Quote:
Originally Posted by Captain Kawaii
What if a gallon of milk costs $800?
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Captain, this is complex economics. It would take an age to explain so the average mainstream dude isn't going to get it unless they have an education in finance or economics but the basic thing is this:
Paper has an intrinsic value of zero.
Milk and gold are both commodities with limited supply.
In order for milk to reach $800 a gallon, then unless you are talking about a massive change in demand/supply then I can only assume you are suggesting massive inflation.
Assuming supply/demand equation is unchanged then the chances are inflation would re-rate the price of both soft and hard commodities.... food, precious metals, oil etc etc. So $800 a gallon milk would automatically mean gold/silver priced vastly higher than it currently is. Hundreds of examples throughout history......
Take a look at a $100 bill and ask yourself why it allows you to buy things. Where does the value come from? And what is the difference between $100 bill and a piece of paper of exactly the same size.
Gold/silver have been money for thousands of years, paper has been money (in the US) for less than 200 yrs. Technically $$$ is not money, its currency and the only thing that keeps it that way is confidence.
By the way, I strongly recommend for anyone who wants to understand this scam to watch this video and the others in the series. It explains the situation very, very clearly in an easy to understand way.