RICHARD RUSSELL: The World Can Fix Its Debt Problem By Raising The Value Of Gold To $10,000

richard russell
Richard Russell

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Richard Russell, author of The Dow Theory Letters, is also out with some new commentary via King World News.Russell starts by addressing the troubling milestone of the U.S. government debt passing $16 trillion.

And he offers an unconventional and unlikely solution.

Paying off by normal means would entail a huge, really killer boost in taxes and a brutal unmerciful, slashing of entitlements.  The only way the US’s debts can ever be seriously addressed is to devalue the dollar.

The US owns the world’s greatest hoard of gold.  Here’s what I think the authorities have to do.  They should unilaterally, overnight raise the price of gold to a high value, maybe around $10,000 an ounce.  Thus, each dollar would be worth one 10-thousandth of an ounce of gold.  This would allow our enormous debt to be paid off with vastly devalued dollars.

Nations owning gold would in turn (in order to compete) — devalue their own currencies, and thus be able to pay off their own ‘impossible’ debts.  In the end, a new world monetary system would have to be established, but the terrible problem of a planet choking on debt would be solved.


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