One reader wrote a question many seem to have:
LOVE YOUR BLOGS MARTIN!!!
Taking the Italian issue one step further—
Could we then deduce that if the Italians don’t want more austerity and that type thinking does spread to the rest of Europe, because the handwriting is on the wall for the people in power—then they get the opposite of austerity? Which is good for gold? And that’s why gold is rallying?
Eventually, we are looking at the free markets compelling government to enter monetary reform. There is a HIGH probability that we will end up with a two-tier monetary system whereby there will be a One World RESERVE Currency for international transactions and each country maintaining its own separate currency. This is most likely the configuration we will adopt. There will be no gold standard or anything of the sort. We have actually gone far beyond that and entered the new realm where money is truly the productive capacity of a nation that is reflected much as a share in a corporation rises and falls according to confidence.
Gold’s role in this is to make the transition much as tangible assets allowed wealth to be transferred between currencies in Germany or after the Sovereign Debt Crisis of 1931. Tangible assets also served as the transition after World War II when completely new currencies were born leaving behind old debts.
We will be going over this at the Sovereign Debt Crisis Conference on March 16th in Philadelphia.
It is only a question of time. The current system has an expiration date attached. Even if you hunt down all the rich, kill them, and confiscate all their assets, it is still not enough to solve the problem. So what will you do for the next year? Patience is required.