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Return to Gold Standard? Why Price Would Hit $10,000

Posted By admin On October 14, 2011 @ 3:36 am In Money Watch | Comments Disabled

John Melloy
CNBC [1]
October 14, 2011

All the major countries in the world are in a race to debase their currencies in order to restart their economies. Either economic growth returns or—as some doomsayers predict—the 40-year run of fiat currencies ends.

And if under this worst case scenario the solution was to return to the gold standard of the Nixon years, the price of bullion would be worth $10,000-plus, six-times the current price, according to Paul Brodsky, co-managing member of QB Asset Management company and a self-professed ‘Gold Bug.’

To be sure, a return to the exact terms of the Bretton Woods Monetary Agreement is a near political impossibility because of the traumatic devaluation in the U.S. dollar it would cause. Yet, a move away from debt-based currencies to a system somewhat based on hard assets is not out of the picture if the global economy doesn’t recover or policy makers don’t allow for a painful deleveraging, some investors say.

“Policy makers are holding a burning match,” Brodsky said in a speech to a packed crowd at The Big Picture conference Tuesday in New York. “Baseless currencies follow the tyranny of short-term politics and so shall this.”

Full article here [1]


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URLs in this post:

[1] CNBC: http://www.cnbc.com/id/44891595

[2] Watch congressional hearing by Ron Paul on a return to the gold standard: http://www.prisonplanet.com/watch-congressional-hearing-by-ron-paul-on-a-return-to-the-gold-standard.html

[3] World Bank President: My Words Were Manipulated, I Don’t Support A Return To The Gold Standard: http://www.prisonplanet.com/world-bank-president-my-words-were-manipulated-i-dont-support-a-return-to-the-gold-standard.html

[4] Economists pan idea of new U.S. gold standard: http://www.prisonplanet.com/economists-pan-idea-of-new-u-s-gold-standard.html

[5] Return to The Gold Standard: http://www.prisonplanet.com/return-to-the-gold-standard.html

[6] Steep Gold Price Increases Ahead: Gold Exploration Company Chairman Foresees $2000 per ounce: http://www.prisonplanet.com/steep-gold-price-increases-ahead-gold-exploration-company-chairman-foresees-2000-per-ounce.html

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