Gilder rethinks why gold will ALWAYS reign as a store of value and a remain a bane to centrally planned currencies

George Gilder, know for being a gadfly to progressive feminists and for defending economics from being fully the control-domain of interventionists, has penned a short book / white paper combining information theory and money, specifically touching on why gold has lasted thousands of years as a store of value and countless times served as a trusted recalibration point for restoring stability and legitimacy to once debauched currencies and, by said debauchery, the related economies.

In it, Gilder exposes as  charlatans those currently posing as respected policy makers and economics experts:

“Muddling much of economics is a mirage of money itself as power, as if the supply of money itself can impel economic activity. Monetarism (control of money), Keynesianism (control of spending), and Mercantilism (control of trade) all foster the illusion that government power can drive economic growth and wealth creation. What government can do (and does do) under this illusion is redistribute wealth, usually to the already rich and other politically favored inside players.”

“Interest rates, for example, register the average expected returns across the economy. With a near zero interest rate policy, the Fed falsely zeroes out the cost of time. This deception retards economic growth. Rather than creating new assets, low-cost money borrowed from tomorrow bids up existing assets today. It creates no new learning and value, but merely destroys information by distorting the time value of money. . . The Fed policy merely confuses both savers and investors and contracts the horizons of investment, which in some influential trading strategies have shrunk to milliseconds.”

“Interest rates, for example, register the average expected returns across the economy. With a near zero interest rate policy, the Fed falsely zeroes out the cost of time. This deception retards economic growth. Rather than creating new assets, low-cost money borrowed from tomorrow bids up existing assets today. It creates no new learning and value, but merely destroys information by distorting the time value of money. . . The Fed policy merely confuses both savers and investors and contracts the horizons of investment, which in some influential trading strategies have shrunk to milliseconds.”

The whole piece is available for free here. It is a must read piece for anyone who asserts an opinion on economic policy, and especially about global markets, currency and gold.

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