Fed To Prompt Currency Crash and Return to Gold Standard

February 27, 2013 By 17 Comments

Jim Grant, astute monetary economist and respected author of the Interest Rate Observer said in a Bloomberg interview overnight that the dollar would crash and  a new Gold Standard would be the end result of the U.S. Federal Reserve’s irresponsibilities.  Although the interviewer said that Grant’s remarks were inflammatory Grant said that it is important to examine our monetary affairs over the sweep of time.

A guest host said that no one in academia is calling for a Gold Standard and suggested it would result in a deflationary period for the U.S.  Grant disagreed and said that the Gold Standard is the only answer as it was monetary system good practice for the 100 years ending in 1914, whereas everything else since has been a “try out”.
Grant says that he expects more quantitative easing from the U. S. Fed, and likens their single mindedness to a doctor prescribing to a patient that is clearly overmedicated. [Read more...]

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Jim Grant: Fed Action Will Prompt Return to Gold Standard!

February 26, 2013 By 11 Comments

grantThe Interest Rate Observer’s Jim Grant was on Bloomberg yesterday discussing the recent Fed minutes.  When asked by Bloomberg what will be the end result of this Fed’s responsibilities, Grant responded:  A gold standard.

When asked when he envisions a gold standard occurring, Grant responded:  2 years ago.   It’s important to see our monetary affairs over the sweep of time.  The Fed was founded 100 years ago this year. There have been many monetary moments since then.  1944 comes Bretton Woods, but we will have they said a dollar that is backed by gold.  Fast forward to the present day and we have gone from the half gold standard, the road show gold standard of Bretton Woods to the full blown PhD standard, in which the Ivy League central bankers the world over are waging an all-out war against the price mechanism, against Adam Smith’s invisible hand.  
The gold standard is the answer because the gold standard is the only monetary system that has been shown to work in practice over the course of generations.  Everything else has been a tryout, and the tryouts have failed. 

Grant’s full MUST WATCH interview on the coming return of the gold standard is below: [Read more...]

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End Currency Wars With Gold Standard?

February 12, 2013 By 16 Comments

Bloomberg’s Trish Regan and Adam Johnson interviewed TCW Group’s Komal Sri-Kumar and Bank of New York Mellon’s Michael Woolfolk about the risks from currency wars on Bloomberg Television’s “Street Smart.”  Trish Regan asks whether there is a danger that “we have massive inflation worldwide for years to come?”
The answer is yes and both agree that inflation is a real risk as is a loss of credibility by central banks.   Komal Sri-Kumar is asked what the solution is and is asked about his Op-Ed in The Financial Times in which he calls for a return to a gold standard.

He replies that a gold standard today would be no different to “how good it was from 1945 to 1971.”  “It worked, the world was in prosperity, there was economic growth and there was clearly certainty in terms of what exchange rates were.”  He warns that “even in the short term there is nothing to be gained by devaluing. We have tried that in the United States. We have been devaluing through QE1, QE2 and QE Infinity, the most recent one … we don’t have sustained economic growth.” [Read more...]

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Jim Willie: Gold Standard Will Return, Everything in Paper is Going to Hell!

December 5, 2012 By 21 Comments

Jim Willie is the editor of the “Hat Trick Letter.” He has a PhD in statistics and crunches the numbers on things like gold, currencies and bonds. Jim Willie says, “Gold is the anti-bubble. . . . It is the response to the biggest bubble in the history of the modern world, and that is Treasury bonds.” It was recently reported that the Federal Reserve is buying 90% of all Treasuries. To that, Willie says, “The supply of gold is lacking and demand for Treasuries is evaporating. It’s that simple.” Willie thinks the global economy will not get better because, “. . . they have no solutions, and they are praying they can keep this going.” Like it or not, gold is going to make its way back into the monetary system. Jim Willie contends, “The gold standard will return because gold will be the last asset left standing. Everything in paper is going to go to Hell.” The transition will be very painful. Willie says, “We have a climax bust coming for bonds, currencies and the banking system because they are all interrelated.” Join Greg Hunter as he goes One-on-One with Jim Willie. [Read more...]

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John Butler: Fed Will Take QE Nuclear, Monetize Entire Shadow Banking System

November 26, 2012 By 6 Comments

GoldMoney’s Alasdair Macleod talks to John Butler — Chief Investment Officer at Amphora Commodities Alpha and publisher of the Amphora Report, as well as author of The Golden Revolution: How to Prepare for the Coming Global Gold Standard. They discuss the huge debt problems confronting Western economies, central banks’ reflation efforts and the significance of the shadow banking system.

Butler emphasises that policymakers will do everything in their power to fight natural deflationary pressures with policy-induced inflation. He argues that when central banks really want to double-down on their efforts to push prices higher, they may consider monetising the entire shadow banking system by taking it onto their own balance sheets in return for newly created cash — a possibility that Butler calls the “nuclear option”.

Full MUST LISTEN interview below:

[Read more...]

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Netherlands’ Citizens Group Demands Central Bank Reveal Location of Country’s Gold Reserves

October 27, 2012 By 32 Comments

First Venezuela, then Germany, and now the Netherlands want their gold back.
In the wake of this week’s ruling by the German Federal Accountability Office that Germany must repatriate and audit 150 tons of its gold reserves from the NY Fed over the next 3 years, a Netherlands citizens committee has filed a petition demanding the Central Bank release information ”on the quantity and storage location of the Netherlands’ physical gold, and on the extent and nature of the gold claims.”

In the words of one of the petitioners Tom Lassing: “The last years have seen a loss of trust in the financial system and we have been fooled a lot. So I say: Just let the central banks like DNB show the gold is really there.

Should the citizens committee be successful, we are confident they will discover the vast majority of the country’s gold reserves- 10th largest in the world at 612,000 kilograms, are held in the basement of the NY Fed.
As we stated several days ago, the jig is now up.  The German accountability office will trigger an avalanche of gold audit, delivery, and repatriation requests around the Western world.   We wish the Fed luck staying ahead of the cascading avalanche of requests to convert unallocated (rehypothecated) gold into solid physical metal.  They’re going to need it. [Read more...]

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Why A Gold Standard, Alone, Is Not Enough

October 9, 2012 By 5 Comments

Most of our readers are aware of the ongoing debate on whether a return to the gold standard would fix the massive debt problem plaguing the Western financial system.  Sound money advocates led by Ron Paul have long called for a return to the gold standard rather than the paper fiat debt currency currently issued by the Federal Reserve.
The gold standard debate has even recently reached the mainstream, with the Republican party even making it a portion of their party platform to study the feasibility of such a return to sound money.

In this excellent and MUST READ piece, Martin Sibileau presents a technical perspective on why a return to the gold standard alone is NOT ENOUGH to solve our current economic crisis, stating that it must be accompanied by the extinction of the shadow banking system.

MUST READ!! [Read more...]

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Ned Naylor-Leyland: € Gold Break-Out an Indication Major Rally Has Begun, Gold Standard Deserves Serious Consideration

September 4, 2012 By 10 Comments

There’s nothing quite as satisfying to a metals investor (ok, perhaps daily 5% up moves in silver) as watching Eric Sprott or Ned Naylor-Leyland discuss gold or silver on CNBC.

Our friend & Cheviot Investment Director Ned Naylor-Leyland was on CNBC Europe’s Commodities Corner again this weekend, discussing why the idea of a return to the gold standard needs sensible consideration and investigation, rather than open derision as the idea has been received by the financial MSM.   Needless to say, the CNBC shills do not agree.

Naylor-Leyland also discusses gold’s breakout in terms of the Euro after a long 13 month consolidation, which NNL believes is a strong indication that a MAJOR MOVE for gold is now underway.
The CNBC analyst responds by asking NNL how he would trade gold here and Ned responds that ‘gold is not something I would be looking to trade, but rather something I would be looking to purchase as an insurance policy‘.

MUST WATCH Full Interview below:
[Read more...]

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Ezra Klein on Reinstitution of Gold Standard: ‘That’s A Clown Idea, Bro’

August 30, 2012 By 10 Comments

Liberal WashingtonPost blogger Ezra Klein who earned himself a spot in SD’s Hall of Shame in January when he bashed gold stating that the metals is worthless because not only can you not eat it, but you also cannot build your house with it or use it as ammunition, is back at it again.

Commenting on the Republican Party’s announcement last week of a Gold Commission to look into the return of a gold standard in the US, Klein states that the policy is ‘A Clown Idea, Bro‘.

Actually we happen to agree that a gold standard is ‘a clown idea, bro‘, but not for the reasons Klein has in mind.  What we actually need is not a gold standard, but the return a bi-metallic gold AND SILVER standard.

As you might guess, Klein has a different reason for calling a return to a gold standard ‘a clown idea‘.   [Read more...]

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Republicans Considering Return to Gold Standard as Official Republican Policy

August 23, 2012 By 20 Comments

Hopefully the FT reporters involved in the story have done slightly more due diligence than occurred in last week’s FT report that the CFTC was dropping it’s 4 year silver investigation (which was immediately emphatically denied by the CFTC’s Bart Chilton), but the FT reports tonight that the Republican party is set to include ‘gold commission’ with the goal of returning the US to the gold standard as part of official Republican party policy at the RNC Monday.

While we remain skeptical that such a policy would remain a Republican goal should Romney actually be elected POTUS, if this is legitimate we have 5 words for the Federal Reserve and Mr. Bernanke:
Ron. Paul. For. The. Win!

The FT is reporting that the gold standard has returned to mainstream US politics for the first time in 30 years with a ‘gold commission’ set to become part of official Republican party policy. [Read more...]

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