An Op Ed posted in the New York Times 04-12-2013 by Economist
Paul Krugman, Ph.D. currently Distinguished Professor, Graduate Center of the City University of New York, and Columnist for the New York Times explains the differences between
Fiat Currency elitists and "Gold bugs."
"What do I mean by goldbuggism? Not the Notion that buying gold sometimes
makes sense. Gold has been a very good investment since the early 2000s, and it’s probably not all bubble. One way to
think about this is that gold is like a very long-term bond that’s protected from inflation; and actual long-term inflation-protected
bonds have also seen big price increases, reflecting a general perception that there aren’t enough alternative good
No, being a goldbug means asserting
that gold offers unique security in troubled times; it also means asserting that all would be well if we abolished the
Federal Reserve and returned to the good old gold standard, in which the value of the dollar was fixed in terms of gold and
that was that. And both forms of goldbuggism soared after 2008."
SDO ASC'S CURRENT VIEW IS THAT, UNLIKELY AS IT SEEMS IN
TODAY'S DIGITAL WORLD, GOLD WILL CONTINUE TO BE THE FAVORED COMMODITY FOR MONETARY EXCHANGE INTO STRONG CURRENCIES - US$, €, £, ¥.
DURING TIMES OF ECONOMIC DESTABILIZATION, AS IS CURRENTLY NOW BEING EXPERIENCED IN VENEZUELA IS AN EXAMPLE. GOLD IS A COMMODITY
CRITICAL FOR SUSTAINING INDIVIDUAL NEEDS AND CENTRAL BANK POWER; IT WILL CONTINUE TO BE THE TREASURY OR CENTRAL
BANK ASSET OF CHOICE FOR THOSE REPUBLICS THAT ARE STEPS DOWN FROM THE G7; GOLD AND PETROLEUM ARE DEFINITELY COVETED
BY MANY MEMBERS OF THE G20. WE THINK THE DEMAND
FOR GOLD, COPPER, SILVER, MOLYBDENUM, ALUMINUM, IRON, LITHIUM, ALONG WITH THE FERRO ALLOYS (NIOBIUM, FOR EXAMPLE), THE
15 "RARE-EARTH" ELEMENTS, AND PETROLEUM WILL EXPAND GEOMETRICALLY, IN PROPORTION WITH POPULATION GROWTH,
COLLECTIVE INTELLECTUAL CAPACITIES, AND EARNING POWER. WE BELIEVE THIS TO BE THE CASE AS PEOPLES' ATTEMPTS INCREASE
FREE THEMSELVES FROM TOTALITARIAN REGIMES.
SEPARATELY, INCREASED INDUSTRIAL DEMAND AND THE NECESSITY OF MAINTAINING INDIVIDUAL ECONOMIES INTACT MAY FOLLOW