"Welcome to Economicsa Austria Online, where I'm the host, Bony.

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 daily is issued based on 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 exchange has risen by seven percent, hitting a new high in the last two years.

Now, we are connected to economist Professor Brigitte Fox to explain the impact of rising gold prices. ”

"Didi ......"

Moderator: "Hello Professor Bridgette Foss, can you hear me?" ”

……

Brigitte Foss: "I hear you. ”

Moderator: "Professor Brigitte Foss, the recent rise in the price of gold, everyone is very concerned.

Can you talk about the impact of the rising gold price on the world economy? ”

Brigitte Foss: "Okay, host. ”

"We all know that gold is a precious metal, usually directly as a currency, or as a standard, and the price has always been stable, even if it does not fluctuate much.

The 7% rise in the price of gold in the last month can be said to be both unexpected and expected.

You may say that I am contradictory, not logical at all, but not at all.

Unexpectedly, it is that gold exists as a currency and standard, and its own value is unchanged, and even if there are fluctuations under normal circumstances, it is impossible to rise so much.

However, in addition to being a currency, gold is also a commodity in its own right. Since it is a commodity, the price is determined by the market, and it is normal for there to be a short-term increase. ”

"Putting aside the halo as a currency, we dissect the reasons for the rise in the price of gold as a commodity separately, and everyone will be clear.

In the Vienna gold market, the rise in gold prices is not an isolated case. Almost at the same time, the price of gold in the London gold exchange market also rose year-on-year.

The direct cause of this rise in gold prices is that two months ago, South African Mining Group, Dawes Gold Mining Group of the United Kingdom, ...... More than a dozen gold mining giants announced equipment maintenance at the same time, reducing gold production capacity.

This decision directly led to a 20-tonne reduction in the amount of gold circulating in the global gold market last month, and the market is naturally in short supply, and the price is naturally set to rise.

Equipment maintenance is temporary, and the gold mining giants are also going to make money, or it won't be long before production capacity is restored.

However, whether the gold price can return to normal levels immediately is not necessarily. 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 also increased.

The demand for gold, which is the standard gold, is also increasing day by day. However, the amount of gold mined has not increased in tandem.

In order to meet the demand for currency in the market, countries continue to increase leverage, and the nominal exchange rate with gold has not changed, but the risk of issuing additional currencies has emerged.

The current rise in the exchange price of gold and many currencies is due to this factor, and the standard is the inflation brought about by the large number of currencies issued by various countries.

We don't have to worry about this, the exchange value of Aegis and gold is still stable.

Here I advise everyone that it is better not to hold a large amount of foreign exchange if it is not urgently needed.

Because no one knows, maybe when, the money in your hands will become waste paper.

As things stand, there have been substantial depreciations in several European currencies. If the governments of these countries do not stop the indiscriminate issuance of currency, sooner or later it will lead to disaster. ”

Moderator: "Professor Brigitte Foss, you mentioned earlier that some countries do not have enough gold reserves, which leads to inflation.

So how should these countries respond to this situation? ”

Brigitte Foss: "The easiest way to do that is to adopt a new standard method.

Don't get me wrong, the new standard method I proposed is not the traditional gold and silver standard system, but adopts a more advanced secondary standard method.

For most countries, gold is not something that can be scrapped up in a moment. Everyone wants to maintain the gold standard, so what should we do?

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

To put it simply, it is to replace gold with a credible international currency and act as the standard gold issuance currency.

This is equivalent to using one piece of gold, acting as the standard gold twice, issuing two copies of currency, and guaranteeing normal payment. This quadratic standard method is what I call it: the new multi-standard method. ”

……

I don't know when it started, Franz also got into the habit of listening to the radio, even though he knew it was bragging.

The so-called rise in gold prices is actually a war of resistance between the two gold producing countries, Britain and Austria, artificially manipulating the price of gold and attacking the currencies of other countries.

The so-called gold production capacity, isn't this the final say of the gold mining country?

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

This is fatal for the countries on the gold standard, if there are not enough gold reserves.

The demand for currency in the market will not decrease because of insufficient gold reserves, and everyone has no choice but to increase the leverage of currency issuance.

This is what Britain and Austria want to see, the higher the leverage, the greater the risk. In the good period of economic development, it cannot be seen, once it encounters a change, it will collapse and collapse, and it has no ability to resist risks at all.

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

It can be said that from the very beginning, the gold standard was a huge pit set up by the British for the countries of the world. This giant pit is still a mackery, even if you know that there is a risk, everyone has to jump into it.

Regardless, gold is relatively stable. Even if it is manipulated, it is impossible to play too high! If it goes too far, it will also affect the interests of Britain and Austria.

It's not that no country wants to get out of this giant pit, but in the end they all failed. It turns out that the countries that play the silver standard are even worse in the end.

In the mid-to-late 19th century, silver has been in a state of depreciation, and this fluctuation is much greater than that of gold.

Britain and Austria are both gold standard countries, and they will also stabilize the price of gold for their own interests, and the so-called market volatility is just an obstacle for other countries' currencies.

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

To put it simply, as soon as governments eat gold, the price of gold will rise immediately. When everyone stops eating gold, many markets will return to normal.

This rise is still targeted, and if you take the pound sterling or Aegis to buy it, there is no such problem.

If you want to import gold tariffs, it is still indispensable, if you directly hold Aegis, pounds sterling as the standard gold, you can also achieve the goal, and there are tariffs left to buy gold.

Essentially, this is a means of promoting monetary hegemony, albeit in some subtle terms.

……

After listening to a radio broadcast, Franz hung up the phone: "Frederick, go and ask where radio development has progressed, this kind of interesting news should be shared with the world." ”

Before radio was developed, wireless broadcasting was naturally impossible. Now Franz listens to cable radio, a technology that was born with the birth of the telephone.

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

This kind of high-level technology is naturally not something that ordinary people can enjoy. If you want to listen to the radio, you need at least a telephone and pay a high radio fee.

At present, there are less than 20 cities in the world with radio, and there are fewer than 50,000 radio subscribers.

Austria was at the forefront of the Industrial Revolution and had a relatively early start on broadcasting. With more than 5,000 paying subscribers, Vienna has the highest radio coverage in the world.

This number is close to the limit. If you want to improve broadcast coverage, unless radio is born.

The audience is limited, and the radio program is naturally not likely to be colorful. In addition to the news, there are only popular current affairs commentary, and occasionally a few songs and jokes are even entertaining.

The only good thing is probably that there are no ads, it's not that the broadcaster doesn't want to charge advertising fees, the main thing is that there are too few users and can't collect a few dollars.

Moreover, the customers who are now served are high-end users, and there is no poor money, and what everyone wants is high-end service.

Frederick shrugged his shoulders and replied, "No need father, I just went to see it yesterday." Progress is currently very slow, with a distance of 1,200 yards (about 1,097 meters) and no obstacles in between. ”

There is no way, who made Franz have a bad memory? The principles of radio have long been forgotten and can now only be freely played by scientists.

"1,200 yards", this number is far from what Franz expected. Not to mention wireless telegraphy, even being used as a walkie-talkie is a bit choking.

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

This was addressed to Frederick, and it was also addressed to himself.

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