GOLD 0.51% $1,391.7 gold futures

The inflationary crisis was the 70's and it was solved by the...

  1. 679 Posts.
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    The inflationary crisis was the 70's and it was solved by the eighties. In fact, Paul Volker, then head of the fomc, was wildly unpopular for stopping inflation that soared past 20%. He lost the chair to Greenspan under Regan because Americans were opposed to the ensuing rate rises. Gold had a dream run until Greenspan started fiddling with rates and back stabbing his mentor who was an Austrian purist who believed rates must be set by the market and not the fomc. Greenspan's solution to down turns was to undo the unpopular work of Volker. Volker was the last central banker to make a tough decision. But gold soared during his reign.

    As for the deflation of the great depression I am not knowledgeable. However, teetering on the brink of deflation is enough for gold to rally, which suggests that investors may disagree with your point on the gold standard.
 
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