[OT] Ameros will clog the tubes - was Re: Network Neutrality
amb-plugg at bradfords.org
Thu Dec 4 22:02:49 MST 2008
Thus said Von Fugal on Thu, 04 Dec 2008 11:12:03 MST:
> It's true, to say that a pie in 1933 was worth this much gold, and now
> we have this many pies, there's not enough gold. The truth is each pie
> would be worth LESS gold.
Here's a fun thought problem... how much pie would an ounce of gold buy
in 1933? Now, here comes Roosevelt, turn in your $20 gold piece for $20
fiat dollars. Time passes, its now 2008. How much pie will one ounce of
gold buy? How much pie will your $20 fiat dollar buy?
Here's the T-bone steak test (which I credit to Michael S. Roeff):
Notice that T-bone steak was $.25 per pound (assuming I'm reading it
correctly) in 1929. That $20 gold coin would buy 80 pounds of T-bone
steak. I haven't looked at prices recently, but how much does a T-bone
steak cost now, maybe $8 per pound? So, you can buy 2 pounds of T-bone
steaks with your $20 fiat, while someone holding gold can buy roughly 80
pounds (maybe more).
There, in plain and simple terms is the difference between fiat money
and commodity, market selected, money.
> I am oversimplifying a lot in all these points, but I can't stand by
> and let the equally oversimplified statement "gold doesn't scale" just
> sit there.
Gold is just an ancient relic...
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