Financial Times
Yapping away at gold: lessons from the last days of the Rai
By Willem Buiter
November 16, 2009
Comment 5 from Jesse
“Perhaps if I phrase it this way it might be more clear.
In one philosophic sense, gold is indeed a fiat valuation, if all valuations are fiat,
nothing being essential but air to breathe, food to eat, shelter and clothing in
roughly that order. All else is discretion.
Gold, however, may be less fiat, less arbitrary a a money, a medium of exchange
and a store of value, rather than the essential itself,
in an other than barter economy. Just as the Aussie dollar or the euro may be less ephemeral than the US dollar,
This is what is happening. The Bank of England made an error in selling its nation’s
gold ‘at the bottom’ and will pay a price for this; live with it.
Oh, and try to move on please, else you may begin to resemble King Canute, sitting
on his throne at ocean’s edge, ordering the incoming tide to stop its inundation.
Thank you. Mr. Buiter Apparently Does Not Like Gold
