Press 'ctrl' and 'F' at the same time, then type in 'furlongcolony2' into the box. Press enter to find. Here:
http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100000821/china-bernanke-and-the-price-of-gold/
On Naver:
http://search.naver.com/search.naver?sm=tab_hty&where=nexearch&query=furlongcolony2&x=0&y=0
Sunday, March 7, 2010
Furloncolony2 on Naver.com
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5 comments:
That's messed up...they could've just linked to the wikipedia article.
I know it is hard to believe, but most followers of Ron Paul are pretty ignorant. For example, you still fail to realize that gold was devalued in much the same way as paper currency.
He posted the link because he thinks the debate between you and I tips in his ideology's favor.
I'm not so sure. You had the last word.
How was gold devalued?
Be sure, he didn't read the whole debate.
Gold was devalued much the same way as paper currency is devalued. Because gold was hard to carry and thus hard to trade for small transations - the weight of pure gold probably got really tiring after awhile - not to mention its cutting - it was eventually cut into smaller pieces by a central authority: the King (and this doesn't even take into account its obvious scarcity). To make this system work, the King put his face (fiat) on the pieces and guaranateed a certain weight for each coin. This is the beginning of fiat currency: trust in the King: the molding of gold in the shape of the King's authority; his scary/graceful image in people's minds. The head on a coin is a fiat, an authority, a final authority. But like all authorities, they can be corrupt by want, and to satisfy wants that the King couldn't pay for, many a King re-minted or minted coins with less gold in them, hence causing inflation.
The other great example of gold inflation is the gold the Spanish brough home. Overnight gold doubled within the Kingdom and hence the value of "money" halved.
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