Laurent GUERBY wrote:
> In the internet age you can practically move away from fiat currency if
> you want too: buy and sell gold/whatever ETF and keep the strict minimum
> of fiat currency on your regular account (including the right amount
> the day you pay your taxes). One click per day.
>
> So the government is no longer practically imposing a fiat currency
> system on someone who doesn't believe in it.

one problem is that each "click" likely involves some sort of
brokerage fee. Another is that the price of gold in terms of fiat
money changes a lot from day to day, so that you may want to "click
back" to fiat money and find that you're suffering from an unwanted
and even unaffordable capital loss in terms of what goods and services
you an buy. Gold is currently a speculative commodity and thus holding
it involves risk.

By the way, as I understand it, the price of gold does well during
inflationary periods. Currently, we're on the edge of zero inflation
or even deflation. That suggests that holders of gold would suffer
from regular capital losses...

For those who know these things, are people fleeing to gold these
days? or is the "flight to quality" more a matter of people wanting to
hold US Treasury Bills?

Why would one not believe in fiat money? is the US government (the
issuer of much of the stuff) about to go broke, fall apart in a civil
war, and/or be replaced by a congress of workers' soviets?
-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
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