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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: bond_bubble who wrote (43616)	10/17/2005 1:39:27 AM
From: Win-Lose-Draw	Respond to of 110194

In 1930, when UK got out of gold standard, pound fell by about 40% in 2 years (compared to gold/usd) Central banks were relatively new phenomena back then, and UK had only been (back) on the gold standard for 5 years. Further, virtually everybody who had remained on the gold standard was leaving it at the same time as the UK. Something for the bugs to note... Although a higher gold price and significant inflation had followed the WWI ending of the gold standard, Churchill returned to the standard at the pre-war gold price. For five years prior to 1925 the gold price was managed downward to the pre-war level, meaning a significant deflation was forced onto the economy. If there is a return to the gold standard, there is no way private holders will be allowed to profit in any meaningful way.