Gold Is Back—And So Is Judy Shelton \ stacker news ~econ

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Gold Is Back—And So Is Judy Shelton mises.org/mises-wire/gold-back-and-so-judy-shelton?utm_source=MI+Subscriptions&utm_campaign=a5d3df2986-EMAIL_CAMPAIGN_2024_02_29_06_22_COPY_01&utm_medium=email&utm_term=0_-0aec14e5f3-%5BLIST_EMAIL_ID%5D

313 sats \ 34 comments \ @Undisciplined 31 Oct econ

By Joe Vidueira

Despite claims from the Keynesian “experts” that gold is a “barbarous relic,” the markets are saying that gold is more valuable than ever. Shelton’s new plan would certainly mark a positive step in the unambiguous direction of sound money.

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100 sats \ 18 replies \ @Rothbardian_fanatic 31 Oct

In short, while Shelton’s new plan may represent yet another less-than-ideal monetary reform, it would certainly mark a positive step in the unambiguous direction of sound money; and possibly with some real teeth, as she outlines in Good as Gold. Perhaps it will even generate grassroots enthusiasm for real monetary freedom, the reason she hopes the bonds are inaugurated in 2026, the 300th anniversary of the Declaration of Independence.

She doesn’t even seem to recognize BTC as fulfilling a role as money. Incredibly, she does see the utility of BTC as a sound money. All that BRICS is looking for is sound money. Of course, even gold and silver coins were clipped and diluted by governments.

10 sats \ 17 replies \ @Undisciplined OP 31 Oct

Missing bitcoin is the major failing amongst Austrians. I'm sure they'll figure it out eventually.

99 sats \ 0 replies \ @kepford 31 Oct

Man, this is so true. It really hit me back in 2020 how crazy it is for an Austrian to not get bitcoin. It's like the ideals in code.

8 sats \ 15 replies \ @Rothbardian_fanatic 31 Oct

That is hard to say. I think they know and understand BTC (at least some of them) but don’t think BTC fits the requirements of “money’.

10 sats \ 14 replies \ @Undisciplined OP 31 Oct

The most common point I see them make is that Bitcoin doesn't satisfy Mises' Regression Theorem, but that both misunderstands the point of the Regression Theorem and misunderstands the history of Bitcoin.

62 sats \ 6 replies \ @Rothbardian_fanatic 31 Oct

I think they could extend the Regression Theorem from fiat and gold to BTC, the same way it bridges dollars to fiat. It seems if they can do one they can do the other.

0 sats \ 5 replies \ @Undisciplined OP 31 Oct

Bob Murphy has an episode of his podcast where he explains why Bitcoin satisfies the Regression Theorem, as is.

He also points out that if Bitcoin truly did violate the Regression Theorem, then that would falsify the Regression Theorem, rather than discredit Bitcoin as money.

7 sats \ 4 replies \ @Rothbardian_fanatic 31 Oct

Yes, it would satisfy. It is an extension of what has already satisfied the theorem.

10 sats \ 3 replies \ @Undisciplined OP 31 Oct

It's been a while since I listened to it, but Bob was basically explaining how trading those two pizzas for 10k bitcoin was no different, from a praxeological perspective, than any other voluntary exchanges. From there, bitcoin was a market good like any other and was trading in accordance with people's preference for it.

Then, because it has good money properties, it began taking on more monetary roles in the economy.

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50 sats \ 6 replies \ @kepford 31 Oct

Missing the point kinda comes with being in the liberty movement doesn't it?

50 sats \ 0 replies \ @Rothbardian_fanatic 31 Oct

A lot of people still don’t trust BTC. There have been too many scams in the cryptocurrency sphere to fully trust.

10 sats \ 1 reply \ @Undisciplined OP 31 Oct

It's like they evaluate reality in terms of how well it fits their understanding of Austrian Economics.

10 sats \ 0 replies \ @Rothbardian_fanatic 31 Oct

That is true, too. Their glasses are Austrian tinted. It causes them/us to look at things in a slightly different way.

0 sats \ 2 replies \ @Rothbardian_fanatic 31 Oct

Not all the time. Liberty causes people to look at things differently.

10 sats \ 1 reply \ @kepford 1 Nov

I meant missing the forest for the trees.

0 sats \ 0 replies \ @Rothbardian_fanatic 1 Nov

You could also say missing the trees for the forest. Or, making the perfect the enemy of the doable.

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99 sats \ 6 replies \ @Satosora 31 Oct

"A century on from the demise of the [Classical] Gold Standard, which collapsed in the interwar years amid a breakdown in central bank cooperation over how to manage the metal, gold is quietly becoming a more important feature of our financial system rather than an outmoded 20th-century relic." This shows that gold cant be made out of thin air. There is proof of work to mine it initially. It is similar in bitcoin in many ways.

40 sats \ 5 replies \ @Undisciplined OP 31 Oct

Yeah, it's just that it's pretty darn heavy if you have to make large settlements.

61 sats \ 2 replies \ @Satosora 31 Oct

Not only that, if you get a large amount, you need to store it in a secure location. Or else someone can walk off with your wealth.

30 sats \ 1 reply \ @Undisciplined OP 31 Oct

That's true, but people spend money securing their bitcoin too. I'm not sure how optimal security costs compare.

43 sats \ 0 replies \ @Satosora 31 Oct

True, but when you have gold you usually have to have a very secure safe. And that safe has to sit on a huge concrete slab. Bitcoin you can just secure for a couple hundred dollars.

29 sats \ 1 reply \ @Rothbardian_fanatic 31 Oct

Yes, it was. They only settled in bullion when the clearing couldn’t happen. Clearing couldn’t happen when there were trade deficits. Clearing couldn’t happen during inflation (defined as creation of new money). Any other time, there was no clearing problem.

0 sats \ 0 replies \ @Satosora 31 Oct

Is there a shortage of gold right now?

58 sats \ 7 replies \ @Akg10s33 31 Oct

It won't be soon, but the BRICS thing is coming with force!! and there is no turning back, it is no longer one country, but several that are seeking to shake off the Dollar 💵 and the truth is that I do believe that gold could support this "Supposed Currency".. I hope everything ends happily and the Gold thing is just a small illusion... as we have seen before...

20 sats \ 6 replies \ @Undisciplined OP 31 Oct

The idea Shelton is proposing here is pretty interesting and might even be something that could work for BRICS: i.e. contracts could be payable in either gold or local currency, whichever the recipient prefers. It's a nice little check on currency debasement.

89 sats \ 5 replies \ @Rothbardian_fanatic 31 Oct

Currency debasement happens no matter what! The people running governments want to spend freely and line their own pockets. Only when there is no way to be able to clip or dilute or create out of thin air, will money or currency or whatever become undebasable.

10 sats \ 4 replies \ @Undisciplined OP 31 Oct

That's certainly true in the long-run. In the short term, they may be looking for a sound money strategy to pull capital out of the dollar reserve system, though. They're also looking for mechanisms to increase confidence in the bloc amongst the members.

Once they have commitments from their members, I'm sure cheating will become rampant.

15 sats \ 2 replies \ @Akg10s33 31 Oct

If that is true, they first want to gain the trust and credibility of those who are there... I think that gaining Putin's trust and pulling Russia along must not be an easy task😅

6 sats \ 0 replies \ @Rothbardian_fanatic 31 Oct

Why do you say that? Is the Russian state any more or less trustworthy than the US state? They all look the same to me!

0 sats \ 0 replies \ @Rothbardian_fanatic 31 Oct

You’ll notice that he seems to be keen to put gold in as about half of the value of the units. It might not take a whole lot of trust.

4 sats \ 0 replies \ @Rothbardian_fanatic 31 Oct

Of course! People who lie and cheat, steal and kill, can only be expected to debase the money. it is nothing but a con-game by THEM, on us. With force, they can work it every time successfully, until they milk it dry.