Tuesday, November 13, 2012

Nouriel Roubini Flips Positive on Gold

From calling a can of spam a better alternative to gold, now Roubini writes:
Gold can be used as a hedge against severe deflation/financial collapse or hyper-/high inflation.
This actually makes Roubini's view on gold even stronger than mine, since I do not view gold as a good investment during a period of deflation.

There's potential for Roubini. In his book, Crisis Economics, he had some nice things to say about Austrian economics. He devotes a number of pages to AE and while its clear he doesn't fully grasp AE and offers up some straw man attacks of AE, in the book he also writes, "...in the medium to long term the Austrians have something to teach us."


  1. Sorry, off topic!
    A downside to not voting.
    "Have you ever heard about the French Libertarian Party?
    Me neither. True, there’s a couple of pretenders to the title, but they are merely social clubs, where every now and then attendants get a tingling in the pants by quoting good old Ludwig Von Mises and Claude Frédéric Bastiat between connoisseurs....
    they know they have no place in the French political process, and no chance to ever gain one.

    So hear this, Friends of Gary the Third Party and other Principled Abstentionists: by choosing ideological purity over strategic thinking, you’ve effectively hedged your own political future in the one competing force that is most capable of propelling you into irrelevance and oblivion—as we say in France: Bravo!

    Just as in France, once a majority of the US population—no matter how slim—has tasted the poisonous fruits of the State, they will demand the keys to the cornucopia and regard with disdain, scorn or hostility any soul brave or foolish enough to call it unsustainable and propose to lock the larder. The fact that you are right will not matter at all."

    1. You're not sorry, and I didn't read your post.

    2. "A downside to not voting."

      There is no downside to not voting. An individual vote is statistically insignificant in just about any election. It's irrational to think voting changes anything for the better. Your own observation about what happens when a majority of voters learn they can vote themselves the largesse of the National Treasury proves my point. IT IS ALL OVER! The Republic of The Founders is long gone, done for, finis. No amount of major party voting by a small minority of libertarians will change that.

      Besides, for 30 years I voted primarily Republican thinking the lesser of two evils was better. It isn't. Things just got worse. All we can do now is try not to get crushed underfoot by the lumbering beast of Leviathan.

      "The fact that you are right will not matter at all."

      It matters to me.

  2. The deflation argument for gold is seen in John Exter's liquidity pyramid. The idea is that people rush to both cash AND gold as safe havens during a severe deflation. They both become more valuable relative to other assets.

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