monogram thats one of the reasons so many mines will close, this is happening with all the other commodities and there is no reason couldn't happen with gold.
and tell me Obama couldn't regulate gold and get the world to go along with him. Roosevelt made illegal to own it.
What also happens in debt deflation is that the cost of mining falls as well as oil and labor prices fall, so 200 gold might be ok, there were certainly mines in the 1990s that were still open and if cost fall to 1990s levels then 200 gold might ok for the low cost miners
One of the great Austrian economists Hayek wrote a book called "The Road to Serfdom", where he predicted that eventually capitalism would fail and as the crisis unfolded the sheer terror of the situation would con folks into handing over greater and greater powers to government in the hope that these powers would stabilize the world economically.
This governments at each step would fail to alliviate the situation and demand even greater control, the downward spiral would eventually end capitalism and a modified form of socialism would emerge that would be called capitalism. Hayek thought that this was extremely depressing so he wrote the book to warn about central planning, fiat money and government regulation.
Another semi Austrian Schumpeter through it would fail because the capitalist would destroy it themselves by forgetting why they we successful, Gailbraith thought it was doomed as well and thought it would be replaced by a neo socialism, Marx thought it would be killed through over production and we should simply jump to the conclusion centrally plan production, Bernanke is ironically Marx's alter ego in that he believes in a form of centrally planned consumption, Minksy had through in his theory of financial instability predicted exactly where we are today
