Hi Roger,

To your last points about real capital...I can see by saying 'K - if you are a Marxist that you took that literally. Fully acknowledged: services are backed up by something demonstrably quantifiable. Namely, human labor or ideas and innovation by that same human labor.

The idea is that money describes a real value and not a chimera, that is the essence of a gold standard. Just as a balance sheet relies upon the real value of an asset as opposed to the management simply inventing cash flow by changing the value to suit its purposes. This latter example is analogous to quantitative easing.

The point I am trying to make is that for numbers to be valued they have to relate to something other than monetary legerdemain. Unfortunately, the gold bugs get tripped up when forced to defend the intrinsic value of gold. Yet, that is not the essence of their argument.

Jason