follow the yellow brick road

[mellowtigger]

The Wizard Of Oz is a tale about the gold standard (yellow brick road), the silver standard (silver slippers), the greenback dollar (emerald city), and the ounce (Oz).

We're definitely not in Kansas any more.  Maybe you've noticed the new, late-night commercials offering to buy your gold jewelry from you?  Well, there's a reason.  I know, I know, I keep harping about how the dollar is ultimately doomed.  If not now, then within the next decade.  Not just the dollar, but any economy based on exponential growth.  It will fail because it must.

Consider this recent news:  last week, the Gulf Cooperation Council voted to establish its own new currency in 2009.  They are abandoning the dollar in favor of something new for measuring their oil wealth.  Current speculation is that it will be based on a gold standard.  Seeing as how gold does not replicate at an exponential rate, I recommend that they do it.  They'd have a much more sustainable financial system.

This council includes such famous oil-exporting countries as Saudi Arabia and the United Arab Emirates.  Ponder that a moment.  It's not as dangerous as the whole world oil industry moving away from the US Dollar as its valuation system, but it's the beginning of the end.  The world's insistence on using Dollars for valuing oil helped lend it a kind of stability.  With that gone, everyone will be giving Dollars another look and wondering... "If it won't buy me oil, then what exactly is this thing worth?"

Comments

:o)

[otterlover01.livejournal.com]

Winds of change, winds of renewal, winds of new thins to come...thrilling...! :o)

Re: :o)

[mellowtigger]

I wish it would all happen sooner. It's like the age-old debate: do I tear off a bandage quickly or slowly? Where economies are concerned, I think there's less pain if it happens quickly. I still don't hear any talk in the USA about moving to a non-inflationary economic system, though. *sigh* Lots more pain to come, then.

[artfldarknbuzzd.livejournal.com]

I did the gold thing back in the late 80's
when the price was about to jump.
A friend of mine in Miami handled it all
and I made a really nice sum before it levled off
and the price declined.
Gold prices are insane now...

[mellowtigger]

All of the traditional resources are going to get more expensive. Gold is now "mined" by leaching it out of huge swaths of earth, because getting atoms of it here and there is really that necessary. All the big resources are gone. Oil peaked probably in 2005. Uranium peaked many years ago. Gypsum peaked decades ago.

There are so few "useful" resources left untapped in the earth. Big changes, they are a'comin'.