Attention, jrodefeld, would you please respond to this post?
You have said that “Gold maintains its value for thousands of years”. You’ve made this same basic claim many itmes in this thread and more times in your earlier threads. Yet every time you make it, I bring up the same objeciton, and you’re not willing to answer that objection.
In fact, if you go pack to post 168 of this thread, you will see that I posted a list of 5 objections to your main line of argument. I note, and like others I respect, that you’ve answered so many posts in this thread. Yet I also note without surprise that for some reason you skipped over post 168 without any response. In fact, in post 168 I predicted that you would not respond to it. My prediction was correct. Can Ron Paul or Ludwig von Mises make predictions with that kind of accuracy?
Now, to make things simple for you, I will repost what I wrote in 168, which as I said was merely a clone of what I wrote in your earlier threads. This will thus be your third chance to answer these arguments.
**Real Criticism of jrodefeld’s argument #1:**You say that “I think most of us sense that this country is not the great country it used to be. We don’t have the same type of prosperity.”
I agree with that statement. We don’t have the same type of prosperity that we used to have. We have much more prosperity than we used to have. Even after the recent economic troubles, we are still vastly wealthier than we were in the era of the gold standard. It really doesn’t matter what measure we use: GDP, personal income, home ownership, education level, etc… It all doesn’t matter whether we adjust for inflation or not. The fact remains the same. The idea that we have less prosperity than we used to is absurd, when any decent source will confirm that we have more.
**Real Criticism of jrodefeld’s argument #2:**You say “the early stages of hyperinflation are here.”
The early stages of hyperinflation are not here, nor even the early stages of ordinary inflation. The current rate of inflation is roughly three tenths of a percent. Do you hear me? I said THREE TENTHS OF A PERCENT. That means that inflation is not occurring. To warn about hyperinflation is absurd. We’re currently at high risk for almost any economic problem except inflation. The biggest fear right now among sensible people is deflation, which is the opposite of inflation. Home prices have gone down about 30% in the past three years, not up. To say that hyperinflation is occurring is like telling Pakistanis that their river levels are too low.
Ah, but now I hear you saying that hyperinflation will occur in the future. Will it really? When I walk past a bank, I see 5-year and 10-year CDs and bonds going for interest rates around 2-3%, even lower than the rates from a few months ago. If high inflation was actually around the corner, why is the market not predicting it?
Real Criticism of jrodefeld’s argument #3: You say “gold holds it value well over time.”
Gold is uniquely bad at holding its value over long periods of time. For example, in 1981 gold prices rose over $800 per ounce. By 1998 they were down to almost $200 per ounce. Gold does not hold it’s value over time.
Real Criticism of jrodefeld’s argument #4: You say “Monopolies in a free market are traditionally very rare and almost never occur.”
This is completely untrue. Are you familiar with Standard Oil? How about the Northern Securities Company? How about the Beef Trust, the Sugar Trust, and the monopolies that controlled over a hundred American industries in the early 20th century? Clearly monopolies occur extremely often in free market economies. They are rare only in well-regulated economies.
Real Criticism of jrodefeld’s argument #5You say “As I have shown in this post, the Progressive Utopias promised by your idols FDR and Lyndon Johnson are disappearing”.
You haven’t shown any such thing. Every significant agency and economic reform enacted by FDR or LBJ is still here. Every one. Not one exception. Your statement is merely inane.
Once again, I await your responses.