Gold Revaluation, Mortality, Time Preference, Dollars, And Rotting Bodies

A monetary philosophical rant.

• Mike Maloney’s understudy claims gold revaluation to $20k/oz would not benefit gold holders' purchasing power, as the price of goods and services would also increase.

• In reality, the actual physical price of gold would be much higher than the revalued price, around $1,183,800 per ounce, by today's ratio of the Fed's gold price versus market.

• If the revalued gold was actually physically redeemable through the Fed, the rush to acquire it would collapse the price of all existing debt to zero, as the Fed would be cleared out.

• If gold revaluation would not shift purchasing power to gold holders, then gold is not money, debt is money, and therefore all debt retains value at all maturities, meaning everyone is immortal.

• People die, therefore Maloney is wrong.

Important Subscriber Question about Gold Revaluation

Someone sent me this question, so I decided to go on a rant. It's important because it's based on basic monetary and logical foundations. He writes:

This guy thinks an overnight gold revaluation to 20k/OZ would not benefit gold holders purchasing power, but their purchasing power would be stable as the price of goods and service would also go up say 10x. Just wanted to get your thoughts on this if you think there is a break in his logic? Its Mike Maloney's analyst that wrote this piece. $20,000 Gold: Is A Treasury Revaluation Possible?

Full disclosure, I did not watch the video and have no intent to do so. It's Friday, prepping for Shabbat, and I don't have time. So I am just responding to the overarching point that a gold revaluation by a central bank would not benefit gold holders.

Now, I like Mike Maloney. He's a good man with a moral compass, and like Peter Schiff he's a very good gateway drug to full monetary understanding (which I do not have, nobody does, but I try), but when it comes to digging down to logical foundations he gets confused at deep enough layers, in my view.

I am not the god of logic and I do not claim any special ability, and I could be wrong like any mortal. But I think I'm better than Maloney in this, at least, though he may be better at timing or marketing or whatever. I have years of training in logic specifically with the added benefit that I am not impressed by status (my instinct is to laugh at it) because everyone dies and rots in the end anyway, which has relevance to the end of this rant.