OK. I have a question about this gold/inflation/fiat currency issue. Now, I agree that a gold standard is better. I’m always a fan of taking the government out of the loop and I understand the importance of a free currency market. But …
I have heard for 10 years that the dollar will collapse and gold will rule.
I realize this is much like those who say “we’ve been hearing about the housing bubble for years and it hasn’t happened.” To answer those skeptics, we can point to many important factors that are becoming saturated to the point where they must break: ARM resets, price-to-income ratios, %of neg-am loans, the dependence of the economy on RE & Construction jobs, etc.
My question is – why now? What key economic conditions make the dollar so suceptible that everyone is discussing massive inflation, declaring the end of the dollar and proclaiming gold as long-term play?
We have been off the gold standard for so long – why now? What is becoming saturated? What variables are hitting multi-decade highs that are causing people like poway seller and themessthatgreenspanmade.com to claim the end of the dollar?
