Holy Roman Empire

"Welcome everyone to listen to the Austrian Economy Online, I am the host Boni.

Today, let's talk about one of the topics that everyone is most concerned about-gold.

Everyone knows that gold is wealth, and the Aegis we use every day is issued on the basis of gold.It can be said that gold is closely related to our lives, and no one can do without it.

In the last month, the price of gold in the Vienna gold trading market has risen by 7%, setting a new high in the past two years.

Now connect with economist Professor Brigitte Foss to explain the impact of rising gold prices."

"Dididi ..."

Moderator: "Hello Professor Brigitte Fox, can you hear me?"

...

Brigitte Foss: "I can hear you."

Moderator: "Professor Brigitte Foz, the price of gold has risen recently and everyone is very concerned.

Can you talk about the impact of rising gold prices on the world economy?"

Brigitte Foz: "Okay, host."

"We all know that gold is a precious metal, and it usually exists directly as a currency or as a standard. The price has always been stable, even if there are fluctuations.

The price of gold has risen by 7% in the last month, which can be said to be both unexpected and unexpected.

You may say that my self-contradictory statement is not logical at all, but in fact it is not contradictory at all.

Unexpectedly, that is the existence of gold as a currency and standard, and its own value is unchanged. Under normal circumstances, even if there is fluctuation, it is impossible to rise so much.

However, in addition to being a currency, gold itself is also a commodity.Since it is a commodity, the price is determined by the market, and it is normal to see a short-term increase."

"Aside from the aura as a currency, we separately analyze gold as a commodity, and the reason for the price increase will be clear to everyone.

In the Vienna gold trading market, rising gold prices are not alone.Almost at the same time, the price of gold in the London gold trading market also rose year-on-year.

The direct cause of this gold price rise was that two months ago, more than ten gold mining giants such as South Africa Mining Group and the British Daos Gold Mining Group ... simultaneously announced equipment maintenance and reduced gold production capacity.

This decision directly led to a reduction in the amount of gold circulating in the global gold market by 20 tons last month, and the market naturally increased prices in short supply.

Equipment maintenance is temporary, and the gold mining giants are also making money, and production capacity will be restored soon.

However, whether gold prices can return to normal levels immediately is not necessary.With the development of the times, the gold standard has become the mainstream of the times.

In recent years, the world economy has developed rapidly, and the demand for currency has been increasing day by day.

The demand for gold as the standard gold is also increasing day by day.However, the amount of gold mining has not increased synchronously.

In order to meet the currency demand in the market, countries continue to amplify leverage, and the nominal exchange rate with gold has not changed, but the risk of substantial currency issuance has already appeared.

This time the exchange price of gold and multinational currencies has risen, there are factors in this regard. The standard is the inflation of currencies issued by various countries.

In this regard, we do not have to worry about the exchange value of Aegis and gold remains stable.

Here I suggest that if it is not urgently needed, it is best not to hold large amounts of foreign exchange.

Because no one knows, when will your money become waste paper?

Judging from the current situation, there have been substantial devaluations in the currencies of several countries in Europe.If these countries, the government does not stop the behavior of indiscriminate currency, it will cause disaster sooner or later."

Moderator: "Professor Brigitte Foss, you just mentioned that some countries have insufficient gold reserves, which leads to inflation.

So how do these countries respond to this situation?"

Brigitte Foss: "The easiest way is to adopt the new copy standard.

Do n’t get me wrong. The new standard of reversion I proposed is not a traditional system of reversion of gold and silver, but a more advanced secondary standard.

For most countries, gold is not enough in a short time.Everyone wants to maintain the gold standard system, what should we do?

After research, I found that using the new copy standard method can perfectly solve this problem.

To put it simply, it is to replace the gold with the reliable international currency of credit and serve as the currency of the standard bank.

This is equivalent to using one piece of gold, acting as the standard gold twice, issuing two currencies, and guaranteeing normal redemption.I call this secondary standard method: the new complex standard method."

...

Not knowing when to start, Franz also developed the habit of listening to radio, although he knew it was bragging.

The so-called rise in gold prices is actually a two-country war between the two gold producing countries in Britain and Austria, which artificially manipulated the price of gold and fought against the currencies of other countries.

The so-called gold production capacity, is this not a gold mining country?

In order to increase the competitiveness of their own currencies, Britain and Austria have been controlling gold exports, artificially causing trouble to competitors.

For the gold-standard countries, if there is not enough gold reserves, it will be deadly.

The demand for currency in the market will not be reduced because of insufficient gold reserves, and everyone can only increase the leverage of currency issuance.

This is what Britain and Austria want to see. The higher the leverage, the greater the risk.It can't be seen in a period of good economic development. Once it encounters a change, it will collapse, and it has no ability to resist risks.

The struggle between Britain and Austria for currency hegemony is very fierce, and it does not prevent the two countries from joining forces to jointly control the gold pricing power and strike other competitors first.

It can be said that from the beginning, the gold standard was the huge pit that the British set up for countries around the world.This giant pit is still a conspiracy. Even if it is known that there are risks, everyone has to jump in.

In any case, gold is relatively stable.Even if it is artificially manipulated, it is impossible to play too hi!If you play too much, it will also affect the interests of Britain and Austria.

It is not that no country wants to get rid of this huge pit, but only fails in the end.Facts have proved that the country playing the silver standard was eventually pitted even worse.

In the middle and late 19th century, silver has been in a state of depreciation, and this fluctuation can be much larger than that of gold.

Both Britain and Austria are gold-standard countries, and they will also stabilize the price of gold for their own benefit. The so-called market volatility is just an obstacle for the currency of other countries.

This range is usually only a few points, and will not last.Generally, after a few months, the market will return to normal.

Simply put, as long as governments of all countries eat in gold, the price of gold will rise immediately.When everyone no longer eats gold, many markets will return to normal.

This increase is still targeted. If you take the pound or Aegis to buy, there is no such problem.

If you want to import gold, tariffs are indispensable. If you directly hold Aegis and British pounds as standard gold, you can also achieve the purpose, and there are still tariffs for buying gold.

In essence, this is a means of promoting currency hegemony, but it is a bit more obscure.

...

After listening to a broadcast, Franz hung up the phone and said: "Frederick, ask how far the radio research and development has progressed. This interesting news should be shared with the world."

Before radio came out, there was no way to talk about wireless broadcasting.Now Franz is listening to cable radio, this technology was born with the birth of the phone.

To put it simply, it is to connect many telephone lines in series to receive the same information source.

This tall technology is naturally not something that ordinary people can enjoy.To listen to the radio, you need at least a phone and pay a high radio fee.

At present, there are less than 20 cities in the world that have broadcasts, and even broadcasters cannot reach 50,000.

Austria is at the forefront of the industrial revolution, and broadcasting started relatively early.At present, Vienna already has more than 5,000 paying users, making it the city with the highest broadcast coverage in the world.

This number is approaching its limit.Want to improve broadcast coverage, unless wireless broadcasting is born.

The listening crowd is limited, and it is natural that radio programs cannot be colorful.In addition to news, there are only reviews of current affairs, and occasionally come a few songs and tell a few jokes, even if it is an entertainment program.

The only benefit is probably that there is no advertising. It is not that broadcasters do not want to charge advertising fees. The main reason is that there are too few users and they cannot receive a few dollars.

Moreover, customers who serve now are all high-end users, so there is no such thing as poor money. All you want is high-end service.

Frederick shrugged and replied: "No father, I just saw it yesterday. The progress is very slow at present, and the propagation distance is still 1,200 yards (about 1097 meters), and there can be no obstacles in the middle . "

No way, who makes Franz's memory bad?The principles of radio have long been forgotten, and now they can only be freely played by scientists.

"One thousand and two hundred yards", this figure is far from what Franz expected.Don't talk about radiotelegraphy, it's a bit choking even as a walkie-talkie.

Franz sighed: "Then forget it, let them experiment slowly! Scientific research is all about luck, and it's useless to be anxious."

This was for Frederick, but it was also for myself.