Wednesday, November 20, 2013

The Answer Is Blowing In the Wind

When Another spoke of currencies as "the thoughts of a nation blowing in the wind" there was much behind this insight that escapes the little people. The exact comment was:
 ... how can paper currency that represents "the thoughts of a nation blowing in the wind" be used to value real money of ancient world class proportions, gold? It cannot! Any price you can think of will do, as in no price will work!
But there is much more here than meets the eye. You see ... in time ... and with such wide acceptance of currencies as a unit of account, a means of exchange, and a store of value, these "thoughts blowing in the wind" now apply to all valuations of all things.

It is true, from the common sense standpoint, that the utility of an item can change, when thoughts about that item, due to some dramatic situation, unanimously change. And that change can dramatically and immediately impact its value.

Take the lifeboats on the Titanic for example. An hour before the berg was struck, they were seen as worthless, then 2 hours later, priceless. But this is an extreme example, and thus quite uncommon, or so it should be, again from the common sense standpoint.

Now let us look at a virtual currency, bitcoin, the great ally of the debt-based dollar faction. It is a wildly fluctuating virtual currency, outside the FOREX system. A hearing, or a public "remark" can send it careening up or down, like the thoughts or sentiments of investors, blowing in the wind. It is a good example to cite, since it is a virtual currency, something that acts as a unit of account, and a means of exchange, perhaps even a temporary store of value. Yet currencies still denominate the valuations of the physical plane.

All currencies have a virtual counterpart, and all are based in debt, just as bitcoin, admittedly structured upon the credit card (or "debt card") model. The currencies are all aligned to a single purpose, and that is systemic control and leverage. You can observe any chart, in any financial derivative, and see these constructs as both "artificial stabilizing mechanisms" and "profit opportunities" when they fluctuate.

But it is volatility, the booms and busts of "thoughts blowing in the wind" that concede reason to the front runner, and provide a profitable (yet of course inherently unstable) foundation for the IMF$. Our financial reality is a literal carry trade fueled by volatility.

It is stability that gold assures, and the reason why bankers hate it. Gold undermines the speculation mindset that all valuations derive from today. It is stability that savers want. A more solid foundation upon which real world valuations rest.

And the savers will after all "save" this world. It is what they do. The spenders of promises will be undone by promises spent.

No comments:

Post a Comment