That's what the history books say. I'm a little torn on gold. Technically, I believe fiat currencies can work, if they are put into a straight jacket of laws that govern the money printing and when it is managed by Congress. But in the regime we have now, we have an unelected, unConstitutional 4th branch of government called the Fed that is in cahoots with the Too Big Too Fail banks to loot the American taxpayer and are succeeding beyond their wildest imaginations. In addition, they are engaging in what is the most blatant centrally planned economy that we can only compare to Russia and China.
So in that context, I think abolishing the Fed, letting Treasury interest rates float free, and allowing for the competition of US currencies, be they gold, bitcoins, US Dollars, clam shells, coffee beans, or whatever, is a better approach. My bet is if they did that, the USD would win out, because of its convenience, but the USD would be repriced quite rapidly and efficiently to reflect the true state of our economies finances, which is to say a lot of wealth would be lost as the country's assets deflated and debt got wiped out. Once that played itself out, the future would be very bright indeed.
Having said that, we both know that the American people don't have the stomach for the harsh chemo therapy that would be required to clear out the cancer. It's already metastacized and it will run its full course. The outcome will be a repricing of everything anyway, but it will happen in an uncontrolled manner, instead of us being able to choose the timing and length of the transition. Free markets always win in the end, because they are natural, versus the unnatural manipulations we're watching today. Manipulations never last. Nature always wins in the end. |
