return the gold standard as world unravels, page-31

Goevernments DO have financial constraints or they end up like Zimbabwee. Printing money devalues the currency making everything more and more expensive. Basic economics, the greater supply of something the less its value.

All money is debt. If governments actually supplied their own money things may be different but they don't. To raise money outside of taxation governments issue bonds, bonds are bought by investors, or if there aren't enough of those by the Federal Reserve. Everytime they do this their debt obligations just get bigger and bigger. The US is already past the cababilities of the next generation to pay this debt back.

Markets have choices, would you rather hold US$ or Swiss Francs for a 10 year term? If the market determines the risk in holding US assets is too great they stop purchasing bonds, things happen very quickly after that and there's very little anyone can do to stop it. The US is between a rock and a hard place as raising interest rates to improve bond yields will crush an already imploding economy.

Bonds or gold? What will be around in 10 years time? The market is deciding.