Posted by Charleston Voice, 06.20.12
Silver Update 6/19/12 Jason vs Martin
A highly critical, disparaging opinion of Martin Armstrong (HOW DO Empires Die? by Martin Armstrong - Highly Recommended ) expressed by Jason Hommel.
One that we are not in agreement. We defend neither man's opinion, only our belief that Hommel has mis-interpreted the pro-physical gold/silver views of Armstrong. We found Hommel's long dragged out and history of what constitutes tedious, boring, and unnecessary for the informed believer of sound money.
We understood Armstrong to be making the argument that gold AND paper money substitutes (US Dollar) can at times 'hibernate' due to hoarding in deflationary periods. Even beaver pelts and glass beads behaved similarly at times, rising in # of beads required for a purchase in times of scarcity, as beaver pelts in times of poor trapping seasons. Both items were hoarded because of scarcity. Trade diminished and deflation resulted in those community's markets where these exchange mediums were accepted. In other goods as these mediums of exchange were saved. Of course trade outside the community would not have been affected as 1) neither commodity is universally recognized as "money", and 2) beaver pelts will rot if saved for any length of time. Being fungible applies to a lesser degree with pelts, but are not acceptable if divided into pieces. Unlike stone wheels as money, both are transportable.
Armstrong is giving gold the credibility of durable money characteristics that tobacco, ammo, cigarettes, whiskey, and oil are lacking. Any of those items could, however, be used for short periods as substitute "money" in trade. Postage stamps as 'money' quickly lost their store of value. Try mailing a letter today for 2 cents. During the US "Civil" War merchant tokens were used regionally as exchange 'money' because they were representative of exchangeability for those perishables sold by a merchant. Of course, outside of Charleston they were not "money" in Iowa or Albany, NY although even northern states used colloquial merchant coins, too. Right now the US dollar is a "refuge money" from other failed mediums because it is still recognized by some as money to exchange. But has now lost the absolute required characteristic = suitable for saving! It's a hot potato to pass along to someone else while you still can!
But, the dollar like all other government decreed monies (or other substitutes) have never proven to be a long term store of value. The Three Little Piggies like all citizens learned the hard way: you can't build a house of straw, or sticks, only brick will suffice.
Preppers and survivalists always promote that "bug-out bags" and hideaways be well-stocked with items that could be used in exchange for other goods such as gasoline, fresh produce & meat, fresh water, and so on. But, NONE of these items will endure long-term as money, but in the interim, hoarded as gold and silver are now, and have been ever since the 1930s. Read: Why America's Next Bank Holiday Will Be a Nightmare
I believe Armstrong was trying to make that distinction of relativity of changing values in deflationary and inflationary times and for people to make the eventual transition back to gold and silver, the 5,000+ year history of being the only medium with all the characteristics of money.
No need to be harsh or critical of Armstrong and his independent views. Take it, or leave it, but think it through. Indeed, silver is for the people, but not until the people are ready. In the interim after saving a sufficient number of silver coins, put US nickels away, too, if for no reason for their 75% copper and nickel!
Silver Update 6/19/12 Jason vs Martin
A highly critical, disparaging opinion of Martin Armstrong (HOW DO Empires Die? by Martin Armstrong - Highly Recommended ) expressed by Jason Hommel.
One that we are not in agreement. We defend neither man's opinion, only our belief that Hommel has mis-interpreted the pro-physical gold/silver views of Armstrong. We found Hommel's long dragged out and history of what constitutes tedious, boring, and unnecessary for the informed believer of sound money.
Silver Update 6/19/12 Jason vs Martin
We understood Armstrong to be making the argument that gold AND paper money substitutes (US Dollar) can at times 'hibernate' due to hoarding in deflationary periods. Even beaver pelts and glass beads behaved similarly at times, rising in # of beads required for a purchase in times of scarcity, as beaver pelts in times of poor trapping seasons. Both items were hoarded because of scarcity. Trade diminished and deflation resulted in those community's markets where these exchange mediums were accepted. In other goods as these mediums of exchange were saved. Of course trade outside the community would not have been affected as 1) neither commodity is universally recognized as "money", and 2) beaver pelts will rot if saved for any length of time. Being fungible applies to a lesser degree with pelts, but are not acceptable if divided into pieces. Unlike stone wheels as money, both are transportable.
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| Solomon Islands stringed shell cash used to the present day- not known if customs would give you hard time if you smuggled this home, but could you buy a pizza pie or make a down payment in Brooklyn? |
But, the dollar like all other government decreed monies (or other substitutes) have never proven to be a long term store of value. The Three Little Piggies like all citizens learned the hard way: you can't build a house of straw, or sticks, only brick will suffice.
Preppers and survivalists always promote that "bug-out bags" and hideaways be well-stocked with items that could be used in exchange for other goods such as gasoline, fresh produce & meat, fresh water, and so on. But, NONE of these items will endure long-term as money, but in the interim, hoarded as gold and silver are now, and have been ever since the 1930s. Read: Why America's Next Bank Holiday Will Be a Nightmare
I believe Armstrong was trying to make that distinction of relativity of changing values in deflationary and inflationary times and for people to make the eventual transition back to gold and silver, the 5,000+ year history of being the only medium with all the characteristics of money.
No need to be harsh or critical of Armstrong and his independent views. Take it, or leave it, but think it through. Indeed, silver is for the people, but not until the people are ready. In the interim after saving a sufficient number of silver coins, put US nickels away, too, if for no reason for their 75% copper and nickel!
