Roubini: Supporters of a Gold Standard Are ‘Lunatics and Hacks’

I cannot believe this #$%$ is calling people "hacks" who advocate a return to the gold standard. Moreover, the gold standard caused the Great Depression? I never heard that one before. Just goes to show even a professor in academia with his credentials can be a Kool-aid drinker and supporter of the status quo. He really gave himself away when he revealed his belief in Keynesian economic theory. Let's see what this clown has to say in a few years when we are experiencing 10% inflation and gold is at $5,000/oz.........LMAO

Roubini is right that cash as king, but some clarification is needed. This disinformation agent is trying to pull the wool over your eyes. To blame the great depression on gold is a fantastic lie. It was the artificial boom and bust of ireedemable debt that was to blame.

Most people still hold the foolish notion that a US dollar denominated ounce of gold tracks the physical market. Those who continue to add legitimacy to this lie either believe it outright or know the lie but use this metric to shape the public's perception of gold. Roubini is one of those folks.

What we are seeing in fact is that the gold market has become so utterly compromised, that the effects outlined by Gresham's Law are starting to take hold. This phenomenon will lead to the inevitable decoupling of paper and physical gold once and for all as all the bad money (paper) will have driven out the good (physical). Just as silver dimes were driven out of circulation when the metal content was cheapened.

Again, if all we have is paper gold to trade due to gold hoarding, we must equate the US dollar denominated price to the 'thing' that is most represented; paper gold. This is the real reason why the paper gold price falls and rises with the general market. It is just as another irredeemable promise among all others that have polluted our financial markets.

We are in a deflationary period where paper dollars are now made artificially scarce. In such an environment, the US dollars is and will continue to be king, even within the context of paper gold. Those who listen to idiots like Peter Schiff will not get the complete picture. The rising Gold price we are seeing is nothing but a charade designed to trap unsuspecting fools into an ever expanding market of paper lies. This is why Roubini is correct. But for how long will depend on the money masters ability to keep the illusion alive. they can turn the tap in either direction to steer the sheep wherever they want.

Pushers of paper gold will be wiped out. Gerald Celente found out the hard way. This is why physical metal is the ONLY asset that will protect you. ETFS, futures contracts, pool accounts, whatever are all just derivatives of the very thing you want to protect yourself against; the US dollar.

We have yet to see the deflationary collapse of bad debt I believe is coming. It may very well be a slow, drawn out affair but the effect will be the same -- a sudden (or slow) revaluation of tangible vs toxic assets.

Anything tied to someone else's ability to pay you back fairly will be deemed toxic. Whether its some GLD fund or a futures contract that will not be honored (excuses can and will be made to ensure this, just ask Mr Celente) or a nation's promise to address its insolvency.

The loss of confidence will force people to preserve whatever form of tangible wealth they have left and there is none more precious than the precious metals themselves.

My warning has been made --If you view gold's value through the lens of a US dollar denominated ounce, you are setting yourself up for a devastating loss. Gold's role is to preserve wealth during financial uncertainty. Those who treat it as some speculative vehicle simply don't understand gold's importance.

They will soon enough.

If gold was so bad then the Founding Fathers would have not made it Our money and the Bankers would not have worked so hard and long to get us off of it.

Is it just me or has this mentality become common in politics, finance and science?

"If you don't agree with me, you are a lunatic or a hack"

Smooth the business cycle...all it does is allow malinvestment to grow until it causes a depression like today.

I guess it's a good thing I decided not to go to NYU for an advanced degree in Economics. I'd fail. He doesn't even understand business and debt cycles.

Gold standard didnt cause the depression. Too much debt caused the depression. Debt causes the economy to grow faster than it's natural ability would allow without leverage. When debt(leverage) reach their maximum level the system collapses back to where it should have been had the economy had grown without steroids. Gold isnt the cause of crashes. Debt is the cause of crashes. Fractional reserve lending ALWAYS CAUSES BOOMS AND BUSTS.

Roubini's issues with gold come from pure loss of dollar manipulation, making dollars and everything that goes with those facts. It takes away the control of paper value and he who manipulates it. The gold standard is just that, a standard where that finite amount is it. You don't make more, you can't manipulate it and if you don't have it to cover your notes, you don't loan the notes. Of course banker will hate this. I would not only love to see a gold standard, but also a silver standard too. Why do you think China is pressing every day citizens to buy as much gold as possible? The have soda like machines that sell it by then thousands. If they back there yuan before America backs the dollar, you will see the new petrol power of the world.

And an economics degree doesn't guarantee an active brain

Gold is good money because they can't increase the total supply by more than 3% a year...and when you increase the money supply by the same % as your G.N.P...then you get 0 inflation and all the finance thieves have to go and get REAL jobs producing something of worth instead of making money by inflation and counterfieting, and trading....honest money will take the volitility out of all markets...and so bye bye trading.....Roubini is just another lazy theif who has never done any hard work..

His solution? print more money.....idiot!

Roubini is another status quo kool-aid drinker. Fiat currency is the elixir of the elite. The one thing that is true is that those in power at any level, want to pay others with something that has no cost to them. Gold is their enemy.

"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." Alan Greenspan, 1966

Roubini The Robber (via inflation) must love Richard Nixon who completely cut the dollar's ties with gold back in the day (1971?) -- it has worked out real good since the 1970's hasn't it Robber Roubini?? No booms or busts at all? Just smooth sailing on the paper dollar highway -- what an idiot!!! Or perhaps he just works for the enemy of honest money!

How did I ever think this guy had a brain in his head?

He simply doesn't get it. Of course his entire business hinges on the continuation of the current system....

A 1932 - 1964 SILVER Washington QUARTER in today's meltdown prices is worth (in fiat dollars) is $5.6080. Tell me once again why silver or gold wouldn't be good to back paper? How much gas can you get with today's quarter?

The solution is to allow the free market to dictate what any given currency of exchange will be. You will find that under a free and open market, the preferred money will be gold and all other forms of money will be naturally valued against this standard. Trying to legislate it so is the wrong way to go.

Those who don't understand why gold is the best form of money must learn what the required properties of sound money are and realize that theres nothing better than gold to satisfy those requirements.

The control of honest money by individuals transacting within a free and open market is what will make mankind free from debt servitude and government bondage. Without free choice, our financial destinies are written out for us by those who have the power to coin money and regulate its value.

This is why Roubini hates it so much, he wants us to be serfs

A few years ago, I bought gold between $600-$800/oz and now it's worth over $1,800/oz. i expect it to hit well over $2000/oz probably around $2,400/oz before i start selling 10%.

Best investment is GOLD!!!!

Jim Rickards says they blame gold for the great depression because they got the price wrong.