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Steve Forbes: "The US Will Likely Have A Gold Standard Within The Next Five Years"

Tyler Durden's picture


And another advocate for the only logical outcome out of the disastrous monetary and fiscal catastrophe the US finds itself in emerges in the face of billionaire, and open administration critic, Steve Forbes. From Human Events: "A return to the gold standard by the United States within the next five years now seems likely, because that move would help the nation solve a variety of economic, fiscal, and monetary ills. “What seems astonishing today could become conventional wisdom in a short period of time,” Forbes said. Such a move would help to stabilize the value of the dollar, restore confidence among foreign investors in U.S. government bonds, and discourage reckless federal spending, the media mogul and former presidential candidate said.  The United States used gold as the basis for valuing the U.S. dollar successfully for roughly 180 years before President Richard Nixon embarked upon an experiment to end the practice in the 1970s that has contributed to a number of woes that the country is suffering from now, Forbes added." Of course, for this to happen the US would first need to allow a full public audit of its gold 8,000+ ton reserves held at Fort Knox and elsewhere. And that may be problematic.

More from the article:

If the gold standard had been in place in recent years, the value of the U.S. dollar would not have weakened as it has and excessive federal spending would have been curbed, Forbes told HUMAN EVENTS.  The constantly changing value of the U.S. dollar leads to marketplace uncertainty and consequently spurs speculation in commodity investing as a hedge against inflation.

The only probable 2012 U.S. presidential candidate who has championed a return to the gold standard so far is Rep. Ron Paul (R.-Tex.).  But the idea “makes too much sense” not to gain popularity as the U.S. economy struggles to create jobs, recover from a housing bubble induced by the Federal Reserve’s easy-money policies, stop rising gasoline prices, and restore fiscal responsibility to U.S. government’s budget, Forbes insisted.

With a stable currency, it is “much harder” for governments to borrow excessively, Forbes said.  Without lax Federal Reserve System monetary policies that led to the printing of too much money, the housing bubble would not have been nearly as severe, he added.

“When it comes to exchange rates and monetary policy, people often don’t grasp” what is at stake for the economy, Forbes said.  By restoring the gold standard, the United States would shift away from “less responsible policies” and toward a stronger dollar and a stronger America, he said.  “If the dollar was as good as gold, other countries would want to buy it.”

An encouraging sign for Forbes is that key lawmakers besides Rep. Paul are recognizing that the Fed is straying well beyond its intended role of promoting stable prices and full employment with its monetary policies.

And speaking of Ron Paul, today the Subcommittee chairman will hold a 10 am EDT hearing on "Monetary Policy and the Debt Ceiling", which we hope to broadcast live, as it should further reinforce the logic of all those who are calling for the overthrow of the central bank cartel.


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Wed, 05/11/2011 - 09:23 | 1262520 cowdiddly
cowdiddly's picture

I would request that Mr. Forbes please inform the Crimex.

Wed, 05/11/2011 - 09:40 | 1262598 tekhneek
tekhneek's picture

Especially tough when Fort Knox has a big-ass sticky note: IOU @ GLD.

Wed, 05/11/2011 - 09:47 | 1262617 HoofHearted
HoofHearted's picture

I still want to print up t-shirts for your visit to Kentucky. Anyone interested in the following:

FORT KNOX: Nothing to see here.

Wed, 05/11/2011 - 09:46 | 1262626 Josh Randall
Josh Randall's picture

TUNGSTEN = it's whats for Dinner

Wed, 05/11/2011 - 10:13 | 1262775 GetZeeGold
GetZeeGold's picture


Do you have a chart fer Benny throwing a tantrum Ferg?



Wed, 05/11/2011 - 12:01 | 1263314 Texas Gunslinger
Texas Gunslinger's picture

Is Steve Forbes a fucking idiot?   

Tethering our currency (otherwise known as our debt) to a gold standard would keep the coupon on that debt alive forever. 

It would be a sham/e to see ~$14T in debt get stamped with the triple AAA of gold this late in the game, so that it pays the plutocrats forever. If the Fed is our largest creditor, it would keep the Fed and the entire plutocratic circle jerk alive forever. 

Now THAT would be the ultimate scam! Wouldn't it?

Kick the US off the gold standard.  Fleece the Treasury for multi-trillions over several decades. Money from the Treasury (American laborer) finds its way into the pockets of the plutocrats and their friends.  When all meat has been chewed from the bone, return the Treasury to the gold standard so our hollowed out country does not collapse under the castles of our plutocrats.  And the American laborer gets stuck with the gold-stamped debt. 

With advise like that, Steve Forbes is far more dangerous than any caveman in Afghanistan.




Wed, 05/11/2011 - 13:22 | 1263913 tmosley
tmosley's picture

They would revalue gold first such that the debt would be negated.  They have to, because otherwise, there isn't enough gold to meet the demands of the money supply.

Wed, 05/11/2011 - 14:25 | 1264200 akak
akak's picture

All talk of returning to a gold standard is almost pointless without abolishing the fundamental Ponzi scheme and (always unsustainable) crime of fractional reserve banking, which caused a number of boom-bust cycles even while the USA was on the silver and then gold standard in the 19th and early 20th centuries.

Wed, 05/11/2011 - 18:01 | 1265383 Keri at Bankste...
Keri at Bankster Report's picture

Gunslinger, your analysis is not correct (other than Steve Forbes potentionally being an idiot, which he very well might be, but for different and much more long-standing reasons that this late statment of his).  The following claim you make is actually perfectly wrong:

"Tethering our currency (otherwise known as our debt) to a gold standard would keep the coupon on that debt alive forever."

This is either an intentional strawman, or you're genuinely more than a little confused on what debt/currency is.  You are hypothesizing something that is not possible: a debt-based gold-backed currency.  By defintion, a debt based currency is repaid with debt.  This is why it is called "debt based."  I can go into more detail on this if you'd like (and explain the differences between Treasury USD and FNR's), but every debt-based currency, including modern USD, is such because it is repaid in debt and specifically not repaid in something else.  This is why debt-based currencies have coupon payments in the first place.  There is no such thing as a "debt based gold-backed currency."

A backed currency (be it backed by shells or gold or bald eagle eggs) is repaid in a different form than that of the purchasing exchange.  A paper note backed by gold is repaid in gold, not 5% more paper notes; a paper note backed in debt is repaid with 5% more (or whatever the yield is) paper notes of debt.  The exchange between beginning and end is always different, in either case: it is either a change of form (paper to gold) or a change in face valuation (paper to more paper).

Another historical name for backed currencies that makes this easy to remeber is the moniker "trade currency," because they basically represent a collateralized futures agreement based on a trade of value forms.  Because _____-backed debt is not repaid in more debt, the issuer is limited in the amount of these contracts it can sell.  We all know this: even if a currency was backed by dirt particles, there are only so many dirt particles on the planet with which to back it.  Conversely, debt-backed currencies are theoretically limitless (and theorectically only, because they ALL collapse under thier own weight).

Your mistake is assuming that current debt-based US obligations would be repaid in gold.  This is not correct, and in fact, this is literally illegal: the Treasury CANNOT repay in gold because the terms of the exchange at auction are for specified repayments in USD only.  It would be like repaying a futures contract on corn in wheat: you can sell the wheat and go by the corn, but you cannot cover a corn contract with wheat.  US collateral is a claim, of course, but there is NO legally specified collateral on US debt, which is why it is sold only "backed by the full faith and credit of the US," (whatever the hell that nonsense means).  Furthermore, the Treasury can only acquire more USD (excluding revenues,which even then still must be converted from FNR to USD through the FRS) through the issuance of more debt (fresh debt) because--again--this is the denomiated form for the contract.  There are no apples for oranges--only apples for apples.

If the Treasury/Congress decided to revalue gold from the current legal tag of $42/oz and sell a gold-backed contract based on the future exchange of gold, it would be something different than and distinct from outstanding Treasury obligations.  No holder of US debt is legally entitled to gold, period: the US has not agreed to exchange gold for debt obligations since 1971.  [The FRS, of course, claims all US gold as collateral, but they have painted themselves into a corner by denying gold as "sound money" in the FRA and yet requiring repayment from the Treasury in "sound money," but that is a whole other headache.]

People will say, "The US can't do that---it can't start a new gold-backed form because that would effectively be a default by refusing to extend the gold repayment to the debt-backed contracts! And the US have never defaulted, ever!  It is unheard of!"  But that is a bulsh on two fronts:

1.) the stupid mofo's who bought the freakin' debt-backed crap should have thought of that when they agreed to the terms of the contract, which said they'd be paid back in debt, not gold, and

2.) the US has defaulted twice in the last 100 years: once in 1933 domestically and again in 1971 internationally by specifically breaching the terms of the debt sale contract by refusing to repay in gold when the contract did specifically say that, and refusing to pay despite gold having been the repayment form agreed to by the buyers.

So don't get ahead of yourself by making these inaccurate assumptions.  The last paragraph you wrote doesn't even make sense, man.  And if you're scared of "cavemen" in Afghanistan, I have a bridge I can cut you a fanstatic deal'll love it.  All yours, too.

Thu, 05/12/2011 - 19:56 | 1270112 Miss anthrope
Miss anthrope's picture

wow thank you so much for that!!!  I learn every day here.

Wed, 05/11/2011 - 15:32 | 1264564 awakened
awakened's picture

Thanks for the link, saw it there first. Now that i have found tfmetals along the watchtower (it toook awhile) I go there every day to see what you haave posted and to check prices.

This article confirms what I just recently found at the Road to Roota or rootA

part 2 was most interesting about Marco's (Japan's) gold

not sure what to believe anymore since so much of what we get is just a big lie.

Also, TPTB want to make sure that the turd is not proven right on metals, specifically siver, at least not right away.



Wed, 05/11/2011 - 13:18 | 1263905 JW n FL
JW n FL's picture

Synthetic Tops in Commodities Provided by the CFTC to the detriment of Americans and Betterment of “People’s Republic of China”!


Every time the CFTC releases its Margin Hike Press Release after hours here in the United States.. China gets to front run the Fucking Dip!


It is not bad enough that the idiots who back test blindly will cause artificial drag on the market with the Synthetic Peaks that have been provided to them, the algo’s can NOT even grasp the concept and for the most part the people who are programming are going to favor the numerically correct solution based on the larger law of averages..


But an American Commission, that is supposed to protect Americans.. is empowering China to once again have the upper hand?


What the FUCK?


Our Government has given China enough freebies for the week! And last week and pretty much going forward for-fucking-ever!


I hate stupid people! I hate the stupid Government that allows 50,000 jobs to go to China a MONTH! Now China gets to front run the downward pressure in Metals which benefits CHINA! Which is a foreign Power! More than the Americans it is supposed to help in the long run!!




Senate Republicans blocked a Democratic Bill to End tax Breaks for Moving U.S. Jobs Offshore! 50,000 Manufacturing Jobs a Month since 2001 have LEFT! The United States for China!


How much more are we going to have to give China? When is enough stupidity enough? This Country is FUCKED! And no one gives a shit! Everyone wants to pray for the rapture or live the lie of the Treasury! And where in the FUCK are the people charged with securing the national Security of the Country? Those mother fuckers are the First ones that should be hung for treason.. going back 30 – 40 years!

Wed, 05/11/2011 - 09:23 | 1262521 Beau Tox
Beau Tox's picture

Dead the Fed

Wed, 05/11/2011 - 10:17 | 1262794 Manthong
Manthong's picture

Unfortunately for us THTB likely have it being replaced by BIS.

Wed, 05/11/2011 - 18:36 | 1265578 Keri at Bankste...
Keri at Bankster Report's picture

I don't know what "THTB" means, so I just looked up on google and I'm even more confused.

Thanks for mentioning the BIS, though: the more people there are who being to learn and know about the central bank of central banks, the better.  And the BIS is already in charge.  It was created for the specific purpose of in being in charge; real CB's know that they either stand together or fall together.  The endgame of the BIS is the complete elimination of popular or market imput on debt-based currency valuation, or in other words, globalized slavery through debt.

I have written extensively about the BIS, and one quote that always sticks in my mind is this one:

 "At the BIS, there are no nations.  Only banks."  Or as the homepage ( puts it:

The Bank for International Settlements (BIS) is an international organisation which fosters international monetary and financial cooperation and serves as a bank for central banks.

The BIS does not offer banking services to private individuals, but only to central banks and to international organisations.

Our overlords.  But don't worry---I heard on CNBC that it doesn't really exist.  Its just a conspiracy theory: so don't research it, and don't go to their website, either.  No, it is a much better use of one's time to watch "Kudlow" and "Mad Money"--they'll tell you the TRUTH!  Yes, I'm quite sure.

Wed, 05/11/2011 - 09:26 | 1262522 rambler6421
rambler6421's picture

Max Keiser said that if that happens, gold will at least go to 7000.  Peter sChiff says 5000-6000.  All I know is that if this happens, gold will skyrocket.

Wed, 05/11/2011 - 09:26 | 1262529 achmachat
achmachat's picture

well... according to today's charts, the public out there does not read the same news as we do.

I guess this means that we have a head start?

Wed, 05/11/2011 - 09:29 | 1262537 augie
augie's picture

Us, and anyone who reads drudgereport.

Wed, 05/11/2011 - 11:18 | 1263200 financeguru500
financeguru500's picture

Sorry but it won't be that easy. There won't be a whole group of people like us who are at an advantage and suddenly become rich while the majority of people lose out and the wealthy become poor holding dollars.

There are many millionaires/billionaires who will use their resources to make sure they maintain their wealth when the economy crumbles and a new currency is formed. You can bet on that. From my understanding, the most likely situation will be the IMF/world bank taking over and making a new currency not manipulated by a single government with exchange ratios of old currency to new currency which will allow for those with wealth to maintain it while also keeping everyone else at their current status quo. If gold were to rise, it would be because it is allowed to rise because TPTB are holding significant amounts of gold. This would work in their favor to make themselves even richer.

Just a thought.

Wed, 05/11/2011 - 11:38 | 1263296 augie
augie's picture

I meant that more as a backhanded remark at the embodiment of the media narrative, but yes. I agree 100%

Wed, 05/11/2011 - 12:03 | 1263412 FastBoat
FastBoat's picture

I thought after Wolfowitz figured out Iraqi oil wouldn't pay for the war, he went to the IMF and promptly figured out they were damn near bankrupt.

Anyone who is exchanging green paper products for real assets will be better off than those who do not.

Wed, 05/11/2011 - 12:01 | 1263415 traderjoe
traderjoe's picture


Wed, 05/11/2011 - 13:12 | 1263867 Mariposa de Oro
Mariposa de Oro's picture


I agree.  TPTB will never allow a gold standard unless it benefits them.  I'm pretty sure the sheeple will be given another fiat currency, global in nature and controlled by globalists, IMF, BIS, etc.  The sad part is that the sheeple will believe it's in their best interest and will likely demonize the gold and silver bugs.  The good news is that we bugs are so few that if we hold our precious in physical, we may not be worth the effort to TPTB.  Let the sheeple be the low hanging fruit.....

Wed, 05/11/2011 - 09:27 | 1262540 Gavrikon
Gavrikon's picture

No, it means that the banksters are running a morning raid.


Oops, sorry, I meant the FAGsters.

Wed, 05/11/2011 - 09:52 | 1262646 MsCreant
MsCreant's picture

Quit insulting gay people by comparing them to Banksters.

Wed, 05/11/2011 - 09:53 | 1262667 tmosley
tmosley's picture

I think he is using the term's South Park meaning.

Wed, 05/11/2011 - 16:51 | 1265024 Anonymouse
Anonymouse's picture

Oh.  I thought you were referring to the Film Actors Guild.  I couldn't figure out how they were involved

Wed, 05/11/2011 - 10:09 | 1262762 Hard1
Hard1's picture

You really expect the last remnant of free press to become pollitically correct now?

Wed, 05/11/2011 - 10:21 | 1262816 falak pema
falak pema's picture

how about....Bankfucks...? more amenable? To the extent that a fuck is not necessarily making in the song..."Fuck you, fuck you very, very much..."

Wed, 05/11/2011 - 10:35 | 1262892 Troll Magnet
Troll Magnet's picture

i don't know..."fuck" is such a beautiful word.  conveys so many different meanings, emotions, etc.

Wed, 05/11/2011 - 10:49 | 1262955 falak pema
falak pema's picture

yes undoubtedly, but its Lady M who was I suggested a more 'funkyable' peddle with Banksta...could have used...others...from Sodom and Gomorrah...but thats funky and biblical.

Wed, 05/11/2011 - 09:53 | 1262662 GetZeeGold
GetZeeGold's picture


Head startz bitchez!



Wed, 05/11/2011 - 09:44 | 1262606 holdbuysell
holdbuysell's picture

And silver?

Wed, 05/11/2011 - 09:44 | 1262618 silvertrain
silvertrain's picture

Will be confiscated as an extinct, national security resource..Black market will put it god knows where in terms of price..

Wed, 05/11/2011 - 11:27 | 1263257 freshcut
freshcut's picture

we'll have to pull out those silver cert notes and knock the dust off

Wed, 05/11/2011 - 11:58 | 1263388 viahj
viahj's picture

i have a $5 silver cert note and if the treasury were to honor it today and give me $5 worth of silver, they would only have to give me a pre '65 fucked up is that?

Thu, 05/12/2011 - 13:31 | 1268485 mojine
mojine's picture

IF, and that's a big if, They had not repudiated those notes, $5 siver cert would have been redeemed with 5 silver dollars, or towards the end of allowed redemption, 3.87 ounces of shot or nuggets. BTW APMEX has some of these official vials of shot right now.

Thu, 05/12/2011 - 13:43 | 1268549 mojine
mojine's picture

When redemption of silver certificates began in earnest, treasury stopped paying out the old silver dollars and resorted to silver "shot", which has no numismatic premium. Originally, silver certificates could be redeemed either for silver dollars or silver bullion. For a long time, the price of silver was low enough that nobody did much of either. A silver dollar contains 0.77 ounces of silver, so the market price has to rise to $1.29 per ounce before the specie becomes worth more than the face value of the bill or coin. In 1963, the price did reach that value, and redemption began in earnest.

From a redeemer's standpoint, you were better off getting silver dollars than silver shot. The silver dollars had a face value, putting a floor under your losses--if silver tanked, they were still worth a dollar. Silver shot, of course, might go arbitrarily low. In March 1964, the Treasury wised up to this and discontinued redemption of silver certificates in coin. If they were going to lose money, they were at least going to avoid the expense of minting coins, and force redeemers to take their chances with silver shot.

Later in the 1960's, the price of silver skyrocketed and even shot looked attractive. There was another run on the Treasury, and silver certificates suffered the fate of all specie-backed currency: when redemption becomes too expensive, the government suspends redemption.

With silver currently going for just over $34/oz, the redemption value of $5 silver certificate would be ~ $131.50 if the Feds hadn't welshed.

Wed, 05/11/2011 - 10:00 | 1262711 tiger7905
tiger7905's picture

Sinclair saying $5000 gold doesn't need QE3, QE1 and 2 were enough. Interview Highlights:

Wed, 05/11/2011 - 10:03 | 1262728 Just Observing
Just Observing's picture

Gold doesn't change....paper simply gets worth less. When gasoline is 25 bucks/gallon, the only bright spot is with enough gold, you'll be a bit better off than those that don't have gold....but only a bit.

Wed, 05/11/2011 - 10:26 | 1262842 writingsonthewall
writingsonthewall's picture

I don't think it could be done - imagine the chaos as Americans go from a real purchasing power of $50,000 a year to about $10,000 under a new Gold standard.


For starters, all the fatties will starve.


The Gold standard is not something we can realistically return to - I suspect a US default would cause less chaos than a return to the gold standard - yes, it's that bad.

Wed, 05/11/2011 - 10:48 | 1262985 trav7777
trav7777's picture

life won't be horrible...this is the way things are throughout south america and somehow they don't die en masse.

It will mean an end to "nuclear families" and starter BMWs and a lot of shit.  Au pairs I knew took high end phones from here and sold them back home in brazil; it wasn't worth it to hang onto something so prized by people with more money.

Expect everything not local to cost a lot more.  I mean, anyone who's been to Brazil or Colombia or Chile knows how much cars "cost" there.  Things that are taken for granted by shiftless ghetto apes, like plasma TVs and big SUVs are beyond the reach of most people.  Extended families make due with less cars than the average single household in the US.  This is the future, a NORMALIZATION of trade flows and a finding of the real value of the dollar after decades of financialization

Wed, 05/11/2011 - 14:31 | 1264227 akak
akak's picture

You are much more pleasant and agreeable and intelligent-sounding when you go back on your meds, as you appear to be today.

Wed, 05/11/2011 - 11:00 | 1263079 NidStyles
NidStyles's picture

Not too bright are you?

Wed, 05/11/2011 - 11:04 | 1263103 technovelist
technovelist's picture

If the US defaults, we'll still have a gold standard afterwards, so it's just a question of how we get there, not whether we do.

Wed, 05/11/2011 - 10:42 | 1262932 Cone of Uncertainty
Cone of Uncertainty's picture

7000 what?

It surely won't be dollars.

Gold won't be priced in USD when the dollar collapses into oblivion.

Holders will be able to convert into other currencies though, assuming that there are any surviving fiat currencies still in circuation once the global monetary system collapses like a death star reaching the singularity.

Wed, 05/11/2011 - 10:56 | 1263040 Urban Redneck
Urban Redneck's picture

When the price of gold was floated and Comex gold contract launched on December 31, 1974 the US Debt stood at $492.67 billion and the price of gold was $195.50/oz.  As of May 5, 2011 US Debt stood at $14,321.67 billion.  So if the US borrowing limit were still defined by the price of gold, the price of gold would have rise to $5,683.14 today.  However, if you calculate from the 1973 Congressionally mandated price of gold (PL 93-110 - $42.22/oz) then the May 5th price should be $1227.36

However, in 1974 the Chinese economy was still a backwater recently visited by Nixon, and Timmay wasn't looking for a 2T increase in the national credit card limit.

Wed, 05/11/2011 - 10:59 | 1263089 Cone of Uncertainty
Cone of Uncertainty's picture

7000 what?

It surely won't be dollars.

Gold won't be priced in USD when the dollar collapses into oblivion.

Holders will be able to convert into other currencies though, assuming that there are any surviving fiat currencies still in circuation once the global monetary system collapses like a death star reaching the singularity.

Wed, 05/11/2011 - 12:53 | 1263755 TBT or not TBT
TBT or not TBT's picture

Gold should be valued in GOLD, grams of gold, not in "dollars" or any other brand of paper. Give me invoices worked out in grams of gold. Give me a bank account in units of gold. If there is going to be a "dollar" that means there is going to be government control over the exchange rate between the dollar and its redemption value in gold. Screw that.

Wed, 05/11/2011 - 13:05 | 1263828 Exposer of Inte...
Exposer of Internet Shills's picture

I've listened to Peter Schiff for years, I think he's a shill. a very clever one too.  The other day he had a caller ask him if he's ever seen the moneymasters and what he thought of it, he started stuttering and excusing himself from remembering it.  His tone for the rest of the show was nervous and there was a very distinct change in his vioce. (Oh yea, the caller just happened to get cut off the call) If you've never seen the moneymasters... find it and watch it now.  The big difference is Bill Still shows why we CAN'T have a gold standard in light of what's currently happening and in place and I agree with him on this point.

Wed, 05/11/2011 - 14:35 | 1264261 akak
akak's picture

Bill Still is the REAL shill, just another statist propagandizer for fraudulent fiat "money" --- just his own particular flavor of it.  He is a wolf in sheep's clothing, demanding that money always and forever remain a captive of government, instead of being an issue of the free market as it should be.

Wed, 05/11/2011 - 18:11 | 1265485 rubyinparadise
rubyinparadise's picture

Thanks for the film recommendation, it looks interesting.

Wed, 05/11/2011 - 18:32 | 1265556 akak
akak's picture

Yeah, it is "interesting" --- also utterly dishonest and disingenuous.

Run, run from Bill Still the Fiat Shill!

Wed, 05/11/2011 - 23:50 | 1266502 ManOfBliss
ManOfBliss's picture

Yeah he's a shill that went through a decade of being outcast by recommending gold and silver, and has a father in jail for fighting taxes.


Thu, 05/12/2011 - 00:19 | 1266562 akak
akak's picture


Thu, 05/12/2011 - 13:48 | 1268585 mojine
mojine's picture

Either shill or useful idiot. Just say NO to greenbackers.

Wed, 05/11/2011 - 09:27 | 1262525 swissinv
swissinv's picture

Unfortunately the gold standard in not in line with the American dream

Wed, 05/11/2011 - 09:27 | 1262541 Pladizow
Pladizow's picture

You mean the American Bankers Dream!

Wed, 05/11/2011 - 09:40 | 1262585 Sudden Debt
Sudden Debt's picture

same same


Wed, 05/11/2011 - 10:03 | 1262740 GetZeeGold
Wed, 05/11/2011 - 09:25 | 1262527 DeweyLeon
DeweyLeon's picture

Forbes is wishcasting.  The US, as currently structured, will not return to TGS.  It would be like turning on the lights in a dark roach-infested kitchen.

Wed, 05/11/2011 - 09:40 | 1262583 Scarlo
Scarlo's picture

Agree. I just wish more "informed" pundits would be open to other ideas, like Au as a reference point. Convertible, sure, but only through the proper channels - heh. The more I think about it, the more it makes sense though. Encourage savings in gold, and not in currency. Currencies are then encouraged to be spent, as trading paper. This ties the paper to something solid, and when hoarding of Au occurs, the same amount of paper is still circulating through the system. The only fallout is Au price rices, benefitting those with surplus.

Wed, 05/11/2011 - 09:45 | 1262620 strannick
strannick's picture

wow. you're right. it would be alot like that.

Wed, 05/11/2011 - 09:59 | 1262717 Bob
Bob's picture

And from the guy who went on a media tour back in late 2008 proselytizing for the FASB to move to Mark-To-Myth as a solution to "TBTF" banksters' problems, no less.  What's his angle here?

Wed, 05/11/2011 - 10:13 | 1262787 i-dog
i-dog's picture

I think he is trying to plant the thought that the US will actually still exist in 5 years, in order to pacify the sheep.

Wed, 05/11/2011 - 10:18 | 1262798 Bob
Bob's picture

Bingo.  Would you like some austerity for the masses with that, sir?

Wed, 05/11/2011 - 09:28 | 1262530 lordbyroniv
lordbyroniv's picture

An audit of the gold in Fort Knox?  Lol.  Surely you just Zero Hedge?


Grow Up Mr. Forbes!

Wed, 05/11/2011 - 09:29 | 1262532 Pladizow
Pladizow's picture

From his lips to Goldman's Ears.

Wed, 05/11/2011 - 09:26 | 1262533 johngaltfla
johngaltfla's picture

That would really screw the GLD ETF owners big time. Because they won't come for "our" gold coins...they'll go for the low hanging fruit.

Wed, 05/11/2011 - 09:30 | 1262538 SP666_IsComing
SP666_IsComing's picture

The gold standard will definitely be back!  All that debt is to be returned to bankster criminals in GOLD after elenin.

Comet (falling angel) Elenin is coming Sept 27, 2011.  Comet Elenin will be the mightiest of all the angels (comets).  It will try to overpower God (the sun), when it crosses directly between the earth and sun and will literally fall to earth.  This comet is the origin of all the old myths about the mightiest angel who fell from grace, banished by god (the sun), and fell to earth … better known to everyone as Lucifer.

This comet’s vapor trail is saturated with dust and it will sweep and engulf the earth in October (the falling angel!).  The massive vapor and dust tail will create enormous rainclouds for DAYS all over the world!!  Water levels will rise EVERYWHERE!

A biblical flood is coming in October!  This is not a joke. This is not a test.

SP-666 will be taken out before October! 

Bankster criminals, murderers and thieves (and all their ilk) have kept this “little” event secret for centuries within their stupid childish secret society cults. For nothing but pure greed and hatred for the rest of humanity, sheeple and markets have been lied to and manipulated for millennium so those greedy little devils … “chosen people” can “inherit the earth” after this event.  They are stealing and raping everyone now to accumulate every last ounce of gold (money) before October.

Financial market schizophrenic meters are off the charts due to the planning for this event!

Wake up world. Protect yourselves. Take appropriate positions, profit from those evil worshippers, survive, and take back some of that stolen bankster booty!

Wed, 05/11/2011 - 09:30 | 1262558 topcallingtroll
topcallingtroll's picture

Is there any way to add a schizophrenic block to the captcha?

Wed, 05/11/2011 - 09:59 | 1262694 MachoMan
MachoMan's picture

Could probably have a button that reads "uncover the secrets of the universe" next to the submit button...  or one that says "elinin" or that reads cookies and puts a work associated with recent cookies in a box...  clicking on the non-submit box causes and endless loop or redirects users...

In this guy's case it's probably "learn how to get mom to stop nagging you about skidmarks in your underpants". 

Wed, 05/11/2011 - 09:57 | 1262705 SP666_IsComing
SP666_IsComing's picture

Well at least you live by your name you little troll.  Everytime I've posted this you show up.


This comet is for real.  It will be devestating beyond measure. 


Those who disbelieve and do not prepare will perish.

Wed, 05/11/2011 - 10:23 | 1262826 i-dog
i-dog's picture

How much is Sunstein paying you to post this crap in every thread?

Dude, I've told you before: it's going to miss us by about 14 million miles (about 60 times further away than the moon)!!!!!!

Wed, 05/11/2011 - 10:25 | 1262852 writingsonthewall
writingsonthewall's picture

Bullish for iron ore though!

Wed, 05/11/2011 - 10:28 | 1262848 falak pema
falak pema's picture

SP : you said nothing about the 33 rd parallel in your prediction. ORI would not be pleased. Ori's supernova star goes down the diagonal path from Iceland to Zimbabwe; if it ever hits the 33rd parallel when your comet hits planet earth that will be a fireworks worth watching.

What do you say..?

Wed, 05/11/2011 - 14:38 | 1264280 akak
akak's picture

Forget all this blather about comets and supernovas --- EVERYONE knows that the earth is going to be destroyed on July 13, 2014, when the Annunaki return from planet Niburu and destroy our civilization by cornering the world's markets for sno-cones and Chia pets.

Wed, 05/11/2011 - 20:13 | 1265903 StychoKiller
StychoKiller's picture

Whew!  Good thing I'm wearing an Al-foil beanie under my bread helmet then!

Wed, 05/11/2011 - 11:51 | 1263359 mick_richfield
mick_richfield's picture

That's an excellent idea.

Wed, 05/11/2011 - 11:52 | 1263363 mick_richfield
mick_richfield's picture

That's a terrible idea.

Wed, 05/11/2011 - 09:34 | 1262562 SoNH80
SoNH80's picture

Saturated with angel dust, you say?

Wed, 05/11/2011 - 09:35 | 1262565 The Feds Connection
The Feds Connection's picture

There wont be a flood, just turn on your gardenhose and check out the rainbow for re-assurance.

Wed, 05/11/2011 - 09:37 | 1262569 cartonero
cartonero's picture

Long umbrellas, raincoats, and canoes.

Wed, 05/11/2011 - 09:43 | 1262591 Sudden Debt
Sudden Debt's picture

How was your vacation in Japan?

It must have been good because you're glowing!




Wed, 05/11/2011 - 10:22 | 1262831 rapidsingleflux
rapidsingleflux's picture

First off, if you knew anything about astronomy, which you clearly don't, you would know that Elenin will travel in its regular orbit and its closest point to earth will be about 21,700,000 miles. Every month theres a plethora of objects far closer than that. The "dust cloud" or coma is roughly 50,000 miles in diameter. Not a single speck of dusty ice will make it to earth.

Second, a comet vapor trail does NOT cause rainclouds you dumb @#*&. Any of the ice in the trail can easily be absorbed by our atmosphere. The comet is only 1.5 miles in diameter. On a planet with as much water as earth, even if the entire thing was made of ice and was added to the ocean, it would be no different than an ice shelf breaking off at the poles as they have been recently. But, like I said, it's not coming anywhere near earth, so this is irrelevant anyway.

Before you spout this nonsense everywhere you can, try learning a bit about science first.

Wed, 05/11/2011 - 10:38 | 1262919 TheDriver
TheDriver's picture

Looks like we posted around the same time. Good info. +1 for science.

Wed, 05/11/2011 - 10:36 | 1262908 TheDriver
TheDriver's picture

Seriously man, get a grip. C/2010 X1 is tracking to be no closer that 22 million miles (35 million km) from Earth at its closest point. That's approximately 0.23 AU. There have been numerous, much closer encounters in written history. Table below. If you want to spout off nonsense about TEOTWAWKI, fine by me -- but leave out the false science.


Distance Date (TT) Permanent designation (AU) 0.0151 1770 July 1.7 D/1770 L1 (Lexell) 0.0229 1366 Oct. 26.4 55P/1366 U1 (Tempel-Tuttle) 0.0312 1983 May 11.5 C/1983 H1 (IRAS-Araki-Alcock) 0.0334 837 Apr. 10.5 1P/837 F1 (Halley) 0.0366 1805 Dec. 9.9 3D/1805 V1 (Biela) 0.0390 1743 Feb. 8.9 C/1743 C1 0.0394 1927 June 26.8 7P/Pons-Winnecke 0.0437 1702 Apr. 20.2 C/1702 H1 0.0617 1930 May 31.7 73P/1930 J1 (Schwassmann-Wachmann) 0.0628 1983 June 12.8 C/1983 J1 (Sugano-Saigusa-Fujikawa) 0.0682 1760 Jan. 8.2 C/1760 A1 (Great comet) 0.0787 2006 May 12.4 73P/Schwassmann-Wachmann 0.0839 1853 Apr. 29.1 C/1853 G1 (Schweizer) 0.0879 1797 Aug. 16.5 C/1797 P1 (Bouvard-Herschel) 0.0884 374 Apr. 1.9 1P/374 E1 (Halley) 0.0898 607 Apr. 19.2 1P/607 H1 (Halley) 0.0934 1763 Sept.23.7 C/1763 S1 (Messier) 0.0964 1864 Aug. 8.4 C/1864 N1 (Tempel) 0.0982 1862 July 4.6 C/1862 N1 (Schmidt) 0.1018 1996 Mar. 25.3 C/1996 B2 (Hyakutake) 0.1019 1961 Nov. 15.2 C/1961 T1 (Seki)
Thu, 05/12/2011 - 20:47 | 1270258 Miss anthrope
Miss anthrope's picture

+22 million!!  great posts to you both!! cheers

Wed, 05/11/2011 - 09:30 | 1262544 Internet Tough Guy
Internet Tough Guy's picture

Gold standard, no. Freegold, yes.

Wed, 05/11/2011 - 09:39 | 1262589 tmosley
tmosley's picture

Freegold collapses into a gold standard as the velocity of the transactional currency will, by definition (ie everyone trades it for gold as soon as they get it), accelerate to infinite.

This silly idea is why I don't read FOFOA anymore.  He's a smart guy, but slavish to this idea.  If freegold is so great, why hasn't anyone in the history of the earth ever tried it?

Wed, 05/11/2011 - 09:41 | 1262601 bob_dabolina
bob_dabolina's picture


Wed, 05/11/2011 - 09:51 | 1262643 tmosley
tmosley's picture

You've been outed as a moron.  Time to give it up, Bob.

Wed, 05/11/2011 - 09:51 | 1262649 bob_dabolina
bob_dabolina's picture

With a 0% track record you have NO credibility

Made money AGAIN trading against your advice. Maybe it's time you give it up.

Wed, 05/11/2011 - 10:02 | 1262737 tmosley
tmosley's picture

Yeah, you claim to have an ultra-low attention span when it suits you, then you turn around and have a two day span when it suits you.

I might note that spot silver is not any lower than it was when I said 7/10 bullish.

But then, you are now outed as having an agenda, and probably aren't actually trading, but rather you are trying (DESPERATELY) to discredit the most outspoken troll basher so you and your pals can run wild and free on ZH.

Well guess what, faggot?  It's not going to happen.

Wed, 05/11/2011 - 10:19 | 1262755 bob_dabolina
bob_dabolina's picture

I have an agenda to out retards like you whom are wrong 100% of the time and proclaim themselves geniuses.

You must have some advanced form of Oepidus complex

Your $60 dollar silver call was only off by $25 (or about 45%) and you did it at the the top ($49) with such laser like precision I was flabbergasted. Good job, keep it up.

Wed, 05/11/2011 - 10:36 | 1262885 tmosley
tmosley's picture

Yeah, I'm supposed to know that there would be FIVE margin hikes in as many days.

Holding me to a pretty high standard.  And not only that, but you are holding me to a standard I don't claim to hold--the ability to predict day to day moves.  I only deal with long term trends, and the trend in silver is UP.  Also funny that you take an observation of a trend and call it a "call".  That's pretty fucking stupid.  Actually, it's a purposeful use of a half truth as an attempt to discredit someone.  Why are you so intent on discrediting me?  Maybe because I pick apart your other troll personas at lightening speeds?

You keep braying like a jackass.  You have lost 100% of any credibility you might have had here.  Everyone else here supports me.  Smart people.  Who, if they followed me, would have made $500 for every $1 they "lost" by buying at prices higher than the current spot price.  You see, spot spent a LONG TIME at much lower levels than this, and I told them to buy and HOLD physical--that whole time.  That means *GASP*, they have been putting their savings each month into silver, as I have, and are up HUGE.

But then, your agenda prevents you from acknowledging that simple fact.

Wed, 05/11/2011 - 10:57 | 1263070 trav7777
trav7777's picture

He's lost credibility?

I may think bob is a complete dipshit but he has utterly PWNED you on teh silvers, moron.

Your calls?  Bullish as HELL right at the top.  60 next week.  49 end of last week.  TO TEH MOONZ the week after.

Physical unavailable and ALL kinds of shit.

And, know what?  YOU WERE WRONG.  Bob said he was shorting into 39, and you called him a basher and a troll.  Guess what?  His advice was RIGHT.

Now, he may not know shit about nuclear power plants, but neither do you.  The difference is that at least he has some redeeming qualities, not the least of which is that his calls are BITCHSLAPPING yours.

"everyone supports you"?  What a fucking bitch you are; you think this popularity contest amongst lemmings means anything.  LOL.

The truth is that I'm surprised you even have any credibility after that call of Tokyo being "dead or evacuated in one week, tops" (Apr 2), or how you said with a straight face and as much certainty as you could muster that silver would definitely be at 49 by the end of last week!

And you have the gall to talk about "credibility," you brazen piece of shit?

Wed, 05/11/2011 - 13:25 | 1263921 tmosley
tmosley's picture

I have made 500 dollars for every dollar I have "lost" anyone who paid attention to me.

You never talk about that.  Because you are a hate filled loser.

Also, nice lies and half truths there, troll.

Wed, 05/11/2011 - 09:48 | 1262639 Crisismode
Crisismode's picture

FOFOA lost me as soon as I discovered two particular tenets of his " monetary philosophy" --

1) That under a FreeGold regime there is still a requirement for fiat.


2) Silver has no place at all as money in a FreeGold world.


Total lack of credibility as far as I'm concerned.

Wed, 05/11/2011 - 09:53 | 1262672 Zing
Zing's picture

Well, at least you will be holding a commodity that has industrial and commercial uses.

Wed, 05/11/2011 - 09:55 | 1262682 topcallingtroll
topcallingtroll's picture

A bi metallic standard never works, because to fix their prices relative to each other causes extreme.distortion eventually. Bi metalic standards always evolve into a single metal standard.

Wed, 05/11/2011 - 10:12 | 1262777 Internet Tough Guy
Internet Tough Guy's picture

Freegold is about what will be, not what should be. Keep pining for the 19th century, though it gets you nowhere.

Wed, 05/11/2011 - 09:56 | 1262666 centerline
centerline's picture

I feel a barrage of junks coming on that one!  LOL.  Freegold is behing wet dream status for gold bugs.  I believe in PMs here - so dont get me wrong.  And I agree that FOFOA is great, but the freegold thing is also where I take one step back.  At most, I think it would be transitional.  Of course, I could be competely wrong here... but I am not yet willing to put myself all the way in one corner yet.

Likewise, people have to know that gold and gold-backed currencies can be manipulated too.  There is no panacea here.  It is a matter of "who" controls the currency, not "what" they currency is.  Fiat is just easier to manipulate... that's all.

Wed, 05/11/2011 - 09:57 | 1262677 Zing
Zing's picture

Correct centerline.

Wed, 05/11/2011 - 10:11 | 1262772 Internet Tough Guy
Internet Tough Guy's picture

Actually, goldbugs hate freegold. The hard money crowd always has. Yes, there will be fiat currency in the future, but it won't store value.

Wed, 05/11/2011 - 10:38 | 1262883 centerline
centerline's picture

Thanks for the correction.  I suppose a good way to put this is to break the argument down into two parts.  The first is "what is a probable system that would replace the current failing system."  The second is "what asset vehicles are best for the ride into that system."  Even if one assumes that gold will have the most likely and prominent role in a new system, it does not necessarily lend itself now as the only or best vehicle to move into that system.  For example: oil, water and land all have value.  So does art.  Silver and other PMs.  Etc.  The only thing that does not is fiat (paper).

Wed, 05/11/2011 - 10:17 | 1262792 Internet Tough Guy
Internet Tough Guy's picture

Freegold is evolutionary; why haven't we learned to speak telepathically yet?

Not everyone will trade for gold, only those with wealth to store will use gold, and as the price floats it can absorb any amount of 'wealth' necessary, and return it to currency to be used.

As for silly ideas, how about bi-metallism, or a silver standard?


Wed, 05/11/2011 - 10:34 | 1262897 Crisismode
Crisismode's picture

The silver standard worked in China for about 1000 years.

A much better track record than any fiat on record.

Wed, 05/11/2011 - 10:43 | 1262940 Internet Tough Guy
Internet Tough Guy's picture

No fiat currency is made to last; but fiat currencies are here to stay. Just change the name, lop off some 0's, whatever.

People have decided, over and over, that they will not be constrained by a hard money standard. How many times do you have to try the same experiment before giving up? You can't peg currency to metal. Why do you object to a floating price?

Wed, 05/11/2011 - 14:46 | 1264313 akak
akak's picture

You are totally wrong.

People ALWAYS chose the hard money standard --- it is GOVERNMENTS which theive from their citizens who coerce those citizens into the patent fraud of fiat currency.  Fiat currency has NEVER been the freely-chosen choice of ANY nation, ever, but is always a function and a reflection of authoritarian government power over the market for money.

Wed, 05/11/2011 - 15:21 | 1264497 Hephasteus
Hephasteus's picture

Actually he is right to some extent.

Money has to follow the rules.

Gold and silver cover most bases. IE they fantastic stores of value, available in good quantities to match the use of money and constantly being mined to take care of population growth. But they fail in one key area. Money is something EVERYONE needs so it has to be available to everyone or else theft or some scheme will replace money as a way to meet your needs.

Gold and silver are FANTASTIC for ripping governments to shreds. But money has to meet EVERY need of available storage of wealth and difficulty counterfeiting or it's inadequecies will compound and expand till it destroys society.

When you're sick or can no longer work you have to be able to rely on your money system to force people to take care of you. Which is what will kill america. Social security and medicare and food price inflation will leave so many people neglected that nobody will ever be born and come here and work and put energy into a system that leaves them sitting in a dark cold room suffering till they die.

Wed, 05/11/2011 - 20:25 | 1265937 StychoKiller
StychoKiller's picture

When you're sick or can no longer work you have to be able to rely on your money system to force people to take care of you.


"Socialism works great, until you run out of other people's money!"

Our work, or your (Big Brother's) guns:  Choose one, you cannot have both.

Wed, 05/11/2011 - 10:45 | 1262948 tmosley
tmosley's picture

That is a hand waving argument.  Think about it.  Who will be producing this transactional currency?  You think people won't notice that it is being debased?  They are now told to buy gold for wealth preservation, but when the currency is being debased, and the monetary velocity is increasing fast and faster and faster, something's got to give.

People will just start trading in gold directly.

Wed, 05/11/2011 - 10:53 | 1263039 Internet Tough Guy
Internet Tough Guy's picture

Freegold takes power out of the hands of central banks. Most gold is in private hands and will flow to strong currencies and from weak currencies. A gold standard gives power to central banks because they set the price.  

Wed, 05/11/2011 - 11:07 | 1263126 trav7777
trav7777's picture

let's examine this notion...CBs hold gold because they are effectively STILL on the gold standard!  Why the hell would China or India give a shit to buy gold for reserves?  So they can be part of the club.  So that in a pinch, you have something to back up your paper.

The nations who bailed did so to support their currencies at the time.  If your CB has nothing backing it, then your currency is naked.  This is how BW stood in dollars for gold, and how BW2 stands in dollars for oil.

The FRB has been a fractional gold scam in the manner of the old BOE for 80 years.  FDR seized gold because it was needed to prevent collapse of the dollar as a result of FRB scamming.

Nations that have production or assets have strong currencies.  Our military happens to presently be our asset and our ability to impose a dollar regime on oil producers

Wed, 05/11/2011 - 11:21 | 1263230 Internet Tough Guy
Internet Tough Guy's picture

You are somewhat correct. Today, in Europe, you can exchange fiat for gold in banks. This is necessary to establish currency credibility. Hyperinflation will separate the credibile currencies from the not so credible. Those who want to be credible will match the freegold bid. They will buy AND sell gold as necessary.

As for Saudi, you have it backwards. We don't hold them hostage, they hold us hostage. Any nation would provide security to keep the oil flowing, if not us, then someone else.


Wed, 05/11/2011 - 19:21 | 1265696 Keri at Bankste...
Keri at Bankster Report's picture

Where in Europe, and what banks?  I am not aware of any banks in Europe that will exchange their gold for EUR or anything else, but maybe I missed something; they will take gold as collateral---even JPM will do that---but where did you hear that they are releasing gold for fiat the counters, or however?  Can you please post a link on this info?

Wed, 05/11/2011 - 09:31 | 1262546 Trying to Understand
Trying to Understand's picture

And should (which I doubt) the US return to the "gold standard" the US government will, again, confiscate all privately held gold..... a 'different twist' to eminant domain???

Wed, 05/11/2011 - 11:07 | 1263135 trav7777
trav7777's picture

nobody will turn it in.  The only people in favor will be those who have none.

Wed, 05/11/2011 - 09:31 | 1262547 topcallingtroll
topcallingtroll's picture

Steve Forbes apparently doesnt mind being labeled a nut.
A real gold standard? Not gonna happen. Never. You forget history if you dont understand why the common people prefer a flexible currency.

Wed, 05/11/2011 - 09:41 | 1262602 Temporalist
Temporalist's picture

If you knew any history you'd know the last "gold standard" was a sham.

Wed, 05/11/2011 - 09:59 | 1262715 topcallingtroll
topcallingtroll's picture

All gold standards turn into a sham eventually.

Wed, 05/11/2011 - 10:16 | 1262788 Zing
Zing's picture


Wed, 05/11/2011 - 10:32 | 1262881 falak pema
falak pema's picture

difference between a sham and a shag :

When each of them drops its first letter wrapping, sham becomes 'ham' and...shag becomes 'hag'. Now in my book ham is always better than hag!

So I'll buy and unwrap a sham rather than a shag!

Wed, 05/11/2011 - 10:08 | 1262754 centerline
centerline's picture

Its all a sham as long the control over whatever currency is used (gold, paper, shiny rocks, clams, beer nut, blah bah blah) is concentrated in the wrong hands.  Of course, to define the "right" hands is the trillion dollar question - which leads us right down the rabbit hole into discussion of human nature, societal structure, etc.  A place where no particular answer is "best" or specifically "correct."  Rather, a matter of choosing the appropriate dysfunction.  Happy, happy, joy, joy.

Wed, 05/11/2011 - 10:14 | 1262795 Zing
Zing's picture


Wed, 05/11/2011 - 10:12 | 1262786 francis_sawyer
francis_sawyer's picture

The USSA would have trouble enough maintaing a "zinc" standard...

Wed, 05/11/2011 - 20:29 | 1265958 StychoKiller
StychoKiller's picture

Let's just see how many of the Ignorati/"Easy money" users are still left alive AFTER the Great Implosion, shall we?

Wed, 05/11/2011 - 09:29 | 1262550 The Feds Connection
The Feds Connection's picture

OT: Silver down 2 bucks, another margin hike or something?

Wed, 05/11/2011 - 09:38 | 1262588 dexter_morgan
dexter_morgan's picture

dollar up.........temporarily

Wed, 05/11/2011 - 09:50 | 1262650 Crisismode
Crisismode's picture

. . . and oil is down, temporarily.

Wed, 05/11/2011 - 10:02 | 1262722 Confucious 222
Confucious 222's picture

It's the end of the world, as we know it, and I feel fine.

Wed, 05/11/2011 - 10:34 | 1262895 falak pema
falak pema's picture

that's 'cos you are chinese and smile like a furious 'fucious' on a con! Like buying gold hand over foot.

Wed, 05/11/2011 - 09:33 | 1262555 wisefool
wisefool's picture

The scary thing is, going to a gold standard has a higher probablity the the proper solution, which is tax reform.

A fractional reserve system is only a little better than fractional fiat, as we are finding out with the big PM market makers.

So instead of doing an Al Gore, and taking the time to re-invent a tax code that reflects modern supply, demand, consumption and meritrocity, we will substitute existing paper that is backed by "the quality of the american enterprise" for new paper whose value is 99% backed by the quality of the american enterprise and 1% by a speck of shiny metal. Got it sheep?

Wed, 05/11/2011 - 09:46 | 1262630 Derpin USA
Derpin USA's picture

I agree. Tax and spending reform are far more important than a gold standard. My beef with the FRN is not that it's fiat. My complaint is that the ability to manipulate it is employed. The fake nature of the currency is not nearly the issue as much as the creation of money for the enrichment of a few at the expense of the many.

Wed, 05/11/2011 - 10:38 | 1262904 narapoiddyslexia
narapoiddyslexia's picture

Agree and if they reform the budget and raise taxes so as to produce a surplus so as to pay the debt down I'll sell my silver. Its not likely, though, because they will have to abandon their military police state/empire. In addition, the Republicans will risk anything to avoid going back to pre-Reagan taxes because it will mean the Reagan presidency meant nothing [and it didn't]. Everything started to come apart with Reagan's presidency, but they won't admit it. Greenspan was great for the plutocrats.

Wed, 05/11/2011 - 09:31 | 1262559 buzzsaw99
buzzsaw99's picture

Five years, because they're not done robbing us with bennie bux yet?

Wed, 05/11/2011 - 09:32 | 1262561 useless_fact
useless_fact's picture

Of course, for this to happen the US would first need to allow a full public audit of its gold 8,000+ ton reserves held at Fort Knox and elsewhere. And that may be problematic.



the act or an instance of stating something in restrained terms, or as less than it is

Wed, 05/11/2011 - 09:33 | 1262566 vast-dom
vast-dom's picture

silver down hard, again. WTF? And all of this after Asian buying last night? Something smells, again.

Wed, 05/11/2011 - 09:48 | 1262575 bob_dabolina
bob_dabolina's picture

Check dollar

Actually has some positive events behind it:

-Debt Ceiling stand off

-euro zone is falling apart

-Supposed ending of QE next month

-China entering into a quasi stagflationary enviroment

Wed, 05/11/2011 - 10:55 | 1263022 oddjob
oddjob's picture


-fleeting USD hegemony

-trillions in future entitlements

-endless supply of all paper currencies

Wed, 05/11/2011 - 11:06 | 1263143 trav7777
trav7777's picture

don't confuse the long term with the short

Wed, 05/11/2011 - 13:27 | 1263929 tmosley
tmosley's picture

You sure seem to.  At least when pursuing your vendetta.

Wed, 05/11/2011 - 09:53 | 1262670 Gavrikon
Gavrikon's picture

The fagsters at JPM running their "shortbots." This shit will eventually end.

Wed, 05/11/2011 - 09:37 | 1262568 GOSPLAN HERO
GOSPLAN HERO's picture

The gold backed USD's value flucated very little from 1792 to 1913.

The satanic Federal Reserve screwed the USD.


Wed, 05/11/2011 - 09:42 | 1262612 Zing
Zing's picture

Too bad the economy still suffered from extreme swings of credit induced booms and busts (the present problem).  Too bad people cannot see that gold will not fix this.  The real problem is excess credit.  Limit the credit and you limit the severity of the boom-busts.

Wed, 05/11/2011 - 09:49 | 1262637 magpie
magpie's picture

At least it puts the "There isn't enough [insert commodity here] around" argument to rest.

Wed, 05/11/2011 - 10:07 | 1262767 MachoMan
MachoMan's picture

True, but the question is the rate of evolution and technological advancement in a world with rudimentary levels of credit.  Humans have to keep evolving and quicker than our environment in order to survive (we're also up against the clock with the sun, but that's another story)...  One of the things the easy credit system allows us to do is a shit ton of R & D...  obviously much of the credit resources are stuffed into malinvestment...  but, many hit homeruns as well.

My question is this...  given we have been on the boom/bust system for so long now...  (virtually all modern western history?), do we have the ability to go back?  If we do go back, how much will our rate of change decline?  Did we develop the boom/bust cycle as an evolutionary mechanism?

My only fear in the boom/bust paradigm is that through technological advancement, we develop world killing technologies...  during a particular bust trough, can we ensure that all world killing technologies will be safely maintained?

Wed, 05/11/2011 - 10:33 | 1262877 centerline
centerline's picture

Really good stuff MachoMan.  I was thinking on the same line the other day... re: the paradoxical gains such as technological advancements resulting from such a loose system that doomed to implode.  I would suggest two things...

The first is to suggest that cycles are in fact part of our nature.  That they are themselves part of our evolutionary process.  They can also be exploited.  

The second is to suggest that larger cycles at play might have us taking a step back for awhile in some areas, but not all.  Science tends to build on itself, and I think we made the leap from children to adolescents as a species.  The trick is to survive into adulthood!  Of course, a depressing hypothesis regarding life elsewhere in the universe is that it is rare because too many species dont survive the transition from adolescent to adulthood (e.g. they blow themselves up!).

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