Quote:
Originally Posted by stinkypete
The point is gold will never have the practical value the end of the world types love to fantasize about
Central banking ha been around for 100 years. I wonder how it will fair in the age of Information and AI? Hyperinflation is a real risk.
As an uncorrelated, third party independent, asset its a good part of any investment portfolio. Crytpo should be in there too. In fact, this is the exact argument used by the establishment to include bonds in an otherwise equity dominated portfolio (and in a sense they are right...).
Further, in many ways the US is great and can stay on top indefinitely. But the demise of the petro dollar with the move away from fossil fuels, the rise Chinna-Russian alliance that could settle trade in gold...its like stupid not to think that something bad could happen to the world overnight.
So long as the game remains the same (basically just read central banking + growth required to service current liabilities, think social security) & we continue to innovate technologically (think AI) and financially (think derivatives, correlated global assets) the stakes will continue to rise.
Someone will **** up, someone will blink. The machines, even unconsciously can turn on their masters and unwittingly blow the whole thing up.
This is like central in game theory. How like tons of individual actors pursuing their own best interest can create socially sub optimal outcomes.
Are you going to turn off your AI and momentum ignition algos for the greater good while its earning 25% PA risk free? Where do you think all that money comes from?
As an example, the wise guys make up sub prime, insure it, spread it, offload it. Get their pound of flesh. It blows up. Who is left holding the bag? Uncle sam, which means the tax payer.
Rinse wash, and repeat. This is happening everywhere. Make no mistake about it we are on the edge, it has always been this way. But that doesn't mean that we cant fall off the cliff...