tag:blogger.com,1999:blog-11906042.post417380065316629606..comments2024-03-30T00:09:27.602+13:00Comments on Not PC: PUBLIC LECTURE TONIGHT: The role of gold in the monetary system [updated]Peter Cresswellhttp://www.blogger.com/profile/10699845031503699181noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-11906042.post-25913788047449915092010-11-17T14:22:39.251+13:002010-11-17T14:22:39.251+13:00It was a stimulating & provocative lecture fro...It was a stimulating & provocative lecture from a world class economist. My thanks to Julian and the AU Economics Group for putting it on. <br /><br />His thesis was 'the end is nigh' for the current fiat monetary system. I'm wary of such arguments but his was very convincing. <br /><br />His argument goes: while 'the barbarous relic', gold, is considered defunct, outdated and quaint by the mandarins of the current fiat monetary system, it does in fact underpin it in the form of gold futures. Gold futures are the real world backing for - and exit from - the paper shuffling shell game (and/or fraud) that is the bond market. The bond market - read: government debt market - has been the basis of our monetary system since 1971, and is the largest market in the world. 90 trillion.<br /><br />He argued that gold futures prices - traditionally always higher than the spot price - have steadily been falling to be closer to the spot price since 1971. They are now dipping below the spot price for periods. What this signals is that above ground supply is being held onto - horded - and those with it are not overly willing to exchange it for paper money.<br /><br />This means - to the bond market - that gold futures contracts may well not be fulfilled and so can't be counted on. So the only exit into hard currency from the paper shuffle is closed off. And that's game over for the bond market. Which is game over for paper money - and the numbers of it in your bank account. His view is that, at that point, no holder of gold will accept *any* quantity of paper in exchange for their gold.<br /><br />Can anyone point out any literature that explains how the bond market and gold futures are connected?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11906042.post-58547771310422976372010-11-17T08:18:59.244+13:002010-11-17T08:18:59.244+13:00Did you notice any mathematics last night, FF?
PS...Did you notice any mathematics last night, FF?<br /><br />PS: Professor Fekete is right that one of the most destructive aspects of the present system is that, instead of applying their enormous intelligence to production, the world's most brilliant people have been sucked into propping up and exploiting a bankrupt system.<br /><br />Tragic.Peter Cresswellhttps://www.blogger.com/profile/10699845031503699181noreply@blogger.comtag:blogger.com,1999:blog-11906042.post-69246646200309338542010-11-17T08:06:24.298+13:002010-11-17T08:06:24.298+13:00Last night, Professor Antal Fekete laments the fac...Last night, Professor Antal Fekete laments the fact that brilliant people (ie, speculators) who have more knowledge about financial economics are not the same ones that advise our lawmakers, because they're better than career bureaucrats who know very little or nothing about it. Those people that he mentioned are the inventors/designers of derivative instruments. So, I take it that Prof Fekete is still grounded in his belief about the mathematical nature of economics because of his endorsement of the derivative instruments' designers.<br /><br />Prof. Fekete dismissed the theory of money because it is a linear theory where the real world it is non-linear, which I agree with him completely. Also Prof. Fekete does support the work of Austrians as he mentioned it, and they (Austrians) do dismissed mathematical economics, but then Prof. Fekete himself (from what I read about his background - statistics, and his endorsement of derivative instruments' designers) like mathematical economics (either directly or indirectly). This is based on his quote about the instability of ask-bid price of securities (aka : non-equilibrium).<br /><br />Does this mean that Austrians must re-evaluate their out of hand position in the dismissal of mathematical economics? If not, then why not?Falafulu Fisinoreply@blogger.comtag:blogger.com,1999:blog-11906042.post-47751406123560388622010-11-16T16:17:28.997+13:002010-11-16T16:17:28.997+13:00If at all possible, could consideration be given t...If at all possible, could consideration be given to videoing this presentation? Get it on a disc & I will arrange editing and hosting.Shane Pleasancehttps://www.blogger.com/profile/06144367923437327037noreply@blogger.com