Gold in 2023 (Translation: The Dollar in 2023)

Posted by freedomforall 1 month, 1 week ago to Economics
3 comments | Share | Flag

Excerpt:
"The first point to note is that between 1950—1971, the price of oil in dollars was remarkably stable with almost no variation. Pricing agreements stuck. It was also the time of the Bretton Woods agreement, which was suspended in 1971. Bretton Woods tied the dollar credibly to gold, until the expansion of dollar credit became too great for the agreement to bear. The link was then broken, and the price of oil in dollars began to rise.

Priced in US dollars, not only has the price of crude been incredibly volatile but before the Lehman crisis by June 2008 it had increased fifty-four times. Measured in gold it had merely doubled. Therefore, macroeconomists have a case to answer about the suitability of their dollar currency replacement for gold in its role as a stable medium of exchange.
...
Since 1970, the US dollar, which establishment economists accept as the de facto replacement for gold, has lost 98% of its purchasing power priced in gold which we have established as still fulfilling the functions of sound money by pricing commodities with minimal variation. The other three major currencies’ performance has been similarly abysmal.

Analysts analysing the prospects for gold invariably assume, against the evidence, that price variations emanate from gold, and not the currencies detached from legal money. There is little point in following this convention when we know that priced in legal money commodities and therefore the wholesale values of manufactured goods can be expected to change little. The correct approach can only be to examine the outlook for fiat currencies themselves, and that is what I shall do, starting with the US dollar."
SOURCE URL: https://www.goldmoney.com/research/gold-in-2023


Add Comment

FORMATTING HELP

All Comments Hide marked as read Mark all as read

  • Posted by 25n56il4 1 month, 1 week ago
    I really like visiting U S Coins and buying gold and silver. Most comforting. I think Biden is really crazy with his March 2022 proclamation. He thinks he is king of the world. I know people think he is being controlled, but he knows what is going on, don't be fooled by all this.
    Reply | Mark as read | Best of... | Permalink  
  • Posted by $ Markus_Katabri 1 month ago
    And that my friends was the 2nd time in the last 100 years that the United States functionally defaulted on it’s sovereign debt. Any foreign governments taking note should see that if you want to topple this empire you simply figure out how to change the value of a dollar from being worth ONE of itself to NONE of itself on the global markets. (That’s unseating it from reserve currency status. For does of ya dat don’t know nuthin’. ;) )
    Reply | Mark as read | Best of... | Permalink  

FORMATTING HELP

  • Comment hidden. Undo