The Previous Gold Standard Explained
By James Rickards – International Finance
[FF Editorial: Jim in this short article has summed up succinctly, why any reset of the global financial system must have the Gold Standard as its anchor, and not the Gold Exchange Standard. In doing so, Jim has exploded the various myths and misrepresentations about the Gold Standard and the Great Depression. The gold standard did not cause the great depression. Period! Once you understand the true nature of Gold as the anchor of any stable financial system, it becomes elementary in our understanding as to the why and how the fiat currency system have caused and continues to cause all the booms and bursts cycles that have plagued the global economy since WWI. Jim has done us a big favour with this article, pulling the wool from our eyes and putting the central banks and their monetary policies in the spotlight.] End of Editorial
Some people who should know better who have their own reasons for disparaging the role of gold, and other people who don’t know better they’ve just heard this repeated so many times that they believe it to be true without ever really studying it.
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