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Chicago Phil's avatar

It used to take 4.2 GBP to buy an ounce of gold. Now it takes 1503.

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JensOhle's avatar

While I find some of your points to be valid shorter term, I would suggest that you do David Hume no justice. Not sure that your readers realise that one can default in nominal or real terms. Let's have an example: In 1750 Hume sells 2 500 "things" for 10 000 GBP in Sterling notes (or debt obligations, if you like). When Hume's descendants change these Sterling notes/obligations back into the "things", today in 2023, they get back seven (7) instead of 2 500. Or, 0,0028 % of its original value. I would call this a default. Greetings, Jens PS The thing is one ounce of Aurum.

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