Look, in percentage terms silver went up twice as much as gold today!” Or, “Gold is not good for anything. It is useless. Its value is a myth!”

    What all these people don’t understand is that gold is truly only a wealth asset. It is a tangible, tradable wealth asset that is valued by central banks, by the elite, by the wealth giants of this world, and even by the little guy. Especially in regions outside of the US dollar currency zone…

    People seem to have the most difficulty understanding how gold will have a much higher value as a pure wealth asset than it had as a medium of exchange or unit of account. As a currency circulates through the economy, productive participants squirrel away a little wealth each time the currency passes through their grasp. They do this by purchasing whatever they perceive to be the best wealth asset at that time.

    You can’t eat a dollar either, fwiw.

  3. johanna Says:

    June 21, 2011 at 09:20

    Depending on how long the crisis lasts (I’m not optimistic), some of us may not live to see “the other side”. So, “buy physical gold” might be good advice for folks under 35, but those of us for whom old age, i.e., wealth-eating mode, is 10-20 years ahead are going to have to do something else, it seems.


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