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

Andy Bradford amb-plugg at bradfords.org
Thu Dec 4 22:08:46 MST 2008


Thus said Kyle Waters on Thu, 04 Dec 2008 11:18:46 MST:

> I  think this  paragraph answers  your questions.  If you  use a  gold
> standard then the value of gold would be inflated.

Correction, the  demand for gold  will go up  because it is  now serving
multiple functions. It can be  used for industrial uses, jewelry, etc...
but now it  also has a monetary  demand. But that doesn't  mean that its
value is 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.                        

No we haven't,  the market has responded to supply/demand.  If I produce
more eggs than the market is willing  to clear, then I will be unable to
demand a  high price for  them, and will have  to lower my  prices until
such time as I arrive at a price that matches supply with demand.

> Thus making it  too expensive to use for  industrial uses. Eliminating
> an entire class of goods.

And what's wrong with that? If something is too expensive to be used for
one type of use, then it won't be used for that particular use. So what?
How does  that strengthen  the argument against  using a  commodity like
gold as money?

Andy
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