They May Have to Go to the Gold Standard in the Next Crisis

There�s nothing the Fed can do to solve the depression or to change the structural problems in the U.S. economy. I mean, they�re assuming, they�re saying, �We�re gonna print money until unemployment gets to 6 and a half percent.� Who says there�s any relationship between printing money and unemployment? There�s no necessary relationship there. One�s monetary, one�s structural, so you need to do other things. So therefore they�re gonna keep going, but they think they�re right.

I may be a critic and I may be able to point out why they�re wrong, why their models are wrong and why this says �No Good Exit,� but they think they�re right and they�re gonna keep going and kinda drive the bus over the cliff.

Now, at that point, when the crisis emerges, they may have to go to a gold standard. They don�t want to, but they may have to, to restore confidence. But I�m very doubtful that they�ll do it as a matter of choice and say, �Look, we need to do this, let�s just do it now, let�s be honest, let�s be transparent, let�s be thoughtful.� You could do that but I think that�s very unlikely.

- Jim Rickards via a recent Future Money Trends interview, read more here:

http://futuremoneytrends.com/blog/?p=10062