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Why Did Gold Become Money?

Tyler Durden's picture




 

With increasing chatter about extreme monetary policy, the chaps at Santiago Capital reprise their previous discussion with a look at why gold became money. With many calling for a return to a Gold-Standard, understanding why there was ever a gold standard to begin with, why has it been used as money dating back over 5000 years, and what makes gold so special (aside from its personality).

 

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Wed, 05/02/2012 - 16:16 | 2392056 SheepDog-One
SheepDog-One's picture

Gold is money because banksters cant print an oz gold coin.

Wed, 05/02/2012 - 16:18 | 2392058 Pladizow
Pladizow's picture

Because there is no better alternative!

Wed, 05/02/2012 - 16:22 | 2392070 slewie the pi-rat
slewie the pi-rat's picture

paper gold and silver to the moon!  L0L!!!

get real PM coinage, BiCheZ!

Wed, 05/02/2012 - 16:26 | 2392074 Badabing
Badabing's picture

Back in the day 10,000 years or so gold could be found in the ground as is. No refining or smelting it could be hammered into a knife or tool and became very desirable.

Trade you some gold for some food still applies today.

Oh and one more thing GOLD BITCHEZ!   

Wed, 05/02/2012 - 17:42 | 2392306 The Proletariat
The Proletariat's picture

Fiat:  Who are you?

Gold:  All the ways you wish you could be, that's me. I look like you wanna look, I fuck like you wanna fuck, I am smart, capable, and most importantly, I am free in all the ways that you are not.

Wed, 05/02/2012 - 17:51 | 2392334 downrodeo
downrodeo's picture

good answer!

 

Wed, 05/02/2012 - 20:35 | 2392595 HungrySeagull
HungrySeagull's picture

And it costs less than you think to pan me.

Wed, 05/02/2012 - 20:08 | 2392564 Beam Me Up Scotty
Beam Me Up Scotty's picture

2012 ASE's on sale for 2.25 over spot any quantity on Providentmetals.com. And no I don't work for them.

Thu, 05/03/2012 - 01:09 | 2393049 Beam Me Up Scotty
Beam Me Up Scotty's picture

Someone junked me for pointing out a sale? Sad...

Wed, 05/02/2012 - 16:18 | 2392061 niktamere
niktamere's picture

Do you even know the difference between money and currency? :D

Wed, 05/02/2012 - 16:22 | 2392067 SheepDog-One
SheepDog-One's picture

LOL niiiiice!

Wed, 05/02/2012 - 16:28 | 2392082 Pladizow
Pladizow's picture

The defenition of Money vs. Currency vs. Wealth differs depending upon author.

You must be alluding to Mike Maloney's defention of the first two.

Wed, 05/02/2012 - 17:07 | 2392199 e_goldstein
e_goldstein's picture

or John Adams

"All the perplexities, confusion and distresses in America arise not from defects in the constitution or confederation, nor from want of honor or virtue, as much from downright ignorance of the nature of coin, credit, and circulation."

Fri, 05/04/2012 - 18:20 | 2398443 ManOfBliss
ManOfBliss's picture

Yeah I actually disagree with Michael Maloney's distinction.

Shouldn't it really be the difference between fiat currency and market currency?

Wed, 05/02/2012 - 16:23 | 2392069 WeekendAtBernankes
WeekendAtBernankes's picture

Money can be used as a medium of exchange (transactionary motive), a store of wealth (precautionary motive), or an investment instrument (speculative motive).

/Keynes 101

Wed, 05/02/2012 - 16:34 | 2392087 Pladizow
Pladizow's picture

You forgot - unit or measure of account.

Wed, 05/02/2012 - 17:08 | 2392206 TheFourthStooge-ing
TheFourthStooge-ing's picture

...and fungibility.

 

Wed, 05/02/2012 - 17:11 | 2392219 akak
akak's picture

Fungibility being the characteristic of being prone to fungus?

Wed, 05/02/2012 - 17:16 | 2392238 TheFourthStooge-ing
TheFourthStooge-ing's picture

Yes. It's a condition one gets when walking barefoot along a Chinese citizenism roadside.

 

Wed, 05/02/2012 - 17:20 | 2392248 akak
akak's picture

Suchlike as American US Citizenism corporation slogan stolen by Chinese Citizenism citizens:

What can brown do for you?

Wed, 05/02/2012 - 17:31 | 2392280 TheFourthStooge-ing
TheFourthStooge-ing's picture

Oppressed Tibetan asks Chinese citizenism citizen, "why do you not at least crap in a can, instead of openly crapping on roadside?"

Chinese citizenism citizen responds:

"What? Can??!! Brown doo for you!"

 

Wed, 05/02/2012 - 19:56 | 2392548 TheFourthStooge-ing
TheFourthStooge-ing's picture

That's a good idea based on proven concepts. It turns a source of pollution into useful energy and fertilizer products.

If it could do with politicians and bankers what it does with pig shit, it would be a glimmer of hope for the future.

If Chinsese citizenism citizens could be convinced to leave their droppings at a collection point instead of just squatting in public parks, they could become energy independent.

 

Wed, 05/02/2012 - 21:28 | 2392706 akak
akak's picture

If Chinsese citizenism citizens could be convinced to leave their droppings at a collection point instead of just squatting in public parks, they could become energy independent.

////////////////////////////////////////////////////

Anonfucius say:

A roadside turd in the hand is worth two in the bushes.

Wed, 05/02/2012 - 21:43 | 2392743 TheFourthStooge-ing
TheFourthStooge-ing's picture

Anonfucius say:

A Chinese citizenism turd placed at main entrance of public park with much prideful is worth two being in two hands clutched with forcefully appreciation.

 

Thu, 05/03/2012 - 04:53 | 2393160 e_goldstein
e_goldstein's picture

Sorry, Akak. This dude won. He almost gave me a heart attack with his last comment.

Wed, 05/02/2012 - 21:15 | 2392685 A Nanny Moose
A Nanny Moose's picture

Fun Guy

Thu, 05/03/2012 - 01:54 | 2393084 FrankDrakman
FrankDrakman's picture

"Money has these functions four: a means, a measure, a standard, a store" - A means of exchange, a measure of relative value, a standard of account, and a store of value. If the store of value concept is working - i.e. the money is not losing value, like our fiats are, then money is not an investment instrument per se.

Thu, 05/03/2012 - 04:55 | 2393161 e_goldstein
e_goldstein's picture

You forgot portability, but yeah.

Wed, 05/02/2012 - 16:20 | 2392062 SeverinSlade
SeverinSlade's picture

Sure they can.  Just print a .jpeg of a gold coin or bar.  Duh.  Ha

Wed, 05/02/2012 - 17:09 | 2392209 e_goldstein
e_goldstein's picture

Brilliant business idea! 

Use them as wrappers for tungsten bars then sell them to CBs.

Wed, 05/02/2012 - 16:31 | 2392095 PrintingPress
PrintingPress's picture

They were called gold certificates.  http://en.wikipedia.org/wiki/Gold_certificate

Wed, 05/02/2012 - 16:36 | 2392105 vast-dom
vast-dom's picture

bacause all the paper was used to wipe everyone's asses with. 

Wed, 05/02/2012 - 20:36 | 2392598 HungrySeagull
HungrySeagull's picture

And the French, a time or two drank Liquid Gold with predictable results.

Wed, 05/02/2012 - 16:48 | 2392129 dark pools of soros
dark pools of soros's picture

yes they CAN print gold coins..

http://cubify.com/cube/

just add tungsten

 

Wed, 05/02/2012 - 17:36 | 2392293 skepticCarl
skepticCarl's picture

Sheep, you mean to say "gold should be money".  It is doing better than money right now, it is appreciating!  I like that.

Wed, 05/02/2012 - 17:54 | 2392341 css1971
css1971's picture

Yes they can. Fractional reserve banking was originally based on gold.

Wed, 05/02/2012 - 19:03 | 2392462 WhiteNight123129
WhiteNight123129's picture

British Empire Style Gold standard is much better than today´s system but it is inferior to Bimettalism where money is neither deflationary like the post 1873 demonetization of Silver until 1896. Bimettalism and a central bank ready to coin either Silver or Gold depending on what people prefer is closer to denationalization of money than forced monometallic standard of Britain. The best is to let people choose whatever money than want even fiat if they like, or private money or Silver or Gold. Gold standard and demonetization of Silver is manipulative in favor of bond holders and against the farmers. Money should be as free as possible and bimettalism is freer than Gold Standard, down with fiat and down with manipulative Gold standard. Bimettalism at least or free money, that is no legal tender law at all, you pay with bitcoin, silver, Gold whatever is more convenient.

 

 

 

 

Wed, 05/02/2012 - 20:37 | 2392600 HungrySeagull
HungrySeagull's picture

bitcoin?

WTF?!

It's already in Binary as they stopped printing and started digital numbers.

Wed, 05/02/2012 - 21:22 | 2392695 fnord88
fnord88's picture

Exactly. Government controlled Gold Standard is almost as big an ass fuck as fiat. NO FUCKING STANDARD YOU MORONS. STANDARD IS JUST ANOTHER WORD FOR CONTROL. Let people spend and save in whatever the fuck they like. Hell you could even spend fuck if you like. 

Wed, 05/02/2012 - 22:47 | 2392846 TeMpTeK
TeMpTeK's picture

Silver...

White Gold Bitchez!

Wed, 05/02/2012 - 16:20 | 2392065 scatterbrains
scatterbrains's picture

So far the Fed/CIA/CFTC/GS/JPM have only waged a silent battle against hard money. When it gets to a breaking point what does an open declared war against hard money look like ? Or should we assume they will just surrender ?

Wed, 05/02/2012 - 16:22 | 2392068 ffart
ffart's picture

They're not gonna surrender. THey'll go down kicking and screaming and they'll take as much of us with them as they possibly can.

Wed, 05/02/2012 - 17:05 | 2392138 AL_SWEARENGEN
AL_SWEARENGEN's picture

They wont have to surrender.  The legal tender laws are already in place, the cocksuckers already dominate what money can be.  Their main and arguably only tactic to effectively enforce these unjust laws is by managing public perception.  Just think, I bet 90% of Americans have never even considered owning any precious metals in a monetary capacity or wondered why they ought to.  Once that changes economic law will again forcefully exert reality back into commerce.  Valuations will swing wildly until a fixed weight is attached to the circulating currency and banks become buyers at daily set prices.  

Wed, 05/02/2012 - 17:41 | 2392303 Jendrzejczyk
Jendrzejczyk's picture

Excellent bio Al. Glad you made it here.

Wed, 05/02/2012 - 16:48 | 2392130 SWCroaker
SWCroaker's picture

You should assume that they are planning on rescuing all of us from the ills of fiat currency abuse by the expedient of introducing us to a "gold standard" that they devise, control, and run to their benefit.  It won't be for your benefit, nor mine.  The names of the players may change, and there will be a great opportunity to roll the whole thing into a massive power grab on a global scale.  If letting a good crisis go to waste is a sin, then certainly it must be even better to create and manage a crisis to spec.

 

Any "gold standard" other than 100% pure convert-able is ripe for abuse by the fallible humans who manage it.

 

You do know that the central banks of the world "own" most of the above ground bullion?  That isn't really something that happened by habit, or tradition...

 

 

Wed, 05/02/2012 - 17:01 | 2392163 akak
akak's picture

 

You do know that the central banks of the world "own" most of the above ground bullion?

That is patently and grossly untrue, and is a lie maliciously and repeatedly propagated by that raging statist and monetary wolf-in-sheep's-clothing bastard, Bill Still the Fiat Shill.

In actual fact, world central banks own less than 25% of the world's aboveground stock of gold, and if GATA is to be believed at all, they hold less than 15% due to leasing gold over the years to hold down its price.

I agree with all your other points, however.

Wed, 05/02/2012 - 17:41 | 2392302 Rynak
Rynak's picture

Even if they own only 10%, that still leaves "some" issues:

- 10% for a fraction of a percent of the population?

- With the current means of extortion available, they could at least double what they own

Yes, that still would not make them hold the majority of gold. Yes, a gold standard would still fix a whole lot of issues, as long as it is properly implemented (just look at current abuse of ETFs.... and NO, society will not get away with "physical only"... this from a plain usability POV is not feasible, just as it isn't feasible to do *ALL* transactions in cash).

Still means, that a gold standard will not instantly undo the current wealth and therefore power distribution. Yes, in the mid- and longterm, the changed gamerules may be important, but in the shortterm, it would not fix the ***** up power-(in)balance.

Things like a gold-standard offer mechanics for things to work right, when society is ALREADY fixed... they do not fix it themselves. And: As long as there are certain types of people in power, with certain motivation - no matter what kind of mechanic you introduce, it will be perverted - because "tool" and "purpose" are two different things: You can have the best intentions, but without the right tool, they will fail. And you can have the best tools, yet without the right intentions they will be abused and perverted.

Wed, 05/02/2012 - 17:11 | 2392222 Quinvarius
Quinvarius's picture

In the end, they will be the ones pushing for gold.  It isn't about paper or gold.  It is about power.  When the dollar is done going to zero, would they want to use Yuan or gold?

Wed, 05/02/2012 - 18:47 | 2392436 Marco
Marco's picture

Transaction taxes.

Wed, 05/02/2012 - 16:21 | 2392066 TideFighter
TideFighter's picture

Because we don't break....tradition. Fuck you, Bernanke.

Wed, 05/02/2012 - 16:24 | 2392072 Martin Silenus
Martin Silenus's picture

Ben the Barbarian!  Shalom, motherfuckers!

Wed, 05/02/2012 - 16:26 | 2392076 Corn1945
Corn1945's picture

I think the "is gold money" argument is a distraction.

Gold is a fantastic investment at the current time because the world has enormous amounts of unpayable debts combined with a purely fiat currency. This means they will try to print money to prevent the ship from going down. Meanwhile, the total amount of debt is still growing.

I have never heard a legitimate argument against owning gold at this point in history. 

Wed, 05/02/2012 - 16:30 | 2392093 Pladizow
Pladizow's picture

Unfortunately there has never had to be a "legitimate" one.

Wed, 05/02/2012 - 16:28 | 2392081 midgetrannyporn
midgetrannyporn's picture

The same bankers who control the fiat own most of the gold. Out of the frying pan and into the fire.

Wed, 05/02/2012 - 16:31 | 2392094 Pladizow
Pladizow's picture

Prove it!

Wed, 05/02/2012 - 17:06 | 2392194 buzzsaw99
buzzsaw99's picture

Would a link suffice or would you prefer a tour of the central banker's vaults? lololololololol

Wed, 05/02/2012 - 16:59 | 2392127 akak
akak's picture

 

The same bankers who control the fiat own most of the gold.

That is a flat-out lie.

But in it, I smell the disingenuous swill of Bill Still the Fiat Shill.

Wed, 05/02/2012 - 17:00 | 2392175 buzzsaw99
buzzsaw99's picture

Car sales are up, platinum prices are down, even below that of gold, therefore gold is in a bubble.

Wed, 05/02/2012 - 17:04 | 2392185 akak
akak's picture

Dandelions are popping up everywhere, and their flowers are golden, therefore gold is in a bubble.

Wed, 05/02/2012 - 17:13 | 2392230 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Dandelions are popping up everywhere, and their flowers are golden, therefore gold is in a bubble.

...and a week later, they turn silver, so silver will be in a bubble next week.

 

Wed, 05/02/2012 - 18:53 | 2392447 Alea Iactaest
Alea Iactaest's picture

Car sales up? Compared to what? Try looking at annual light vehicle sales (US) for each year 2006 - 2011 and compare the 2012 trend. You'll see that 2006 and 2007 each topped 16 million vehicles sold. This year? I'll take the under on 13 million if you want the over. But up compared to 2009's total of under 11 million vehicles, so maybe you have a point.

Wed, 05/02/2012 - 17:04 | 2392183 midgetrannyporn
midgetrannyporn's picture

Need more proof that gold is in a bubble? Look at a chart of copper priced in gold sometime. At least copper is useful, unlike relic gold.

Wed, 05/02/2012 - 17:12 | 2392224 jimmyjames
jimmyjames's picture

Need more proof that gold is in a bubble?

****************

When misinformed people like you finally jump into gold-we'll know it's in a bubble-

http://www.acting-man.com/blog/media/2010/10/Gold-percentage-of-financia...

Wed, 05/02/2012 - 20:32 | 2392592 nodhannum
nodhannum's picture

If you ever get out of your moma's basement and actually link up an XX carrying member of the human race, ask her whether she wants a relic like Au or Cu.  You will never get laid with the Cu angle.

Wed, 05/02/2012 - 20:39 | 2392603 HungrySeagull
HungrySeagull's picture

Your CPU is part gold.

Dummy.

Wed, 05/02/2012 - 17:15 | 2392196 akak
akak's picture

Where in the FUCK are all those troll-driven downarrows coming from?

If anyone here thinks that Bill Still is an honest advocate of monetary freedom or sound money, then you are as mislead and deluded as all the sheep who hang on every coke-fueled word of Jim Cramer on CNBC.

Wed, 05/02/2012 - 17:22 | 2392258 TheFourthStooge-ing
TheFourthStooge-ing's picture

Bill Still, the shill of swill?

 

Wed, 05/02/2012 - 17:26 | 2392269 akak
akak's picture

Kill Bill!

 

Wed, 05/02/2012 - 17:35 | 2392288 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Kill Bill!

...and in grand Chinese citizenism tradition, send invoice for cost of burret to famiry.

 

Wed, 05/02/2012 - 18:23 | 2392394 ebworthen
ebworthen's picture

Blythe and her pals having some afternoon fun, don't let it bother you.

Kind of like when you finish the final early and get 100 they make fun of your shoes and non-designer jeans.

Wed, 05/02/2012 - 17:08 | 2392200 jimmyjames
jimmyjames's picture

Governments hold 18% of the worlds gold-

There's about 165,000 tons of gold in the world-so governments hold a measly 30,000 tons-

Seems to me governments were selling/dumping it for the last 30 years and have only recently started to buy it back-

Wed, 05/02/2012 - 17:13 | 2392227 midgetrannyporn
midgetrannyporn's picture

You are correct. My original statement was in error.

Wed, 05/02/2012 - 16:27 | 2392083 css1971
css1971's picture

You don't need a gold standard. You just need to use weight as money. Simple.

Metric of course.

Wed, 05/02/2012 - 16:28 | 2392085 Abiotic Oil
Abiotic Oil's picture

Emulation of the Annunaki.

Wed, 05/02/2012 - 16:31 | 2392096 Pladizow
Pladizow's picture

We are the 7th planet, not the 3rd.

Wed, 05/02/2012 - 16:35 | 2392103 Badabing
Badabing's picture

says who Zak Stichen?

Wed, 05/02/2012 - 16:40 | 2392110 Pladizow
Pladizow's picture

Sumarians.

But I dont know if scholars other then Sitchin have translated this.

Because there is this: http://www.sitchiniswrong.com/

Wed, 05/02/2012 - 17:06 | 2392197 Abiotic Oil
Abiotic Oil's picture

We are the hybrid, genetically engineered, slave race created to mine gold, some would say.

Wed, 05/02/2012 - 19:59 | 2392552 StychoKiller
StychoKiller's picture

Well then, get to work!  Here's a shovel -- pay ya $5/Toz... :>D

Wed, 05/02/2012 - 22:18 | 2392814 Abiotic Oil
Abiotic Oil's picture

Robot, is that you?

Wed, 05/02/2012 - 20:35 | 2392596 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

We are the 7th planet, not the 3rd.

Yeah, but we're about to overtake Neptune and we're gaining on Saturn.

Yo, Uranus! Your ass is ours!

 

Wed, 05/02/2012 - 20:40 | 2392607 HungrySeagull
HungrySeagull's picture

Helga will make big ass for you.

Wed, 05/02/2012 - 16:34 | 2392101 Bunga Bunga
Bunga Bunga's picture

Everything that people trust in, can become money ... mussles, salt, or even numbers on an electronic bank balance sheet.

Wed, 05/02/2012 - 18:56 | 2392454 Alea Iactaest
Alea Iactaest's picture

Or tulips

Wed, 05/02/2012 - 16:35 | 2392102 youngman
youngman's picture

"could be hammered into a knife or tool and became very desirable.".......might look good but not very lethal.......it would bend or break...and be very heavy and soft....could be used in late night around the campfire sexual games maybe....they mostly made nose rings..ear rings..necklaces...jewerly....not tools or weapons..but a gold sword......like King Arthurs....cool daddy-o

Wed, 05/02/2012 - 16:39 | 2392109 Badabing
Badabing's picture

next time you get a chance try hammering a peice of copper, as you hammer it gets harder.

a hammered out gold blade might change your mind if it where held to your neck.

Wed, 05/02/2012 - 16:58 | 2392168 Jendrzejczyk
Jendrzejczyk's picture

No metalsmith here, but pretty sure all metals get harder when hammered...thus the annealing process in jewelry making.

Thu, 05/03/2012 - 18:44 | 2392583 Think for yourself
Think for yourself's picture

Well, it would get dull very quickly, and I wouldn't want to sharpen that baby. Sharpening = throwing away gold dust.

Anyways if you made that sword light enough to be wielded it would either end up as a dagger or as a very thin machete-style blade that would probably bend under its own weight. I've worked a bit with gold and hammered 24k is still so much softer than annealed 18k. It basically does not work harden. You won't get far with that.

Wed, 05/02/2012 - 20:52 | 2392635 Errol
Errol's picture

Badabing, as it happens, pure gold does not work harden; that's why it's possible to hammer gold leaf so thin.  Bonus trivia: pure lead doesn't work harden, either.

King Tut was wrapped with a solid gold knife, but it was probably just ceremonial...

Wed, 05/02/2012 - 16:46 | 2392123 hazek
hazek's picture

I don't want to go back to a gold standard, I only want to go back to gold. Why the need for an inefficient and clueless government to peg a weight of gold to some arbitrary amount of value? Let the market decide that.

Wed, 05/02/2012 - 16:46 | 2392125 Debugas
Debugas's picture

going onto gold standard today (when the whole world is in huge debts) would lead to catastrophic results because it would mean total collapse of government sponsored (via fiat printing) welfare system - millions of starving to death people and so on

Wed, 05/02/2012 - 17:17 | 2392135 akak
akak's picture

 

it would mean total collapse of government sponsored (via fiat printing) welfare system - millions of starving to death people and so on

Interesting. 

So you assume that the means to support and feed all those millions of government-dependent people ONLY exist due to the actions of government?  And just where is the government growing all those crops, and otherwise producing all that wealth and goods and services, to currently support all those millions?

Rethink your assumptions.

Wed, 05/02/2012 - 17:45 | 2392318 TheFourthStooge-ing
TheFourthStooge-ing's picture

It would mean sailing off the edge of the world, killing everyone aboard.

 

Wed, 05/02/2012 - 20:05 | 2392561 StychoKiller
StychoKiller's picture

[quote] We have been brought up by the progressives (liberals) that without stealing from our neighbor, there is no way to help the poor and those that need help.  That is the biggest lie every put out there...and most of the American people have fallen for it. [/quote]

Fri, 05/04/2012 - 18:25 | 2398451 ManOfBliss
ManOfBliss's picture

And surely that won't happen under a fiat currency standard...

OH WAIT... we're quickly on our way there right now...

Wed, 05/02/2012 - 16:48 | 2392131 Debugas
Debugas's picture

gold standard is impossile today for one more reason - people unable to find work for gold will agree to work for any paper/electronic promise that would buy them food and shelter

Wed, 05/02/2012 - 16:56 | 2392162 Badabing
Badabing's picture

why not work for food and shelter?

Wed, 05/02/2012 - 17:07 | 2392201 CCanuck
CCanuck's picture

Plus a few silver coins perhaps, sounds like a good system where do I sign up?

Wed, 05/02/2012 - 18:18 | 2392380 Harbanger
Harbanger's picture

You didn't say for how long?

Wed, 05/02/2012 - 18:58 | 2392458 Alea Iactaest
Alea Iactaest's picture

As long as you work you get food and shelter. Oh wait, you need a store of value?

Wed, 05/02/2012 - 16:57 | 2392169 jimmyjames
jimmyjames's picture

gold standard is impossile today for one more reason - people unable to find work for gold will agree to work for any paper/electronic promise that would buy them food and shelter

***********

You must not understand that gold standard means-

You turn your paper currency into a claimable amount of gold-at whatever price it is locked at-which means if you draw a wage you are being paid in gold and you spend in gold-which means that gold standard is entirely possible and easy to do-

As to your millions starving to death post--lol--are crops going to stop growing?

Wed, 05/02/2012 - 17:07 | 2392203 Jendrzejczyk
Jendrzejczyk's picture

Thanks JJ, wasn't sure where to even begin with someone who's been here a year and is still at that level of understanding.

Wed, 05/02/2012 - 17:13 | 2392232 akak
akak's picture

Thanks JJ, wasn't sure where to even begin with someone who's been here a year and is still at that level of misunderstanding.

Wed, 05/02/2012 - 17:23 | 2392259 Jendrzejczyk
Jendrzejczyk's picture

Appreciate the correction.

 

Having "roadside squatting citizenism" takeout for dinner tonight...or just noshing on wolf-nipple chips?

Wed, 05/02/2012 - 17:28 | 2392273 akak
akak's picture

Not so, crunching nowlike being on roasted puppies, fried bear penis and General Tsao's kitten --- oh! the goodness tasting!

Wed, 05/02/2012 - 17:31 | 2392282 Jendrzejczyk
Jendrzejczyk's picture

Double lucky good.

Wed, 05/02/2012 - 17:51 | 2392330 TheFourthStooge-ing
TheFourthStooge-ing's picture

Today's runchtime soup du jour: fish eye, salamander, and soapstone in umbilical cord broth.

Bring much good fortune and luck overflowing into.

 

Wed, 05/02/2012 - 18:00 | 2392343 akak
akak's picture

Make you strong!  Having much bang bang! 

Many babies coming!

Wed, 05/02/2012 - 19:02 | 2392461 Alea Iactaest
Alea Iactaest's picture
 Patience is a key to joy

Don't forget to add [in bed] to the end of every fortune!

 

http://www.fortunecookiemessage.com/

Wed, 05/02/2012 - 20:48 | 2392628 TheFourthStooge-ing
TheFourthStooge-ing's picture

Fortunate in bed at end now being of US citizenism eternal nature undeniable.

But hey, it is well known, US citizens are problem solvers.

 

Wed, 05/02/2012 - 21:07 | 2392646 akak
akak's picture

But hey, it is well known, US citizens are problem solvers.

//////////////////////////////////////////////////////////////

You are indeed strike the nail on his ear!

US Citizen nature in blobbing-up problems is eternal.

Likewise, Chinese citizenism nature in creating brown roadside blobs is equally eternal.

As Great Helmsman himself say in his Petite Pink Publication: "All roadside feces flow from the sphincter of Chinese Citizenism".

Wed, 05/02/2012 - 21:10 | 2392676 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

You are indeed stike the nail on his ear!

US Citizen nature in blobbing-up problems is eternal.

Time-traveling algebraic coconut milk of Chinese citizenism flows like river of time-traveling algebraic coconut milk.

Of Chinese citizenism.

Likewise, Chinese citizenism nature in creating brown roadside blobs is equally eternal.

It's arive!

 

Wed, 05/02/2012 - 21:18 | 2392691 akak
akak's picture

The Brob!

Wed, 05/02/2012 - 20:08 | 2392563 StychoKiller
StychoKiller's picture

The Chinese have a phrase for completely useless:  "Wolf's heart and Dog's lungs."

Having survived countless famines, you can understand their mindset.

Wed, 05/02/2012 - 20:54 | 2392631 akak
akak's picture

 

Having survived countless famines, you can understand their mindset.

Particularly such centrally-planned famines as "The Great Leap Forward Into Starvation", a perverse but inevitable byproduct of the sociopathic and power-mad backyard industrialization dreams of the Great Stoolman Mousy Tongue, whose dictates sentenced tens of millions of his own (Chinese citizenism) citizens to death.

Wed, 05/02/2012 - 21:18 | 2392690 TheFourthStooge-ing
TheFourthStooge-ing's picture

Ah, ah, but Chairman Mow proved himself of people being one with. Evidence just then being eternal memorialized by glorious Peoples Liberation Roadside Shrines of Fearless Droppings of Great Chairman Mow preserved in state for much vigorous patriotic.

 

Wed, 05/02/2012 - 21:24 | 2392697 akak
akak's picture

Anonfucius say:

 

Let he who is without citizenism sin cast the first roadside turd.

Wed, 05/02/2012 - 21:35 | 2392725 TheFourthStooge-ing
TheFourthStooge-ing's picture

Anonfucius say:

US citizenism citizen look at unblemished roadside, sees only unblemished roadside.

Chinese citizenism citizen look at unblemished roadside, sees much potential.

The nature of citizenism being known, US citizenism citizen knows, when footstep is making, if he follows trail already blazed by Chinese citizenism citizens in advancement of him.

 

Wed, 05/02/2012 - 16:56 | 2392161 mt paul
mt paul's picture

bought some more money today

it's all good..

Wed, 05/02/2012 - 16:57 | 2392164 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

before we get more gold, we need to solve the holy canoe problem,

I keep reading about good people losing all there PM in canoeing accidents, wheres the Coast Guard?, the Navy? can't somebody help these poor people...?

Wed, 05/02/2012 - 17:04 | 2392186 Jendrzejczyk
Jendrzejczyk's picture

Thank you, vodka cleans my monitor pretty well.

Wed, 05/02/2012 - 17:04 | 2392184 CCanuck
CCanuck's picture

Did he forget hopium?

Wed, 05/02/2012 - 17:05 | 2392192 Dr. Gonzo
Dr. Gonzo's picture

I think you could buy sex with it in Ancient Babylon.

Wed, 05/02/2012 - 17:13 | 2392228 ebworthen
ebworthen's picture

Scientific reasoning for the "barbarous relic"?

Just don't tell the Keynesians!

A great perspective on reality as well as history; Au is money because the periodic table says so.

Put that in your fiat pipes and smoke it!

Wed, 05/02/2012 - 17:23 | 2392263 scrappy
scrappy's picture

I prefer to store some of my gold on the inside.

http://www.drinkswap.com/goldschlager.htm

You can't eat but you can drink it!

 

 

 

Wed, 05/02/2012 - 20:30 | 2392588 Alea Iactaest
Alea Iactaest's picture

Get buzzed and improve your net worth!

Wed, 05/02/2012 - 17:41 | 2392301 Debtless
Debtless's picture

The US takes everyone off the standard and now says the world can't go back onto it because everyone's off it. Uh, okay.

Wed, 05/02/2012 - 17:53 | 2392338 akak
akak's picture

Hypocrisy, thy name is central banker!

Wed, 05/02/2012 - 17:50 | 2392331 Itinerant
Itinerant's picture

If we're going to be scientific about it, why limit ourselves to elements? We should consider compounds, and other scarce things such as art or almost extinct species, or precious stones.

And then there's the question of needing something to get beyond barter. Were there ever societies that worked on barter (except in crisis)? Empirical evidence? No, most societies worked on credit and reconciled accounts without actual payment (just like electronic banking today). In fact they often used a unit of grain as the basic unit of money, even though they recorded the amounts: they didn't actually exchange the grain.

In fact, our units of gold (grains/ounces) go all the way back to equivalent measures of barley (not by value) in ancient Babylon.

The excellence of gold is not as a medium of exchange, never has been. Gold is useful for two reaons: [1] to settle accounts between people who do not maintain credit relationships: think foreign trade and soldiers. [2] Gold is a way of measuring value, like rulers measure inches; the exchange value of gold introduces a standard measurement for value (because there's basically a fixed amount of it). You rarely need to exchange gold for anything, as long as it is in principle possible to redeem promises for gold.

Wed, 05/02/2012 - 17:50 | 2392333 skepticCarl
skepticCarl's picture

The day that a major economy goes onto a gold standard is the day that the largest banks and wealthiest, most powerful people have gotton control of the metal.  Be careful for what you wish.

Wed, 05/02/2012 - 18:19 | 2392384 Likstane
Likstane's picture

The world has always been/is on a gold standard and always will be.  Just because most people are duped into the false paper system does not make it the standard.  Try taking some of that gold or its paper representative and see which one gets gets let go of last. 

hint: it's the heaviest one.

Wed, 05/02/2012 - 19:33 | 2392506 Clint Liquor
Clint Liquor's picture

Be careful for what you wish.

Spoken like someone who owns no Gold. Pity.

Wed, 05/02/2012 - 18:04 | 2392355 Likstane
Likstane's picture

Gold is money/wealth because God made it so.  In Genesis Ch.2, God provided gold for Adam even before He put Adam in the garden and before He gave him a woman.   In Genesis 13, Abraham is credited to be rich in livestock, silver, and gold; not beads, seashells, and FRN's

Wed, 05/02/2012 - 19:06 | 2392467 Random_Robert
Random_Robert's picture

Gold became money as a consequence of its permanence, scarcity natural beauty, and malleability- it was too soft to use in the craft of weapons, but it was the IDEAL material to decorate weapons and adorn the warrior:

http://insiderobertsbrain.blogspot.com/2011/08/epiphany-for-me-eureka.html

Due to Gold's scarcity, the original Gold market came about as warriors took each others Gold as the spoils of victory. Any warrior adorned with significant amounts of Gold sent the unspoken message to his enemies that he was not to be messed with... 

Wed, 05/02/2012 - 19:06 | 2392469 Boxed Merlot
Boxed Merlot's picture

As mentioned in the video, it does not tarnish, decay or react to otherwise naturally occurring deteriorating elements like sea water.  Makes sense to me why it was stored in the bulk hold of sailing vessels as ballasts too.  Wouldn’t surprise me at all to learn it’s the secret in the hull designs of world class sailing vessels today.  Maximum weight, minimum space.

 (I know, moving water ballasts, i.e. manipulation of interest rates, are the flavor of the moment, but this is only possible through the manipulation of non-traditional and currently irresponsibly applied judicious determinations.  How long this condition will last is highly questionable.)

As ballast on the ship of state it’s equally ideal.  Out of sight, but absolutely necessary when setting sails against economic storms of profligate printing, legislative empty promises and illegitimate judiciaries.  

What’s old is new again.

 

Imho.

Wed, 05/02/2012 - 19:16 | 2392476 Clint Liquor
Clint Liquor's picture

Power will be restored to the People when they realize they can put themselves on a Gold/Silver Standard whenever they want. The propagandists have convinced the People the must rely on Government to decide what is money. People around the world have been deciding what is and is not money for 5,000 years. Governments just fuck it up.

Wed, 05/02/2012 - 19:35 | 2392511 Paracelsus
Paracelsus's picture

Been living in Oz for twenty years.The Tory Gov't at the time (late '90's) sold off a third of the gold stockpile,giving some total BS excuse like the costs of security,lack of relevance of Gold in the market,etc. Real "dawg ate my homework " stuff and the journos down under either work for Kerry Packer or the Murdoch empire.  I always believed they were told by someone to dump and suppress the price.

I believe it was about $325/troy oz at the time. The Aussie taxpayer truly got reamed on this deal but it is like a non-event in the media.   

Wed, 05/02/2012 - 19:44 | 2392524 Clint Liquor
Clint Liquor's picture

Don't feel too bad, mate. Gordon Brown gave half of England's Gold away about the same time for $250 per oz. The dumbass even advertised they were going to sell, driving the price down beforehand. Fuckin' moron that Gordy is. Of course the Brits punished him by making him Prime Minister, so you have to question their IQ's, also.

Wed, 05/02/2012 - 20:48 | 2392629 hamurobby
hamurobby's picture

Well at least the Aussie's got lower crime for outlawing guns in their country. Thats worked out great!

http://www.snopes.com/crime/statistics/ausguns.asp

 

Wed, 05/02/2012 - 19:36 | 2392513 theTribster
theTribster's picture

My wife works at a jewelry store and she has at least three people come in everyday to sell their gold and silver. She guesses the average people walk out with is about $1000, and by far most people r bringing in Gold as the main metal. People also bring in silverware as well as trinkets and other objects too. She also guesses that more than half but definitely not all need the money.
This is amazing to me, especially when u consider that the owner only gives them 60-75% of the spot that day. He melts most of it down and then sells the bars. He has over 100#s of gold any given day and probably 500#s of silver. He's an old guy that is about finished and retiring soon, I buy a lot from him because I get a sweet discount from spot.
Anyway, it amazes me that so many people are dumping their PMs at such an incredible rate - I suspect that based on this craziness more people may be selling PMs than actually buying - regular Joes I mean. If they aren't educated by now about the financial situation they will be real sorry very soon. It really is a shame that Americans are so out of touch with reality, at least a large percentage of them anyway. No excuse given the Internet and all the advertising about PMs....

Wed, 05/02/2012 - 19:59 | 2392553 Platinum_Investor
Platinum_Investor's picture

Gold has doubled in price in 4 years.  The amount of people selling their gold is holding gold from rising.  Once the selling is dried up I'm guessing by the end of this year, the buying will accelerate as the debt grows and more people get educated about the coming colapse.  I'm happy if Gold holds above $1500 an ounce for the next little while.

Wed, 05/02/2012 - 20:06 | 2392562 BLACK_DOG
BLACK_DOG's picture

do you think they are purposely keeping the price high to draw it out of the average persons pocket.

Wed, 05/02/2012 - 23:43 | 2392945 JLee2027
JLee2027's picture

Noooooooooo, lol

Thu, 05/03/2012 - 00:29 | 2393002 Clowns on Acid
Clowns on Acid's picture

Who are "they", and what is "high"?

 

Wed, 05/02/2012 - 19:56 | 2392546 Platinum_Investor
Platinum_Investor's picture

I like Gold, but I like Silver much better

Wed, 05/02/2012 - 20:01 | 2392555 Rogue Economist
Rogue Economist's picture

History of Money

http://www.doomsteaddiner.org/blog/2012/04/23/the-history-of-money/

Doomstead Diner Comics

RE

Wed, 05/02/2012 - 20:10 | 2392566 kane1559
kane1559's picture

Thanks for posting that

Wed, 05/02/2012 - 22:22 | 2392816 kedi
kedi's picture

A quick check of some statistics shows about 4.6 billion adults in the world. The amount of above ground gold to be about 4.8 billion ounces. That is all gold, in jewelry, industrial etc... So if all gold was coin we could all have about an ounce apiece. $1600 dollars each. A first glance at world average wage search returned $7030 a year. 4.4 ounces a year.

A years labor represented in a fiat currency of gold. Labor and raw resources are the only real currency. You can represent it in many forms. All of them fiat. It is not what they are represented in, but what controls are kept on that representation that keeps legitimate value for it. The "value" of gold aside from it's purely industrial use can be manipulated and debased just as any representation of labor and raw resources can be.

I judge the value of my wage in relation to my labor versus costs of survival. What ever it is paid in or backed by. Day to day. It is my labor that is being debased. Honesty, fairness and law that is being debased. The fiat currency, whatever it is, merely reflects this.

Thu, 05/03/2012 - 01:56 | 2393085 tom
tom's picture

How silver and gold went from decoration to money and store of wealth is pretty obvious, but what's most telling is that it happened independently in both the old and new worlds. Montezuma didn't have any trouble guessing what Cortes would like.

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