tl;dr: Don't hold your wealth in anything people can just print. Love Nelson's heart and goals. If there were a gold denominated life insurance product I'd probably be on board with this. I'd like to make a good faith attempt to explain why gold is a better warehouse of wealth than dollars. It's not so much that dollars are "worthless" (Of course, I need them to buy stuff and pay down my mortgage), but they are collapsing in value at 8% annualized since 1971. Why would I want "all of my wealth" to reside in something that goes down in value 8% annually over the long term? And USD is practically the best currency globally! Heaven help anyone in Zimbabwe, Argentina, Venezuela, Turkey, etc. The folks there also end up transacting in government paper, but they wisely do not save up in it. Putting my wealth in government currency means I'm choosing to entrust my wealth to an entity who can and does devalue my wealth by running their printing press. If instead my warehouse of wealth is gold, they can't just inflate the money supply and devalue my wealth that way. They have to take it outright.
@@WesternWayRealty The real cause of the problems is inefficient resource allocation that prevents businesses expanding effectively by reinvesting revenues to meet demand, caused by asset prices rising far more rapidly than the consumer goods produced from them where revenues are generated. If land and building prices rise by 500%, but the value of goods produced with said assets has only risen by 100% then the doubling time of the business has increased dramatically, incomes have fallen in real terms too for employees and the assets that good business would have expanded into are now used by unproductive businesses that could not have raised the funds were interest rates not suppressed.
@@WesternWayRealty Turgot was probably the first person to predict how these things would play out, when he wrote that if interest rates were 0, land prices would become infinite (Think infinite relative to their output, as in rising in value in a way that no amount of products produced and sold are enough to obtain the means to produce them/ expand the business.
