Daily Archives: September 18, 2012

More Thoughts on a Gold Standard

The article The Long Wave Versus the Printing Press: Central Banks Go All-In posted on DollarCollapse.com motivated us to test an idea. The author states (the emphasis is ours):

This time around the world’s central banks have a new set of tools. In past cycles money was mostly gold and silver, which is to say it was real and in limited supply. Credit might have been flexible because of fractional reserve banking, but the money at the base of the financial system couldn’t be created out of thin air. Today, in contrast, it can. Since the US broke the final link between national currencies and gold in 1971, everyone has been running fiat currencies that can be created in infinite quantities and depend for their value on the trust we place in the competence and honesty of our leaders.

Indeed, the primary reason proponents urge a return to a gold standard is to contain the money supply and indirectly, the credit market and the economy. The effect on the economy we will put aside, but we do want to consider the relationship between base money and the total money supply and the credit market.

From Gadhafi to Benghazi

From Gadhafi to Benghazi

September 18, 2012 | 0900 GMT

Stratfor

By George Friedman

Last week, four American diplomats were killed when armed men attacked the U.S. Consulate in Benghazi, Libya. The attackers’ apparent motivation was that someone, apparently American but with an uncertain identity, posted a video on YouTube several months ago that deliberately defamed the Prophet Mohammed. The attack in Benghazi was portrayed as retribution for the defamation, with the attackers holding all Americans equally guilty for the video, though it was likely a pretext for deeper grievances. The riots spread to other countries, including Egypt, Tunisia and Yemen, although no American casualties were reported in the other riots. The unrest appears to have subsided over the weekend.

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