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Pittsburg, Kansas | Armstrong always has some interesting views and I read him every chance I get to see what he has to say. I agree with a good share of it, but diverge at a number of points.
A number of people that I listen to and value their opinion claim gold is not money. Armgstrong is one. Denninger is another. I disagree on this point. While I admit you will likely run into trouble if you try and take a gold coin into Wal-Mart and buy something, likely all you will get is a dumbfounded look from the checkout person. So gold is not readily used any more as a money for ordinary transactions. So a person could reasonably argue that since it is not normally used in transactions where it is used to buy goods, it is not money. Some people even go on to argue that a store of value is not (or at least no longer) a function of money. This is another thing I disagree with. If gold is not money to Armgstrong or Denninger, that is fine by me. To me it is because it has shown to hold its value (to a much better degree than any paper currency) over long periods of time. It has held value (though its purchasing power does fluctuate) for thousands of years. That can not be said of any current or former paper currency. That simple fact to me makes it money. But anyone that does not want to call it money nor want to hold it as money is fine with me also. That is their discretion. I don't have much gold. Less than 1% of my net worth. I personally like silver better as a precious metal to hold, but it tends to be a very volatile precious metal.
I also am just a student, not a teacher. Trying to understand our current situation, just like you. I have opinions, that often turn out to be wrong, but few answers or absolutes.
All I can say is dig in and try to figure it out. That is all any of us can do.
My leanings most closely align with the Austrian economic line of economic thinking. Go to Mises.org if you do not know what that is. I agree with a lot of what Karl Dennger at the Market Ticker posts. Not all but a lot. Also http://patrickbarron.blogspot.com/ is a good source for more Austrian economic view.
I only discuss. Don't give advice. Just learning myself.
John | |
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A different view of the 1929 market crash
