Jun 162017
BREAKINGVIEWS-Review: Gold's financial fascination never dies by Reuters Friday, 16 June 2017 13:33 GMT (The author is a Reuters Breakingviews columnist. The opinions expressed are her own.) By Kate Duguid NEW YORK, June 16 (Reuters Breakingviews) – Before winning the presidency and replacing the Oval Office's red drapes with lamé, Donald Trump was lionizing the gold standard (http://bit.ly/2riEUiS). He wasn't alone. Campaign rivals Texas Senator Ted Cruz, Kentucky Senator Rand Paul and Ben Carson also backed reviving a policy that had been abandoned by the global financial system 40 years earlier. James Ledbetter's new book "One Nation Under Gold" helps explain why the outdated idea won't die. These Republican presidential contenders were not proposing sincere policies with white papers and serious co-authors. Bullion-backed bucks had been discarded for good reason: it was an impractical constraint that, even when it was the law of the land, had to be abandoned when the United States needed money for war or to combat recession. No countries in the world operates on a gold standard today; there is no consensus on what a standard would look like or how it would be implemented. And, as Ledbetter puts it: "there will never be enough gold in the world to support the U.S. economy at its current size." Yet gold, the book argues, is woven into the American DNA. It is enshrined in the Constitution which says that states may not "make any Thing but gold and silver Coin a Tender in Payment of Debts." Ledbetter chronicles two centuries of debate over the clause's exact meaning and its implications for a federally distributed currency. The California gold rush of the mid-19th century established the West as a locus of political and economic power, largely because of the immigration it brought, and the subsequent development of industry. The gold rush became part of America's founding myth, and for early settlers, evidence of divine providence. Sound money, as commodity-backed currencies are known, also appeals to an American tradition of small government. A limited supply of gold necessarily limits the supply of money a government can issue, which in theory limits government spending. Gold remains of interest to Americans not just as a basis for currency, but also as an investment. Though it pays no dividends and, unlike a company, the size of the asset will not grow, the precious metal is still popular, particularly amid economic insecurity. To (more…)
Jun 222011
A 5:13 video about the return to the Gold Standard and the implementation of Digital Currencies.   httpv://www.youtube.com/watch?v=Ug3lh18iovM Christopher Greene is a dynamic independent economist, activist, investigative journalist, frequent video-blogger and author of several monthly newsletters. With a unique background in finance and real estate, Christopher has pioneered and redefined the concept of Alternative Media. In 2008, Christopher awakened to the fraud and corruption evident in Washington, the Federal Reserve, our regulatory agencies and the Too-Big-to-Fail banks during the height of the financial crisis. Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Apr 092011
position papers of professorfekete #1, January 11, 2011 GOLD AND HONEY* Open letter to Thomas Hoenig, President, Federal Reserve Bank of Kansas City Dear President Hoenig, On January 5, 2011, you were quoted on abc NEWS as saying that “the gold standard is a very legitimate monetary system”. The quotation went on: “We are not going to have fewer crises necessarily. You will have a longer period of price stability or price level stability, but I don’t know that you will have lower unemployment, and I don’t know that you will have fewer bank failures.” As a student of the gold standard for the past 50 years I welcome your statement. I would be happy to open my files and archives if the Research Department of the Federal Reserve Bank of Kansas City (that, as far as one can tell, has so far not been interested in gold standard research) invited me. My files may have the answer to some of your queries. (1) You are right, the gold standard is a necessary but not a sufficient condition for achieving lower unemployment. A necessary and sufficient condition would assume that Adam Smith’s Real Bills doctrine is also rehabilitated along with the gold standard. The bill market is the clearing house, without which the gold standard cannot survive. The explanation why it collapsed in the years 1931-35 is that, when the victorious Entente powers decided to restore the gold standard after World War I, they also decided not to restore real bill financing of world trade or world-wide real bill circulation. Thus the gold standard which Britain reestablished in 1925 lacked a vital organ: a clearing house. The Entente wanted bilateral (to the exclusion of multilateral) trade for fear of German supremacy in exports. This decision was a great setback for world trade. In effect, it meant a return to barter. The consequence was: beggaring-thy-neighbor, trade war, the destruction of the wage fund, and massive unemployment world-wide. (2) As pointed out by the German economist Heinrich Rittershausen in his 1930 book Arbeitslosigkeit und Kapitalbildung (Unemployment and capital accumulation), before World War I ‘structural unemployment’ was unknown. Part of the ‘float’ of maturing real bills was earmarked for payment of wages to workers producing consumer goods. This float was what Rittershausen called the “wage fund”, out of which wages could be paid up to three months in advance, well before the underlying (more…)
Nov 302010
Here are the new article that have been added recently. Gold: http://www.netdirectbusiness.info/Articles/article/Gold/Foolsgoldseducesthemasses.html Fool’s gold seduces the masses by:David Case — GlobalPost Gold’s prestige got a strong jolt from World Bank President Robert Zoellick. With global currency wars set to be a hot topic in Seoul, Zoellick suggested that finance ministers consider re-adopting a modified global gold standard for the world’s currenc http://www.netdirectbusiness.info/Articles/article/Gold/WorldBankPresidentsGoldStandardProposalReadingBetweentheLines.html World Bank President’s Gold Standard Proposal: Reading Between the Lines by:Bo Peng World Bank prez, former US Treasury Secretary Robert Zoelick proposes employing gold as an international reference point of market expectations about inflation, deflation and future currency values, it carries more weight than 1000 goldbugs screaming buy http://www.netdirectbusiness.info/Articles/article/Gold/RebirthoftheGoldStandard.html Rebirth of the Gold Standard by:James West The idea of the gold standard has been fluttering around the fringes of mainstream economic discourse in varying degrees of ubiquity since the end of the Bretton Woods agreement in 1971 Money: http://www.netdirectbusiness.info/Articles/article/Money/TheQuickestWaytoGrabProfitsfromEmergingMarketsCurrencies.html The Quickest Way to Grab Profits from Emerging Markets: Currencies by:Evaldo Albuquerque They just followed the investment money. They knew the countries with the strongest fundamentals would attract the most investors – and the most cash. And the weakest countries would chase investors (and their money) away. Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)