Tuesday, January 22, 2013

"Since 1971, there is no “monetary system” for the very simple reason that there is no longer any parameter to credit expansion"
One of our favorite Advisers argues with our most fun to read (he always sees impending disaster) journalists. Hugo Salinas Price conveys our
THEME POINT
In a world where credit is money
THERE HAS TO BE A RESTRAINT
ON THE CREATION OF CREDIT
How much simpler can it be?

5* Chart Above Is Worth More Than 1000 Essays
Click To Enlarge
Mexico's Hugo Salinas Price (AE) worries about arguing with our favorite 'Doomsday is Coming' journalist, Ambrose Evans-Pritchard .. who is well-informed, well-traveled & has a sharp intellect - LINK HERE to the essay Price is referring to .. Price disagrees with Evans-Pritchard on the gold standard to which Evans-Pritchard refers as "the gold standard at work with all its destructive power, and the risk of sudden ruptures always present" .. Price explains a bit of what (AE) Jim Rickards has often explained; how the gold standard was given a bad name .. that govts went off the gold standard in order to print lots of money to pay for World War I. After the war, & with all that new money in circulation, they tried to force the same gold price as previous to all that money printing. Somehow, the political leaders of the 'free' world didn't understand the very essence of a gold standard [Cliff would like to emphasize that govts leave the gold standard when they want war. Otherwise, they would have to pay for the war with real money, not printed notes of credit.] Price says: " .. if the world does not get a gold standard, then we can kiss industrial civilization good-bye .. In the meantime, gold is doing and will go on doing what it did when the Roman Empire entered its decline .."

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