Friday, October 10, 2008
Adam Kritzer on the Gold Standard
Adam Kritzer (AK) has a 29 September 2008 post worth reading, What Would a Return to the Gold Standard Mean for You? at http://www.currencytrading.net/2008/what-would-a-return-to-the-gold-standard-mean-for-you/.
I agree with most of what AK wrote, but believe no gold standard is compatible with the Fed's existence. If the Fed exists it will undermine the gold standard by "hook or crook". That's a reason I've ignored the "wonky" details of the Fed's 28-day and 84-day programs and recent $330 billion asset purchase. The supposed rules are irrelevent. The Fed will do anything it wants until the dollar hyperinflates out of existence. That's what you need understand. AK writes, "a return to the gold standard would necessitate a drastic increase in the price of gold". You bet. Ron Paul said, "'printing paper money is nothing short of counterfeiting.'" I've said this, at my 24 August 2007 post, http://skepticaltexascpa.blogspot.com/2007/08/counterfeit-nation.html.