Gold only shows up in street level trade when there is a politico-economic disaster, as history shows. When all is well, most trade is transacted in usury-free private credit. So what can we make from this?
Feel free to forward this by email to three of your friends.
“Putin is the biggest gold bug”, was the title of a recent Bloomberg op-ed by Leonid Bershidsky the founding editor of Vedomosti, Russia’s top business daily. He explains why the Russian central bank has accumulated almost 100 tons of gold in the last four months of 2014. It is an acceleration of the gold buying program which started in 2007, a year before the Lehman collapse....We should all be reading Koos, who is covering this beat well...
More countries are repatriating their gold. For them, an audit is not enough. They would like their gold back. Azerbaijan, Ecuador, Iran, Libya, Mexico, Romania and Venezuela is a short list of countries that have requests into their custodians to transfer some or all their gold back to their countries.
Feel free to forward this by email to three of your friends.
2 comments:
Also is it possible that Gresham's law has something to do with the absence of gold as money?
Gold is used as money to extinguish debt when one side either does not trust or expects never to see the other side again. Currency is subject to Copernicus's (Gresham's) law because it is relevant to praxeology.
And the worse currency of all, non-asset backed credit tallies, are the most virulent strain of these virii. It drives out asset back tallies as a currency (bills of exchange, etc.)
Post a Comment