Scandinavia and the World

Comments #9638733:


It's important to know what you like 24 5, 10:31pm


' @comrade'_Comrade
1) Fake gold
As I said it the best kind of gold forgery is tungsten with real gold coating as tungsten is the only thing whose density is close enough to gold to fool people on the basis of pure weight.
But there is many other ways to test the coins authenticity, such as the ring test.
Tungsten unlike gold is very hard and brittle, so it sounds completely different when hit, while a pure gold coin have a pure ring to it when hit.
I told thee, it is practically impossible to forge a gold coin, especially a small gold coin, which is why basically all known forgeries have been with bars and most of them of the good delivery variance.

2) Things
Bitcoin is not connected to reality because it is not a thing. If thou don’t know what a thing is then I will tell thee: a thing is everything that can be put in a wheelbarrow or a whellbarrow can stand on.
And if it is a thing, it needs to be somewhere, that is where the third party custodian comes in.

2.2) Martial law.
Such a situation sucks, but we can properly also both agree that getting our physical bodies across the border is more important than transporting our wealth, no point being the richest copse in the graveyard.
Gold can be used as a convenient bribe which bitcoin can’t. Not only does gold not require a medium, but it is by nature untraceable, that is why governments hate it. The whole point of the blockchain is that every transaction is recorded, so the thugs masters will always be able to see if they have been taking bribes that way.
That is a whole other aspect I don’t like about bitcoin, the lack of anonymity. Gold coins don’t leave a trail, because the point of gold is not about calculating the ownership but all about the physical possession.

3) “Funny thing is, that's exactly what my grand grandfather did - he had some unspecified valuables buried somewhere during dekulakization. He was very tight lipped about this, wanted to outlast Stalin or at least leave it all to my mother. One slight problem - he died in 1950s fast enough to be unable to reach anyone he could trust with information. To this day there is not even a slightest idea about at least general area where that stash was buried.”

That is too bad, sometimes even the best plan isn’t good enogh. But look at the bright side, at least Stalin didn’t get it either.
I remember a story from last year where someone found a gold stash that had been buried for thousands of years. I believe the archeologist said it was from the late bronze age. It was properly someone in a similar situation to thy grandfather, trying to escape from some tyrant and burying his treasure on the way, and then never finding anyone to trust with the information of its whereabouts. I will consider it a half win that a horde gets lost to the ages rather than to fall into the hands of a tyrant, that would surely only use it for evil.

4) Gold standard
“US already handled inflation rates as high as 14% between 1970 and 1980, including stagflation. Granted, at 20%+ death spiral may become more difficult to overcome, but with enough political will solutions are available.”

That is not even close to a hyperinflation. And as I said a hyperinflation is not just inflation on steroids, it is “loss of confidence” in the currency. That havn’t happened in America since the continental.
But thou hast to understand that the advantage of a gold standard is exactly because it is a shackle on government and banks. It forces fiscal restraint.
I read this kronik in zerohedge today:
It is more against central banks in general then it is for a gold standard but its point is still important. It shows the great advantage that Panama have over other developing countries because it don’t have a central bank and its own currency, but have decided to simply use the USD. This takes away the monetary tool that most governments have that always ends up being misused.
That is the whole point of a gold standard, to eliminate monetary policy. To prevent any central authority from setting interest rates and controlling the money supply. By having the money supply constrained by nature and letting the market set the interest rates itself, we prevent the manipulation that distorts the markets and makes everything more and more out of wrack.
I told thee, as the book “The Road to Ruin (2016)” also describes, complex systems cannot be controlled, and risk are not normally distributed but are instead distributed on a power curve. Once it hits critical mass, and it is impossible to predict when that is, only that the risk rises exponentially with size, the system collapses. And this systemic collapse is inevitable, it cannot be stopped by any means. Derivatives are already measured in the quadrillions of dollars.

A solution would have been to as I said, ban fractional reserve banking, impose a 100% backed gold standard and of course ban all derivatives. The last bit is by far the most important. Initiatives like glass steagall while imperfect, did create a ward that prevented the system hindered the system in getting too out of wack.
As Warren Buffett is known to have said “Derivatives are financial weapons of mass destruction”
5) Regarding currency
I don’t advocate for a fixed exchange rate, I advocate for government to more or less get out of the money business altogether.
Competing currencies are great, and should be encouraged. But in order to have stable trade we need a standard.
My vision is to see something like AUG (aurum gram) as a sort of 8th basic unit.
1 solar would be defined as 1 gram of pure gold and
1 lunar would be defined as 1 gram of pure silver.
Various mints, both public and private would then produce these coins in different sizes and accepted for trade everywhere.
There would be no fixed exchange rate between gold and silver, the market will determine the exchange.
Everyone and their mother will be free to mint their own coins, but some coins would of course be more trusted then others. The punishment for forgery would be high and the hit to the reputation of a mint caught will be devastating.
That alone ensures that it need not be regulated.