Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Simply reciting well known facts from recent monetary history hardly makes one a gold bug. Nor does embodying ones understanding of economic history in a work of fiction in an attempt to broaden economic understanding amongst non-specialists.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Apr 28th, 2014 at 11:12:05 AM EST
[ Parent ]
OK, so he doesn't sound like a gold bug to you, and you think he's a factually authoritative source that Dobbin quotes without reference or link, calling him a "journalist" which he doesn't appear to be.

I think Dobbin is just using him as filler to make it look like he's got some facts to back up his case.

We'll have to agree to differ.

by afew (afew(a in a circle)eurotrib_dot_com) on Mon Apr 28th, 2014 at 11:53:18 AM EST
[ Parent ]
Peter Koenig was a career staff economist at the BIS and I recognized the 'facts' he recited as the same 'facts' I had seen in my Money and Banking Course. The Dobbins article was more of an opinion piece than a news story, but it rang true to me. And it is not hard to throw substantiation around many of the statements. I do not think Koenig is a gold bug, quite the contrary. See the following transcript from Voice of Russia:
The chief manipulator of the gold market is the BIS
The return to the gold standard could be a very simple scheme; using a fixed unit of gold vs. a debt ratio close to the one of the highest interested debtor nation. A new gold standard would help Uncle Sam revaluing the dollar and at the same time purging its enormous debt on the rest of the world, mostly on the backs of those countries which have no or limited gold reserves. Many of them are developing countries with natural resources, sought-after by the West - resources that would help pay their skyrocketing debt service.

Most OECD economies with gold reserves - and especially the co-opted Europeans - might go along with the scheme. Mainly, because their economies are at shambles since the 2008 Wall Street / IMF imposed artificial `crises'. Their short-term thinking might see the new gold standard as the salvation for the beaten euro. But what else is there to expect, when the President of the European Central Bank is a former Goldman Sachs executive?

Desirability and possibility - Of course, returning to the gold standard is not desirable, as it would hand over the world's economy and resources to the Western powers and financial mafia. A gold standard is not sustainable. It is vulnerable to the manipulations of those in control of the financial markets. In parallel with the US amassing gold, China, Russia, Germany, Japan - and others - have also bought massively gold in the past decade in preparation for such a potential move by the US.




"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Apr 28th, 2014 at 02:51:55 PM EST
[ Parent ]
I do think that the USA would have to be prepared to rebalance its economy so that it has a current account balance or close to it in order to implement such a scheme, else gold might flow rather quickly out of the USA, diminishing the purported eight tons reserve, unless it substantially under valued its currency wrt gold as France did after WW I.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Apr 28th, 2014 at 02:57:04 PM EST
[ Parent ]

Display:

Top Diaries

Occasional Series