The notion of "going off the gold standard" was a 1930's "invention."
It was a risky business... even Keynes did not trust the Bank of England to "behave"...
It was a risky business... even Keynes did not trust the Bank of England to "behave"...
Rather, Keynes at Bretton Woods trusted the Americans... Keynes put the US Dollar in the cat bird seat...and declared it to be the world's reserve currency...which would always be "the scarce" currency...(his words not mine)....which would therefore make gold a barbarous relic...
Well that was then...this is now... With the advent of Ray-Gun-omics...and the 401k scam in the 80's...things changed...
Suddenly Wall Street was being subsidized by working folks...not just the well off... Then the FED decided that the 401k scheme needed it's support as well...and the FED started being the stooge of the Street...!!
No longer was the Punch Bowl taken away...God Forbid...the cable news cabal would go nuts...!! Larry and Jim would be hyterical calling for the FED to be closed down...!!
Thereon we entered the Era of Great Bubbles...not one or two...but serial bubbles... Money was no longer a problem...anyone with a printing press could have all they wanted...
The Euro was issued...and the bubbles rolled on
Alas....now that has ended... The fallacy of "PAPER GOLD" in now ending...and very badly it would seem!
