My piece on gold bugs, their culture and their silliness is now online at The New Internationalist website for all you lousy folks that didn’t bother picking up a copy. It was one of the most fun pieces I ever wrote for an actual publication. Here is my discussion of it and the piece itself is linked below. Enjoy! And please refrain from buying gold or filling your ‘bug out’ shelter with cat food for the coming hyperinflationary meltdown of society.
The Gold Standard is Nothing but a Shiny Distraction
For me, it seems as a problematic reasoning, if you say that we need to a) break it down to inequality as the problem to be solved to enable the state to manage the hyperinflation-still-to-come in a proper manner, while b) declaring the state (like so many times in post-keynesianism) as the agent to deal with the inequality topic.
Even though the shiny object mysticism is not worth keeping, the question of this longing for security beyond a value derived from a law of nature doesn’t appear to me as answered. I don’t think we should stick to a naive trust in the national state or in the people’s power to manage or domesticate it.
Another way would be to rest on the Habermas-Piketty-believe in universal agreement and good ideas solving our problems.
Neither the libertarian alchemists nor the state apparatchik should be accepted in there assumptions. With a pinch of realism towards power politics also the universal reasoning of humanity presents itself in a mere cosmetic and politically paralysing. A quiet conscience sleeps in thunder!
If thunder is what is meant with an unstable world in crisis the sleep should be postponed to tomorrow.
Will tweet this article to Max Keiser. He is a gold bug.
Include me in the Tweet. Feel free to go after other gold bugs like Peter Schiff and others.
time to break out your awesome gold bug song again.
seriously, post it again. It is really good.
Unrelated, but further to our recent discussion:
How does it look?
And sorry to bother you again, but in
M = kPY or
M = kd PY
is Y the **money value** of the volume of all transactions entering into the value of national income (that is, goods and services), so that it is equivalent to GDP/national income?
Y alone is real income or real GDP. P is the price-level. P.Y is the price-level times real income or real GDP. That, of course, is nominal income or NGDP.
Y = real national income/real GDP.
PY = nominal GDP
Yep. When you want to find the velocity you divide nominal GDP by the money supply and you get velocity. This is how it is calculated. k could be calculated in a similar manner.