Rugoz wrote:Jesus, where does your obsession with gold come from? In the purely hypothetical case of hyperinflation the FED would have to shrink its balance sheet to restore price stability. That's the (medium-term) goal of monetary policy and incompatible with the gold standard. I repeat: The gold standard is incompatible with price stability as it's commonly understood by economists.
There is no obsession. And as I said, there is a lot of ifs and buts. But all I am observing from the US recently (and arguably since 2008) is the foundations of implosion of the global financial network without the ability of self control. The rich are LITERALLY destroying their own house for increased greed. I am seeing increased debt personal/international, reduction in tax income, division of class, isolation from international opinion and policy, pissing off OPEC and no signs of much needed financial stimulus from the US since Trump took over control inside The White House. I look at the size of their debt, the reliance of the way the financial system favours the dollar and how the dollar requires its demand and all I see for the future of the Dollar (probably at the end of the petro-dollar) is a complete destruction of the financial system and a hyperinflation of the Dollar that rivals the Zimbabwean dollar. The only saving grace for the US is their commodities. Perhaps I am a pessimist. Perhaps I am scare mongering, but I do genuinely believe the US will avert back to the gold standard at some point - at least at a temporary measure. But I could be wrong.