The Wealth of Generations, Work in Progress

The Wealth of Generations was started to interactively discuss and collectively learn to understand the "new" political economic paradigm. Central in our discussions is the Rationality of Investing. Articles are continuously revised.

6 January 2010

The Role of Gold in Times of Monetary Distress: Beyond Gold Fever.

The role of Gold in times of monetary distress is to close the balance of the central bank.

We may quite safely assume that the current trend, where gold gains in price world wide in order to close the balance, primarily of the FED but also of the other central banks will continue for the foreseeable future.

Blogs discussing the economics of monetization and price inflation however, can be found sprouting all over the internet. The current paradigm that includes rising gold prices is slowly becoming mainstream.

We need to start contemplating the future beyond rising gold prices. What will trigger the end of "gold fever", which are the criteria that need to be in place to move beyond creative destruction and towards constructive economics?

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