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overtheedge
Member since May 2012
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Copernicus, Galileo and Gold. Part II

- Hugo Salinas Price - Plata.com

vox, you are correct in that I should have stated classical science. I made the wrong assumption in thinking folks knew the difference between classical physics (hard science) and quantum mechanics (philosophy). Might I suggest that you do some serious reading on Werner Heisenberg's Uncertainty Principle.

Then you make the mistake of:
"....Last year a planet twice the size of earth was discovered. It is a giant diamond. Why should we blithely assume that a three trillion ton asteroid made entirely of gold will not be discovered and brought back to earth?"

There was no planet found that was a diamond. It was purely speculative. Science is about hard evidence. Never mind that the forces required to make a planetary sized diamond is nonsensical at best.

You further present evidence of your lack of scientific background by speculating that a 3T ton asteroid of gold could be discovered and then moved to Earth orbit. This is roughly a sphere 8 kilometers in diameter. Do you have any idea of the amount of energy required to move a mass this size? Then you have to move the men, equipment and the power source to the asteroid. You are talking out your ass. Never mind that a asteroid this size of gold would present an albedo of such intensity that it would have already been discovered.

Then there is this:
"That governments abuse the printing press does not mean that they must. If they would only live within their means, there would be no reason to print. That is what it always comes down to. If the currency is to survive, regardless of what it is, government must be constrained."

And this:
"... gold has proved a failure each and every single time it has been used to represent money."

Once again, you confuse correlation with causation. Gold NEVER failed, government did. You stated it here, "... government must be constrained."

Dragging in the excesses of Phillip II as your example of the failure of gold just adds further evidence of government excess.
Where you really failed is your poor knowledge base of history (I'll blame it on our pathetic educational system). The supply/demand curve of the time was constrained by hand-crafting and the guild system that prevented the membership from using any labor saving technology or techniques. Anytime you have more "money" chasing severely limited goods, prices will rise substantially.
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However I do agree that the current gross weight of gold above ground limits its ability to act as the operative currency of the day. As you stated several times, "government MUST be constrained." There is only a few mechanisms capable of effecting that possibility.
1. Government must be denied the creation of any financial instruments.
2. Government MUST be starved financially.
3. No internal taxation may be permitted under any conditions.
4. Consequently, there can be no bail-outs for financially entities or safety nets for the citizens.

We exist to type our questionable thoughts because savanna/ice-age economics culled the herd. Our ancestors learned those harsh lessons and complied. Greed is good. Greed is NOT to be confused with obsessive compulsive disorders. Greed fosters savings. Only savings has presented compelling evidence as to its efficacy as a source of investment capability. Example: You dry a haunch of elephant meat. This is savings aka hoarding. Your buddy Gruk want to plant watermelons, but needs to eat during the meantime. You tender an armload to Gruk in return for 1/3 of the watermelons he produces. Handing Gruk a piece of bark with the notation, "worth armload of dried elephant meat" doesn't feed Gruk.

All commerce begins at the bottom tier of Maslow's Hierarchy of Needs. Most all of these are commodities. And if we add in the oldest profession, all of them are. Profits permit luxuries and we move up Maslow's pyramid.

The study of philosophy can be a good thing. In can lend insight into the way other folks think. But it is just an opinion. You argument reminds me of the Hegelian Dialectic. Conflict to consensus to slavery. It is B.S. He who holds the gold makes the rules.

Gold is just 1000's of years of opinion. I pay close attention to that level of elder-ship.
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It ain't what you know that gets you in trouble, it is what you KNOW that AIN'T so.
We were born without knowledge. Some freely choose to remain that way. Belief systems absolutely require disbelief in contrary evidence.
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edited to correct the diameter of the asteroid. Formula for sphere uses radius. Diameter is 2X the radius. I don't mind being wrong so much. It is staying wrong that I refuse to do. Of course this makes a golden asteroid's albedo really stand out against the dark background.

Commented 3956 days ago

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Beginning of the headline :The development of Economics and the development of Astronomy share interesting parallels. Aristarchus of Samos – the Greek island that produced Pythagoras – was born in 310 B.C. Aristarchus set Astronomy on the path that would have led to its correct development by postulating the Sun as the center of the Universe, with the Earth revolving around the Sun while revolving around its own axis; he also set the planets in the correct order of their distance from the Sun. Unfortunately, the preconcei... Read More

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