Tuesday, October 25, 2011

All the Gold in the world...

..Will not help you put Humpty Dumpty together again, my friend!

I am certain that they will not publish the comment I just posted there - so am posting it here ;) Maybe I can't compete with the Wall Street Journal's readership but what the heck!

A very very stupid article published on : http://blogs.wsj.com/indiarealtime/2011/07/14/indias-600-billion-hidden-treasure

My comment on it:

bullshit article. Shows the brainlessness of people who still believe in infinite growth on a finite planet and who love putting price tags on everything without thinking.

1) there isn't enough oil in the world to fulfill all of India's demand even if it had all the money in the world. It's a finite planet and we're not going to get any more, period. China has the most reserve capital in the world and even she will never get all the oil she wants - it's just not there.

2) selling off that much gold into the world market will crash the price of gold and make it worthless. Even using it to pay off any country's debts will result in the same. the price of gold is only high because of the fact that it's rare, nothing else. On the other hand we'd benefit all chemistry labs, electronics, medicine and aerospace industries greatly by making a very useful element cheap enough. (remember Rutherford's gold foil experiment?)



3) You cannot "buy" any country by matching your money with its GDP - that's as absurd as buying a bottle of water in a store by furnishing another bottle of water as proof that you have that much water. If you went to exchange the two, both sides would end up with the exact same thing and there'd be no outcome of the transaction. Besides, if the opposite bottle's an unmovable asset, you'd only be able to really "buy" it by throwing out the owner We'd have to create another continent in the ocean to put the Pakistanis, Bangladeshis and Sri Lankans in if we wanted to "buy" them out.

4) Even if we paid off the debt of Greece and Spain and all, the financial systems as they are right now will generate MORE debt in no time, esp with all the fresh capital we made available. That's exactly what happened over 2009-10 and it was the massive govt bailouts that have created the huge debt scenario today that cannot be resolved any longer by throwing money or gold at it.

Indian housewives can only solve the world's problems in their TV serials, so let's just leave them to it, eh?

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