In the attached article Glenn Reynolds examines the new, increasingly stratified America.
We’ve had an amazing run in the markets and many people think the bull will just keep on running. Maybe so. But eventually every bull runs out of steam even ones which are fed by the Fed.
If the voters of Switzerland do choose to back their currency with gold I promise you that there will be MUCH more interest in the Swiss franc.
Granted it’s a metals company. But this is a trend which is quietly spreading around the world.
Say what you want about gold but it has held its value for thousands of years. The fiat dollar? Well let’s just say its been a steady march toward becoming trash.
If we want a high value economy, if we want high value jobs, we should have “high value” money. Sound money. Gold backed money. We should have money which can’t be eroded at the whim of our central bank.
Gold is honest money. Gold has been valued throughout the millennia at roughly the same real amount. The old example is that the cost of a nice tunic and a good pair of sandals in Jesus’ time was roughly an ounce of gold. In 1900 the cost of a nice suit and a good pair of shoes was roughly an ounce of gold. Now, today, at $1300/ounce this example still holds. The real value of gold has of course varied a little over time. A little bit up, and a little bit down, but generally gold is a steady Eddie when valued in real goods (not dollars).
It is an idea that is popular in at least 4 states.
Is it because the gold has been lent out and isn’t in the vaults?
Rickards is a guy I listen to. This is an interesting talk.