[OT] Ameros will clog the tubes - was Re: Network Neutrality

Von Fugal von at fugal.net
Thu Dec 4 12:00:29 MST 2008


<quote name="Kyle Waters" date="Thu,  4 Dec 2008 at 11:18 -0700">
> Von Fugal wrote:
>>
>> Gold doesn't rust. And when industry needs gold, they can pay market
>> price for it. That is, trade a pie or whatever, or maybe they could just
>> use some of the gold they sell their product for, and include that in
>> the gold cost. As it stands now, they pay dollars for the gold they
>> need, how is that any different?
>>   
>
> I think this paragraph answers your questions.  If you use a gold  
> standard then the value of gold would be inflated.  As you pointed out  
> early in your post we could break it down to an atom and have each atom  
> be worth a lot of other goods.  Now the problem is we have inflated the  
> value of gold.  Thus making it too expensive to use for industrial uses.  
> Eliminating an entire class of goods. Now if you wanted to use man made 
> diamonds instead, that would be fine.  After all we have plenty of 
> carbon.
First, you don't inflate the value of something, you inflate the supply
of something. True you could measure gold in the atoms, but then you
couldn't say "this one atom is worth a whole bunch of goods" when there
are sooooo many atoms out there. People that have a whole lot of gold
atoms would take advantage of the really high price, and soon the high
atom price would level out. In order for one atom to buy even 1 pie,
thus making it really difficult for industry to get their hands on
sufficient quantities, you would need a huge number of pies.

Example. If I use my measly monthly wage of approx $1500 to buy gold, I
would have about 2 oz, or 64 grams, or 0.32 mol, or 1.927 * 10^23
atoms. That's 200 million quadrillion atoms, or 200 billion trillion,
whatever suits you. AND THAT'S JUST MY MEAGER WAGE. There is no possible
way our economy could grow so large that 1 atom of gold buys "a bunch of
goods."

Between industrial, dentistry, and electronics, the gold usage is about
12%. With a profit margin of 15%, that would mean about 14% of all gold
would go to those industries. This is not an outrageous amount. Looking
at just electronics, at 7%, with the same margin, you get 8%. So with a
monthly budget of 1000, only 80 would go to computers. This might look
high to an average person, but for a company that relies on technology
it's probably pretty darn low. And all this is ignoring the fact that
these percentages wouldn't remain the same with different pressures,
demands, and prices.

Von Fugal
-- 
Government is a disease that masquerades as its own cure
-- Robert Lefevre
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