Say what you want about gold but it has held its value for thousands of years. The fiat dollar? Well let’s just say its been a steady march toward becoming trash.
If we want a high value economy, if we want high value jobs, we should have “high value” money. Sound money. Gold backed money. We should have money which can’t be eroded at the whim of our central bank.
Of course this would constitute a near economic revolution and 4 generations of econometricians would howl in agony as sound money became reality. (Let them howl. The American workforce has.) But at this point even the Keynesians must see their folly. They must.
Well, they should. But they don’t, and in a nutshell that’s our problem.
(From The New York Sun)
Despite, of course, the trillions of dollars the Federal Reserve has added to its balance sheet. If we’ve been banging this drum for a while it’s because of our conviction that the solution to this puzzles lies at the bottom of our economic woes. We are living in an age of illusion. We celebrate, say, the sages of Berkshire Hathaway. Yet the value of a share of Berkshire has plunged to something like 159 ounces of gold from the 269 ounces of gold a share was at, say, the day that George W. Bush acceded to the White House.
No wonder there is no joy in the land, even if the Dow Jones Industrial Average is bouncing in and out of record highs.