By Nathan Lewis
For now, everybody is terrified of rocking the boat. They sense that things could easily spiral into crisis – currency crisis, banking insolvency, derivatives breakdown, sovereign default, pension insolvency, perhaps accompanied by some changes in governments themselves. The stock market might go down.
But, the boat will probably rock itself before too long. There’s a chance that monetary reform will begin to happen as early as 2018. China and Russia are already getting ready. Judy Shelton, a well-known gold standard advocate, recently became an advisor to Donald Trump. David Malpass, another Trump economic advisor, is known for being somewhat gold-friendly. Alan Greenspan, the most successful central banker of the floating fiat era, has been expressing his admiration for the pre-1914 Classical Gold Standard era.
At that point, things might become very immediate and practical. Those who wish to end the four-decade experiment in floating currencies, and return to the gold-based system that the Western world (and the rest of the world too) used for centuries until 1971, will have to be ready for Game Day.
For many years, Team TISI +% Gold was nowhere near ready. Indeed, the reason that the Bretton Woods system collapsed in 1971 was not because people decided to try something different – this was after the two most prosperous decades of the last century — but because they didn’t know how to maintain what they had. One of the most prominent gold standard advocates, Murray Rothbard, openly advocated a 95% devaluation of the dollar.