[Derek said...]
I have spoken of the impracticalities of moving to a gold standard. One of the largest is that in order to support the current levels of global economic activity, gold would need to move to something like $4,000 an ounce (or so I have seen estimated).
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So what!? It is not the weight or amount of gold that matters. Even if this is ture, an eighth of an ounce for $500 seems emminently practical to me. We can use silver for small transactions.
Rich
I can't do links right now cuz I got a great
new set up and thats a funky glitch. T
scrapped the maatrox card driving three
screens and replaced it with a 32 inch
westinghouse flat screen, great deal, floor
model from best buy. Now using just a
laptop to drive the monitor and my blind
speach program. Switched browsers to
Opera, fabulous magnification with no
horizontal scrolling. Typos should decline.
Not finished reading this thred, but...
Do not miss James Turk's fantastic article
over on Kitco.com contributed
commentaries... The Barbarous Relic, It's
Not What You Think.
fabulous, worth the read, and well
documented.
While you are there read Bill Bonner's the
Importance of Doing Nothing.
Katrinea has woken the markets up to the
problem of having faith in a currency
backed up the US government. Of course
you know that gold has broken out to a new
17 year high after almost 2 years of
consolidating the 400 mark and has broken
to historic highs in euro land. the fed was
forced to continue to raide rates in the face
of rapid oil gold and other commodity price
rises, note I did not say inflation. Thus the
fed is willing a bust in housing and bank
earnings. I have puts on fitb and wm as
they are the biggest mortgage whores.My
puts on fitb have doubled in a few weeks
and both stocks have evidenced weak price
behavior. WM today announced it
unloading it's lneder defined payment
option portfolio, but it still has a lot of
exposure to sub prime borrowers. and
insures many others. What a mess.