goldbug ping
James Rickards (”former general counsel of Long-Term Capital Management” — oops):
“Another attack on gold is that there’s not enough of it to support money supply; but of course there’s always enough gold; it’s just a question of price.
“The U.S. has never truly gone off the gold standard. The U.S. gold hoard today has a dollar value equal to about 20% of U.S. M1 money supply – a respectable ratio even in the heyday of the fractional gold standard. A gold price of $5,500 per ounce would comfortably support a broader U.S. money supply on a one-to-one ratio and maintain confidence in the dollar and U.S. sovereign debt.”
This article is also linked at zerohedge with some good comments here http://www.zerohedge.com/article/ltcm-general-counsel-debt-denial-there-little-time-avoid-catastrophe-and-almost-no-exit-sugg
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......“Another attack on gold is that there’s not enough of it to support money supply; but of course there’s always enough gold; it’s just a question of price......
That is the crux of the matter and bears repeating.
“Another attack on gold is that there’s not enough of it to support money supply; but of course there’s always enough gold; it’s just a question of price.
“Another attack on gold is that there’s not enough of it to support money supply; but of course there’s always enough gold; it’s just a question of price.
“Another attack on gold is that there’s not enough of it to support money supply; but of course there’s always enough gold; it’s just a question of price.