Recent Blogs Posts

Originally Posted by jmdrake

I ran across this information by accident (providence?) while looking for something else. The first link is an essay from Jude Wanniski who went with fed governor Wayne Angell to Moscow right after the collapse of the soviet union. Note that Angell advocated the new Russia to go to a gold backed currency! The second link is an online Google book from the Mises institute that talks about the same essay. I've excerpted the essay bellow. (It's too long to post directly). It's interesting to note

...

The paper money dollar experiment of the last 41 years has reached an unsolvable impasse. Since 1971, when Nixon defaulted on the dollars convertibility into gold there has been no restraint whatsoever on the Federal Reserve's ability to finance the U.S. government's boondoggle spending programs both foreign and domestic.

The government doesn't have to rely on tax receipts any more. It simply issues bonds to borrow the money. The Federal Reserve ensures those bonds are always bought, ...

Is gold in a bubble? Almost by definition, gold is the alternative currency, so it should be the most affected by the monetary inflation created by the Federal Reserve and US Treasury. Gold has certainly risen, and it is serving it's function well. One could say the efforts of the biggest financial corporations and governments to control the price of gold has resulted in a smooth curve, avoiding a speculative bubble in gold. Would there be as much demand for gold if the US Dollar was not being destroyed? ...