« Strong Dollar | Home | Now for Something Completely Different? »

April 11, 2006

Econ Apocalypsy


"When the dollar loses most of its value, through hyperinflation and/or currency dumping, the global currency system and economy will be in shambles, and a new currency system will have to be established. Those setting up the new system will need to establish its credibility, and there is only one monetary asset that can accomplish that: Gold.

Gold is the only commodity that has held up as a liquid store of wealth over the millennia. The amount of gold used to buy a loaf of bread in Ancient Rome still buys a loaf of bread today. In like manner, the amount of gold that bought a regular haircut for a man in 1914, still buys a similar haircut today. Where the public does not trust today's politicians and central bankers, it does trust gold.

Whatever structure evolves for the new currency system, it most likely will have gold at its base. That is one reason that central banks rarely have followed through on threatened gold sales in recent years. The threats usually were nothing but jawboning aimed at depressing current market prices. Those countries holding the most gold will have the greatest advantage in any new currency system, and the central bankers know that, including Mr. Greenspan."

Via "Gillespie Research", whatever that is.

Again, I'm not inclined to believe every word I read, particularly not on the Internets. But generally speaking, taking an aggregate of all of the economic advice that has crossed my desk in the last five or so years, some kind of bigtime inflation in the very near future does seem likely.

Hey, unless this whole "new economy" keeps growing - I mean this whole Web 2.0 thing alone seems destined to change the whole frickin' universe and make everybody rich beyond dreams, right? Hells, yeah. Let's all go put our retirement savings in Flickr.com right this very instant!