Martin Armstrong Explains Why The Gold Standard Is Implausible And Useless

Last week we highlighted a new piece of research from Martin Armstrong which argued that gold would go to $5,000 and higher.

Though he’s not the first to put it this way, Armstrong sees gold as the ultimate hedge against government mismanagement of the economy.

His essay starts with:

Gold has been among the most hated subjects by the socialists, because with each dollar that it advances, it reveals the delusion that they seek to live within.

But, fans of Ron Paul and Peter Schiff may be disappointed to read that Armstrong is no believer in the gold standard.

The explanation, basically, is that governments will still find a way to manipulate the money system, even if money is ostensibly backed by gold. For example, the government could taint gold with a cheaper metal, like silver. (Sorry for the formatting, due to the style of the report, we had to grab an image of the text):

And here’s the full piece again:

GOLD $5000+ 11/11/09

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