In contrast, gold has retained its value. The “teabaggers” in China have been buying massive amounts of gold, and reports are coming in that China has increased its purchasing of gold 30-50% since Christmas. China is also thought to be behind the current scarcity of silver. I suppose it’s nostalgia or sadism that makes Beijing hoard this worthless metal.

The same “nostalgia” and “sadism” that are making all the world’s central banks acquire gold and dump dollars even though, according to Marcotte, both are basically the same. Perhaps the world is run by “teabaggers.”

Noted “Teabagger” George Soros had his fund increase gold holdings by 152% in the fourth quarter of 2010.

Amanda Marcotte would claim that this was all nonsense, and that red China, George Soros and every central bank in the world just doesn’t have the understanding of the intricacies of wealth and finance she does. The understanding that makes her believe there is no difference between gold and paper money that is backed by nothing. While she and most people on the Left dwell in this fantasy world, this is what has happened to gold in the last ten years:

During that time period here’s what the dollar was doing:

It’s almost like just believing in the value of something doesn’t actually make it valuable. Don’t worry, we can turn the dollar’s decline around if we just believe. Of course, if the dollar was tied to gold this decline wouldn’t have happened.