Comment 60503

By Tybalt (registered) | Posted March 02, 2011 at 01:45:09 in reply to Comment 60437

This is a dandy thought, except that (1) we are also running out of gold. (We are not, of course, running out of dollars, far from it). The way you price one intensively mined commodity is not in relation to another intensively mined commodity.

Also, (2) during the last major contraction of energy supply, gold prices also surged dramatically. There is every reason to believe - based on both historical data and investment models - that people will retreat in greater numbers to stable retainers of value gold when energy prices (and therefore business operating expenditures) increase.

Obviously, the point that is being made is that oil is costing more, relatively, than other goods when priced against those same dollars, ounces of gold, and what have you.

You seem to know just enough economics to be dangerous to yourself, kid. I encourage you to learn some more.

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