re: "Forbes predicts gold standard? Wouldn't that cause countries holding dollars to cash in their dollars and empty our treasury?"
It might, sure, if the price of gold was too low.
On the other hand, the dollar was backed by gold and silver from its inception until 1971, and it wasn't until then that there was much of a risk that any country would cash in its dollars.
However, if there are more dollars in existence than the backing material can cover, then of course the dollars will be cashed in. That's what France was threatening to do when Nixon defaulted on our promise to dollar holders.
-----
On a somewhat different note, Gold is up $18 right now. I'm not sure of the reason, but I wouldn't be at all surprised if the INEVITABILITY of QE3 isn't beginning to sink in.
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
| 