Why, after years of the market's neglect of gold, is the paper money price of gold now on the rise? Would it be too far-fetched to assume that it could reflect market agents' growing concern about a forthcoming great...
To answer a reader question, I revisited Rothbard's transition plan for 100% gold. This is cut and pasted from the Mystery of Banking (Richardson and Synder, 1983), pp. 265-267.
The gold standard supposed a limit to the fiscal voracity of governments, and suspending it unleashed the perverse proclivity of the states toward indebtedness and to pass the current imbalances on to future generations.
Nixon’s closing the gold window should be seen as the end of the last remnant of the gold standard, not some kind of market failure. Governments controlled most of the gold and set its price.
Why, after years of the market's neglect of gold, is the paper money price of gold now on the rise? Would it be too far-fetched to assume that it could reflect market agents' growing concern about a forthcoming great...
