Thursday, December 4, 2008
Christopher Wood on the Fed
"In this respect the present crisis in the West will ultimately end up discrediting mechanical monetarism--and with it the fiat paper-money system in general--as the U.S. paper-dollar standard, in place since Richard Nixon broke the link with gold in 1971, finally disintegrates. The catalyst will be foreign creditors fleeing the dollar for gold. That will in turn lead to global recognition of the need for a vastly more disciplined system and one where gold, the 'barbarous relic' scorned by most modern central bankers, may well play a part", Christopher Wood (CW) at the WSJ, 24 November 2008.
Will, CW, not may. When? As soon as gold hits the Fed's "target price". How high? Higher than that!