The Gold Standard | Gold riles ‘Free Exchange’

‘Free Exchange’ is mostly a centrist, pro-establishment (I am not saying it in a pejorative sense) blog under the ’Economist’ banner. Hence, it is not exactly a surprise to find the blogger warning of the bubble in Gold here. His parting advice to investors is this:

Another thing you can’t take with you is unrealised gains. Investors who are sitting on such gains on their gold positions would do well to remember this before the current bubble deflates. [Full post here]

Given his post on the Eurozone (that includes comments on the rise of far-right extremism in Greece and Norway),

One has to feel sorry for Europe, in a way. It did its best to learn from history, hoping never to repeat it. But history is a long, complex course, and there’s always a chance that the lessons you miss are the most important ones.

on the quality of global political leadership,

Lives and livelihoods are on the line! Nothing good will come of a return to recession, to saying nothing of a new financial meltdown. And yet, the trifling continues. Sometimes history gives us individuals equal to troubling circumstances. Sometimes it doesn’t, and the world suffers. Maybe everything will turn out all right. Shame on the leaders of Europe and America for working so diligently to ensure that it doesn’t.

and on the problem of finding firms to hire the long-term unemployed in the US,

while the unemployment rate in the early 1980s peaked above the top unemployment rate of this latest downturn, the average duration of unemployment in the early 1980s was about half of the current level. The result is an unprecedented crisis of long-term unemployment.

it would be useful to know the circumstances under which the price of gold would start to deflate and roughly when would it start to happen.

Perhaps, he might like to take this news into account too, before he attempts to answer the above questions:

The SNB narrowed its target range for the three-month Libor interbank rate to 0.00-0.25 percent from 0.00-0.75 percent, and said it would very significantly increase the supply of francs to the money market over the next few days. [Full report here, just in]


DISCLAIMER: This is an archived post from the Indian National Interest blogroll. Views expressed are those of the blogger's and do not represent The Takshashila Institution’s view.