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Wednesday, September 22, 2010

Sovereign debt crisis

So even Greenspan knows things are thick.
http://www.nysun.com/editorials/greenspans-warning-on-gold/87080/
Like others have said, Gold is the canary in the mine and anyone not paying attention to gold will not see the proverbial shit hitting the fan.
To quote from Adam Fergusson's When money dies,
"Money is no more than a medium of exchange. Only when it has a value acknowledged by more than one person can it be so used. The more general the acknowledgement, the more useful it is. Once no one acknowledged it, the Germans learnt, their paper money had no value or use — save for papering walls or making darts. The discovery which shattered their society was that the traditional repository of purchasing power had disappeared, and that there was no means left of measuring the worth of anything. For many, life became an obsessional search for Sachverte, things of 'real', constant value: Stinnes bought his factories, mines, newspapers. The meanest railway worker bought gewgaws. For most, degree of necessity became the sole criterion of value, the basis of everything from barter to behaviour. Man's values became animal values. Contrary to any philosophic assumption, it was not a salutory experience."