Sunday, August 7, 2011

Jim Rickards: A New Gold Standard Will Mean $16,000-$44,000 Gold

More headlines from GATA 2011:
*Jim Rickards: the 4 horsemen of dollar apocalypse: Multiple Reserve currencies, SDRs, Gold or chaos. I'm not predicting which one.
*Jim Rickards: SDR is the Euro on steroids. A locked basket of currencies managed by IMF. fiat money, unbacked. Lagarde already testing....
*Rickards: IMF issued billions of SDRs in 2009. They are testing the system to be behind the next bailout. This is the power elite's solution
*Rickards: Using global money supply gold price: $16,000 to $44,000 (depending on metric and % backing) if there is a new gold standard
*Rickards: and of course the other possible scenario is chaos. Emergency powers. Martial law. FDR's gold seizure all over again.
*Rickards: in such a situation the US would confiscate European gold (60% of European gold is in NY).
*Rickards: gold has not been taught for 30 years, almost 2 generations of financial advisers ignorant of gold. you need to educate yourself.
*Eric Sprott: major funds know nothing about gold, silver market. Very difficult to bring institutions into gold and silver.
Sprott: Institutional fund investment in gold is close to 0.75% of funds. If we take away this room, it's only 0.5%

*Alasdair Macleod: Britain became the most powerful nation on earth after adopting gold standard. Boom-bust cycles are caused by artificial credit.
*Macleod: when the dollar goes down the tubes it will take down all the world's paper money system.
*Macleod: Hyperinflation is on the way. Fed is mimicking Reichsbank 1922 actions. BoE similarly.
*Macleod: priced in sound money assets and goods will continue to deflate. It is only in fiat money that they are rising.
*Macleod shows chart of GDP deflacted by True Money Supply. In real terms the GDP has contracted by over 12%, which is how it feels.
*Macleod: dollar price of gold is going exponential. visible confirmation of coming hyperinflation.