I'd like to think Chinese citizens could stack gold under the supervision of a benign government that would never stiff them.
In Shanghai in 1949, as the Nationalists retreated, this behaviour was actually encouraged. People lined up to take gold home from their banks before the communists arrived. There are old photos. Even, I was told, for a few days after. Because of possible inflation.
The communists then collected their addresses from the nice bank staff after a few more days and suddenly fanned out around town in trucks, apprehended them and their families in one fell swoop, tortured and shot them one by one until all their gold was back in a different account in the bank, plus any earlier hoards the same people had hidden over decades or longer from before. They and their families' bodies lay in the streets outside their ransacked homes - and the communist party had successfully collected all the gold in Shanghai and stabilized the new currency.
But maybe 5gms each, over 1 billion citizens is really quite a different situation than 1949. It does depend a bit on the details doesn't it.
I take great pride in my advance from dumbo No. 1 in the class > to an understanding of fundamental values. In this interview, I heard Danny talking about Chinese people ""exchanging their money for Gold "" I watched to see if Alasdair would flinch and he didn't. > Danny unbacked currency is not money . . Gold is the ultimate fundamental > Not ubacked meme coins, or financial instruments collapsing daily. The entire point of this lesson is to show that Gold is stable money and there is no firmer stable base, nor is there ever likely to be. >Maybe Siver would come close.
I'd like to think Chinese citizens could stack gold under the supervision of a benign government that would never stiff them.
In Shanghai in 1949, as the Nationalists retreated, this behaviour was actually encouraged. People lined up to take gold home from their banks before the communists arrived. There are old photos. Even, I was told, for a few days after. Because of possible inflation.
The communists then collected their addresses from the nice bank staff after a few more days and suddenly fanned out around town in trucks, apprehended them and their families in one fell swoop, tortured and shot them one by one until all their gold was back in a different account in the bank, plus any earlier hoards the same people had hidden over decades or longer from before. They and their families' bodies lay in the streets outside their ransacked homes - and the communist party had successfully collected all the gold in Shanghai and stabilized the new currency.
But maybe 5gms each, over 1 billion citizens is really quite a different situation than 1949. It does depend a bit on the details doesn't it.
Thank you Alasdair.
I take great pride in my advance from dumbo No. 1 in the class > to an understanding of fundamental values. In this interview, I heard Danny talking about Chinese people ""exchanging their money for Gold "" I watched to see if Alasdair would flinch and he didn't. > Danny unbacked currency is not money . . Gold is the ultimate fundamental > Not ubacked meme coins, or financial instruments collapsing daily. The entire point of this lesson is to show that Gold is stable money and there is no firmer stable base, nor is there ever likely to be. >Maybe Siver would come close.