Not really. You make a tonne of assumptions stating that gold will be better than paper. You assume rule of law, efficient markets, a government that will protect your assets, a place where you can spend your gains. etc. etc.
Reports of paper money's death have been greatly exaggerated.
Floating paper is here to stay people. If the world falls apart, all that matters is guns, food, water and shelter.
Your baubles are worthless without the society to back it up. And since we move trillions across nations everyday, I'm going to go ahead and say the world trade markets are synced up and highly correlated/dependent. If one super centre goes down, so does everyone else.
We live in one world now, people just don't know it yet.
>You assume rule of law, efficient markets, a government that will protect your assets, a place where you can spend your gains. etc. etc.
It sounds like you equate a hyperinflation scenario with a complete societal breakdown. That isn't necessarily the case.
>Reports of paper money's death have been greatly exaggerated.
Paper money as a tool will never die because it's convenient. Individual currencies, however, have and will. This is historical fact.
>Your baubles are worthless without the society to back it up.
Of course, but currencies collapse more commonly than societies. Value stored in commodities can be recovered. Currency value killed by hyperinflation can't.
Hyperinflation in a super centre will lead to societal meltdown, massive change in rule of law, and a massive reallocation in assets. I wouldn't be surprised if we had a revolution on our hands.
Those countries you speak of were when the markets weren't tied to each other and weren't highly correlated/dependent (1700-1960s). This was due to flux in global geopol structure where the countries didn't have much to do with each other.
Tell me the last time a developed nation got hyperinflation.
Stick your money in uncorrelated risky countries, and you take the yield, but you take the risk of hyperinflation.
>Hyperinflation in a super centre will lead to societal meltdown, massive change in rule of law, and a massive reallocation in assets.
What's a "super centre"?
>Those countries you speak of were when the markets weren't tied to each other and weren't highly correlated/dependent (1700-1960s). Tell me the last time a developed nation got hyperinflation.
Argentina (ended 1991) and Yogoslavia (ended 1994).
You have a country that went under massive transformation and another under the thumb of dictators. Two risky countries. Two high yields. Two cases of hyperinflation. Just like I said.
Hyperinflation is often associated with wars or their aftermath, political or social upheavals, or other crises that make it difficult for the government to tax the population.
Obviously the next comparison will be with the largest and most stable economies the world has ever seen, moving the largest quantities of wealth it has ever seen. Not.
Super centres are where the majority of cash moves through, either for trade or as an intermediary. Eurozone, Japan, China, America, India. Those are the places that matter.
Some small POS country in South America and another in Eastern Europe are rounding errors. Hyperinflation is only a concern for relatively risky, isolationist countries that are still undergoing societal flux.
Once again, the reports of paper money's death have been greatly exaggerated - ESPECIALLY by those who stand to benefit from it - long gold/silver etc.
>Hyperinflation is often associated with wars or their aftermath, political or social upheavals, or other crises that make it difficult for the government to tax the population.
The western world may be headed for upheaval. Globalization and technological progress are making western labor redundant and the economic center of gravity may eventually move to the East.
Transformation brings uncertainty. Paper money will always remain as a tool, but when global orders change, as they have throughout history, individual currencies may be casualties.
Reports of paper money's death have been greatly exaggerated.
Floating paper is here to stay people. If the world falls apart, all that matters is guns, food, water and shelter.
Your baubles are worthless without the society to back it up. And since we move trillions across nations everyday, I'm going to go ahead and say the world trade markets are synced up and highly correlated/dependent. If one super centre goes down, so does everyone else.
We live in one world now, people just don't know it yet.