Western Central Banks Are Culpable For The
Great Recession
There is little doubt in my
mind that the central banks (big government entities) of Western countries are
to a large extent responsible for the Great Recession and the rapid and
unsustainable expansion of government debt that has occurred over the past two
decades.
Twice in the last ten years
Western central banks have lowered the price of money (key interest rates) to
nearly zero for extended periods of time and they still continue this reckless
policy as I write this blog. In at least to other, previous blog posts, I have discussed this
issue in more depth.
Return To Gold Standard To Reform The Monetary
System
Thus, it is understandable
that central banks have finally come under enormous scrutiny. Alternatives to
the current, perceived to be broken, monetary system are being considered. One
possible alternative, which has garnered some popularity, is the call for a
return to the Gold Standard.
Digital Money Is Next
Gold is totally antiquated and
nostalgic. We are on the cusp to introducing digital money.
Gold is easily manipulated and
dependent on mining, jewelry demand, and human save haven fears.
Only Luddites would call for a
return to the Gold Standard. The only thing, I believe, was a benefit of the
Gold Standard is that it quasi represented a single, global currency or a point
of reference with all its consequences.
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