Michael, that will not happen if the CB's do not want it to happen, and as I have sated a number of time, gold as a currency will create most probably a state of constant inflation, or stagnation of world economies, or both, rather than the desired discipline. You just cannot keep increasing the gold output of the world at the desired rate (growth rate of the world economies of at least 3% to 5% year) without accessing poorer and poorer ores, which cost more and more to extract gold from, until the price of gold reaches about $65,000 per ounce or so, what it would cost to extract it from the oceans (at some special locations, like the output of the Columbia river in the northwest). If the CB's allowed that to happen, they will have revolutions and social unrest on their hands, the economic costs in stagflation will be unbearable, and some 20 years of world GDP growth would be lost, all to satisfy some Austrian disciplinarians. I think that the market itself will punish those currencies that are "overprinting" and their is no need to put the world economy in a "Sodom bed" dictated by gold. It appears to me that the world central bankers, a long time ago have agreed with me on that, and every time gold's price increase gets out of hands, they use their own 10 years plus of production reserves to bring the price down. I know GATA think it is a conspiracy, and they are actually probably right, but I am not going to fight against what I believe is the right "conspiracy", and even if I thought it was a "wrong" conspiracy, fighting the resources of the world CB's is not my style (g). But I have been using these kind of arguments for almost 6 years on SI (George sure will remember...), so I am kind of tired on that issue.
Zeev
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