Rothbard on Mises: Depression Not Inevitable, Result of Central Banks

you reveal how deep your delusions are with that conspiracy theory

decades ago when a radio personality kind of like rush limbaugh, said there wasn't any gold in fort knox, the facility was opened to journalists, a few congressmen and etc

here's the video:

://www.history.com/videos/journalist-goes-inside-fort-knox

because gold salesmen know that there are lots of foolish people around that aren't familiar with history

 

That's only when gold is used not as money and only as a commodity. Your argument doesn't apply when gold is used as money....because its value and demand would be directly tied to the prices of all goods and services in the economy.

It is you who doesn't seem to grasp the argument. You believe that the nature of the supply and demand of gold will behave exactly the same when gold is used as money vs. when it is only used as a commodity.

The shifts in demand are only due to wild speculation based on the rapidly changing and unpredictable value of the dollar. If gold were used as money, the only thing which would cause a rapid shift in the demand for gold would be a rapid shift in production of goods and services relative to the circulation of gold.

That's true now because the demand for mining more gold doesn't exist. But if the demand increased, the technology to extract gold more efficiently would improve, as would the supply. Gold production has never historically been a problem for societies which have used a true gold standard. There is no reason to believe it would be a problem in the future...especially if individuals have the freedom to choose whether to use gold as money or not.

Wouldn't happen if money were used as gold. Gold mining would be a thriving business.

That's what banks exist for.

It doesn't matter how much gold is "supplied", the only thing that matters is how much gold is in actual circulation. Price decreases due to goods and services being produced faster than gold is being brought into circulation would increase the demand for more gold to be brought into circulation. So I don't see how what you're saying is remotely a problem.

 

that's not true, how gold is mined, refined, stored and etc, doesn't change just because it's used as money

 

yes it does...if people are using gold as money, that means a lot more of it is going to be in circulation at any given time than right now.

if people are using gold as money, then prices will be in terms of gold (or receipt currencies directly tied to gold), then the demand for gold production to keep up with production of all other goods and services in the economy will exist. that demand will be satisfied by the free market suppliers. many more people would go into the gold mining/refining business than we have now...simply because the demand will be much higher.

if more of it is in circulation, then demand for reliable, cheap, easy storage will go up as well. again, market entrepreneurs (perhaps bankers) will seize upon this opportunity to provide a service that will certianly include most people in the entire US economy. that sounds like potential for a booming business to me. i don't think there's much of a demand for gold storage these days (compared to the demand for fiat paper money storage).

 

That video is 40 years old.

I'm not saying there's no gold at Fort Knox, but I wouldn't be surprised if there wasn't. The gold was probably moved to another location and Fort Knox is just a front.

Even if that was the case, that would be no evidence of a conspiracy theory. Just the government making logical sense, for once.

 

show me a source for that

and it doesn't matter how much gold is in circulation, this still applies:

Gold production is a costly and time-consuming process of exploration, mining, and refining. Moreover, the physical availability of gold is highly limited. For both reasons, increases in demand doesn't elicit substantial increases in quantity supplied. Conversely, gold mining is costly to shut down and existing gold bars are expensive to store. Price decreases therefore do not produce large drops in the quantity of gold supplied.

i don't think you understand what's involved