Monday, December 23, 2013

Gold and Gresham's Law

COMEX Registered Gold 12/20/2013
The last hundred years has seen massive centralization of money and military power, and the last few decades have seen the financial system decouple from the real world and disappear into a parallel universe of pure fantasy and number. Now, however, we're seeing the inexorable operation of Gresham's Law at the COMEX. Gresham's law is one of those concepts, like the irrational numbers, that shows that the reality of the universe is beyond number and mind.

Really, Gresham's law is about price controls on commodities, and "price control" is all about reconciling a number, i.e. an idea, with reality. Reality stubbornly slips through any attempt to bind it in an inky net.

Gold is an alternate store of value to contractual devices, like dollars, stocks, or bonds. "Money", is really a way to organize (or bind) people's time and energy and thoughts. People's agreement to be bound to the system is what makes a dollar valuable. Prices are currently attached to precious metals through markets that are easily manipulated by the beneficiaries of the monetary system, but the mass of people, especially in Asia stubbornly refuses to believe that numbers are valuable.

What happens when the USD denominated gold market breaks? That's a pretty huge glitch in the matrix.

No comments:

Post a Comment

Please, no spam, or requests to post links, or business promotion in the comments. If I like your site, I'll put a link to it on my blog.