What’s Happening with Gold?

Vedran Vuk, Senior Analyst

Dear Reader,

People from nearly all political stripes and philosophies blame greed for the current financial crisis. At some level, greed seems like a clear culprit, but a closer examination reveals some major problems with this theory.

First of all, how does one measure greed? Not only is it impossible to measure, it’s nearly impossible to even observe. If it’s raining outside, one might not know the exact inches of rain falling, but one can make a good guess. If one had a cup, the measurement problem would be solved entirely, but with greed even observation is a problem. For example, was 1994 less greedy than 2003? What about 2009? Furthermore, are bubbles caused by sudden explosions of greed? In my opinion, that seems like an odd explanation. In my experience, greed seems to be constant. I can’t think of a time where people were more or less greedy than now. If you don’t believe me, get a history book and search any era.

Besides explaining the business cycle through greed, this same sort of thing appears in other places. For example, the left loves to label the ‘80s as a “decade of greed.” How exactly was it a decade of greed? Here’s my challenge for the left: Prove to me that people were greedier in the ‘80s than in the ‘70s or ‘90s. It’s basically an impossible task.

Continue reading:

via What’s Happening with Gold? – Casey Research.

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