The King Midas Touch

Diving into the gold standard… [Gilder's Daily Prophecy] January 15, 2021 [UNSUBSCRIBE]( | [ARCHIVES]( A rare occurrence is happening right now in the gold market [Please Enable Images]( There is something happening in the gold market right now that you need to be aware of… I urge you NOT to invest in anything before viewing this briefing. Because this information could be a true game-changer for millions of Americans. [Click here now for this rare opportunity before it is taken offline.]( [Warning] Do you enjoy receiving Gilder's Daily Prophecy? Please [Click Here Now]( so we know to continue sending you Gilder's Daily Prophecy for free! The King Midas Touch [George Gilder]Dear Daily Prophecy Reader, The gold standard provided maps and metrics that enabled entrepreneurs to act confidently across time and space. They were assured that in an ever-changing and insecure world the monetary measuring sticks would not change when they brought their products to the marketplace. Gold remains a reliable measuring stick. As futurists contemplate mining meteors or the oceans and ocean floors, slag heaps and the moon, gold will not be capped. The existing supply of nearly 200 kilotons of gold is split evenly between financial uses and manufacturing, whether for jewelry or industrial metals. Any shortages prompt miners to proceed to the next most available source and cause people to monetize their gold jewelry or industrial materials. Although mining has increased the supply of gold by between 1.5-2.5% a year for centuries, the stock of gold is huge compared with its flow — making gold peculiarly resistant to supply shocks. Accumulated supplies can shift between gold’s two main uses as money and jewelry. Money is liquid jewelry; jewelry is crystalized money. Raw bullion can be converted into baubles, and jewelry can be melted into coins, according to the needs of the economy registered by the price of gold. If technological breakthroughs could drastically expand gold production, gold as a metric would give way and its real price would plunge. But across millennia of scientific advance and metallurgical discovery, gold has remained stable. Compensating for the improvement in mining technology has been the increasing difficulty of extraction from ever deeper and more attenuated lodes. Money is essentially tokenized time: a measure of the inexorable scarcity of time in economics. In a world of barter, the rates of exchange between apples and houses, for example, would be determined by the differential time periods needed to produce an incremental unit. As a barter economy becomes a commercial economy, these common time factors become manifested in money. [America's #1 Futurist George Gilder Makes New Prediction]( Trump’s Final Gift To America [Trump's revenge?]( Trump’s enemies seem intent on forcing him from the White House in shame. But there’s a little-known way Trump could – one day – have his revenge. It involves a Federal Ruling he oversaw in the final year of his Presidency that could change America forever… unleash an estimated $15.1 trillion in new wealth… and create countless ways for everyday Americans to benefit. What is this little understood decision? And how will it impact you? [All the important facts are here.]( [This New Technology is about to reach “Critical Mass”]( The Scarcity of Time Now we live in a global economy in which myriad goods and services are exchanged in unfathomable patterns in time and space. To mediate the tradeoffs and priorities of economic choice, money must be scarce. What remains scarce when all else becomes abundant is time. Stable money confers a harmonic cadence on the dance of economic activity; without it, the dancers plunge into chaos and cacophony. As King Midas discovered, gold (and all candidates to be real money) is not wealth itself but a metric of wealth. As Nathan Lewis shows in his several authoritative books, under a gold standard, the money supply has virtually nothing to do with the gold supply. Gold registers value without affecting volume. Neither inflationary nor deflationary, gold penalizes neither creditors nor debtors. It is a measuring stick and unit of account for the world’s goods and services. A capped bitcoin cannot replace it. Bitcoin inventor Satoshi Nakamoto believed that his mining algorithm was mimicking gold. Just as gold’s ever-increasing time of extraction cancelled the advance of technology, bitcoin was deemed to stabilize itself through its ten-minute mining cycles and lottery process. “Man on the Margin” blogger Mike Kendall, however, found a fundamental flaw: the belief that the money supply can and should be determined by the supply of bitcoin or gold — in other words, that gold (or bitcoin mimicking gold) should serve not only as a measuring stick or unit of account but as the actual medium for all exchanges. Such monolithic money was the error of Murray Rothbard, an idiosyncratic exponent of Austrian theory who believed that any authentic gold standard must have 100% gold backing. He did not even believe in fractional reserve banking, intrinsic to the role of banks, which necessarily mediate between savers seeking safety and liquidity and entrepreneurs destroying it through long-term investments. The value of liquid savings is necessarily dependent on the achievements of illiquid and long-term enterprise. There is no way to avoid the maturity mismatch between savings and investments except by abolishing capitalism. Today’s Prophecy Bitcoin and other cryptocurrencies cannot become significant moneys without systems to intermediate between savers and investors. Money cannot be simply a smart contract. It entails continual acts of intelligent discretion in the provision of loans and investments responding to changes in markets and technologies. In Hayek’s words, “The gold standard force[s] governments to control the quantity of money in such a manner as to keep its value constant.” Regards, [George Gilder] George Gilder Editor, Gilder's Daily Prophecy Are You Ready for the Great Depression of 2021? [Depression photo]( According to some economists we’re already in a recession… But now a former CIA and Pentagon advisor is saying this is just the beginning of something much, much worse. And he’s urging Americans to take these FIVE STEPS to protect their wealth and their loved one. [Click here to see all the details.]( [Three founders Publishing]( To end your Gilder's Daily Prophecy e-mail subscription and associated external offers sent from Gilder's Daily Prophecy, feel free to [click here](. If you are having trouble receiving your Gilder's Daily Prophecy subscription, you can ensure its arrival in your mailbox by [whitelisting Gilder's Daily Prophecy](. Gilder's Daily Prophecy is committed to protecting and respecting your privacy. Please read [our Privacy Statement.]( For any further comments or concerns please email us at GildersDailyProphecy@threefounderspublishing.com. Three Founders Publishing, LLC. 808 Saint Paul Street, Baltimore MD 21202. 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