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A highly
critical, disparaging
opinion of Martin Armstrong (HOW
DO Empires Die? by Martin Armstrong - Highly Recommended ) expressed by
Jason Hommel.
One that we are not in
agreement. We defend neither man's opinion, only our belief that
Hommel has mis-interpreted
the pro-physical gold/silver
views of Armstrong. We found Hommel's long dragged out and history of what constitutes tedious, boring, and unnecessary for the informed believer of sound money.
Silver Update 6/19/12 Jason vs Martin
 
We understood Armstrong
to be making the argument
that gold AND paper money
substitutes (US Dollar) can at
times 'hibernate' due to hoarding
in deflationary periods. Even beaver pelts
and glass beads behaved similarly at times, rising in # of beads required for a purchase in
times of scarcity, as beaver
pelts in times of poor trapping seasons. Both items were hoarded because of scarcity. Trade diminished and deflation resulted in those community's markets where these exchange mediums were accepted. In other goods as these mediums of
exchange were saved. Of
course trade outside the community would not have been affected as 1) neither commodity is universally recognized as
"money", and 2) beaver pelts will rot if saved for any length of time. Being fungible applies to a lesser degree with pelts, but are not
acceptable if divided into
pieces. Unlike stone wheels as money, both are
transportable.
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Solomon
Islands stringed shell cash used to the present day- not known if customs would give you hard time if you smuggled this home, but could you buy a
pizza pie or make a down payment
in Brooklyn?
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Armstrong is giving gold the credibility of durable money characteristics
that tobacco, ammo, cigarettes, whiskey, and oil
are lacking. Any of those items could, however, be used
for short periods as substitute "money"
in trade. Postage stamps
as 'money' quickly lost their store of value. Try
mailing a letter today
for 2 cents. During the US "Civil" War merchant tokens were used
regionally as exchange 'money' because
they were representative of exchangeability
for those perishables sold by a merchant. Of course, outside of Charleston they were not "money" in Iowa or Albany, NY although even northern states used colloquial
merchant coins, too.
Right now the US dollar is
a "refuge money" from other
failed mediums because it is still
recognized by some as
money to exchange. But has now lost
the absolute required characteristic = suitable for saving! It's a hot potato to pass along to someone else while you
still can!
But, the dollar like all other
government decreed monies (or other substitutes)
have never proven to be a long term store of value.
The Three Little Piggies like all citizens learned the hard way: you can't
build a house of straw,
or sticks, only brick will
suffice.
Preppers and survivalists
always promote that "bug-out bags"
and hideaways be well-stocked with items that could be
used in exchange for other
goods such as gasoline, fresh produce & meat, fresh water, and so on. But,
NONE of these items will
endure long-term as money, but in the interim, hoarded as gold and silver are now, and have been ever since the 1930s. Read:
Why America's Next Bank Holiday Will Be a Nightmare
I believe Armstrong was trying to make that distinction of relativity
of changing values in deflationary
and inflationary times and for people to make the eventual transition
back to gold and silver, the 5,000+ year history of being the only medium with all the characteristics of
money.
No need to be harsh or critical of Armstrong
and his independent views. Take it,
or leave it, but think it through.
Indeed, silver is for the people, but not until
the people are ready. In the interim
after saving a sufficient number
of silver coins, put US nickels away, too, if for no reason for their 75% copper
and nickel!
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