I feel like I've already written a post
with this title, but I can’t find it. Maybe I just talked about the idea with a
friend. Well, if I ever find that I did write a post with this title, I’ll
change this post’s title to “Mountain of gold”.
Ok, so like, I keep reading user comments
online about how if the economy goes belly up (and/or if the dollar collapses)
they’re going to be ready with gold, food/water storage and ammunition (with
guns, I presume). ...And I just wonder how that will play out.
I picture this guy sitting in a lawn chair,
atop a big pile of gold. He’s got a big machine gun and belts of ammunition
hanging off of him (with another pile of ammunition next to the pile of gold). Then
behind those two piles (of gold and ammunition, respectively), there is a large
storage unit with piles of food and water (in bottles).
What does he need the food and water for?
Well, obviously he needs to eat and drink. What’s the ammunition for? To
protect the food and water, and his pile of gold. What’s the gold for? Umm...good
question. We’ll play out this scenario and see.
So let’s say some marauders come and try to
take his gold. The guy shoots ‘em dead and, yeah. He keeps his gold and
food/water. Fine. Then, more marauders come, try to take his stuff, and they’re
gunned down. Ok.
But over time, the guy starts to run low on
ammunition, and he’s had to keep eating and drinking to stay alive, so his food
and water are running low. So he has to go out and buy more ammo and food and
water. What does he use to buy these things? Gold. Because gold is money.
Ok, so he buys more ammunition, food, and
water, but now has less gold. Rinse and repeat this cycle a few times and
pretty soon, he’s low on everything; food/water, ammunition, and gold (which
begs the question why he’s putting in such effort to protect something which
only gets depleted by the very means to protect it, but nevermind that).
It’s clear enough how he replaces the food,
water, and ammunition, but how does he replace the gold that he’s spent?
Currently, we use money (paper money) to
buy gold, but if gold is money, then…I guess he’d use gold to buy more...gold. Though...not
sure how that solves his diminishing supply.
Well, that’s where I was going to end this
silly scenario, but since people might think about the traditional means of
getting more gold - by stealing it – I’ll close with, ok, fine, but idea there
is that the gold (er...money) has to move in order to have any value. Just
sitting on it won’t help you.