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  • The Gold Debate Rages On [View article]
    But, I know one thing: the governments around the world have an insatiable addiction to debt and spending and too little concern about growing their supply of paper money in circulation. Nothing has changed in this respect for centuries -- since before there was paper money in widespread. And, governments get to pay those debts off with cheaper paper money in the future if they allow inflation to run amok like a herd of bulls in a China shop. Governments don't want to hold their own currencies or that of any other country. They want to hold gold....at least those with holdings.
    ______________________...

    Central banks in India, Russia and China were among those boosting their gold reserves last year; central banks now possess 18 percent of all gold ever mined.

    Assuming central banks are not among those who stockpile ammunition and canned goods in preparation of an imminent revolution, then it can only be concluded that these banks and others view gold as a substitute currency and a store of value.

    With widespread debasement of currency and the possibility of deflation followed by inflation, why not hold gold? As currencies lose value, gold increases in value; and gold does well during deflation and really shines during inflation.

    While may be said to be a barbarous relic, it holds more value than debauched fiat currencies.
    Sep 19 12:15 PM | 8 Likes Like |Link to Comment
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