Karl Denninger Angered, Bans Everyone

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This is what he had to say about Gold in one of his recent posts (http://market-ticker.denninger.net/archives/109...

"Don't count on metals. I know, I know, we're going to hyperinflate and gold is going to the moon. I have one question: Can you eat it, drink it, run your car on it, sleep under it, or screw it? No? That's a problem. A "sudden stop" is not a hyperinflationary event - it has good odds of being quite the opposite. God help you if you put your eggs in that basket and are wrong."

Someone brought this up on another blog and this is what I said in response:

"Denninger is a known Gold hater and fiat money fractional reserve banking lover. Not sure why though - I guess probably the result of not knowing human history - AT ALL. I like his commentary but his biggest weakness is that he usually ends up mistaking the effects for the causes of the present crisis. I would like to ask Mr. Denninger whether he can do these things ("eat it, drink it, run your car on it, sleep under it, or screw it") with FRN's? No? Why the f**k then does he hoard them? I 'll tell you why - because they are MONEY. People like him don't realize that Gold is money too - the best form of it - as decided over thousands of years of human evolution. As long as there is division of labor in society, we'll need money, and as long as we'll need money, we'll need Gold. Simple as that. Of course if you think that there won't be division of labor in society and we won't be needing money in the future, you might as well burn your FRN's.

And Mr. Denninger also forgets what would happen during that "sudden stop" (not that I think it is going to, but is an even better scenario in which to hold Gold) if the entity issuing what you think is money but are really worthless paper tickets - the Fed - goes kaput? Your stash of FRN's then is worth a big fat ZERO - OK maybe not zero - Mr. Denninger can still wipe his ass with it. Money is, was and always will be A COMMODITY. Just because a corrupt government decrees otherwise doesn't make it so. What happens when the entity - the government - enforcing legal tender laws goes kaput? The fiat illusion EVAPORATES.

No fiat currency regime has survived throughout history and this one won't either. Gold bugs have thousands of years of history supporting their argument. What do you have Mr. Denninger?"
[this is good]
Gold is only worth anything if a significant number of people agree to use it as an exchange mechanism.

Short of a complete and total collapse, the USGov will continue to mandate that FRNs be the only legal tender in the USA.

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