Randy Strauss: Only gold solves the international currency problem


7:30p ET Tuesday, November 13, 2007

Dear Friend of GATA and Gold:

Randy Strauss of Centennial Precious Metals in Denver and its wonderful USAGold.com Forum (http://www.usagold.com/cpmforum/) today commented incisively there about the turmoil in the currency markets.

Strauss wrote:

"When you wrap your mind around the socio-political stickiness of the situation, you quickly realize that the problems of the outmoded dollar-centric (or any national-centric) reserve structure of the international monetary system cannot be solved as easily as a move into another currency -- for example, the euro. That merely relocates the socio-political problems to a different geography.

"A shift into a gold-centric reserve structure is the only long-term solution, allowing each nation to pursue (to a modest extent) its own easy- or tight-currency policy without having an immediate effect on the value and stability of other nations' reserves.

"In this process gold will be elevated in value, but the key difference under this architecture is that, unlike any chosen nation-state, Mother Nature will not raise socio-political objections to such high valuation of her 'currency' because she does not have a legion of exporting constituents to pacify.

"If you can understand this, you will be able to divine the future for yourself, and to act -- buy gold -- with utmost confidence, even and especially on price-dipping days like we're currently enjoying."

It might be added that gold was the international reserve currency for many years not just for its own superior monetary attributes but also because of the neutrality Strauss cites; that gold was greatly diminished as the reserve currency because it got in the way of imperial wars a century ago; that it has been and still is suppressed (though with increasing difficulty) in large part because it lends far less support to imperialism than fiat currency does; and that, as Strauss suggests, it also is likely to be restored internationally for precisely that same reason.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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