We made a major mistake when we allowed Ivy League professors advise President Nixon into going off all vestiges of a gold standard in 1973, when the dollar became the world’s reserve currency.
Paper with no intrinsic value has since been accepted as having value but has been constantly devalued by American politicians with spend-and-spend and tax-and-tax philosophy.
Unfortunately, the limit of the world’s patience about our budget discipline has been reached.
Individual holding of gold is no solution for ensuing inflation. Gold provides no income. There are better ways to overcome inflation. But the eventual cheapening dollar is a major domestic and global problem. Particularly, if it no longer should serve as the world’s reserve currency, and no one accepts it as having global value. (See the Earl J Weinreb NewsHole® comments and @BusinessNewshole omotedat twitter.)
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