The Emerging New Monetarism: Gold Convertibility To Save The Euro

Professor Robert Mundell urges gold convertibility for the euro, the currency which he fathered, as well as for the dollar. This is a major step forward. Thought leaders are abandoning “old monetarism,” which was vainly fixated on quantity. Even its chief proponent, Milton Friedman, acknowledged old monetarism as unsuccessful in a 2003 interview with the Financial Times. An emerging “new monetarism” is quickly taking its place — one that focuses on the quality, not quantity, of money.

Empirical data suggest that the gold dollar represents the epitome of quality. As Forbes’ own Steve Forbes advised the presidential candidates last week, the “debate should be focused on what the best gold system is, not on whether we need to go back on one.”   LINK...
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There is no question in our mind that GOLD will re-establish itself in the monetary system in some way or another. It's inevitable because there is no other substance on earth with such perfect qualities to perform as a medium of exchange(money). Yes, gold has its ups and downs but don't forget, it's NOT gold that changes, it's the value of the currency it's measured against that changes. Historically gold has always maintained its value when measured against real assets and the cost of living.

Don't forget gold's GUARANTEES:

• It can never go bankrupt
• It can never be worth ZERO
• It can NOT be created in abundance
• It takes the equivalent of 500 years of labour to produce just 1oz
• It has NO counter-party risk
• It cannot rust, corrode or tarnish
• It is everlasting
• It is easily divisible
• It is the ONLY monetary asset that has outlasted EVERY government, currency or stock market that has ever existed in the world.

NO other asset class in history can even come close to the outstanding track record of gold as money. It is the ONLY standard by which your wealth should be measured against.  BK