Ben: "Hmmm, interesting article. Do I really want to give up my power as THE Central Banker of the World? Do I want to be known as THE Central Banker who destroyed the greatest country the world has ever seen? Do I really want to turn power over to Putin, the Chinese, or the Mexicans? Nah, no more QE. Let's see if I can take gold back down to $500 and teach these guys a lesson and then we can start over."
that were to happen, purchasing power would be preserved for the USD. However, like the planets in our star system would be if the sun were to go supernova and collapse to a dwarf, the inflationary damage has already been done to nearly every national currency outside of the the US. Should Europe decide to inflate, demand for gold will continue virtually unabated - which seems especially likely now that short-sighted socialism is infesting that part of the world.
With a stable dollar and most, if not all other global currencies in turmoil, good luck getting paper to be readily accepted outside of North America. Germany is mortally fearful of inflation the better part of a century after the Weimar Republic's financial travesty, so to think populations experiencing paper putrescence within their own lifetimes will dance right back to it is simply mistaken.
If it weren't for the countless dynamic threads in play right now, I might see both paper
and physical gold potentially declining to 3 digits again. However, I can't agree with you at this point, or we'd both be wrong
There is no turning back no matter what Bernanke's Fed does. Game over.
As for the article, in relation to paper vs. physical precious metal prices: the real value of gold (and perhaps silver) will be even more obscured than it already is.
