Monday, September 22, 2014

Gold, and the end of the world as we know it

From time to time I come across websites describing the imminent financial end of days, and how only those with gold (and presumably guns) will survive.  The basic idea goes like this: weak economies and decaying civilizations are being propped up by governments and central banks through manipulation of financial markets, unduly benefiting the elite in the process, and the price of gold must be artificially suppressed to mask any signal of the true (i.e. low) value of fiat currency and financial assets.  The day of reckoning is coming.

While this all seems a bit extreme, I do wonder what harm all the extraordinary monetary measures, deployed over the last several years, are causing.  Presumably there is a bubble forming somewhere. Add to that concern, the disproportionately lackluster response from the real economy reveals deep problems that will not be solved any time soon.

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