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overtheedge
Member since May 2012
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Arguments Against Freegold

- FOFOA - FoFOA

Well, waded through this post and I thought I had a good command of the English language. Obviously not.

The concept of Freegold already exists. It is NOT money. However that is where the concept ends.

As a store of value, we once again tie gold to money; $/ozt. We might as well say Freewheat. Granted a bit more short term storage, but same concept. Buy wheat, store and resell (hopefully a profit).

Now if we consider that the value of the stored good must serve no utilitarian purpose beyond storage of value, we must accept pearl earrings, cancelled stamps, fine (and not-so fine) art and antique tractor seat collections.

I would tender the notion that value is in the eyes of the buyer. Popular or fiat declarations can never force confidence in valuations. However if history can be used as a guide to understanding the human condition, then with enough conditioning most bald monkeys can be trained to accept anything as so. By the use of government fiat, currency (cellulose) can be used to buy gold, food or Beany Babies.

The Freegold concept does not divorce gold from economics. Economics demands commerce. Widespread commerce demands a medium of exchange. The common medium of exchange is currency.

Everything is connected to everything.
Everything has to go somewhere.
There ain't no such thing as a free lunch.

There are only two concepts that need to be understood for the survival of the individual. Psychology and economics. Economics is the individual's profit/loss statement in the directed use of energy. You must produce more than you consume and don't make enemies. Commerce (the trade in the product of directed energy expenditures) is the tool for minimizing the number of enemies.

Tis my notion that the concept of Freegold is nonsense. I fail to see how something can be a store of value and not have monetary value. If one person exchanges a 1 gram gold bar for some other item, the gold bar has met the standard of currency. Function is, concept is just blowing smoke.

Freegold demands belief. Belief mandates no acceptance of contrary evidence. Beliefs are dangerous and always counter-productive in the end.

Gold can never be totally divorced from monetarism. Anything less than totality is failure.
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For the sake of argument, let us assume things are just as they are. Gold bars are NOT currency. However to maintain that status, gold bars MUST be converted to the currency of the day. Gold bars already meet the standard as a store of value. Gov't fiat has declared that gold is NOT a medium of exchange. The only reason that Freegold does not exist today is the lack of gov't fiat declaring it so.

Once the gov't declares it as so, the bald monkeys can be conditioned to accept it.
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It appears that concept realization demands fiat. Fiat has stated that unemployment is less than 8%, inflation under 3%, yada, yada, the economy is on the mend.

Fiat is just words. The fundamentals of Freegold already exist and have for a few thousand years. Silver and base metal coinage were the popular mediums of manufactured exchange. Barter was more popular. Gold is, was and will probably remain a store of value outside the general marketplace.

But Freegold demands gov't recognition and acceptance. Yah, and the mistaken belief that any store of value won't be taxed? Anything that gets taxed away is NOT a store of value.

There are all sorts of additional problems, supply/population ratio being one.

Commented 4202 days ago

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Beginning of the headline : Someone suggested a post on arguments against Freegold.I thought it was a great idea, but then I couldn't think of any arguments that hadn't already failed.I've been at this task for four and a half years now, and I've read almost all of the 12 years' worth of archived debates and arguments (now missing) at USAGOLD as well as the random debates that pop up elsewhere and someone inevitably links them here or brings them to my attention via email... Read More

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