Tags: gold

Economist: Start Minting Gold Coins

By Julie Crawshaw   |   Wednesday, 15 Jul 2009 09:27 AM

"Monetary gold is increasingly unavailable, and in case of a crisis it can no longer be relied upon to come to the rescue,” economist Antal Fekete says.

“Gold is where the buck stops,” Fekete wrote in an open letter to former Federal Reserve Board chair Paul Volcker, now head of President Obama’s Economic Recovery Advisory Board.

The gold basis, which began at 100 percent and now stands at zero, “heralds the greatest monetary crisis of all times.”

The solution, Fekete said, is relatively simple: Remobilize the world’s gold by opening the U.S. Mint to the free and unlimited coinage of gold.

“There should be no attempt to fix, cap, or otherwise control the dollar price of gold,” Fekete said.

“The gold coins of the United States ought to be made available to bondholders in order to provide for an orderly retirement of debt, if that is what the bondholders want.

“When they become convinced that this avenue is open to them through the unlimited availability of gold coins of the realm, the scrambling for liquidity will peter out and stability return,” he said.

Sales of gold and silver bullion coins were up sharply in the first half of 2009 before abating somewhat in late spring and early summer.

“Over the last 30 days, business has picked up again,” Scott Thomas, president of American Precious Metals Exchange, told The Wall Street Journal. “There is a lot of skepticism still in the market about which way the economy is heading.”

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"Monetary gold is increasingly unavailable, and in case of a crisis it can no longer be relied upon to come to the rescue,” economist Antal Fekete says.“Gold is where the buck stops,” Fekete wrote in an open letter to former Federal Reserve Board chair Paul Volcker, now...
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2009-27-15
 

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