Originally Posted by mike762
It also covers how gold is possibly being readied for official re-monetization.


http://www.safehaven.com/article/25577/sprout-less-gold-tier-1-capital
If by re-monetization is meant simply lifting the legal penalties connected to the use of gold and silver as money, that would be wonderful, but I'm assuming it's merely referring to some sort of gold backed paper currency. The latter will suffer from the same defect that led to the run on the dollar that caused Nixon to close the gold exchange window in 1971, since there's no way, even with gold backing, that they'd stop spending, printing, and borrowing. As you've observed many times, they really cannot stop at this point, or the whole system crashes.

Inflation is just as easy with a gold backed currency as with a pure fiat currency, as Nixon proved. The limit on it with gold backing, however, is that as soon as folks lose confidence, they start cashing in for the real thing (gold), and the Treasury's stockpiles become depleted, so in that sense there is a natural limit on how much printing they can do with a truly gold backed currency before they either have to rein in the printing/spending/borrowing, or abandon it and start up again a pure, debt based, fiat system, as in 1971.

That being the case, any effort to start again, at this point, with a truly gold backed currency would only end in failure as sure as the FRN is failing. That only leaves a true gold standard, i.e., simply lifting the penalties on gold and silver as money (as is, to this day, required by the US Constitution), without backing the FRN, and let the chips fall where they may. But I'm not holding my breath.