Can Gold Save a Choking Planet?
by Richard Russell
by Richard Russell: Inflate
man cannot be lost in a crowd." An old Maori saying.
debt of the US is now well over $16 trillion and growing at the
rate of over one trillion dollars a year. It can never be paid off
through the "normal" means. Paying off by normal means
would entail a huge, really killer boost in taxes and a brutal unmerciful,
slashing of entitlements.
The only way
the US's debts can ever be seriously addressed is to devalue
The US owns
the world's greatest hoard of gold. Here's what I think the authorities
have to do. They should unilaterally, overnight raise the price
of gold to a high value, maybe around $10,000 an ounce. Thus, each
dollar would be worth one ten-thousandth of an ounce of gold. This
would allow our enormous debt to be paid off with vastly devalued
be inflationary, since everyone who owned gold would own a pile
of devalued dollars. The huge increase in the number of dollars
would drive prices up, and that would work against the current forces
gold would in turn (in order to compete) devalue their own
currencies, and thus be able to pay off their own "impossible"
debts. In the end, a new world monetary system would have to be
established, but the terrible problem of a planet choking on debt
would be solved.
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© 2012 321 Gold