Requiem for the Dollar

Bergman: "Where's the gold?"
Joe Moore: "In the heart of the pure."
--Heist

Masterful piece by Jim Grant on the dollar and the gold standard. One of those 'must reads' for people seeking perspective on monetary systems and their centrality to standard of living.

Perhaps my favorite concept from Mr Grant's missive: A proper gold standard promotes balance in financial and commercial affairs. A pure paper systems promotes and perpetuates imbalances.

Until we reestablish the connection between money and a reference standard like gold, and remove central banks from the system, we'll wind more instability into the system.

This imbalance creates more and more potential energy that at some point will be irrepressible in the opposite direction as the system unwinds toward a balanced state.

position in gold, USD