Thursday, July 12, 2012

The Importance of LIBOR Explained

Listen closely to what he's saying. This is exactly why we need a stable benchmark in the financial industry. Money must have a tangible reference of value, something physical to measure against. Not a price that is determined by any one individual or group. A consistant unit of measure is essential for a successful medium of exchange. It cannot be something that is created at the will of politicians. Imagine building a house when all the tradesmen use a different unit of measure? It will never work. Historically gold has been this unit of measure for value because of it's natural properties. It is rare, uniform, indestructible, safely storable, recognizable and easily divisible into uniform units. Gold has all the perfect characteristics to perform as a medium of exchange or money! It has out lasted every bank, stock market, currency and government that has ever existed. It will always be the ultimate winner when the financial system is at risk. This is an axiom not an opinion.  BK