From email:
> So funny. Your logic escaped me in the paragraph just before you quoted
> Armstrong. And when I saw you mention Armstrong's name, I breathed a sigh
> of relief, since I know he is an apt deceiver. I thought he thusly
> deceived you, which he did, and which I saw easily.
>
> His trick was to assume that the value of everything else must go up, by
> first introducing a word meaning that it can fluctuate, or go up and down,
> and then to blast gold for being fixed. Then, he confused the issue, by
> saying that if everything else must go up, then gold must go down. I
> agree!
>
> However, his trick is that he neglected to mention that if the value of
> wages and prices goes down, then the value of gold must go up.
>
> This does NOT mean gold needs an unstable value, or that gold is flawed in
> some way, which he states, and which you bought.
>
> In other words, gold is fixed in value, as 1 oz. = 1 oz. That's the only
> fix needed. Everything else, quoted in those terms, may go up or down,
> and there's no flaw in that, and yes, you can have that both ways.
>
Hope you don't mind, I will share my reply publicly but I won't attribute you by name. Some important points are raised below.
You didn't realize Armstrong was referring to a government enforced fixed price for gold within the reality that society will always use debt and thus require fractional reserves.
I don't hate gold. It is a form of money that individual capitalists can hold to opt-out of socialism, but if too many do then it is a war against socialism. If such a widespread standoff is taken to the extreme of 100% backing, it can result in a Mad Max Dark Ages (because of the power vacuum I described in my article). See my one paragraph rebuttal on why Western Rome collapsed:
http://esr.ibiblio.org/?p=4946&cpage=1#comment-402900A rebuttal on 0% interest rates signaling trust & creditworthiness:
http://esr.ibiblio.org/?p=4946&cpage=1#comment-402880Armstrong's point is precisely the same as yours, which is that if the price (value) of gold is fixed in a strict government enforced legal tender gold standard, then it is the same as Marxism. Armstrong is not against 1oz = 1oz, and he is saying the value will fluctuate which agrees with your conclusion. He is also saying (see other links in my article) that society will always use debt and thus fractional reserves will always be required, and thus 100% gold backing will never exist (any attempt to force it will plummet society into the Dark Ages). Note how I expounded on what Julius Caesar did:
https://bitcointalksearch.org/topic/m.2380965And that is what I am saying with this article.
Also I I finally succinctly articulated why Kurzweil's Singularity (remember Dash's robots) is impossible:
http://esr.ibiblio.org/?p=4946&cpage=1#comment-402889https://bitcointalksearch.org/topic/m.2382656