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I fail to believe that markets serve the common good when the price of gold (a barely useful metal that on its own can't feed a single child) soares and also that the economic output of europe relies on greece. That's what the market would suggest. I'm not saying kill the markets, i just like rational markets. PSI invested in greek bonds (for 10 years now), for their own reasons, let them take the hit.


Gold is "barely useful"? See http://en.wikipedia.org/wiki/Gold#Use_and_applications , especially "Industry".

You are right that the price of gold is far higher than it would be if people weren't using it for investing, though.


"The world consumption of new gold produced is about 50% in jewelry, 40% in investments, and 10% in industry."

If the value of gold was determined by industrial demand only, it would be a fraction of what it is now.




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