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Message: Devaluation

Re: Devaluation

posted on Mar 08, 2009 05:49AM

That is a great article, GWTW. I think the guy is spot on. Only way to reflate the system is to go back on gold at say $5000 an ounce. That would light a fire under the assets markets and as all come back into line with historical norms verses gold and the system becomes solvent again.

Savers get wiped out but I don't see an alternative and they are already wiped out but just haven't caught on yet. At least by going back on gold you put an end to the rapid inflation that will ensue and once the system has rebooted, governments will have to live within their means and stop printing money. I prefer gold to lead.

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