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

Andy Bradford 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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