Ralph Benko of Forbes surveys the shifts occurring from England to India to Latin America
[University of Chicago economist Austan] Goolsbee, along with dogmatic reactionaries such as Paul Krugman, studiously ignore the implications of the utterly damning critique of the fiduciary currency system by The Bank of England last December in its paper titled "Reform of the International Financial System." Meanwhile, outside the self-referential Cult of Neo-Keynesianism, in the past two years a dramatic shift in the international elite opinion stream is bringing the gold
option back into consideration.
From Latin America, Manuel Hinds, twice Finance Minister of El Salvador, is on record in The Wall Street Journal advocating the classical gold
standard. The "Sage of Mexico," Hugo Salinas-Price, has kept the torch lit both for gold
at Plata.com to increasing worldwide respectful attention. Three weeks ago this column noted an elegant work extolling the gold
standard emerging from Chile, Axel Kaiser's Intervention and Misery: 1929-2008.
Emerging from Europe, two weeks ago a column in this space delineated how the Deutsche Bank and the Bundesbank have come to the fore in rehabilitating gold
's reputation. Emerging from Asia, last week this column reprised handsome praise for the gold
standard from one of China's most respected and influential monetary authorities.
Since then, from the world's largest democracy, India's leading advocate of monetary integrity, S.S. Tarapore, former deputy governor of the Reserve Bank of India (and chairman of the iconic Tarapore Committee which, during his tenure, laid the roadmap for India's capital account convertibility) published a significant piece in The Hindu Business Line entitled High Time RBI bought more gold
, reprising some of the evidence of the rehabilitation of gold
as the appropriate reserve asset for central banks and urging its bulk acquisition by the RBI.
Meanwhile, with worldwide implications, Basel III, supported by the Federal Reserve and the FDIC, moves gold
to a Tier I asset.Read Article