Your playing with semantics in the term “rare”. If we rather define the unit as a precious, secured with effort and resistant to forgery, then we could certainly use your suggestion of a unit of currency “being the amount of human labor to lay one brick”. However, all tokens have their limitations. A problem with yours is that it’s hard to put a pile of those “efforts” in your safe for future use.
It doesn't at all require rare objects. For example you could define a unit of currency as being the amount of human labor to lay one brick then scale everything by that unit. Since gravity isn't changing and if you define the weight of the brick and the time to mortar and lay it you have a basis of value. So it cannot be inflated nor debased yet it isn't a shiny thing dug up from the ground.
4dr Nissan $16,500 hmmm
Aug 15th, 1971, Nixon Price Controls, we had a price freeze which resulted in a rollback in the latest price increase on new cars. We also had the repeal of the excise tax on new cars, another rollback in the window price. The '72 Ford Pinto was being released resulting in a carry-over rebate for dealers on the '71
The full price of a 1971 Ford Pinto was $1999, brand new, delivered. The '71 Pinto was a better car than the current Japanese Rice Burners, other than the exploding gas tank problem on the Pinto.
Paper currency would have some intrinsic value if it didn't have printing all over it, it could be used for writing paper.
It costs $500 thee oz to mine gold. Probably double that if you factor in all the money spent on exploration, exploration companies that have failed, mining companies that have failed and money lost on the falling U.S. dollar (all Canadian Miners hold U.S. dollars only, GG lost $1 billion on their U.S. dollars a couple of years ago).
The key here is to decide when these idiots will jump out the window? Do you have any inclination? They could ride this insanity for years, do u think $1500 or $2000? How much correction before they crap their panties? 20%?
I totally agree with your article:
"Up to this point this dramatic expansion of the U.S. monetary base has not caused that much inflation"
Maybe I should explain: I’m a Werner Jaeger schooled, Chicago school of economics belivin’, lover of Milton Friedman who thinks that trillions of dollars in spending has to inflate the economy at some point. All I said is that we havnt seen it yet. Sheesh.