I supposed that the whole purpose of the recent GOLD PANIC was to bring down ALL COMMODITIES...including oil.
But that hasn't happen... While Gold has been humbled and the speculators punished. Oil is very near it's all time high...!
So what's the purpose...
In the 1930's Roosevelt briefly flirted with the Gold/Price Theories of Professor George F. Warren of Cornell University...Warren was an agricultural economist who was trying to end the deflation in agricultural commodities at the time.
This so called GOLD/PRICE THEORY stated that if you can "control" gold prices you can essentially control everything else.
Gold being the "king pin" commodity...and everything else being priced "off of it." Sort of, a price "escalator" with gold at the top and other goods on the bottome steps...but all moving in tandem...all following the price of gold...up or down.
The "theory" was tried during the Depression to stop the deflation...but nations still on the gold standard, particularly France, were outraged and the experiment was dropped as a failure...before it could even be fully tried out.
BUT NOW, THE GOLD PRICE THEORY MAY BE BACK! THIS TIME TO STOP THE CURRENT ASSET INFLATION.
But, likely it will fail...again...just as in the 1930's.....
There is very little on the Internet about the Gold/Price Theory...I have a link to the Warren papers at Cornell, but mostly the entire Gold/Price theory has been forgotten...or. is a couple of paragraphs in the economic histories of the Roosevelt Years.
