Status Change: Gold Moves From Investment To Money
This is the Cantillon effect posited by Irish economist and Adam Smith predecessor Richard Cantillon: price inflation is relative and staggered as “newly created is distributed neither equally nor simultaneously among the population.” Picture banks and their favored borrowers with access to the Fed’s zero interest rate program borrowing dollars and investing in assets that have either higher yields like Treasuries or long-term security like gold. Later on, consumers without those resources or sophistication are punished at the gas pump and grocery story by the resulting price inflation. Printing money doesn’t just cause financial disorder; it stokes inequality.
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Wow, it’s a shame I’m so surprised to see an honest account of the appeal of gold — no counterparty risk — in mainstream financial news.
Gold and silver Constitutional money is coming back, if people support Ron Paul’s Monetary Reform bills HR 1094, 1098 and 2768. DownsizeDC has an action item to do just that- https://secure.downsizedc.org/etp/honest-money/
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