Thoughts

I was guest in a friends family. The man working in a bank (I guess you can call him a banker). He recenly move his money in government bonds (which is unusual for Bulgaria), so we began a conversation for the eventual deflation or inflation in Bulgaria and in USA. His comment was

he - "How you can tell me that money supply in USA grows, when their staistics show lower CPI and PPI?"
me - "do you believe the data?"
he - "Yes, is official data"
me - "Have you ever hear or saw shadowstats.com website?"
he - "No, what is it"
me - "Is alternative measure of CPI, according Carter's staistical institute. Have you ever try to find oppinions if US CPI is correct or understated/overstated"
he - "No"
me - "Then why do you think is correct"
he - "Because is official".

Later I give him a chart of gold price from 1800 to 2000 year, and I understood that he do not understand what gold standard is - according to him gold standard is when you have commodity - gold, and gold price fluctuating against the currency, and central bank gives you gold according todays exchage rate.

Now I agree, that the situation is much more worse, than I anticipated, aslo obviously gold is not money.

* Red was corrected on 25.FEB