I would expect that any of the three radical Buiter proposals would send gold, silver, copper and others to the stratosphere, and maybe gold in orbit.
We would see 3000 an ounce with in days, and maybe 10,000 by the end of 30 days.
The premium on the physical would be over 5%, maybe over 15%.
Having gold would be like having life jackets and boats on the Titanic - you would be very popular, but it might not be good for your health.
There would also be a huge rush to Canadian dollars, it might force Canada to either follow or print like crazy to keep the currency down. Which Canada could do, and buy up all the Canadian federal, provincial, and municipal debt, and some of the debt issues of major Canadian companies, like Quebec Hydro, Sun Life, Scotia Bank, etc. |
