De-leveraging may be a fashionable word now (but nobody bothered when global markets were riding the leverage propelled liquidity wave). One of the solutions folks put forth now is to return to gold standard as a way out of the economic mess. Remember why gold standard gave way to dollar standard? Gold was way too rigid, it was scarce and its production process was complex. There was not enough metal to go around. Printing paper was easier. America had all the gold after the War and Europe was in tatters. That made it easy for U.S.Dollar to become global currency.
Anyways it’s amazing how they chose gold as the substance to be valuable in our world. Isn’t it just sludge that comes out of the mud? Mud sludge, if you will. Humanity decided to base all of its wealth and prosperity on mud sludge. Imagine they had picked something else like flowers or something, how different would things be. It’s funny to think gold is valuable just because some people in ancient times decided that the sludge they found in the ground should be called valuable. After all, it wouldn’t be valuable at all if the ancient people felt it ain’t worth the sweat and let it just be mud sludge. Why couldn’t they have picked something better, like honey or something. Why did they have to pick something that is so rare and capable of getting extinct? Were they trying to make life tough for future generations so they’d always have to go around digging? What if one day there is none left in the ground? Would we all starve? Or could we just decide that the ancients were wrong and we could then pick something better to represent the wealth of the world. If we did, we wouldn’t pick something stupidly rare like truffles in the ground, we could pick something easier to mine or grow. Like cucumbers. Now wouldn’t that be something?
“Get me Hank Paulson please, will ya?”