Gold Can Help India Set Global Agenda On Monetary Policy
By GCRU Gold News on Sunday, October 8 2017, 01:55 - Permalink
Gold could well be on the cusp of a historic move — not merely from a price action standpoint — but from the perspective of how global monetary policy is conducted.
Gold is money and currencies have to be backed to anywhere between 40 to 100 per cent by gold for them to have legitimacy as legal tender in the free market.
The one complicating factor would be the unfunded liabilities of all major governments that could dwarf the existing currency in circulation by a factor of 10 or more (US unfunded liabilities, according to academic Lawrence Kotlikoff, could be higher than $250 trillion).
Ignoring all of those complexities, the math after making reasonable assumptions for the reserves of the Western central banks would lead to a five-figure price for gold (in $/ounce) where the first digit need not necessarily be 1.