Posted on 09/11/2010 1:36:21 PM PDT by SeekAndFind
French economist Jacques Rueff once said "Tomorrow, to save man, we will give him a real currency." For a world that has suffered nearly 40 years of economy-retarding currency instability, that tomorrow is very near.
If history is any kind of indicator, by 2013 we'll return to money defined in terms of something real. No currency in history has lasted longer than 42 years after its intrinsic backing has been abandoned, and it was 39 years ago that President Nixon severed the dollar's link to gold.
Over the ensuing decades the U.S. economy alone has suffered three dollar-driven oil "shocks," more than three recessions and a contraction of its capital base thanks to a unit of account that has collapsed in value.
It's time to give the world a real currency once again, and in the coming years the dollar will be redefined in terms of the most stable currency known to mankind--gold. And with the dollar still the world's currency, central banks around the world--including China's--will follow our responsible lead and peg their currencies to the newly stable dollar. Only then will the world economy achieve a reasonable facsimile of its growth potential.
The catalyst for such a momentous change will be the financial crisis of 2008, and more unrest ahead related to falling global currency values. Tired of the intermittent pain caused by monetary error, the citizens of the world will demand stable money.
The economic result of such a move promises to be profoundly good.
(Excerpt) Read more at forbes.com ...
ABOUT THE AUTHOR:
John Tamny is editor of RealClearMarkets, a senior economist with H.C. Wainwright Economics and a senior economic advisor to Toreador Research and Trading. He writes a weekly column for Forbes.
While this guy is totally correct about the NEED to return to standard. And he is totally right about the times of history and the shortness of our time....
Does anyone really think Obama wants the economy to recover? Never let a good crisis pass you by... well, in October, we are going to have ONE HELL of a crisis, and I’d wager he will take exceptional advantage of it.
I do not see us getting to 2013, unless we are very very very blessed.
This coming lame duck congress with all these outed RINOs, is not going to do us any favors...
This may sound like a silly question, but does this mean that gold value will reach astronomical heights?
I find this highly unlikely, for a variety of reasons. What would become of the government debt? If dollars suddenly became “real money”, instead of a fiat currency the government can just print, just paying the interest on the debt would destroy the government.
RE: While this guy is totally correct about the NEED to return to standard. And he is totally right about the times of history and the shortness of our time....
Well, we’ve been in the Gold Standard for most of our history. It was only in the past 40 years that we got out of it and printed FIAT money.
I don’t see why we can’t go back to what worked so well prior to Nixon’s administration.
I can’t imagine that Hussein would want anything to do with something HELPFUL for the United States or its economy. His goal is the creation of dependents, not employment!!
No they won't.
The international banks have absolutely no reason to reinstitute a gold standard.
RE: I can’t imagine that Hussein would want anything to do with something HELPFUL for the United States or its economy
This author placed a date of 2013, let’s hope Obama is gone from the White House by then.
No we haven't.
We were'nt officially on the gold standard as a nation until 1900.
Undoubtedly, at a much higher price than the previous $35 per ounce.
2008 is not the catalyst, but simply the start. It will take a Weimar-like currency collapse for the world to string up the central banksters and be rid of the fiat currency destruction they have wrought.
Who knows how it ends, but the French Revolution model is certainly a possibility.
The pain these banksters will cause on the people is so wrong. The government they enable is just as evil.
schu
“The international banks have absolutely no reason to reinstitute a gold standard.”
If the Chinese tell them to do it, they’ll do it;)
OT, but,,,Today I “suffered — dollar-driven oil “shocks,Yesterday at the corner Speedway gas was 2.559. Today it’s 2.859! 30 cents overnight?
Do you mean a declair-martial-law-and-cancel-elections kind of crisis?
Also please explain what in the heck this guy is talking about. What does he mean when he says all jobs are the result of delayed consumption. Does he really think that a stable currency backed by a real commodity will bring world peace, stable prices, low priced oil, etc.? Seems rather ambititous to me? Or delusional.
He is also the Governor of Fantasy Land.
“What would become of the government debt?”
You don’t really have to ask this question,do you?
It would all be defaulted. It has to be. So will all other government obligations - gov’t pensions....Social Security...everything.
That’s the only way that this could possibly work, as a “New Dollar” backed by gold, or whatever else.
There isn’t a fraction of the gold necessary to support a return to the gold standard unless we value gold @ 50K an ounce. not likely.
There isn’t a fraction of the gold necessary to support a return to the gold standard unless we value gold @ 50K an ounce. not likely.
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