Monday 30 May 2011
Posted by
Admin Hijrah Dinar
Gold is back on its track in response to Central Bank rate-cutting and liquidity moves. The sovereign debt crisis in Europe, the massive housing bubble in China and especially the credit bubble in China offer more reasons for Gold and Silver to advance alongside Europe’s sovereign-debt crisis, Which is showing no signs of abating. With global inflation accelerated the demand for precious metals seems to come into play to solve the ills of the globe.Besides, the snap back, there was an interesting interview this week with Human Events, Steve Forbes predicting, that not only gold and silver will snap back, but within the next five years it seems likely the United States will return to the gold standard to solve the variety of economical, fiscal, and monetary ills. With a return to the gold standard the United States will be forced to balance its books and have a concrete monetary system says President Ron Fricke of Regal Assets.
“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.
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.). 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.
So, when Federal Reserve Chairman Ben Bernanke appeared before the House Budget Committee in February, Ryan, who chairs the panel, asked Bernanke bluntly how many jobs the Fed’s quantitative-easing program had helped to create. Zilch! Just the opposite, it destroyed jobs, homes and the lives of millions today.
Politicians need to “get over” the notion that the Fed can guide the economy with monetary policy. Everyone is already aware that something is wrong with the dollar; there is no sense in hiding it. With the way the economy is going there is no reason to stray away from the Gold and Silver Market. They are the only safe investments that hedge inflation.
Source: http://goldcoinblogger.com/the-golden-answer/#more-3045
“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.
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.). 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.
So, when Federal Reserve Chairman Ben Bernanke appeared before the House Budget Committee in February, Ryan, who chairs the panel, asked Bernanke bluntly how many jobs the Fed’s quantitative-easing program had helped to create. Zilch! Just the opposite, it destroyed jobs, homes and the lives of millions today.
Politicians need to “get over” the notion that the Fed can guide the economy with monetary policy. Everyone is already aware that something is wrong with the dollar; there is no sense in hiding it. With the way the economy is going there is no reason to stray away from the Gold and Silver Market. They are the only safe investments that hedge inflation.
Source: http://goldcoinblogger.com/the-golden-answer/#more-3045
Category:
Gold Saving / Investment
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