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$1,391.7 gold futures

Well actually some would argue that the dismantling of glass...

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QForceWarrior

512 Posts.

27/10/17

10:33

Post #: 28245552
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Originally posted by gozinsa ↑

Huh, how you don't see the connection to Gold is completely beyond me.

I'd argue the solution you propose with more regulations, will always just be a temporary bandaid fix. First of all, they will find ways around the regulations. Second, bad banks will just ignore them anyway. Third, there is no way to know the knock on effects of regulations, the system is too complex to predict. Fourth, it doesn't work in practice, we've just witnessed the mess regulations cause, the central bank after all, is the ultimate regulator, and it created this mess in the first place.

The real problem is that the USD is not backed by anything of value, since the US government abolished the Gold standard, and the central bank is free to supply as much money as they want to fund anything they want. War, bailouts, on and on and on.

The only real solution is a return to the Gold standard, in a modern form, perhaps Gold backed crypto currencies. We don't need central banks to artificially set the interest rates, the free market will do it.

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Well actually some would argue that the dismantling of glass Steagall and lack of regulation in the OTC derivatives market that caused the problem. Transparency is key. As for gold price fix/peg and how the people felt about it is another story.
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