This week, MSNBC host Dylan Ratigan spent a good amount of his time dedicated to gold. One of his guests, Matthew Bishop, said that the type of people that are investing in gold right now are some of the smartest investors in the world such as John Paulson and Ray Dalio. They are recognizing a crisis with paper money and looking to gold as an alternative.
Posted by Thomas Paterson
Thursday, April 12th, 2012
Gold Made Simple
A couple of weeks back Ben Bernanke dedicated an entire lecture to talking down the gold standard. What was fascinating was not the usual misunderstandings/propaganda he used to bash the idea of a gold standard, but that the Fed chair devoted so much time at all to the topic of gold.
It clearly shows that the topic of gold isn’t going anywhere and those that have been loudly shouting about the need for money to be once again a commodity for years are finally starting to be heard all the way to the very highest powers on the globe.
In short gold bugs are finally starting to win.
Well, here is another example of the gold bugs voices being heard in the mainstream. Dylan Ratigan who hosts a show on MSNBC dedicated a chunk of his show to the topic of gold this week.
What is particularly refreshing about this piece is that he tries to give a pretty fair voice to those advocating gold.
MSNBC had a guest on, Matthew Bishop, who’s authored a book titled “In Gold We Trust”. He makes a very interesting point about the type of people who are investing in gold. He found that it’s not the usual ‘guns, gold and god’ “bunch of crazies”, but rather some of the smartest investors in the world who are turning to gold. He notes:
… the reality is that some of the smartest investors, like John Paulson [are buying gold]. The people that called the down turn right, people like Ray Dalio, they are big into gold.But more intriguingly is the reason that Bishop sights that these top investors are buying gold:
They see that there is a big crisis coming up with our paper money… paper money is being destroyed by QE, they think gold is a good alternative. I think that it [gold] should be seen as a canary in ‘goldmine’.
Whilst it is encouraging that gold is once again being talked about seriously as an alternative to paper money the arguments around gold still need to be framed correctly.
Most serious gold bugs DON’T want to return to a gold standard. Rather they want to see competing currencies evolve and let people choose whatever it is they want to use as money. If people want to use gold let them, but people shouldn’t be forced to use gold anymore than people should be forced to used paper currencies.
This is the idea that we wrote about that Ron Paul put forward to Fed Chair Ben Bernanke when they last faced each other.
The call shouldn’t be for a return to gold but rather it should be a call for the end of the monopoly powers granted to central banks to counterfeit the money supply when if any citizen did the same they would end up in prison. THIS is the real argument that has yet to gain traction in the mainstream, but it is coming. At least talking about gold seriously is a start.
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