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Re: jt6455 post# 31293

Saturday, 08/20/2016 11:10:14 AM

Saturday, August 20, 2016 11:10:14 AM

Post# of 36463
"Now, a new anchor for world’s monetary system needs to be found." In a world of fiat currencies, whose value is constantly changing due to the vagaries of each nation's monetary policy, you will never find such an anchor- the SDR* is nothing but a "market basket" of fiat currencies, and putting faith in that is an act of faith. That is why transparent, simple gold standard developed in the first place: no one really knows how much your friendly central banker is cranking out in his basement.
Hans Sennholz, in his excellent book Age of Inflation, asks "when will the world make peace with gold again?"\

*originally intended as a method of reducing the national debt. Treasury agents were to walk the streets asking people to define an SDR. When they could not, they were fined $100. No one managed to answer correctly. Great concept, the SDR.