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.
Below is the moment where the USA took a huge wrong turn. This is where we detached from financial reality. This is where the fiat insanity truly began. It’s one of the most important moments in American history, and yet most Americans know little about it.
This is Richard Nixon making a mistake of colossal scale, and one which may in the end undermine the very economy he said he was trying to defend. The man is just truly a tragic figure.
So are we. Just shocked.
Hey, at least she said it publicly. That’s more than Mr. Bernanke ever did.
It won’t happen tomorrow but slowly but surely the world is moving from dollars. The petrodollar system which has been key to the world economy over the last 40 years is eroding. More and more country to country deals are being done in currencies other than the dollar. The economic world as we have known it, after Bretton Woods in the Cold War Era, the post Cold War era, and the post 9-11 era is fundamentally shifting. The dollar is not what it once was. It is no longer “almighty” and one should be prepared.
You know, that is a really good question.
We wrote a couple of weeks ago that Bitcoin was under all out assault. The cryptocurrency was being attacked (and it continues) on all fronts, legally, through DOS attacks, in the media, by Jamie Dimon who surprise surprise said that the government would just regulate the alternative currency out of existence and “that would be the end of them.” Of course JPMorgan, Dimon’s company, has been trying to get its own rival “alternative” currency off of the ground.