“Money alone is not going to resolve the problems” in Europe, where the “contagion is spreading” far beyond the so-called periphery, according to New York economics professor Nouriel Roubini. “The contagion has now gone viral, cross Atlantic and global.” If you cannot see the clip below, look here.
He also offers some good historical perspective on the call for a return to the gold standard.
;
Roubini is loosing more and more credibility with me.
Quote “Gold has caused Depression of 30’s”. Please ….
By the way I am not gold bug and returning of gold would not prevent recessions or cycles.
It would fix some stuff but made other stuff much more harder to target.
There should be something behind fiat currency. Something of value, not just promise.
See Peter Bernstein’s “The Power of Gold” for more background on the centuries of scandal behind men and gold.
Hi Danielle,
I don’t promote gold standard but
I don’t agree with Roubini that gold has caused Great Depression.
From your point of view, what has caused Great Depression, was it gold or was gold even main contributor ?
Governments and banks hate gold. What better reason to love it.
Dont forget that lots of investment banks have brought out lots of gold investment products in the past few years, don’t kid yourself, banks have made a killing selling the concept of gold investment to the masses.
Mass speculation and insufficient controls on leverage and the co-mingled investment banks caused the asset market crash (housing, stocks, commodities) of 1929 and the depression that followed. Speculating in gold was part of the feeding frenzy that led up to the crash. Very like today in my view.
So fiat money that has no backing is the answer. Central banks can just print with no limits. Money must be backed by something real. Fiat money has always ended in tears.
Hi Danielle,
I really enjoy your work. I saw you at the recent Toronto Conference and a few YouTube videos before that.
Roubini … sigh. I am afraid I have given up on him. If you follow his Twitter he is actually [b]VERY[/b] insulting to people. It is a simple-enough concept to understand that Gold will discipline the money supply (or would a basket or hard assets.) And does the world need anything more than that at the present time? I suspect like many US Academia – (33% of econ prof heads paid by the Federal Reserve) that he has been co-opted. THe US and Europe have printed [b]6 Trillion dollars[/b] out of thin air… does he think there is no consequence to these actions?
Roubini said Gold would never go above $1100 – then he changed that to $1500. He isn’t worthy of being discussed on your site.
Please keep up the excellent work,
Gary