>From Eric
> This is the reason I've never understood the appeal of gold or bitcoin. > The urge to take the control of the amount of money in circulation out > of the hands of central banks seems to disregard the danger of deflation. I'm baffled that there still exist politicians who want us to go back to the gold standard, believing that doing so would ensure the safety of U.S. currency. I think not. The appeal for gold is based on an illusion that gold has some kind of mystical value of its own, as if the it was ordained by God. I doubt God cares. Neither is paving the streets of heaven with pure gold (as Thomas Malloy, once envisioned) recommended due to its soft pliability. In no time there would be scuff marks and ruts. I wonder if there exist road repair jobs in heaven. Going back to a gold standard is insane. FDR got rid of it back in 1933. Later, Nixon and G. Ford fiddled with how much gold U.S. citizens could purchase. I believe part of the problem was due to the fact that U.S. gold reserves held in Fort Knox was in the process of being decimated as other nations tried to convert their national currency reserves into gold. By 1971 the U.S. went completely off the gold standard, allowing the price of the precious metal to float from a fixed $35.00 price to current market value. The price is currently hovering over $1,100. Gold was much higher not all that long ago. The more perceived angst there is in the world, the pricey gold gets, and vice versa. Given the topic of bitcoin currency being raised in this discussion I suspect inflation might be more likely of some concern rather than the ravages of deflation. Speaking of inflation, it's really another form of taxing the entire nation. When the effects of inflation end up costing you more to purchase a product or service, it is no different than having to pay a tax on the same item when you are living on a fixed income. When a nation experiences moderate inflation, wealth is being reallocated. Not surprisingly the wealthy tend to weather "taxation" by inflation far better than who are typically living on limited fixed incomes. Regards, Steven Vincent Johnson OrionWorks.com zazzle.com/orionworks
