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Jim Rickards: Who will bail out the Fed and how high for gold?
10:55a ET Wednesday, November 23, 2011
Dear Friend of GATA and Gold:
Writing for King World News, geopolitical analyst James G. Rickards examines the accounting legerdemain that keeps the U.S. Treasury and Federal Reserve seeming solvent when in fact they are long past busted. Rickards writes: "The United States now has a system in which the Treasury runs huge deficits and sells bonds to keep from going broke. The Fed prints money to buy those bonds and loses money owning them. Then the Treasury takes IOUs back from the Fed to keep the Fed from going broke. This arrangement resembles two drunks leaning on each other so neither one falls down. Today, with its 50-1 leverage and investment in volatile securities, the Fed looks more like a poorly run hedge fund than a central bank."
When the scam is understood, Rickards writes, it might be papered over with Special Drawing Rights from the International Monetary Fund -- or by a return to gold backing for U.S. currency, which would require a much higher gold price. Rickards' commentary is headlined "Who Will Bail Out the Fed and How High for Gold?" and you can find it at the King World News Internet site here:
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/23_J...
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
The United States Once Again Can Establish
a Stable Dollar Worth Its Weight in Gold
Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, has released a plan to restore economic growth through a stable dollar.
The plan, titled "The True Gold Standard: A Monetary Reform Plan Without Official Reserve Currencies," responds to the recurrent economic crises of the last century and outlines a detailed proposal for America's leadership on "how we get from here to there." That is, how we get from the present unstable paper dollar to a stable dollar as good as gold.
James Grant, author and editor of Grant's Interest Rate Observer, says of the Lehrman plan: "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman the country has finally found him."
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