duminică, 30 aprilie 2017

The gold standard

I hear often that we should go to the gold standard that the currencies should be backed by gold. But the gold standard it is not a defence against the inflation.
In the book "Industrial Revolution in Middle Age" by Jean Gimbel I found a chapter in which Philip IV of France called the Fair, diminished the content of gold in coins  because the economy was booming and need it more coins from the same gold.
The medieval economy which had a lower volume as ours needed cash, but it was limited by the usage of the gold standard for currency.
What are the functions of the currency after all?

  1. It can be transformed into goods.
  2. Can be stored indefinitely.
  3. Offers information about the prices of goods.

The water and food are goods demanded everywhere they can be used as currency before they are spoiled.
The gold is used as currency because it is not spoiled, but how it transforming it self into goods?
Why the gold was in high demand before it was used in technology?
The feudal lords used force to collect excesses of goods  from their territory, but they have to compete with others, for land,status, and for daughters of other princes.
If you show that you have an excess of food, then you can afford an army and your neighbours will respect you.
Gold and luxury goods were and indicators of the personal welfare.
Who had less gold was at bottom pecking order. and had less influence and could be attacked easily.
The feudal lords had food and they need gold.
On the other side the city dwellers need it food.
The merchants collected gold and exchanged for food from feudal lords or peasants.
Because it was a constant need of gold, lords bought luxury goods regardless of the situation, or in a dire situation, there were others who hoarded gold out of fear.
The value of gold is fear: fear of losing status from the elite, fear from losing savings from the common people.
Due to increase of the economy and of the modern state who didn't rely so much in personal display of gold for showing status, the role of gold diminished as currency.

We could say that distribution of gold, and the display of gold shows the distribution of power within a society.
More hierarchical and rigid is the society more gold it needs and it displays.

miercuri, 19 aprilie 2017

Kim Jong Un is the puppet of Putin?

It is strange Kim Jong Un's boldness, US is at war with them, China is massing troops.
The only aid it seems is Russia. Soviet Union put Kim Ir Sen his grand father on power. North Korea is a Soviet creation.
Korean's don't like he Chinese empire.
North Koreans hate USA and Japan.
Maybe now it makes sense why Russia deployed missiles to North Korean border.
They are not to help Americans, but to ensure that they fail in North Korea, it is response for US strikes on Syria.
China doesn't want US so close, so they are not interested in weakening North Korea, maybe China will intervene in North Korea, in behalf of the Americans but they will demand some concessions in South China Sea, maybe at the expense of Philippines. 

duminică, 9 aprilie 2017

Despre iluzii vandute: PNL si Ciolos calul troian in USR

Am vazut aseara un reportaj la TVR cu oamenii care au iesit singuri la protestat in micile orase din Moldova, unde speranta a murit.
M-am gandit la alte tari in care speranta a fost ingropata de-a binelea, gen Afganistan, Syria. Acolo sunt mafioti care sunt la guvernare si mafioti care te ajuta contra cost sa ajungi in Vestul Europei. Daca stai in tara respectiva te storc mafiotii locali, daca vrei pleci spre o viata mai buna  trebuie sa dai bani la alti mafioti, sa te treaca cu calauze muntii si sa te abandoneaze la granita UE.
In Romania rolul mafiotilor care te calauzesc o viata mai buna, este jucat de PNL, care nu are alt rol decat acela de a recicla electoratul anti-PSD , in voturi pentru aceiasi mafie transpartinica.
Altfel nu se explica non-combatul PNL-ului cand s-a hotarat ca primarii sa fie votati dintr-un singur tur, sau atunci cand s-a revenit la votul pe lista.
Votul pe lista intarind conducerea centrala de la Bucuresti in defavoarea provinciei, si intarind implicit puterea lui Dragnea in PSD.
Oare cum doamna Turcanu (fosta sefa a PNL) a putut cadea la acord cu PSD-ul stiind ca va avea un copil care va trai in aceasta tara? Sau poate si-a luat cetatenie in Monte Carlo si va privi de acolo fumul ce se va ridica din ruinele acestei tari?
Venirea USR-ului cam deranjeaza acest joc marginal al PNL si ar fi bine ca USR-ul sa fie deturnat.
Si ce om mai bun este decat competentul premier Ciolos pus de PNL?
USR ideologic se revendica ca un partid anti-sistem. oameni sai declarand ca nu au legaturi cu actualul sistem politico-economic.
Cum se potriveste activitatea domnului Ciolos de pana acum cu ideologia USR: a fost premier pus de PNL? Da,
Basescu a declarat ca el l-a facut comisar european la agricultura? Da.
A fost ministrul agriculturii? Da.
Sunt televiziuni care il ridica in slavi?Da.
Astea nu sunt dovezi ale legaturii intre Ciolos si sistemul actual?
Daca Ciolos va deveni presedinte USR, partidul va pierde pe termen lung, credibilitatea ca partid anti-sistem, in folosul unui relativ castig pe termen scurt in notorietate.
Nicusor Dan este destul de cunoscut acum in Romania, nu e ca la inceput cand se batea singur cu consiliul municipiului Bucuresti, asa ca Ciolos ca lider nu ar aduce cine stie ce castig.
Voluntarii UR nu au muncit ca sa-i faca lui Ciolos partid, daca vrea sa intre sa intre ca orice membru.