PROBABLE CONSEQUENCES OF DEFAULT
(Page 3 of 3)
[2] In the second place, there is absolutely nothing in the
wings now to indicate any grounds for a gold standard in
the world.
RELATED CONTENT
Wealth for all is achievable, but not without considerable work and effort....
economic outlook March/April 1980 ONE WISE ELDER OF THE TRIBE IS WORTH AT LEAST TWENTY MILLION SLIC...
Weathering the storm, America is bankrupt; home security and building a shelter; transportation and...
Economic Outlook September/October 1980 THE MOST PENETRATING VIEW INTO THE FUTURE IS A CAREFUL LOOK...
An antidote to optimism and hard-line look out our bleak future, including the problems and possibl...
The United States is way too short of gold to impose a gold
standard on the world. And the only way a gold standard
will be imposed on the world is through a mighty economic
power making absolute declarations of what will be money
and what money will be worth. The U.S. long ago slipped
from that position of power. No other country is in any
position to even think of introducing such kind of money
either by itself or in conjunction with others.
The result will be that the price of gold will have no
justification for going up or even staying where it is
while other prices are going down.
Gold is about 11 times its 1967 price, while other
commodities are about three times. There is only one set of
circumstances under which gold could make a significant
rise. That is wild inflation-which, we have just seen, is
not about to happen. As an alternative then, gold ought to
be priced near where the average commodity is. That would
be between three and four times its official price and
certainly no more than five or six times. It would look to
me as though $250 would be a maximum ceiling on gold.
Either gold will be down around that figure, or it will be
up well over the $1,000 mark.
People will not be buying gold when they need bread.
Countries will not be buying gold until it is part of the
world monetary standard.
Commodities like silver and platinum will go down along
with other commodities, but they will not fall
proportionately with gold. Later on, because of their
worldwide scarcity and their worldwide strategic necessity,
they will recover in price before other commodities.
The stock market cannot possibly survive in such a climate,
any more than a tomato can grow in Alaska in the winter.
The stock market is due for a fall of several hundred
points-riot an adjustment —a smash.
Page:
<< Previous 1 |
2 | 3 |
