Julien wrote:
>
> Mark, sorry for the bashing that will follow

That's all right, I was missing it.

> >In 1980 the price of gold was more than three times the current
> >price,

Central Banks have bee dumping their gold stocks for a long while now.
Is it a good startegy, and can gold monetised, especially in an
inflationary crisis?


> As to the quotation:
>
> >At the time of the first OPEC price increase, in 1973, the
> >United States had tangible capital assets with a value of
> about $3.5
> >trillion -- more than two and a half times that years
> gross national
> >product
>
> Wow! Capital assets/GNP! Can one imagine a more meaningless
> statistic
> made out of more arbitrary factors?

Well, I can see his logic. He's talking like a banker would about
devalorisation which happens especially with primary energy price
hikes, which depress profit rates across the board and also impoverish
the masses. Incidentally, what is the ratio of assets/GNP today? I
heard it's been going down in the US, as aconsequence of the New
Economy? What is it in Japan, any idea?

> >These changes have made it
> >uneconomical to operate much of 1973's physical plant the
> way it was
> >intended to be, or, in some cases, to operate it at all;

But HUGE amounts of fixed plant and machinery were retired in the
1970s. Detroit and Birmingham were ghost towns. That was when the word
'deindustrialisation' came in vogue.

Mark




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