Hi Howard! re:GATA, I subscribe to Bob Johson post
Message 17042114
I also stop reading any comment when the argument is "US$ world reserve currency".
See a most excellent post of Henry Volquardsen Message 17044092 explaining some catch 22's in the JPY situation.
For myself, I would extend the world currency problem to this:
major reserve currencies (like it or not, these are USD, JPY, EUR, CHF, GBP) are used by the central bankers as reserves. An intricated cross participation scheme which has proven unviable in business (best example is Germany).
This system will utimately fail as the Bretton Woods and the Smithsonian agreements.
So, I should agree with GATA.
But IMHO, gold can be a refuge for un-patriotic protection of wealth for those who can afford to immobilize some savings.
Guvmints cannot subsidize growth based on hard assets only: they need fiat currencies (for which the debt is partially paid back through inflation) and yet another world finacial agreement will be put in place.
With the usual rotation from gold into the new "promising" fiat currency. New cycle, rinse, wash, repeat.
BWTHDIK, just my 2 pesos. |
