Posted on 09/25/2012 5:06:48 AM PDT by SeekAndFind
On September 18th, the London office of Deutsche Bank one of the most respected banks in the world, and a bellwether of elite opinion published a Global Markets Research paper entitled Gold: Adjusting for Zero. It was written by two esteemed, mainstream analysts Daniel Brebner and Xiao Fu:
"[G]old is not really a commodity at all. While it is included in the commodities basket it is in fact a medium of exchange and one that is officially recognised (if not publicly used as such). We see gold as an officially recognised form of money for one primary reason: it is widely held by most of the worlds larger central banks as a component of reserves. We would go further however, and argue that gold could be characterised as good money as opposed to bad money which would be represented by many of todays fiat currencies....
The conclusion from our overview of gold functionality is that the key difference between good and bad money is scarcity (imposed supply discipline could be another way of describing this). Fiat currencies can be scarce but this scarcity may change on a whim which may both impact its tenure as currency and/or relegate it to being characterised as bad money. Gold is truly scarce, having a concentration of around 3 parts per billion in the Earths crust."
In 2011 Deutsche Bank enjoyed revenues of 33.2 bn. In 2009 Deutsche Bank was the largest foreign exchange dealer in the world, with a market share of 21%. We have come a long way from the view of gold as an artifact of the bleak and dystopian (as characterized by the Wall Street Journal).
(Excerpt) Read more at forbes.com ...
(Final paragraph)
Green shoots of respect for the classical gold standard are beginning to pierce the decaying concrete of Neo-Keynesianism monetary theory all over the world. The gold standards purpose is by no means to privilege the wealthy and prejudice workers or debtors. The purpose of gold is to unwind the Faustian bargain throttling our economy and stifling job creation. The purpose of the gold standard is to propel the world economy into a new era of vibrant, widespread prosperity. And as Goethe, as if to cheer on future advocates of gold, wrote in in the concluding pages of Faust, Part II: Whoever strives, in his endeavour,/ We can rescue from the devil.
Very simply put: Gresham’s Law: Bad money drives out good if their exchange rate is set by law.
So Ron Paul was right and Ben Bernanke was wrong about gold being a type of currency in a Congressional hearing held last year.
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