Bond guru Jim Grant tells King World News there’s only one way out of America’s debt hole:
“Well, in my mind it will resolve them necessarily by undertaking the step of restoring the dollar to convertibility into gold.”
Grant has been calling for Bernanke’s resignation for months. He says the debasement of fiat currency will continue and this will drive a gold rally.
“To me the gold price takes the form of a very uncomplicated formula, and all you have to do is divide one by ‘n.’ And ‘n’, I’m glad you ask, ‘n’ is the world’s trust in the institution of paper money and in the capacity of people like Ben Bernanke to manage it. So the smaller ‘n’, the bigger the price. One divided by a receding number is the definition of a bull market.”