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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: lorne who wrote (28166)	2/13/1999 10:08:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 116768

While some experts say going back to a scheme of "fixed" exchange rates could make commerce more predictable, most businesses already protect themselves against currency fluctuations through modern hedging transactions. Most economists warn that the cost of returning to a gold-based currency could be enormous. Monetary authorities may be forced to raise interest rates even in the midst of a recession to encourage dollar purchases needed to defend the dollar's fixed value. The result? A mild business downturn could spiral into something far worse. Sticking with the gold standard in this situation would be the economic equivalent of a pilot's refusing, upon seeing a collision ahead, to take the plane off autopilot. Forbes is an interesting character. I have found myself agreeing with most of his views(but his demeanor and presentation leave a lot to be desired) I was unaware of his favoring a gold standard and I agree with the highlighted comment above about the limitations gold has in the world. Now if a single global currency was backed by gold and there was no competitive currencies out there, I could see the argument for a gold standard. I certainly like the fact that it would remove much of the costs of "hedging" currency and business transactions and greatly reduces the risk to commerce. But I don't many of readers of this thread would favor a global currency. Smacks too much of NWO. Regards, Ron