Forbes: Gold Is Still Your Only Monetary Alternative
Article by Nathan Lewis in Forbes
Today, we are seeing a lot of the institutions and bad ideas of the Post World War II Consensus breaking down and collapsing. Among these is the rather stupid notion that economies should be managed by some combination of currency and interest rate manipulation, and “fiscal stimulus” spending that amounts to utter waste, for the simple reason that it has no justification except as “stimulus.” These are the conclusions of “Keynesianism,” which has been taught in all universities since the 1940s.
Note how this is completely opposed to what I’ve called the Magic Formula: Low Taxes, and Stable Money. This is the Formula that enabled the United States to become the wealthiest country in the world.
If the US sadly deviates from this Formula today, nevertheless taxes are Lower, and the currency is more Stable, in the US than in most any other developed country today.
We see that it takes more and more dollars to buy an ounce of gold; and also, more and more euros or yen. This is probably a reflection of a declining value of the dollar, euro and yen themselves, rather than any change in gold. The average price of a hamburger in .....